Disruption: The Internet of ThingsIn Leveraging The Internet Of Things And Supply Chain Intelligence To Drive Superior Customer Experiences, Simon Walker reveals that many retailers are employing a growing network of physical objects called the Internet of Things (IoT). These objects contain embedded technology that allows them to communicate with each other to
|Some predict that the Internet of Things will ignite a fourth industrial revolution, becoming a $200 billion global industry by 2020.
Disruption: Wearable DevicesConnected to the IoT will be wearable devices. More than ⅔ of all consumers plan to buy connected technology for their homes by 2019, and nearly half say the same for wearable technology. (Source: CMO.com) Walker explains that wearable devices are forecasted to become so significant that each person’s smartphone will become a hub for their own Personal Area Network (PAN) consisting of wearable gadgets such as health sensors, smart watches & jewelry and sensors embedded in apparel. Wearable devices will communicate with apps on the smartphone in the PAN, as well as other in-store sensors, to provide details on the consumer so intricate that retailers may be able to predict what consumers want to buy without before they even know they need it.
Disruption: In-store WiFiCustomer loyalty will be won by retailers who embrace how and when the consumer wants to do business. 68% of today’s connected consumers use a mobile device inside a store. This changes the definition of how a retail store operates and how it must engage with them. In How Retailers are Using Big Data to Deliver Greater Customer Insight, Andy McCue reveals that in the past, retailers not only have not provided WiFi service, but some have even blocked it inside their stores to avoid “showrooming” practices where consumers locate items of interest but then price shop online to purchase at a lower price. But providing free WiFi to customers can actually benefit retailers.
|Tesco innovation is a virtual store built in a subway in South Korea where commuters can use mobile phones to order goods from a wall of products.
Disruption: Big DataBrick-and-mortar retailers who also maintain an ecommerce store have an advantage over online-only retailers. As large retailers begin to bridge data from in-store transactions and online interactions, this combination will give them a significant advantage over digital retail. In his article McCue asserts that big data metrics are necessary to facilitate individualized shopping experiences. Consumers with less time and more technology want instant rewards, and they want to build relationships with brands over multiple channels.
Disruption: Beacons & GeofencingThe combination of location sensing devices and mobile apps opens the door for a whole new generation of personalized customer service and marketing communications. McCue continues his discussion with beacons, wireless sensors that use Bluetooth Low Energy (BLE) technology to communicate with and send data to smartphones within a given distance. Geofencing uses the location data in smartphones so that, for example, when a customer gets within a certain distance of a store, their phone alerts them that they have received an offer for that store.
What can you do today that will help you prepare to leverage and manage these impending market disruptions?
|Retail prophet Doug Stephens writes that in the future, stores will look more like galleries and consumers will use social media provided at the point of purchase to read peer reviews or create their own.