The National Retail Federation (NRF) Big Show took place this week in New York. It’s been a whirlwind of customer meetings, informational sessions, and an exposition of state of the art technology that promises to change the face of retail. As CradlePoint CEO, George Mulhern, wrote about out in a previous blog post, brick and mortar retailers who are being gouged by the online market need to evolve through technology to address the trend of consumer behavior shifting towards ecommerce and m-commerce. Along those lines, I gleaned some additional insights about the transformation that retail is going through. Here are my thoughts and observations.
From the Tradeshow Floor
I came across a number of products on the expo floor, but was most impressed by four solution categories: in-store metrics, digital kiosks, digital signage, and near field communication.
In-Store Metrics
There were several companies offering in-store metrics that used surveillance technology to count visitors and show traffic patterns as well as where visitors tended to linger. Having cut my marketing teeth in the world of ecommerce, I was envious that retailers could have that kind of data at their fingertips. Like web analytics, these solutions help stores understand which of their units perform the best from a conversion and flow standpoint as well as identifying areas where stores might improve traffic flow efficiencies.
Digital Kiosks
The vending kiosks sold anything from cell phones to video games plus there were a whole slew of service type kiosks for in-store registries and support. Each provider of course had their own spin on how they served content or products.
Digital Signage
There was quite a bit of innovation in the digital signage category. Interactivity was the theme here. Here’s a picture of our Expo Manager, Casandra Sipes, catching passes from Aaron Rodgers (I’ll note she earned a top ten score – hope we don’t lose her to the NFL!). Stratacache, which currently uses CradlePoint to connect to the cloud for ads serving in their PrimaSee solution, has a really cool interface. The ads are transparent so you can see what’s behind the window. For example, PrimaSee can be integrated into the door of a beer cooler at a convenience or grocery store to rotate through ads of complimentary products to increase attach rate (e.g. “Potato chips only $1.00 with a case of beer.”). Combine in-store analytics with these types of ad placements and support kiosks and you could really influence basket size.
Near Field Communication (NFC)
NFC or mobile payment solutions were also prevalent (4 of 10 retailers in a recent survey said mobile payments was an initiative for 2012). PayPal provided a great demo showing how to tie all of your loyalty programs into one payment form that could pull from any number of funding sources at the consumer’s discretion – both for online and offline purchases.
Sessions
I attended a session called, “Trends to Capitalize on in 2012 and Beyond” The panelists spoke of “everywhere commerce,” which includes ecommerce, social commerce, traditional commerce and mobile commerce. The retailers that can unlock the recipe for combining those sales tactics in the most effective and relevant ways for consumers will reap the rewards. Every touch point with a customer is a possible point-of-sale and multi-channel purchasers spend significantly more than single channel buyers. Even if the point-of-sale is not via the Internet, 53% of purchases today are web influenced as consumers turn to the web for reviews, research, and price comparison.
Another panelist noted how retailers are moving away from being open only during “farmer’s hours” to a 24/7 model. Examples include a salon in NYC where you can get a hair cut 24 hours a day. This model has been reinforced partially by the fact that the 1:00 am to 6:00 am shift in ecommerce is one of the highest revenue driving time blocks on any given day. Also, flash sales (sometimes referred to as ”stop watch sales” or “nooners” as they’re often timed with a traditional lunch hour) are a recessionary tactic that appears to be sticking around even in economic recovery.
Whether its flash sales driving high-volume bursts of demand or a 24/7 “open all the time” model, the need for reliable Internet connectivity is a crucial factor that retailers need to consider before implementing these tactics. Even a temporary outage and suspension of point-of-sale service could represent significant losses in revenue due to customer frustration and abandonment. Such sales, as part of a short-term exclusive offer, are unlikely to be recovered. As George points out, retailers need their high-speed Internet to always be up. For this reason, CradlePoint’s 3G/4G mobile broadband failover solutions are setting the standard for retailers to ensure their businesses stay online.