How to improve performance with mobile and digital innovations
Digital and mobile innovations can influence four broad levers of store performance. They can:
- Enhance the shopping experience
- Improve conversion rates
- Increase revenue per customer
- Reduce costs.
Mobile and digital innovations enable retailers to know with clarity who their core customers are, and to build emotional relationships with them. Promotions can be targeted and context-aware, using customers’ social networks to build strong loyalties. Digital and mobile innovations also allow retailers to grow profitably and flexibly without a commensurate increase in real-estate assets. The store of the future may well break the causal connection between geographic expansion and growth: small stores with extended online inventories and virtual stores may become the giant-killers of the future.
This study identifies the levers that can move store performance and provides a framework for assessing new technologies. It maintains a coherent digital/mobile strategy could avoid the ad-hoc adoption of expensive technologies that may stymie future investments needed to prepare retailers for subsequent waves of competition.
The store of the future will, without doubt, provide a radically different shopping experience weaving mobile and digital technologies into marketing, store design, in-store customer experience and promotions.