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No matter where you look, you’ll discover a drastically different buying experience in modern-day stores. Smartphone touches are gradually replacing credit card swipes; tablet screens are taking over as in-store signage and becoming point-of-sale systems; and beacons are alerting browsing mobile shoppers to deals. The most exciting part? The retail revolution is only getting started—and it won’t be televised or show up in your Sunday circular.
This era of digital change brings about promising opportunities for the future of customer engagement, but retailers must also pay close attention to potential problems. From mitigating the major risks of data breaches that have hit online merchants and brick-and-mortar retailers to watching RadioShack file its bankruptcy paperwork, the future of retail is clouded with uncertainties.
These uncertainties raise big questions—the answers to which are paving the way for new possibilities and new ways of inspiring consumers to shop. For instance, as online and mobile continue to grow and acquire a larger retail share, will physical stores become a part of the past? In an era of automation, do digital-driven shoppers even care about customer service? With customers searching for daily deals and incentives, can the industry find any room for increased profitability? As the constant wave of change leads to many early and inaccurate conclusions about the future of retail, here are three common beliefs that may not be the full truth.
Myth: Given the chance, consumers will order everything from the comfort of their home.
Reality: Brick-and-mortar locations are more important than ever.
Digital is disrupting the retailer-customer relationship, but that doesn’t automatically translate to danger for the traditional retail puzzle; the vast majority of customers still prefer shopping in a physical store. But at a time when customers can conveniently peruse the Web for clothes, books, toilet paper and more, why would they continue to make the trek to a brick-and-mortar location? Because the store is where they can touch, feel and test new products. It’s where they can bring their friends and receive in-person feedback. And perhaps, most importantly, the store is where they obtain instant purchase gratification versus delayed satisfaction due to product shipping.
You may ask yourself, “Won’t retailers be able to solve these issues in the near future with technologies like 3-D virtual fitting rooms and delivery drones?” Some analysts may agree, but it’s still unlikely. In fact, in 2020, McKinsey & Company estimates that 80 percent of U.S. retail sales will still happen within the four walls of a store. Even the most forward-thinking e-commerce players (Amazon, Bonobos and Warby Parker) recognize that brick-and-mortar brand awareness is a key piece of connecting with customers.
Consider men’s clothing company Bonobos. After finding success with its initial low-overhead, no-store-real-estate approach, Bonobos launched its proprietary Bonobos Guideshops, where customers can book appointments to get one-on-one attention, identify sizing information and place orders. With stores in cities like Austin, Chicago and San Francisco, Bonobos has embraced a nimble brick-and-mortar footprint to cement its brand and attract customers across the country. The company knows what other e-commerce names are recognizing: Digital may change the sales cycle, but it will likely never replace the need for face-to-face interaction. Sure, the size of the store or the inventory in each location can and likely will change, but consumers still crave the traditional retail experience they have come to know and love.
Myth: The everything-under-one-roof approach makes shopping more convenient....
For complete article on Forbes.com, please click here.
