We all know that data is often called ‘the new oil’ of the digital economy – an immensely, untapped valuable asset. The concept of data is certainly not new. Its value has always been understood, and from the census to entering a prize draw at the local pub, we as consumers have been leaving snippets of our personality behind for years.
What’s different today is the addition of technology and the resulting volume of trackable data we’re producing. Smartphones and tablets mean we’re connected 24/7 leaving data behind (consciously or not) as we go about our daily lives – digital breadcrumbs if you like. This opens up a huge opportunity for brands and retailers to analyse how consumers interact with them and subsequently target them with valuable information at the right time.
Often however, brands fail at connecting the entire experience with the data collected – from in-store and a mobile app to a desktop site – each touchpoint is massively important in the consumer journey and each offers valuable behavioural insights for physical stores looking to leverage the power of mobile. But, as online shopping continues to grow massively, many retailers with both an online and offline presence seem to think that offering a stellar online experience is everything – often to the detriment of the bricks and mortar store.
Rather interestingly 90 per cent of purchases still happen in physical stores. Furthermore a recent survey by retail agency Live and Breathe found that a majority of people want to see Amazon set up on the high-street. It’s clear that the bricks and mortar store makes up a huge part of the consumers’ path to purchase, so should not be ignored. Nor should it be placed above online – the answer lies in connecting the experiences by looking at how consumers engage with the brand. Simply put it’s about tying the online persona with the offline one.
The emergence of technology has not only exposed retailers to a plethora of consumer data and behavioural trends, but also the ability to tie together the personas in a rather clever way, potentially leading to more sales. It will mean retailers no longer have an excuse for offering a fragmented experience. Beacon technology is one such example.
The way in which the tech works is actually very smart. Beacons allow careful targeting based on a person’s location, meaning a brand could send the consumer alerts/offers about a product when they walk past a store or are in front of one of its products. All of this is based on past online purchases, and offers retailers the chance to unlock additional context about the shopper. A coffee chain for example, could target its loyalty card holders with a well-timed ‘wake up with a coffee’ message as they walk by blurry eyed to the office in the morning.
The development is certainly very exciting and could open all kinds of doors for brands as it removes the barrier between online and offline, offering a way to entice consumers in-store and capture their imagination through a creative shopping experience. However, it doesn’t come without problems – privacy being the biggest. At present consumers are a little wary of the tech as it needs them to switch on their Bluetooth function and agree to share their location.
For the technology to really take off, it needs to make consumers feel secure, respect their privacy, and most importantly, reward them in-store as a means of demonstrating a tangible return for their added trust and loyalty. The real key lies in making the customer feel valued and exclusive if they decide to download the app, as they are in fact giving retailers a massive glimpse into their behaviour, thus helping them to boost their sales and improve their marketing efforts.
The ultimate brand reward would give consumers specific opportunities to experience and gain insights into products that will excite them before they are available to the general public. This will breed brand loyalty as well. It’s clear that the days of cutting out coupons are fading quickly making way for the likes of beacon technology. Whether this particular form of tech will be successful is yet to be seen, however it’s great to see retailers are beginning to blur the lines between online and offline, because only then can you offer the entire brand experience.
