DISCUSSION

RSR Research:  What Role Will Mobile Play in Stores?

Written by Nikki Baird
By Nikki Baird, Managing Partner

Through a special arrangement, presented here for discussion is a summary of an article from Retail Paradox, Retail Systems Research's weekly analysis on emerging issues facing retailers.

Store operations have rarely taken the time to understand e-commerce -- the technology or the channel -- a group of six chief information officers (CIOs) from an array of retail verticals told me at a round table discussion at RIS News' Executive Summit event. And so mobile is yet another development in an area of poor understanding,

What's different about mobile vs. online retail is the visibility that stores have into the effect mobile has on shopping behavior. Online shopping was an at-home activity, so it had little direct effect on store operations. Mobile, on the other hand, is often an at-the-shelf activity, and front line employees find themselves dealing with a whole new set of questions from better informed customers.

Unfortunately for the CIOs at the table, the discussion with store operations has revolved around a fear reaction -- a "Can we wrap our stores in tin foil" kind of discussion. So, given that stores' response to mobile right now is to basically freak out over consumers using their phones to price compare at the shelf, what is the current thinking on the role of mobile in stores?

CIOs apparently have more imagination than their store operations counterparts. This is where the discussion turned in a completely new and positive direction. The consensus was that kiosks are simply too expensive and need to be replaced. Retailers are thinking about mobile to replace the kiosk as a customer service tool or some kind of customer mobile concierge. But, back in the land of practicality, what most of the CIOs at the table are currently striving for is parity. They want to make sure employees are at least even with what customers have and know when they walk in a store.

At the same time, the retailers at the table were also very concerned with how to manage the relevancy that a mobile in-store experience can provide. Yes, they want increased relevancy and see mobile as a way to provide all the mass elements of a kiosk, personalized to the person holding the device. But, they are not sure how to increase in-store relevancy (especially with an employee as part of the service mix) without creeping out customers.

Discussion Questions: Do you see mobile technology as a tool to work with in-store kiosks or a replacement for the units? How can in-store employees become part of a personalized selling/service environment using mobile technology without crossing a privacy line that would "creep out" consumers?

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