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Nikolas Badminton

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Want to Boost Sales? Go Mobile -- Your Consumers Already Have

Posted: 07/19/2012 2:24 pm

Retail has been turned on its head. Consumers are actively using mobile devices in larger stores to access hundreds of e-commerce, forums and social sites that hold product information, reviews and competitive pricing. This means they are disrupting the retailer's messaging and experience in-store, thus leading to reduction in sales and brand equity.

It's time for you, as retailers, to recognize that it will be too difficult to get people to put down their devices and also to expect them to only trust your opinion. So, how do you deal with this increasing menace? I suggest that we look for perspective in two key areas -- "information democracy" and "disrupting the disruption."

Firstly, let's look at information democracy. The number of products available to consumers is increasing, as is criticism and commenting across social channels. Democracy comes from having free reign to make the choices we want based on feedback from others that use those products and interact with those brands.

An IBM global-shopping survey, that talked to 30,000 consumers in 13 countries, including more than 2,000 Canadians, highlights that the number of Canadians willing to use mobile technologies to shop increased by 160 per cent year-over-year, second only to U.S. consumers in uptake. That's incredible especially when we see what they are doing via mobile. Deloitte and the Retail Council of Canada, in their "Rise of the Connected Consumer" study, have also identified that the following amount of people that are flexing their democratic right to:

• Check prices (35 per cent)
• Look for discounts (31 per cent)
• Research product reviews or recommendations (28 per cent)

Brands like Canadian Tire and Ikea know this and have launched apps to help consumers in-store however they only sing from their own hymn sheet rather than democratizing their information with external resources, reviews and consumer feedback. These apps provide some utility but do not guarantee a sale and it is still just an option to interact through mobile at the discretion of the consumer.

We see the changes in consumer mobile behavior and recognize that this goes beyond just interacting with your brand. Consumers are now expecting more:

1. Creating a consistent experience -- across channels where you can go from web site to mobile to store with consistency.
2. Connections -- to social media channels, entertaining and informative content, and product reviews from other consumers
3. Checking -- prices across products but also in other online stores
4. Personalization -- of the web, mobile and in-store retail experience using preferences and learned behavior from interactions and purchases

If you can do this then you will be heading in the right direction however we still have the issue of disruption in your store and we have to "disrupt the disruption." This is a human-centred solution. We don't send our mobile devices out to shop for us. We need to touch, see and feel our way around products (certainly more complex or different products from what we normally use). Consumers will still walk through your doors so we need to fight old school, in-store and on the front lines.

Sales associates can see people on mobile devices in-store -- it's right in front of them. Personality and engagement is real and this is where we will disrupt those consumers that are trying to disrupt us with their trusty mobile in hand. In reality a mobile device doesn't do anything to truly engage consumers but, if it provides enough utility, then they will pick it up.

Using that idea, we can think about our retail staff in the same way. We need to arm them with mobile devices gives them that extra advantage and ignore the hard sell and just be really personable and informative using external and internal resources.

A useful sales associate will be more effective than a useful web site for a consumer. If you give that sales associate a mobile device then that will takes their knowledge and ability to persuade consumers in-store to the next level. Our advice is to deploy this tactic and work person-to-person in retaining the sale and build a huge amount of credibility with the consumer. This will get results for you and your business very quickly.

 

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Retail has been turned on its head. Consumers are actively using mobile devices in larger stores to access hundreds of e-commerce, forums and social sites that hold product information, reviews and co...
Retail has been turned on its head. Consumers are actively using mobile devices in larger stores to access hundreds of e-commerce, forums and social sites that hold product information, reviews and co...
 
 
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06:30 AM on 07/20/2012
Great post Nik.
Do you have any good examples of retailers around the world who have empowered their sales associates with an ipad proper we tools to accomplish what you're talking about?
01:28 PM on 07/20/2012
Thanks Christian.

Neiman Marcus do a great job - http://mashable.com/2012/07/06/signature-neiman-marcus/
11:00 PM on 07/19/2012
(continued from first comment)...

Canadian retail stores have a long way to go to match their US equivalents but hey, that's nothing new! I guess this goes back to the old adage of excessive retail, federal and provincial taxes causing discrepancy across the country. This is probably one of the key reasons Canadians go across the border to buy their goods in the US: it's cheaper and a lack of trust in the Canadian retail system leaves people frustrated and angry.

Before Canadian stores embrace mobile technology for in-store commerce, they need to think about their pricing strategy and whether charging more in-store versus online can work. Also, they need to abandon their fear of being undercut by Amazon on every product and realize that people will pay more at the store for convenience as long as the difference is not extreme. There's too much of a sense that we're getting ripped off this side of the border and this impacts on sales (which then affects retailers being willing to embrace new technologies and marketing perspectives without fear).

What are your thoughts on this, Nik? Do you think I'm being overly harsh/critical of the Canadian retail system? I'm sure there are some amazing Canadian SMEs doing cut edge stuff online and integrating with in-store but who are the big Canadian players getting it right?
12:27 PM on 07/25/2012
I feel that retailers ignore the culture of their consumers. Apple does well because those people care about design and desirability in products (even though they are not functionally the best out there - I mean, an iPhone is great but nowhere near as functional as a Window Phone or Samsung Android phone).

JC Penney changed their pricing and sales model, flopped and quickly u-turned on the no sale strategy - http://video.cnbc.com/gallery/?video=3000100714. Ironically Ron Johnson (the guy who spearheaded the Apple store concept and is CEO at JCP) ignored the cultural aspect that JCP's consumers are sale and coupon-focused.

A cultural analysis and concept sale is tough. Retailers need to wake up to this.
10:59 PM on 07/19/2012
Great post, Nik.

I was in a sports store the other day looking up about golf clubs online on my cell phone. I wanted to know which were the best ones and what prices they were going for. Interestingly, a sales assistant did come over and talk to me as a response. However, she wasn't very knowledgable but the fact she came over and talked to me improved my impression of the store.

I think many stores are probably quite defensive and afraid of shoppers using mobile to find out information on products. I think this comes down to different monetization models: many stores use the fact that you can buy the product there and then, instead of ordering online cheaper and having to wait a week for delivery, as a reason to charge more. Plus their bottom line is usually affected by having to store products in that particular location due to higher rents and logistics compared to e-commerce stores.

Rona, for instance, won't even show you prices across the board for their products online until you put in a store location. This rouses suspicion that they have different prices depending on geography. Walmart Canada used to do the same. Some big stores like Sportmart don't even have online prices or a catalogue! Their site is like something from the 90s.

(think I need to continue this in a new comment)...