Traditional brick and mortar retailers are having a tough time competing against digital retailers who have guzzled up huge pie of the retail market. Due to declining customer base and shrinking profits, more and more retail stores are closing their doors. As more and more consumers moved from physical retail stores to digital stores; making purchases with the tap of a finger, the retail game has transformed.
Because of the tremendous growth of IoT (Internet of Things) and change in shopping trends, the customer experience has become more important than ever. This led to explosive growth of ads from retailers inviting you to try their apps. There is a huge competition in creating the next big thing that will offer the best shopping experience for the customers in the digital space. .
Thanks to the internet of things (IoT) and its influence on connecting the physical and digital worlds in an ecosystem of devices like smartphones and computers, the world of retail may never be the same again. .
According to a study by Deloitte, the top 25 established retailers have lost around $64 billion in market share to smaller players, driven by digital transformation. Yet, with the growth of the Internet of Things, the line between online and offline has blurred. .
With useful insights from IoT devices, physical retail stores are now in a position to challenge the conventional ways of doing business. Physical stores are now offering more personalized experiences by combining digital elements into the shopping journey. .
DAWN OF A NEW RETAIL LANDSCAPE:
To survive the stiff competition in today’s retail industry, established retailers are now using both physical and online stores for a seamless shopping experience. From social media to TV advertisements and in-store promotions, IoT has helped customers to interact with your business however and whenever it suits them. Internet of Things empowers physical retail stores with the same capability for personalization and data-capture as digital stores.
IoT will eventually change the way the customer shops and the way the retail stores do business. In future, shopping malls will be filled with sensors, from digital ad screens that use facial recognition technology, to smart barcodes that offer customers with product insights.
ENHANCED SHOPPING EXPERIENCES FOR CUSTOMERS:
Internet of Things has provided retail stores with better opportunities to customize in-store shopping experiences for customers. When IoT is combined with customers’ smartphones, it offers access to useful product information and can send customized offers for the customers.
For instance, customers can scan the products to get additional information about available sizes or colors. They can also sign up for SMS notifications of special deals while in-store. IoT devices also help staffs to provide better customer service. A sensor placed near the cash counter can be programmed to trigger an alert to an employee’s smartphone once a customer has been standing there longer than 30 seconds.
IoT devices help the retailers to provide faster assistance to customers thereby enhancing the whole shopping experience.
In digital space, marketers have a wide range of tools to track the customer’s shopping experience online but the same insights haven’t usually been available in physical retail stores.
By using IoT devices, retailers can now track their customer behavior effectively. This helps retailers better understand their customers and also retailers can use this insight to offer relevant products as per the customer’s requirements – offering customers with the personalized shopping experience.
Insights collected from connected IoT devices also offer some operational benefits to the retailers, helping them to make repeated processes more efficient.
The enormous growth of smart mobile devices and the rise of Internet of Things are revolutionizing the traditional retail industry. IoT allows retailers to provide personalized; hassle-free shopping experiences and customers will expect this level of convenience in both online and offline shopping. It is more likely that in near future, customers will expect devices to be smarter than today.
By making use of insights from IoT devices, retailers have an opportunity to enhance their customer’s shopping experience thereby gaining customer loyalty and stay ahead of the market. You can see the Amazon Go to get an idea of the future will be like.