How in-store automation gives a huge boost to the retail experience
Posted: Wed Dec 18, 2024 7:16 am
How in-store automation gives a huge boost to the retail experience
In 2022, it almost seems as if automation has always been a part of the retail space.
It would be hard to walk into a supermarket and not see a kiosk or two for customers to scan their own groceries as they go.
Automation has become an integral part of the shopping experience and its sophistication is only growing.
It is undeniable that the automation of the commercial space is becoming more and more fluid.
Take Walmart’s virtual showrooms, for example: They allow customers to interact with digital representations of products.
High-end fashion brands are using virtual fitting rooms, an industry that is growing at an estimated $15.43 billion by 2028 .
Source: Grand View Research
This is an interesting space to watch, not only for its exciting country b2b b2c email list and almost novel innovations, but for the impact it has on customer experience and therefore customer lifetime value.
Considering that the majority of consumers ( 66 percent ) see automation as the key to a better retail experience, it's clear that this is an area that retailers can benefit from exploring.
So, let’s dive into the world of in-store automation and see what makes it so important for retailers.
Retail Automation: What It Means
Gone are the days when “automation” simply referred to the infamous Holden production line. In the digital age, automation is about harnessing the power of technologies such as virtual reality (VR), augmented reality (AR) and artificial intelligence (AI) to create a more efficient and seamless customer experience.
This is especially relevant for retail, which is under pressure to reinvent the in-store experience to keep up with online shopping.
Updated 2022 studies show that the majority of American shoppers ( about 55 percent ) prefer to shop online, which is a drastic change from 2020 statistics.
Source: radiant
Additionally, the e-commerce industry is projected to reach $5.5 billion this year, meaning brick-and-mortar stores are facing a fierce competitor. Now more than ever, retailers need to up their game to stay on top of trends.
Growing demands from retail customers have begun to shape the automation trends we see emerging in stores, as documented in the 2022 Ayden-KPMG Retail Report :
A seamless experience. 57 percent of shoppers are more likely to purchase from a brand that allows its loyalty program to integrate with their payment card.
Enhanced in-store shopping. 55 percent of shoppers prefer to spend money at retailers that offer a technology-enhanced in-store experience (such as interactive displays, personalized recommendations, digital mirrors, self-service kiosks).
Frictionless. 70 percent of consumers will switch brands after a bad in-store shopping experience (e.g., long lines, lack of staff help, lack of engagement).
These are the expectations that are driving retailers to upgrade their store automation. By keeping up with the trends and expectations, retailers have a much better chance of maintaining their customer base and continuing to thrive.
Trending automated solutions for physical stores
Simply put, automation is the act of reducing human intervention. This has great appeal for retail, which is striving to keep pace with e-commerce: the less human interaction required, the less chance of error and the faster transactions can be processed.
Automation is already widely used in warehousing and logistics, and is now making its way into retail stores.
In fact, there are a number of automated solutions that are already trending in the retail sector right now.
These include:
Using AR and VR to create an immersive customer experience.
For example : Westfield stores have started using Mango displays, which are magic mirrors that allow customers to see how they would look in different outfits.
Using robots not only to manage inventory, but also to interact with customers.
For example: Softbank Mobile Stores deploys its 'Pepper' robots in 140 stores, humanoid robots that can answer questions, direct people, handle small talk and even take selfies.
The use of smart sensors and beacons to track customer movements and preferences.
For example: Red Bull in Canada has started using beacons to display targeted ads and coupons to customers in-store, helping to improve customer experience and increase sales.
Using kioskless checkouts.
For example: Amazon Go is a store that has done away with traditional checkouts, instead using sensors and algorithms to track what items customers take from shelves. Payment is automatically made when the customer leaves the store.
In 2022, it almost seems as if automation has always been a part of the retail space.
It would be hard to walk into a supermarket and not see a kiosk or two for customers to scan their own groceries as they go.
Automation has become an integral part of the shopping experience and its sophistication is only growing.
It is undeniable that the automation of the commercial space is becoming more and more fluid.
Take Walmart’s virtual showrooms, for example: They allow customers to interact with digital representations of products.
High-end fashion brands are using virtual fitting rooms, an industry that is growing at an estimated $15.43 billion by 2028 .
Source: Grand View Research
This is an interesting space to watch, not only for its exciting country b2b b2c email list and almost novel innovations, but for the impact it has on customer experience and therefore customer lifetime value.
Considering that the majority of consumers ( 66 percent ) see automation as the key to a better retail experience, it's clear that this is an area that retailers can benefit from exploring.
So, let’s dive into the world of in-store automation and see what makes it so important for retailers.
Retail Automation: What It Means
Gone are the days when “automation” simply referred to the infamous Holden production line. In the digital age, automation is about harnessing the power of technologies such as virtual reality (VR), augmented reality (AR) and artificial intelligence (AI) to create a more efficient and seamless customer experience.
This is especially relevant for retail, which is under pressure to reinvent the in-store experience to keep up with online shopping.
Updated 2022 studies show that the majority of American shoppers ( about 55 percent ) prefer to shop online, which is a drastic change from 2020 statistics.
Source: radiant
Additionally, the e-commerce industry is projected to reach $5.5 billion this year, meaning brick-and-mortar stores are facing a fierce competitor. Now more than ever, retailers need to up their game to stay on top of trends.
Growing demands from retail customers have begun to shape the automation trends we see emerging in stores, as documented in the 2022 Ayden-KPMG Retail Report :
A seamless experience. 57 percent of shoppers are more likely to purchase from a brand that allows its loyalty program to integrate with their payment card.
Enhanced in-store shopping. 55 percent of shoppers prefer to spend money at retailers that offer a technology-enhanced in-store experience (such as interactive displays, personalized recommendations, digital mirrors, self-service kiosks).
Frictionless. 70 percent of consumers will switch brands after a bad in-store shopping experience (e.g., long lines, lack of staff help, lack of engagement).
These are the expectations that are driving retailers to upgrade their store automation. By keeping up with the trends and expectations, retailers have a much better chance of maintaining their customer base and continuing to thrive.
Trending automated solutions for physical stores
Simply put, automation is the act of reducing human intervention. This has great appeal for retail, which is striving to keep pace with e-commerce: the less human interaction required, the less chance of error and the faster transactions can be processed.
Automation is already widely used in warehousing and logistics, and is now making its way into retail stores.
In fact, there are a number of automated solutions that are already trending in the retail sector right now.
These include:
Using AR and VR to create an immersive customer experience.
For example : Westfield stores have started using Mango displays, which are magic mirrors that allow customers to see how they would look in different outfits.
Using robots not only to manage inventory, but also to interact with customers.
For example: Softbank Mobile Stores deploys its 'Pepper' robots in 140 stores, humanoid robots that can answer questions, direct people, handle small talk and even take selfies.
The use of smart sensors and beacons to track customer movements and preferences.
For example: Red Bull in Canada has started using beacons to display targeted ads and coupons to customers in-store, helping to improve customer experience and increase sales.
Using kioskless checkouts.
For example: Amazon Go is a store that has done away with traditional checkouts, instead using sensors and algorithms to track what items customers take from shelves. Payment is automatically made when the customer leaves the store.