Robots in Campus Stores

Thinking about 24/7/365 service to students? Buy yourself a robot.  That’s what SUNY New Paltz did.  Well, not really, but close.  This story highlights a self-contained, refrigerated vending machine that looks like an aisle in a supermarket.  The machine offers up to 200 items that are must needs for campus living.  Referred to as the “ultra-convenience store” the system accepts cash, credit cards, dining cards, and flex cards.  The article mentions that there are other university locations including Ohio Northern University.  Perhaps soon we can start offering textbooks this way too. 

Retail Transparency- What does it mean for you?

Here’s an interesting read  that speaks to retailers getting ready for new technologies that  will bring new store transparency.  The author, having recently attended NRF Big Show, says that now that stores have the technologies available that will give the same opportunities to reach shoppers and influence their behavior as in digital channels, stores will need to make the necessary changes in order to take advantage of the insights this new retail transparency brings.   

Some of the technologies in the article talks about Bluetooth tracking, Wi-Fi-based tracking, heat maps, interactive digital signs, targeted ads deployed within the store, point of sale at the shelf, and various combinations of these are all available in turning the store black box into as formidable of a competitor as the e-Commerce site.  These new tools will let stores know much more about the operations of the store than ever before but all the new data and analytics will not mean much if retailers do not take action based on them. 

“In this era of transparency, it's not enough to solicit feedback from shoppers - passionate or otherwise. Just like people get frustrated with negative product reviews that don't result in any correction of product flaws, they will get frustrated with getting asked for advice about "their" store and then having that advice ignored. Not all advice has to be taken, but if it's not taken, there should be some acknowledgement and a brief explanation of why that particular idea is difficult or not the highest priority.”

Here are three recommendations from the article:

1. 1.       Measure store managers on sales conversion rates based on minutes spent per customer, not on sales per hour and labor as a percent of sales.
2. 2.       Connect store managers and employees to each other.
3. 3.       Look at how the store can market itself.

The first two may seem less relevant within the college store industry today, but the third hits home.  College stores must increase their capability and sophistication at "telling their story" both on and off campus.  Stores must market themselves in new ways focusing on value and outcomes wherever possible.

Phasing Out Paper Receipts

We posted a blog about digital receipts a while back but there is a recent post on the Retail Consumer Experience website that provides another good take on this topic.   This is a website many of our readers might be interested in reading in general, with a number of interesting stories.  We chose to highlight this story as a rapidly emerging technology that has a range of potentially positive business implications for retailers.

Digital Receipts: The Good and The Bad

Here’s a story that says more retailers are looking to provide digital receipts but some customers are a little weary of personal data.  Retailers already sending email receipts include companies like Gap, Kmart, Best Buy, Sears, and Apple.  Receipts can be received via email and can customers can access receipts on the Web or on their mobile phones, according to the article. 

Some of the benefits of digital receipts include the convenience for customers, who require receipts for such things as product warranties and tax records.  It also supports in helping to reduce fraudulent returns."It definitely will help cut down on fraud," said Joe Masar, marketing director for D&B Supply, an Idaho-based, farm-and-ranch store that is currently exploring digital receipt solutions. "You never want to treat your customer like a criminal, so we tend to trust them. Sometimes we're over-trusting." However, with a digital receipt, Masar said, "then there's no question."

The negative to emailed receipts is that it makes customers nervous about personal data being available to retailers.  Some people consider their spending habits to be personal and they feel personalized marketing to be invasive.

According to the article, Kmart spokesman Aiello recognizes that the corporation is incorporating this information for added personalized marketing such as offering coupons and promotions based on spending habits, but he sees it as benefit to consumers.

"This really starts to open up opportunities that a paper receipt just can't," he said. "If the customer has shown interest in certain things, [he or she will receive] recommendations as part of the digital receipt.”

Infomercial and Web Retailing

Great article by Mashable Business if you are into new marketing practices.  There’s a new trend to integrate content with product offerings on the web, according to the article.  Content can range from editorials to videos all intended to provide value-added shopping experience for the consumer.  Some include infomercial like videos and others are in-depth articles on how to do certain things.

So, if you are shopping for a tie, you can learn about the right tie knot for your color shirt. Or, if you are looking to buy bed sheets you can learn about how to fold fitted sheets.  The content offering is producing repeat visits and giving consumers confidence to make purchases according one CEO whose company is using this technique.

Retail Systems Research Report on the State of the Store

Retail Systems Research continues to produce interesting and relevant stories and reports for retailers in an age of technology.  In one recent report RSR discusses their annual study on the "state of the store" or retailing.  Here is a quick quip:

Our findings consistently show retailers understand the importance of creating a better in-store shopping experience for their customers. However, in 2010 it became clear that armed with more technology than most store employees and managers, the consumer was crafting her own experience – and much of it was outside the boundaries of the store’s four walls. The question is no longer, “How can we make the in-store experience as satisfying as the web?” It has become, “How can we make our stores more significant than showrooms for on-line merchants?”

As stores think more about increasing traffic, and providing more and more products and services online, several of the lessons within the report are worth examining.  Key lessons in this year's report seem to focus on the importance of making sure that the people on the floor are educated in the products being offered.  The report also discusses the importance of using technology in retail to engage customers, and in doing so available technologies can drive customers to the store rather than away from it. 

The 29 page report is available for free with site registration and is worth the time to download and read. There is more than one actionable takeaway that retailers can pull from the piece.

Lowes Employees Armed and Ready for Tech Savvy Do-It-Yourselfers

Retail Systems Research has another interesting piece of news this week.  Lowes is arming their employees with 42,000 I-phones in order to engage better with the highly knowledgeable weekend warriors-men and women. This is after Home Depot announced its 10,000 Motorola initiative for their employees. The big box chains obviously are getting that "an uninformed, uneducated employee on the selling floor was more damaging than having no employees on the selling floor at all." The i-Phone will feature several functions - inventory checking, showing how-to videos and use lowes.com in store aisles.
The lesson in this article is an age old lesson in retail- engage with your customers and offer the buying experience that they expect.