Digital Signage helps Reinventing the Store

Reinventing the store was one of the key topics at NRF. Over the last three to four years we have been seeing a lot push and invest for ecommerce innovation and replatforming ecommerce strategies. Now the retail, CPG and brand manufacturers are working on a renaissance of the store and show room, driven by digital. And there is still way to go.

Incremental part of the omnichannel strategy of our PIM customer Murdoch’s Ranch and Home Supply is digital signage for in-store product promotions. This selfie was shot with my dear colleague Thomas Kasemir (VP RnD PIM & Procurement) at the NRF booth of Four Winds Interactive.

IMG_5517

Four Winds serves about 5,000 companies worldwide and I would consider them as one of the market leaders. Alison Rank and her team did show case how static product promotions work and how dynamic personalized product promotions can look like, when John Doe enters the store.

John Doe’s Personalized Purchase Journey

John Doe and his wife are out and about in the city; with the advice from his son, John has created a pro-file on Facebook and Foursquare with his new generation smartphone enabling him to receive any special offers in his vicinity. Mr. Doe has voluntarily agreed to share his data for the specific purpose of allowing retailers to call to his attention any special offers in the area. As both of them have interest in visiting the store they respond to the offer.

At the entrance to the store he is advised to start up the special store app and is promised a “personalized shopping” experience. As John Doe enters the store, a friendly greeting appears on his digital signage screen: “Welcome Mr. Doe, the men’s suits are on the 3rd floor and we have the following offers for you.” Upon reaching the 3rd floor, the salesperson is already standing there with the right suit. The suit is one size smaller than usual, but it fits John Doe. After the fitting, the salesperson even points out the new women’s hat collection in the women’s department. Satisfied with their purchases, Mr. and Mrs. Doe leave the store.

For me it is clear assuming that the future of shopping will look something like this, due to the fact that all of these technologies are already available. But what has taken place? The reason why John Doe receives location-based offers has already been explained above; the point that needs to be made is that there is now the ability to link personal and statistical data to customers. By means of the app, the store already knows whom they are dealing with as soon as they enter the store. Or can messaging services be used to send an alert to a shop assistant that a A-Customer with high value shopping carts has just entered the store.

To this point, stores can leverage both personal information as well as location-based information to generate a personal greeting for the customer.

  • What did he buy? In which department was he and for how long?
  • When did he purchase his last suit(s)?
  • What sizes were these?
  • Does he have an online profile?
  • What does he order online and does he finish the transaction?

All of this analytical data can be stored and retrieved behind the scenes. 

Catch Me if I Want

The targeted sales approach at the point of interest (POI) and point of sale (POS) is considered to be increasingly important.  This type of communication is becoming dynamic and is taking precedent over traditional forms of advertising.

When entering the store today, customers are for the most part undecided. Based on this assumption, they can be influenced by ads and targeted product placement.  Customers are now willing to disclose their location data and personal information provided there is added value for them to do so.

Example from Vapiano Restaurant

A good example is the Vapiano restaurant chain. Vapiano restaurants take an extra step further than the tradi-tional loyalty card by utilizing a special smartphone app where the customer can not only choose the nearest restau-rant along with special offers and menu, but also receive a kind of credit after payment via barcode. After collecting 10 credits, the restaurant guest receives a main course for free on the 11th visit. Sound good? It sure does, and from the company’s perspective this is a win-win situation. These obvious benefits move the customer to disclose his or her eating habits and personal data. The restaurant chain now has access to their birth dates, which is rewarded as well. This data aggregation is definitely recommendable, since it requires the guest’s explicit consent and assumes a certain degree of active participation from the guest to be eligible for the rewards offered by the restaurant.

Summary

If John Doe allowed my as brand manufacturer in my showroom or as a retailer to catch him, companies will need to ensure that they are really able to identity John Doe wit this all channel customer profile to come up with a personalized offer on digital signage. But this needs to be covered in an additional blogs…

Comments

  • http://fe3ume.wordpress.com Kandi19Ihua

    Having read this I thought it was really informative. I appreciate you finding the time and energy to put this article together. I once again find myself spending a lot of time both reading and leaving comments. But so what, it was still worthwhile!

  • http://royalsign.net/ Jordan

    Very informative article! I definitely am excited to see how technology will change signage and advertisements in the future. Thanks for sharing this!