If you have a smartphone in five years, there's a really good chance stores are going to know a lot about you as soon as you make your entrance. In fact, according to a new report by Boston Retail Partners (BRP), nearly two-thirds of retailers (883 percent higher than at present) will identify customers in that way.
According to the report:
- Seventy-six percent of retailers plan to provide suggested selling based a customer purchases within three years;
- Ninety-one percent will have real-time inventory information available at the point of sale within three years;
- Eighty-three percent plan to offer promotions based on a customer's geographic location within five years;
- Ninety-five percent of retailers plan to implement real-time analytics within five years.
RetailWire asked if retailers risked crossing over the line to creepy by identifying customers by their phone as soon as they entered stores. The key, according to a response from BRP, is leaving the decision up to consumers.
Photo: RetailWire
"Retailers' access to customer identities and profile information will be controlled by individual consumers' desire to opt-in to a retail brand — or not," Ken Morris, principal, BRP, said recently. "Consumers can and should choose which retail brands they want to develop a relationship with and when they want to remain anonymous. According to the 80/20 rule, 20 percent of customers account for 80 percent of sales and the customers that opt-in are probably from the 20 percent who are most loyal and likely to buy."
In a recent interview with RetailWire, Mike Hogan, executive vice president of business strategy and brand development at GameStop, emphasized the importance of knowing the customer regardless of whether they were shopping in stores, online via PC or using a mobile device.
The goal in stores, he said, is for GameStop to have someone "who will have a tablet right there who can see who you are, what your interests are, what game you last bought, how many points you have on your PowerUp Rewards and so on."
"Customers are forcing a fundamental reshaping of retail by demanding a seamless convergence of the in-store and digital experiences," said BRP's Mr. Morris in a statement. "Successful retailers realize they can no longer divide that experience among separate channels and must work towards a holistic shopping experience that transcends channels and offers contextual guided selling and promotions — in real-time."