Innovating for retail success

We live in a time when something changes every day.

One innovation follows the next and a brand-new technology is outdated again in the next moment. Digitalization has also significantly changed customer behavior when it comes to shopping. More and more people are using online shops.

As a result of the corona crisis of 2020, many retailers came to an end - despite decades of experience and loyal customers. Thousands more had to fight by all means to defend themselves against insolvency. Online retail, on the other hand, was booming.

It is therefore more important than ever for brick-and-mortar retailers to continue to retain customers as customers and to counteract innovations in online retail.

And how?

Also through innovation!

Because even as a shop in a shopping center or in a retail outlet, there are many opportunities to look attractive again through digitization.

Is this what the future of shopping looks like?

What could the future look like? For example:

You hold your smartphone briefly over a sensor. Run to the supermarket, pick up the products you want and go again. Without a long wait at the cash register. Just like that.

Seattle has had exactly this concept since the beginning of 2018. In the supermarket”Amazon Go“, you check in using the Amazon Go app. If you remove a product from the shelf, it is automatically added to the digital shopping basket. If you change your mind again, that's no problem, the item is automatically removed from the system when you put it back. The value of the virtual shopping cart is automatically deducted from your own Amazon account after it expires. It's done.

What is certain is that shopping should be made as pleasant as possible for the customer. This, of course, poses many challenges for supermarket operators. In addition to technical feasibility, there are questions about costs, profitability, security and data protection. However, Amazon is planning to expand these types of supermarkets to all major cities. A total of 3000 Amazon Go stores are planned by 2021. It is not yet clear how the implementation will work in Europe, as there are much stricter data protection regulations here.

Amazon's new supermarket concept contains an enormous amount of innovation that could set the direction for shopping in the future. Digitalization is turning the industry upside down. The smartphone, which has long since become the control center of life for many, will also play an increasingly important role in shopping. The online and offline worlds will increasingly merge. New technical innovations should encourage us to buy more through the most pleasant shopping experience possible.

Which of these ideas could actually be a reality in the near future?

Delivering robots and drones

In major German cities, groceries and everyday items can now be ordered online, which arrive at home within an hour.

It is probably only a matter of time before packages of self-propelled robots and flying drones are delivered comfortably to our front doors. A corresponding patent Pioneer Amazon has already signed up for floating warehouses as a basis for transport drones.

The problem of the last mile in particular still poses difficulties for the complete automation of the supply chain. Nevertheless, the solution is being worked hard. An innovation that could be dangerous for retailers. Because when delivery becomes even easier for customers, going to brick-and-mortar stores becomes less and less likely. As a retailer, you should try other options (see further in the article) and make a visit to your store attractive.

Digital stores as an alternative model

A small electronics store, barely any products on display, but lots of customer advisors and lots of large-format screens. Such a concept tests Media Markt currently in downtown Barcelona.

There, direct customer conversations are to be combined with the transparency of online retail. On huge touch screens, customers can view and compare the goods, read additional information and, if interested, order them directly or have them sent home. Tweets and Facebook posts from visitors in the shop are displayed via a so-called social wall. Part of the efficient use of space is a connected warehouse, in which a robot places the products in a collection box, where the customer can remove them around the clock.

If things need to be done quickly, the goods can also be picked up from employees at one of ten terminals. If customer feedback from the Barcelona market is positive, the concept is to be rolled out in other cities.

Self-driving shopping carts

A company from Portugal has developed a robotic shopping cart which, after brief identification using image recognition, follows the customer independently and at a reasonable distance through the supermarket. The”WiiGo“primarily helps people with reduced mobility, such as wheelchair users or customers with strollers. The currently fairly high purchase costs of €4,000 are to fall significantly and be justified in the future by multi-faceted functions. The robot should be further developed in such a way that it will soon Can independently remove goods from the shelf, fill shelves and mop the floor.

What is already common right now are shopping trolleys equipped with sensors. These track the customer's journey and can therefore provide important information about the most common route through the supermarket. As a result, marketing strategies can be developed, products can be placed sensibly.

Tracking via WiFi

Recording routes via WLAN is also possible and useful - but must be GDPR-compliant.

With WiFi Tracking Get reliable data about all customers, even those without a shopping cart. WiFi tracking therefore also replaces light barriers, as the system records the various smartphones based on the device identifiers. This also makes it possible to differentiate between returning customers and first-time customers.

Socialwaves Offline analytics records key figures such as length of stay, levy rate or movement patterns, which provide information about the behavior of your own target group. In order for retailers to remain competitive in the future, this data is becoming increasingly relevant.

Of course, attention is paid to the GDPR and data protection on this topic. You can't simply track all of your customers' data. They need permission to do so — from each individual. We offer you a GDPR-compliant solution to this problem.

WiFi in stores makes customers happy

Wireless Internet is no longer an innovation, but it still hasn't become the standard in retail.

Free WiFi is highly sought after by customers. According to one study 66% of customers between the ages of 14 and 29 want free WiFi when shopping from bitkom. Retailers should equip themselves with WiFi to ensure customer satisfaction. WLAN is essential, especially in shopping centers with poor reception. Many customers like to check the availability of the items in stores. When it comes to food, customers can also use ingredients via app check or get the girlfriend's opinion via photo at the clothing store.

With the Socialwave WLAN hotspot, you can also reach customers directly, for example via personalized advertising pop-up windows or automated e-mail newsletters. It is important to ensure an uncomplicated, modern registration. In particular, the Socialwave login via WhatsApp is very popular.

Smart shelves and price tags interact with customers

In addition to robots and fully automated cash register systems, screens will shape the idea of the supermarket of the future. An innovation that we know from science fiction films, but that will soon be visible in retail stores.

Digital displays, which can be centrally controlled by the supermarket, will soon replace paper price tags. This is already standard practice in many countries. This will make it possible to do more than simply change the price flexibly at the push of a button. If the customer is standing at the shelf, the digital price tag could use NFC technology to transfer data about allergens in food to their smartphone or display reviews of the desired products, for example.

Intelligent shelves should understand customer gestures using depth cameras and distance measurement sensors. With a simple tap of the finger, the customer should be shown more detailed information about the product on a display, such as ingredients, nutritional values, origin, ecological footprint or related products. This service relieves customers of the research work and thus improves the shopping experience.

The Findbox searches for and finds products

More and more new technology is being used not only in food retail, but also in other industries.

For example, the”Findbox“Forget waiting for a salesperson, for example in an electronics store, and relieve the customer of searching for their desired product. The Findbox's image recognition software, for example, recognizes an old printer cartridge brought by the customer and guides him to the right product through flashing elements on the price tags on the shelf.

This saves customers waiting and the store minimizes expenses as fewer employees are needed.

Advisory changing rooms with ordering function

New technologies are also being used in the fashion industry: The intelligent changing room”Phizzard“should be able to advise customers.

Phizzard is a mirror with which the customer can interact directly via touchscreen. After scanning the garments, the shopper can request a pair of pants in a different size or a T-shirt in a different color from the sales representative at the push of a button. Phizzard also suggests clothing that matches the look. If the customer decides to buy, they tap on the screen and just have to go to the checkout, where the invoice is ready.

In future, products that are not in stock in stores should also be able to be ordered and paid for directly from the intelligent mirror. A first version of the Phizzard is already in use in selected shops in Berlin.

Artificial intelligence supports customers and retailers

Computer systems that work with artificial intelligence will also be used in future shopping and support both customers and retailers. ”watson“For example, is the name of the future solution from IT giant IBM. The intelligent computer program should recognize, understand and interpret a customer's preferences online (for example based on social media entries) and then be able to select suitable products for them and answer questions individually.

Watson helps brick-and-mortar retailers by using evaluated data, for example, to monitor asset performance and predict maintenance requirements. In addition, the supercomputer should help to drastically reduce product waste and inventory, achieve more effective personnel management and help to understand customers better.

Innovations in the area of AI represent both a risk and an opportunity for retailers. Because online retailers like Amazon have more resources to use this technology. However, you should keep yourself informed about new developments and be open-minded. It's important to stay connected.

Virtual reality is changing perspectives

In future, customers will be able to virtually enter stores — from their own couch — using VR glasses and an associated app.

Augmented reality, i.e. the computer-aided extension of perception of reality, also opens up new opportunities. Do the new chairs match the dining table or do the new curtains match the rest of the decor? With the help of smart glasses, potential new pieces of furniture should be projected into one's own living room and would thus provide prospective buyers with an unprecedented service. But even the most modern technology cannot completely replace a visit to a furniture store — at least if you want to touch the furniture. The virtual assistant is also not (yet) able to provide personal advice.

Smartphone at the center of the action

Your own smartphone is becoming more and more important — and this is also the case in the beautiful new world of shopping. For many, the digital shopping list is already part of it today. In the future, it could be downloaded into an app that optimally guides smartphone users through the market based on the list. Using a QR code, recipe suggestions could be quickly picked up at certain stations. The smartphone could use apps to enable contactless and cashless payments and make it easier for customers to set up bonus programs.

Conclusion - Innovation in retail

Internet is required for all of these services. Therefore, the first step to digital charging is offering a WiFi hotspots.

How Socialwave helps you use retail innovations quickly and to generate revenue

Socialwave is helping to make stationary retail fit for the future. Because...

Almost all innovations in retail mentioned are based on three factors:

• Data collection in accordance with GDPR
• marketing automation
• WiFi for customers

Legally and warning-proof WLAN with GDPR-compliant data collection is becoming increasingly important as a service for customers and provides valuable data for operators. In addition, new app-based services could be linked to WLAN in the future.

Socialwaves Offline analytics offer a modern option for frequency measurement through passive WiFi customer tracking. This records key figures such as length of stay, levy rate or movement patterns, which provide information about the behavior of one's own target group.

Die Automating retail marketing offers unexpected sales potential, because this is how your customers become brand ambassadors without you having to do anything about it. This saves time, marketing budget and energy. At the same time, you increase awareness of your business and customer satisfaction by offering you legally secure and fast WiFi. In order for retailers to remain competitive in the future, this data is becoming increasingly relevant.

Digitalization, with all its innovations in retail, is in full swing. And the future starts today.

Get advice from our team now and make yourself future-proof.

With our WLAN marketing package, your customers/patients/guests advertise for you, are happy and recommend you to others.