is the brick and mortar model broken?

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Outside of the Apple Stores the highest performing stores in the history of retailers the retail market has hit a quandary: ecommerce has seen yearoveryear increases of retail market share and brick and mortar locations are left wondering what to do next. Why do Apple Stores seem to be the exception to the rule? Because Apple, through innovation, rethought a centuries old business model brick and mortar and moved away from single source value creation: providing merchandise, to refocus on new types of value creation for consumers customer service, interactive store environments and improved consumer engagement. Retailers are spending too much time fixated with an archaic model instead of seeking innovation. Retailers need to look past the transaction based model price wars and refocus on creating personal experiences for the consumer, aided by technology. How does this happen? Retailers not only have to reinvision the purpose of instore environments to align with the needs of today’s consumer and your business objectives, but need to rethink the way they engage customers and how to leverage the digital era. The resources are there, yet the execution has been incomplete. Retailers must see their store as more than an inventory showroom. About 5% of consumers that walk through the door of a store convert into a sale. So what’s happening with the other 95%? Create value by leveraging these getaway consumers. Retailers need to start by changing their strategy identify more opportunities to collect consumer data other than at the POS and make their storefronts more interactive. Leverage your storefront to engage consumers and create value along every step of the sales cycle, and quit defining conversions as simply a sale. Both improved interaction and collecting more data can be achieved simultaneously the future of brick and mortar is in the integration of mobile technology with the instore experience. It’s time to innovate, and what better way than to find a startup company with a new technology that can help you leverage the getaway consumer. For example, the Raange Interactive Sticker can be used as a conduit to push information and engage consumers at the palm of their hands. Retailers can easily place this technology at highly visible areas display windows, counter tops and other instore locations and consumers to text, scan or tap into their network. Setup stickers beside new displays, and let consumers scan directly to a landing page with more information on the products, or style tips and trends concerning the display. Augment the technology by incentivizing the use of the ‘Sticker’ and you can collect user data that is optin compliant. It’s time for retailers to stop protecting the past and start looking to the future. Leverage mobile engagement to drive value creation and sales.

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Post on 15-Jun-2015

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Outside of the Apple Stores - the highest performing stores in the history of retailers - the retail market has hit a quandary: e-commerce has seen year-over-year increases of retail market share and brick and mortar locations are left wondering what to do next.

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Page 1: Is The Brick And Mortar Model Broken?

Outside of the Apple Stores ­ the highest performing stores in the history of retailers ­ the retail market has hit a quandary: e­commerce has seen year­over­year increases of retail market share and brick and mortar locations are left wondering what to do next.   Why do Apple Stores seem to be the exception to the rule? Because Apple, through innovation, rethought a centuries old business model ­ brick and mortar ­ and moved away from single source value creation: providing merchandise, to refocus on new types of value creation for consumers ­ customer service, interactive store environments and improved consumer engagement.    Retailers are spending too much time fixated with an archaic model instead of seeking innovation. Retailers need to look past the transaction based model ­ price wars ­ and refocus on creating personal experiences for the consumer, aided by technology.    How does this happen? Retailers not only have to reinvision the purpose of in­store environments to align with the needs of today’s consumer and your business objectives, but need to rethink the way they engage customers and how to leverage the digital era. The resources are there, yet the execution has been incomplete.  Retailers must see their store as more than an inventory showroom. About 5% of consumers that walk through the door of a store convert into a sale. So what’s happening with the other 95%? Create value by leveraging these getaway consumers. Retailers need to start by changing their strategy ­ identify more opportunities to collect consumer data other than at the POS and make their storefronts more interactive. Leverage your storefront to engage consumers and create value along every step of the sales cycle, and quit defining conversions as simply a sale.   Both improved interaction and collecting more data can be achieved simultaneously ­ the future of brick and mortar is in the integration of mobile technology with the in­store experience. It’s time to innovate, and what better way than to find a startup company with a new technology that can help you leverage the getaway consumer.   For example, the Raange Interactive Sticker can be used as a conduit to push information and engage consumers at the palm of their hands. Retailers can easily place this technology at highly visible areas ­ display windows, counter tops and other in­store locations ­ and consumers to text, scan or tap into their network. Setup stickers beside new displays, and let consumers scan directly to a landing page with more information on the products, or style tips and trends concerning the display. Augment the technology by incentivizing the use of the ‘Sticker’ and you can collect user data that is opt­in compliant.   It’s time for retailers to stop protecting the past and start looking to the future. Leverage mobile engagement to drive value creation and sales.