Using the Internet of Things to improve the physical shopping experience
New research released by Cisco Consulting Services indicates that retailers who offer Internet of Things (IoT) and hyper-relevant experiences can boost profits by over 15 percent. Cisco surveyed over 1,200 consumers in the U.S. and U.K. as part of a global study that will survey 6,000 consumers in 10 countries.
In an interview with RetailWire, Lisa Fretwell, the managing director for Cisco’s Internet of Things division, said the study (the fifth annual) indicates that digital now pervades everyday life, with change being both constant and increasingly swift. She said that retailers are now able to understand consumer behavior better through improved analytics and match relevant offers more easily.
Ms. Fretwell also noted that consumers are slightly more open to providing at least some personal information in return for improved relevance, and cited U.K. retailers River Island, Waitrose, and John Lewis, along with U.S. retailer Macy’s as among those doing a good job of integrating online and brick and mortar inventory and shopping experiences.
Cisco tested 19 IoT-enabled shopping concepts with consumers and found receptivity for most, in several areas:
Fifty-seven percent of consumers surveyed were willing to use a drive-thru lane when ordering products online and picking up at the store; 53 percent would use same-day home delivery of orders placed online if there were a $5 fee; and 40 percent would pick up online shopping orders from a conveniently located secure locker.
Seventy-three percent were willing to use a smartphone to scan products for offers and promotions in-store; 63 percent would use augmented reality apps to locate shopping list items in-store; 57 percent would use augmented reality apps to get information about products, such as reviews or ingredients.
Mobility Enhanced Shopping
According to Cisco, 47 percent of U.S. consumers and 42 percent of U.K. consumers are already using smartphones to enhance their in-store experience, while one-third of U.S. shoppers and one-quarter of U.K. shoppers use independent shopping apps on their smartphones or tablets at least once a week. Sixty-percent of surveyed consumers are willing to scan barcodes on items while shopping in order to pay at a self-checkout; 50 percent would use a smart shopping cart; and 49 percent would store payment cards on their smartphones and smartwatches in order to pay with a swipe at checkout.
Interactive Digital Signage
Seventy-seven percent would like digital signs at checkout to provide estimated wait times; 67 percent would like to view offers tailored to their interests and preferences; and 67 percent would use in-store maps for product location.
The key, according to Cisco, is that the rise of mobile and e-commerce has changed the shopping behaviors of digitally-enabled shoppers. So, retailers need to forget traditional customer segmentation and pay more attention to the digital demands of consumers, which transcend traditional demographics. Through real-time analytics, retailers can offer not just a personalized, but a hyper-relevant experience.
- Cisco Research Reveals Hyper-relevance as Key to Winning the Digital Consumer – Cisco
- Winning the New Digital Consumer with Hyper Relevance – Cisco
- Cisco Research: Hyper-Relevance is Key to Winning Digital Shoppers – Retail Touchpoints
- Mobile’s influence on physical is growing – RetailWire
- NRF: Tech that capitalizes on physical retail’s strength – RetailWire
How can brick and mortar retailers best use the Internet of Things to improve the physical shopping experience?