How to use technology to improve the instore customer experience
Technology innovation was an obvious focus for retailers when the pandemic forced shoppers online. Does technology now have a role to play in tempting shoppers back to the high street?
During the pandemic, the focus of retailers changed away from encouraging customers to spend long periods of time browsing instore.
Initially, retailers worked to move customers online, developing digital experiences that could replace the instore experience. Then, as shops began to reopen, the focus went to moving customers through the store as quickly and safely as possible.
Can technology improve the instore customer experience?
Although the Centre for Retail Research has described the UK retail industry as undergoing a “permacrisis” since the 2008 financial crash, UK Government data suggests that overall UK retail sales broadly returned to pre-pandemic levels from March 2021 before falling back below pre-pandemic levels after August 2022.
Now that stores are open again for business as usual, UK retailers have an opportunity to use the digital transformation and technology innovation skills they invested in online experiences and developed through COVID and apply them to enhancing the customer experience in the bricks-and-mortar world.
Tempting customers back into store and maximising spend once customers are instore will depend on how creatively retailers can enhance the instore customer experience.
How to use technology to improve the instore customer experience
Retailers can secure competitive advantage by using technology to improve the customer experience. Let’s consider some of the innovations happening on UK high streets.
1. Create omnichannel view of the customer
CRM integration offers retailers an opportunity to access all customer data from one place and update it across multiple systems and channels at once. This enables a much better understanding of your customer and their interactions with your brand whether through your shops, your website, your apps or your social media accounts.
Customers expect this type of integrated, multi-channel approach today. Using technology to enable your customers to enjoy a consistent and tailored experience wherever they are enhances overall customer experience and loyalty.
2. Understand your customers
Advanced data science and analytical insights can drive more personalised and contextualised customer interactions. When a customer feels personalisation and contextualisation which benefits them directly, this helps to build trust and loyalty with your brand.
3. Create novel instore experiences
Digital technologies are being deployed instore to create novel experiences for customers. For example, digital kiosks enable customers to access and self-serve a whole range of services instore, including accessing promotions, searching for products or speeding checkout processes.
Other retailers are using technology to deliver instore events, such as media walls that provide video links to other stores or external third parties for special live events. Still others are offering mobile connectivity concepts, so that customers can download a dedicated app and their smartphones can be used to support their journey as they move through the retail environment.
4. Deliver timely offers and promotions
Linking geolocation technologies with mobile apps enables retailers to push notifications out to customers that can enhance their instore experience and deliver personalised and contextualised promotions and special offers. A customer could be given recommendations based on their past purchases, browsing history or location in the store.
5. Recognise that not all interactions should be frictionless
Harvard Business Review argues that some customer experiences can be improved by adding friction to the journey. These moments can create a learning path for customers, who are prompted to engage more fully during those moments of friction.
Customers can reflect on their choices or deepen their understanding of the product, brand or how to accomplish their goals. This recommendation builds on a Gartner study which found that customers were 1.73 times more likely to buy more if they realised something new about their needs or goals.
6. Use technology to maximise the value of products your customer already owns
Harvard Business Review also recommends that retailers use instore experiences to demonstrate to your customers how they can maximise the value of the products or services they already own.
This might be as simple as showcasing use cases or maintenance tips on a video wall, offering the opportunity to access self-service maintenance tasks in digital kiosks or engaging with products or staff in new ways, such as with augmented reality. Gartner research shows that customers who are on the receiving end of this type of value-enhancing reaction are significantly more likely to linger instore and to buy more.
7. Deliver convenient payment options
Technology innovation has also focused on making checkout processes smoother for customers. Self-service payment terminals are now commonplace and “scan and go” options which enable customers to scan the item they wish to purchase with their phone and then make payment on that device are growing in use. Such services can also be a way to engage more shoppers in downloading apps and signing up to loyalty programmes.
8. Deliver digital follow-up experiences
The instore experience extends beyond leaving the physical store. Follow-up emails, invitations to leave feedback or publish purchases to social media are an important part of the overall retail experience. Every touch point should be seen as an opportunity to make a positive impact on your customer and to enhance their customer experience.
9. Feed into continuous improvement loops and continue to innovate
By tracking store visits, movement around stores, interaction with instore promotions and other customer engagement as well as monitoring how users interact with digital content, marketers and store designers can gain insights into what resonates with their customers and adjust their strategies accordingly. Customer experience can, in this way, be continually enhanced to drive value for the customer and the retailer.
10. A good customer experience depends on a good employee experience
While much focus of digitalisation and technology innovation in the instore environment is focused on customer communications and services, perhaps the area in which technology can have the biggest impact on the customer experience is in how retailers deploy technology to enhance the employee experience.
Demotivated or unhappy staff will not enhance the instore experience of your customers. Instead, investing in good instore digital solutions for colleagues will pay dividends and, ultimately, enhance the customer experience.
Happy, motivated employees who are not frustrated by poorly performing systems or applications, who can find the answers they and their customers need quickly and are empowered to adapt their offering to meet customer requirements and preferences, will be best placed to make every customer’s instore experience the best it can possibly be.