Retailer Daily: Retailers See Digital Media Value Outside Store
Retailers are more inclined to see digital media as providing value in driving store traffic than in improving the in-store experience, according to a new study from RSR Research.
Results from The Customer-centric Store 2010 indicate that a majority of retailers view new digital media (i.e., social networks and smartphones/PDAs) as helpful in driving store traffic. Twenty-five percent of retailers see having a presence on social networks as providing a lot of value in driving traffic to the store, while 57 percent see it as providing some value. Only 18 percent see a presence on social networks as providing little or no store traffic value.
Retailers are less enthusiastic about the value smartphones and PDAs provide to driving store traffic, but almost half still see at least some value (48 percent), while 17 percent see a lot of value. One-third (35 percent) do not see any significant value from smartphones and PDAs in driving store traffic, however.
On the other hand, retailers are far less likely to see new digital media as offering value once the customer is in the store. Only 10 percent of retailers see having a presence on social networks as providing a lot of value in the store, with 33 percent seeing some value. Almost six in 10 (57 percent) see little or no in-store value from social media for the store.
Retailers are only slightly more positive about smartphones and PDAs once a customer enters the store. Twelve percent see smartphones and PDAs as providing a lot of value, while 37 percent see them as providing some value. More than half (52 percent) see no value from smartphones and PDAs in the store.
RSR Research advises retailers that both social networks and mobile devices provide substantial in-store value. Customers already regularly use mobile apps to reference product information and price, and as these apps become more refined, low-cost retailers in particular will find themselves even further squeezed in price competition.
In addition, RSR Research says as the proliferation of social networks enables shoppers to preview what a particular purchase might mean in their particular social circle both before and during the shopping process, a brand's ability to connect with that shopper may make the difference in converting them to a loyal customer.
Discussion Question: Ultimately, will digital media prove more valuable as a traffic driver or as a means to improve the in-store shopping experience? Do you see retailers currently emphasizing one area over the other?