How mobile is transforming retail by Xper wise

How mobile is transforming the retail industry White Paper

How mobile is transforming the retail industry Table of contents 1: Introduction 1: Streamlining checkouts 2: Geolocative Technologies and their Role in Retail 3: Clienteling 5: Tablets 6: The Social Experience 8: Big Data 9: CONCLUSION

Introduction With the rise of smartphones and tablet computers, mobile technology is transforming the retail industry. More than ever before, customers and clients are able to research, compare and purchase products and services with their mobile devices wherever they are. Whether they are sitting at home or browsing in a brick-and-mortar store, people are using mobile technologies to change how they buy things, how they feel about retail brands and how they talk to others about their retail experiences. That kind of dramatic growth means retailers must be aware of the forces working on the market to take advantage of the opportunities to come. When retailers talk about mobile, it’s easy to think the term refers only to mobile sales. Mobile online sales alone are expected to reach €21.5 billion across France, UK and Germany in 2014 according to research by Centre for Retail Research1. An Adobe 2013 Mobile Consumer Survey found that more than half of the people with a mobile device have used it to purchase some kind of consumer goods. But it’s not just sales through mobile devices. Brick-and-mortar retailers are looking at ways to enhance in-store experiences through mobile checkout devices, clienteling, tablet use among sales associates, connections through social media and Big Data analytics. No matter where your customers are, mobile technology can enhance the experience they have with your brand. The challenge facing many retailers today is understanding what mobile technologies can do for their customers and stores; how to harness the power of mobile devices as tools to reach and serve their customers in the store; and how to capture and analyse customer preferences using Big Data principles to better customise in-store customer experiences and respond to their desires and concerns. Topics covered in this paper include: • How companies can leverage their customers’ perspectives and preferences to deliver a better in-store experience through devices. • How that experience can translate to increased customer loyalty and a stronger bottom line. • How the latest trends and best practices in streamlining checkouts, clienteling, and using tablets can enhance the in-store customer experience. • How to link the shopping transaction to the social experience. • How retailers can harness the power of Big Data to improve the bottom line.

Streamlining checkouts Customers are eager to embrace time-saving mobile technology such as mobile conversions and checkouts, and adoption of these technologies can help pave the way for building a deeper mobile relationship between retailers and their customers.

1 http://www.retailresearch.org/onlineretailing.php

One of the most obvious ways mobile technology has made a major change for retailers is by streamlining conversions and checkouts. According to a research by EE, a Telecom company, British retailers stand to lose £1.04 billion a year due to long queues at the check-out leading to purchase abandonment by the customer2. By moving the point of sale closer to the customer, mobile technology has made it easier for retailers to get to the sale more quickly. Some of the innovations that have made this possible include the mobile credit card readers (such as Square technology) and mobile “scan-and-go” payment applications (such as Google Wallet, or proprietary apps that companies develop themselves). Some of the leaders in using mobile checkouts and other similar technologies include Apple and Starbucks, according to Michael Klein, Director, Industry Strategy and Marketing - Retail at Adobe Systems.

Mobile Wallet

18%

HAVE USED A “MOBILE WALLET” OF SOME KIND IN THE PAST THREE MONTHS

83%

SAID THE EXPERIENCE WAS EASIER THAN USING A CREDIT CARD

The mobile wallet is likely to become a standard, says Klein, as retail customers come to expect that they don’t have to stand in line to purchase something. Instead, associates will come to them and take care of the transaction quickly and easily.

Another trend that is emerging, but may take some time to fully take effect, is the ability of Figure 1: Use of mobile wallets (Source: Adobe 2013 Mobile Consumer Survey) customers to check out with a mobile device without the assistance of a store associate. The mobile checkout also can be a good entry point for retailers to ensure their customers are comfortable with the retailer’s use of mobile technology to collect data. For example, many retailers find it a challenge to collect contact information — such as an e-mail address — from customers to add them to a marketing list. But when a retailer uses an electronic-payment app, the request for an e-mail address can become seamless and much more effective. The electronic-payment app then creates a digital connection with the customer, which can be used for marketing.

Geolocative technologies and their role in retail The use of geolocative technologies such as near field communication (NFC) and geofencing can help increase customers’ engagement. With NFC, mobile devices can push information to each other when they are in close contact. Geofencing is the process of setting up a virtual “fence” around a retail property that can detect when a customer who has opted into the service is in the area. The retailer can then send messages about exclusive offers that are good for that visit. Knowing where these potential customers are and using that willingness to use their mobile devices can help retailers take advantage of wayfinding technologies. In addition, scanning LIKELY TO USE THEIR bar codes or QR codes is becoming more mainstream, as 38 % MOBILE DEVICES TO percent of younger and 40 percent of middle-age groups FIND DIRECTIONS TO SOMETHING report scanning a QR code in the past three months3. Roughly 59 percent of smartphone users use check-in options, scannable coupons, in-store navigational aids and inventoryavailability information on their smartphones while they’re Figure 2: Use of geolocative technologies (Source: Adobe 2013 Mobile Consumer Survey) shopping in stores4. Almost half find value in side-by-side product comparisons, and more than 40 percent use 360degree spin views5.

Many retailers’ mobile apps offers check-ins as well, and once a customer has checked in, the customisable app can offer in-store coupons, announcements or welcome the customer. These elements of a retail strategy round out the customer experience and aim to draw even more customers into a retailer. In addition, the majority of smartphone users allow apps to use GPS to personalise the app experience. This kind of relationship-building lays the groundwork for the sales conversion, and it provides incentives along the way, sometimes even as the customer walks through different aisles in the store.

2 https://explore.ee.co.uk/our-company/newsroom/british-retailers-face-1-billion-in-lost-sales-every-year-due-to-long-queues 3 Adobe 2013 Mobile Consumer Survey 4 Adobe 2013 Mobile Consumer Survey 5 Adobe 2013 Mobile Consumer Survey

How mobile is transforming the retail industry White Paper

The key to achieving success with these types of mobile solutions is educating customers about the benefits of new technologies and processes. Depending on a retailer’s target demographic, the speed with which customers embrace these new technologies may vary. It may be helpful to do some research into what customers are looking for and what they might adopt when they are shopping. Technologies such as mobile checkout are often adopted quickly because the benefits are instantly obvious. Some customers may take longer to adopt relationship-based technologies such as push notifications based on location, and so establishing the benefit — sizable discounts or an unexpected buy-one-get-one-free offer — is important. Adobe’s Klein says some retailers struggle with where to put their mobile development. “Do I spend time and money on a mobile website, or do I spend it on an application?” he says. “It’s not one size fits all. We do have information that says that if you have a compelling reason for a consumer to have your application in their phone, you have a customer that is more likely to buy from you and less likely to price-comparison shop.” The application offers the potential for higher order conversion, he says. However, the retailer has to offer something to the customer beyond what the mobile website would offer. Whether that’s store locators, promotions, discounts or a community or loyalty program, customers need to see something that makes them willing to allow a retailer’s app to take up space on their smartphone. What the experts say: “It’s all part of building a sales relationship with a customer. I’m right there … and when the time comes to make a sale and swipe your card, I can take it right there. There’s no standing in line.” Lawrence I. Lerner, president of Chicago-based LLBC

“You need to be there at the time of the consumer’s express need, and mobile works best at the moment of need.” Michael Becker, North American managing director of the Mobile Marketing Association

35%

42%

36%

say mobile-optimised websites are the primary way they browse for products.

say mobile apps are their primary browsing tool.

prefer apps on their mobile device.

MOBILE SHOPPERS

IPHONE USERS

ANDROID USERS

Figure 3: How smartphone users browse for products (Source: Adobe 2013 Mobile Consumer Survey)

When given a choice, smartphone users prefer to research products on mobile browsers over apps by two to one, Adobe research has found.

Best practices As retailers look to expand their mobile offerings to customers, gaining trust through mobile checkouts and conversions can be a way to acclimate customers to more mobile interactions that provide benefits to both sides. The value is obvious, and mobile checkouts can help lay the foundation for an ongoing mobile relationship that enhances customer service between customers and the store through incentives such as geolocative notifications

Clienteling Many retailers are familiar with using mobile technology to reach customers, but there’s a way retailers can help retain customers using mobile technology as well. By compiling past sales records and through using strong people skills, retailers can boost their customer retention rates through the concept of clienteling. “Clienteling” is used to describe a hyperpersonalised customer-service experience in a retail setting. While it has been around long before mobile, retailers are showing a renewed interest in it as they find mobile technology makes it easy, both on the part of the customer and of the retailer.

How mobile is transforming the retail industry White Paper

By using the information gained through, stored on and retrieved through mobile technology stores and sales associates can provide a sales experience that rivals the golden age of retail customer service. A sales associate has the power to know what particular customer likes, to anticipate what they might like and help them find it and to follow up on the purchase. Mobile technology makes it possible for retailers to compile that data automatically, store it efficiently and then share it with sales associates across stores. No matter which retail outlet the customers use, their preferences are accessible by any sales associate. Arming sales associates with some kind of mobile device and access to customer preferences seems like a simple thing to adopt to take advantage of sizable benefits, but Milton Pedraza, CEO of Luxury Institute, says he’s surprised at how few brands emphasise following-up to their sales associates. Mobile-based clienteling can level the playing field for smaller or lesser-known retailers and help provide an upscale experience at a wide variety of retailers, experts say. It’s a fairly low investment on the hardware and will require some training and buy-in from sales associates. But the payoffs can be worth it. Part of the reason retailers may have trouble grasping the concept of clienteling, Pedraza says, is that they fall into two camps. One of them takes a more spamlike approach: “‘Let’s keep sending them offers! We think we’ve got them figured out!’ But the chance of getting a high response from a spam e-mail or spam text is pretty low. When the store cultivates a relationship, you can get 50% to 80% open rates. It’s in the single digits for spam e-mails or text messages.” The communication must be personal and valuable to be effective, says Michael Becker, North American managing director of the Mobile Marketing Association. You have to talk to the customer as a person, not as a generic 40-year-old male, for example. Retailers often get hung up on price as a motivator, but according to Becker, emotional loyalty is important to encourage. The initial fears that online sales would kill brick-and-mortar stores, studies show that shoppers still generally prefer to shop in person. Using mobile-based clienteling can help improve in-store customer experiences and boost loyalty. And if some retailers are concerned that the reliance on mobile technology is off-putting to the customer, experts say that there’s no substitute for good customer service, regardless of the source. What the experts say: “The best example I always draw upon is Brooks Brothers. You went to Brooks Brothers because the sales associate worked with you on a regular basis. They had an index card or a page in a little black book that told everything about your past purchase history, and how long it’s been since your last purchase, your waist size, shirt-sleeve length, whether you prefer French cuffs or regular cuffs, that sort of thing. They knew exactly what your preference and taste were down to that level of detail. They knew you needed a new shirt before you knew and possibly gave you a phone call. That is clienteling.” Michael Klein, Adobe

“It’s about customer experience. It’s almost like a throwback to the old-fashioned corner store. The owner knew the customers and knew what they needed, what special events they had coming up, and they talked to you about this. Now it’s all been digitised. It requires an investment on the part of the retailer, but it’s worth it.” Lawrence I. Lerner, president of Chicago-based LLBC

“When you do this relationship-building, this clienteling, you can dramatically improve customer retention rate and referrals. It doesn’t happen by itself, though. You cultivate it after the first sale.” Luxury Institute CEO Milton Pedraza

Best practices Establishing a clienteling program that uses mobile technology can empower sales associates to make the best decisions for the customer. Hyper-personalised customer service that starts before the sale and extends after the sale can be fostered through mobile technology and result in engaged sales associates and better customer retention.

How mobile is transforming the retail industry White Paper

Tablets A wide variety of retailers — including House of Fraser and Apple — are giving their sales associates tablets and other mobile devices to help them be better salespeople. Speciality retailers are deploying about 45 percent of all tablets shipped to retail for point-of-sale use, according to a survey6. Small, independent retailers and mall-based speciality chains are the most common users of tablets in a retail setting.

Tablets are “poised to gain market share” for retail use because tablets provide an excellent view of consumer products, Adobe research has found.

Over the past 12 months,

62% 56% IPAD USERS

ANDROID TABLET USERS

spent more than $250 on consumer products using their devices.

Figure 4: Purchases by tablet users (Source: Adobe 2013 Mobile Consumer Survey)

Tablet shoppers tend to be at home, not using the tablet in a mobile sense, and likely to use an app or a tablet version of the regular website, not a mobile site. Tablet computers are becoming popular devices for sales associates to use on the sales floor as well. More than half of CIOs have purchased tablets for employees in 2011; in 2010, 71 percent didn’t allow tablet use7. But retailers lag when it comes to providing Wi-Fi for associates to use. Another study found that less than a third of companies provided wireless access so associates could assist clients. Another third provided no wireless access at all8. Depending on what a retailer wants to focus on, different apps on a tablet computer or other mobile device can help associates to: • Check on what’s available in the store or other stores in the chain. • Notify other locations of shortages. • Make suggestions about complementary products to the customer. The tablet itself can become a physical connection that establishes trust between the sales associate and the customer, as the associate shows the customer products that are available and draws the customer into a potential sale. Depending on the kind of app installed on the tablet, a customer could even drive herself through the sale if the associate hands the tablet over to her, immersing her in the sales process almost seamlessly. Tablet computers can be more useful to sales associates than smaller mobile devices, especially when clienteling. Sales associates can quickly and easily pull up extensive product descriptions on a tablet to show the customer. Specialised apps can even include videos of products being used. Tablets can help sales associates provide that information in the store, and customers have come to expect this level of information. When shopping on their devices,

59%

SMARTPHONE USERS

Access features such as: • Full-screen imagery • Alternative views, • Dynamic zoom, • 360-degree spin • Videos • Product tours.

Figure 5: Features used by smartphone users (Source: Adobe 2013 Mobile Consumer Survey)

6 IHL Services survey 7 “Tablet Demand and Disruption,” 2011 Morgan Stanley report 8 “Clienteling 2.0: A Retailing Reboot for Assisted Selling in the Connected Store,” Retail Systems Research study

How mobile is transforming the retail industry White Paper

This kind of interaction could keep the customer from “show-rooming,” or shopping for better prices online as she’s looking at the product in the store. According to the Adobe survey, about two-thirds of smartphone users compare product and price information by different retailers on their mobile devices at some point while shopping, and about 60% check customer ratings and reviews9. If an associate is providing that information in the store on tablet, she can drive the sale in a way that benefits the retailer. The cultivation of these personal connections, fostered by the information available through mobile devices such as tablets, builds a relationship that brings customers back. And not only does it improve the retail experience for customers, but it can make major improvements on the business side as well. Using tablet technology can reduce cost and waste by eliminating the need for some internal-sales literature. Sharing information with associates and managers on tablets also can ensure that everyone is on the same virtual page when it comes to sales displays, promotions, layouts and policies. Finally, using tablets can improve the sales associate’s experience as well, reducing turnover and training costs. LLBC’s Lerner says retention is improved by retail stores whose associates use mobile devices such as tablets to enhance customer experience. Pedraza, of Luxury Institute, describes this level of customer service as a win-win for everyone. Handing over tablets to your sales associates won’t magically turn them into clienteling experts. It takes training and investment — and hiring the right people. Also, the addition of mobile technology is not going to “automate” customer service in a way that the human touch is lost. Pedraza says many retailers don’t recognise this, or want to invest in what works. All that mobile technology will do is to enhance what associates do already. Security concerns can be an issue when it comes to using tablets across a store or network of stores, particularly if sales associates are using the tablets for streamlining sales as well. When using tablets to foster clienteling and checkouts, retailers should work with a provider that can help keep credit card numbers, purchase histories, wish lists and other personal data secure. What the experts say: “Sales professionals are doing something meaningful, clients are getting offers that are relevant and stores and brands are selling more.” Luxury Institute CEO Milton Pedraza

Best practices To take advantage of the benefits that tablet-based customer-service offers in a retail environment, ensure that associates are already familiar with and providing excellent customer service. Then a retailer can provide tablets and train the associates to access and share the information available to make an in-store customer experience extraordinary. Sales employees see tablets as a perk, and improved customer service can help boost retention rates. It is critical, however, to ensure that data are secure, both within the company and against external threats.

The social experience Retailers continue to find their way dealing with social networks. Some networks are about brandbuilding, while others may turn into retail opportunities. As more people continue to access social networks through their mobile devices, retailers can use those networks to reach more potential customers and retain loyal ones. Before the explosion of social media networks, people shared their opinions about stores, brands and products by word of mouth. A shopper with a customer-service horror story could tell her friends, and they might or might not change their shopping habits because of it, and the story would probably end there.

9 Adobe 2013 Mobile Consumer Survey

How mobile is transforming the retail industry White Paper

Once e-mail became mainstream, people could send their stories to friends and family, and their experiences might get forwarded on or even “go viral.” But with the rise of social networks such as Facebook and Twitter, people were able to share their retail experiences with everyone, as well as compile wish lists and look for “inspiration” through sites such as Pinterest, where people can “pin” links and graphics that they want to save for future use and share them with others, like a virtual bulletin board. As the social-networking sites have developed, each has taken on a distinctive role that retailers can use in different ways, said Paul Price, CEO of Creative Realities.

55%

84%

use their mobile devices to share product information with their friends.

use their mobile devices to access social media networks.

OF ALL RESPONDENTS

OF 18 TO 29-YEAR-OLDS

Figure 6: Use of sharing and social media (Source: Adobe 2013 Mobile Consumer Survey)

Retail companies are recognising the power of social media trends and are using the socialnetworking sites to drive and control the conversation themselves. For example, some retailers are shifting toward fusing the shopping experience and social media within a store, Price said.

What the experts say: “Some [retailers] are genuine about building relationships with brands and stores through a relevant conversation. Facebook is where I as a consumer have decided to continue my relationship with a brand. I’m actively interested in what it has to offer me and what it has to say. It keeps them interested in your store by nurturing relationships and retention.” Paul Price, CEO of New York-based Creative Realities

Shoppers can check in on Facebook and list their location as the retail store, receive special privileges, and even have his social activity or purchases displayed inside the store. Other activities can include posting about favourite purchases, or interacting with customer service. US-headquartered retailer Nordstrom routinely posts photos of new or interesting products and invites conversation around them, with Nordstrom employees interacting with the customer conversations.

OF YOUNG AND MIDDLE-AGE CONSUMERS

check social media sites with their mobile devices. Figure 7: Use of social media (Source: Adobe 2013 Mobile Consumer Survey)

Because of the prominence of social networking, many retailers have already seen the necessity of establishing a social media presence. One survey found that a third of respondents said they were somewhat or very likely to follow a retail brand on a social network10. “Following” a brand on Twitter or Facebook represents a kind of opt-in to what the retailer has to say online.

And consumers are becoming more comfortable with making the conversation two-way — if a customer has a complaint about a product and posts it on the company’s Facebook page, she expects some kind of response. As many as 75% of customers will share bad retail experiences via social media. That’s up from 25% in 201011. Experts recommend that retailers staff their social media efforts so that problems are taken care of quickly. While discussions about product or service experiences on social media are important to retailers, there are different schools of thought when it comes to turning social networks into viable retail opportunities. On the one hand, social networks are a great way to share ideas, inspirations — and wish lists. On the other hand, social networks may prove to be just that — social — with less of an emphasis on sales and more on fostering connections.

53%

OF CONSUMERS

who visit a Facebook page receive some kind of offer or promotion.

20%

OF CONSUMERS

say they don’t have a very good mobile experience when navigating from the Facebook page to the brand’s site.

Figure 8: Experience with Facebook (Source: Adobe 2013 Mobile Consumer Survey)

10 “Meeting the Demands of the Smarter Consumer,” IBM Institute of Business Value study 11 “Key Issues for Customer Experience Management,” 2011 report from Gartner

How mobile is transforming the retail industry White Paper

Companies can boost engagement by ensuring their sites are mobile optimised and should consider mobile offers to those navigating from social media, according to Adobe’s study.

“We are only just beginning to see the benefit of the development of more personal experiences has to do with the ability of retailers to take data and interpret it for ways that can drive tailored experiences for customers,” he says. “Big Data is an enabler of what is a more important outcome — how the average shopping visit becomes tailored and highly personalised. It’s making my store much more special and, of course, mobile is the platform to deliver that all on.” PAUL PRICE, CEO of CREATIVE REALITIES

Klein of Adobe says that when retailers think of their social presence, they must also keep in mind the “mobile” and “local” parts of “mobile-social-local,” a way of looking at customer interaction. He cites Guitar Center as a retail company that does a “good job” with this. The company has individual Facebook pages for local stores, rather than one page for the company itself. The pages provide information about local events and offers, and so when a customer checks in on their mobile device or looks at Facebook while out and about, they might see that a guest musician is holding an event at the local Guitar Center. What the experts say: “When I think of ‘social commerce,’ I think of what was going on in 2011 and 2012, when retailers were trying to put catalogues on Facebook so they could sell products from there. What I’m hearing more of is the mobilesocial-local concept. Multichannel retailers who have brick-and-mortar stores across the country can have a social presence that puts a face on the store for a local patron.” Michael Klein, Adobe

Best practices Retailers can foster communication and brand loyalty through social media networks by employing contests, special offers, conversations and notification of events as they explore conversion and checkout opportunities. Collaborative sites such as Pinterest and the concept of sharing wish lists may turn into sales-conversation opportunities over time. Social media is growing and changing rapidly, and retailers should pay attention to trends as they develop.

Big Data Consumers are providing mountains of data about their shopping habits and preferences through mobile technology. Using the principles of Big Data and predictive analysis can establish buying trends and anticipate what certain customers may be interested in. Big Data is the concept of analysing multiple databases and coming to predictive conclusions about individuals or groups of people. Retailers are just starting to see the potential of Big Data principles. The possible gains from Big Data are huge. Retailers could increase operating margins by up to 60 percent by using Big Data principles, one study found12. “If you want relevance, pay attention to Big Data,” says Michael Becker, North American managing director of the Mobile Marketing Association. “The challenge is not to be coy about it. It’s big. It’s a difficult thing to wrap your head around because of all the different data points. It truly is an amazing tool.” Big Data can help companies see beyond the demographics and customise experiences for each customer — and as companies collect more information from mobile devices, their data sets for Big Data can grow. Retailers face challenges in adopting Big Data principles, however. One key challenge is to find people with deep analytics skills who can grasp and work with Big Data principles, as well as a lack of managers who can use Big Data results to make effective decisions13. Another challenge is storing and working with the data itself. Big Data crunches information from multiple databases and can include as many sets of data as a retailer finds useful — store location, product placement, shopper demographics, combined checkouts, weather on the day of a sale and so on. Many businesses don’t have the resources to do this, Becker says. Smaller retailers especially may find they need to work with vendors when it comes to Big Data analysis. What the experts say: “One way we’re helping our mobile customers is with our Adobe Analytics solution, which allows for mobile tracking. What the challenge is, and what we’re working on, is creating a single user ID that can identify that user no matter where the user is, and see them as unique individuals. Using an analytics tool to track mobile activity is a big part of that.” Michael Klein, Adobe

“You’ve got this ridiculously large data repository. Some retailers have a lot of information, but refining it takes time to get the answers right and resources to go through it.” Lawrence I. Lerner, president of Chicago-based LLBC

12 McKinsey study, 2011 13 McKinsey study, 2011

How mobile is transforming the retail industry White Paper

Retailers also need to come to terms with data security. The McKinsey study recommends that retailers develop customer-data policies that address privacy, security, intellectual rights and liability. Customers generally have an idea that retailers use past purchase history and demographic information to keep tabs on them, but they resist anything that feels creepy. Lerner says that the Millennial Generation — those born from around 1980 to the mid-1990s — are cautious about sharing a lot of information, and retailers need to use a careful hand. The same principles that retailers use with other uses of mobile technology — personalisation and showing value — will come into play as they use Big Data principles.

Best practices Retailers can use Big Data principles to enhance customer experiences and boost the bottom line, but they will need to establish policies and principles to store and manipulate the data they use for analysis. Having the resources to manipulate and analyse the data will be a factor in whether embracing predictive analysis is a success. Finally, retailers will need to be mindful of how they communicate conclusions they draw with their customers.

“People want three things from a service provider. You want the person to be an expert at what they do, you want to trust them and you want to like them as a human being.” Luxury Institute CEO Milton Pedraza

CONCLUSION The changes that mobile technology have brought to the retail industry are vast and developing constantly. As retailers consider incorporating some of these mobile-technology advances into their business practices, it becomes clear that many of them are integrative. For example: Once a retail outlet decides to arm its sales associates with tablet computers to optimise customer service during the shopping process, it becomes natural to add mobile checkout. Once mobile checkout is added, a retailer can begin building a database to collect and store information to use in predictive analytics. And once predictive analytics enters the game, the retailer can improve the customer experience by training sales associates in the art of clienteling, enhanced with mobile technology. Mobile technology has changed the way customers experience in-store retail as well as the way retailers offer in-store experiences to customers. As retailers adopt more mobile technology, however, they need to remember that making the sale is still about the personal experience a customers have in the store —it’s more about how the store looks and feels to customers, as well as the interactions they have with people in the store. Good customer service is not dependent on mobile technology. Klein says retailers also need to be aware of trends to come. “Mobile is exploding,” he says. “Things that are just emerging include device detection and connecting devices to geographic locations. As retailers try to get a 360-degree view of the customer through the touchpoints of a mobile device, a tablet and a web device on a desktop computer, that’s a challenge. If the holy grail is a 360-degree view of the customer, I’d say most retailers are about halfway there, and that may be being generous. The best of the best are at 250. The gap is being able to stitch together all of a customer’s experiences.” Retailers such as Burberry and Nordstorm are doing a “great job” when it comes to using mobile technology to communicate with customers, provide incentives and personalise customer experience, Klein notes. In the meantime, all retailers can examine the best practices and develop their own optimisation plan for the use of mobile technology to provide excellent customer service and experiences through streamlined checkouts, clienteling, tablet use, social media and Big Data principles.

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