How to improve performance with mobile and digital innovations
Innovations in mobile and digital technologies are moving at a pace that is leaving a trail of disruption in their wake. Some retailers that are able to harness the force of change wrought by mobile innovations will thrive; the rest may be left behind. The store of the future may provide a radically different shopping experience, weaving mobile and digital technologies in their marketing, store design, in-store customer experience and promotions.
Mobile and digital innovations can enable retailers to know with clarity who their core customers are and to build emotional relationships with them. Promotions are now targeted and context-aware, using customers’ social networks to build strong loyalties. Stores of the future may break the casual connection between geographic expansion and growth; small stores with extended online inventories and virtual stores may become the giant-killers of the future. Digital and mobile innovations will likely allow retailers to grow profitably and flexibly without a commensurate increase in real-estate assets.
This study identifies the levers that can move store performance and provides a framework for assessing new technologies. At their best, digital and mobile innovations can influence four broad levers of store performance: enhancing the shopping experience, improving conversion rates, increasing revenue per customer and reducing costs. A coherent strategy pertaining to digital and mobile technology could avoid the ad-hoc adoption of expensive technologies that may stymie future investments needed to prepare retailers for subsequent waves of competition.