Turning Points 2008: Creating Store Transformation by Earning Trust
Editor's note: In what we plan to make an annual end-of-year tradition, RetailWire has compiled a list of the most significant retail industry "Turning Points" of 2008. (See our news release...) What follows is the tenth in a series of discussions based on the list.
It was a banner year for in-store digital media (ISDM), as spending ramped up significantly and helped secure the "marketing at retail" opportunity as real. Wal-Mart also made big waves, as they announced the new evolution of their in-store network dubbed "the Wal-Mart Smart Network." But as more and more retailers and brands look toward the store, we must ask ourselves what in-store digital tools hold the most potential and how can we ensure that consumers will embrace them?
Similar to the mobile marketing acceptance debate, we as an industry have hopefully learned that we must earn a consumer relationship. The level of intimacy we earn is a continuum, and we must continually move it forward by respecting our shoppers' wishes.
A few examples come to mind. I am now a Clear Card member and in exchange for scanning my retina and all ten fingerprints, I can proceed to the front of the security line in any Clear-approved airport. Google is another, as they have slowly activated more and more online tools that make my business and personal life more manageable, even though I know that they are tracking many things such as what I'm looking at, what I'm storing online and even what tools I'm using to operate my daily business. In both cases, the convenience and value of what I'm getting outweigh any privacy concerns I might harbor. Also, I realize that if I feel uncomfortable with a relationship at any time, I can break it.
As we look to "cure the diseases" that reside within retail stores with technology, there are amazing possibilities with interactive screens, mobile phones and other emerging devices. We also have new in-store analysis tools that can track how shoppers are responding to these technologies to ensure that they are being used and valued.
The conundrum is that trust is at an all-time low and shopper insights are being valued by brands and agencies at an all-time high.
In a survey this year from the Better Business Bureau, they shared that "the decline in consumer trust (causes) serious problems for businesses. But more importantly, it is an opportunity for businesses that understand the importance of trust, and operate and lead with integrity, to gain a competitive advantage."
In this tumultuous retail landscape, we stand at a crossroads. We have the capability to create entirely new models of engaging our shoppers with technology. Yet we are clouded by old dogma and a desperate need to create short-term revenues, much of which can be generated by capitalizing on the "media value" of personal information gathered from shoppers. If we do this, trust will be the price we pay. Without trust, people don't share. And if they don't share, we can't meet their needs and create better relationships with them. As we move into 2009, my hope is that this point is one that we take seriously. If we don't, store transformation will not be possible.
Discussion Questions: Can we earn the right to personal conversations with shoppers in-store? What will it take to earn trust with shoppers in today's competitive market?