[Updated on 15/05/2023] It's a fact: the digitalization of retail outlets makes stores more resilient in the face of headwinds. To avoid being sidelined, stores have realized that they need to become connected, and take an interest in customer data.
It's not just the big chains that can become connected stores! Independents too have access to tools that revolutionize checkout, enhance the customer experience thanks to data, and generate more sales. In this article, we'll give you some examples of how you can digitalize your outlets, and give you the best advice on how to make the transition to the connected store a success.
The connected store consists in introducing applications connected to the Internet into the point of sale (store, store...). The objectives are many: to improve the customer experience, reduce waiting times at the checkout, generate more purchases and sales, streamline stock management, etc. We'll explain all the benefits in more detail later!
Ultimately, the digitalization of points of sale makes stores more resilient in the face of the inevitable rise of e-commerce and m-commerce. It's a way of offering an original experience by combining the best of connected tools with the strengths of city-center retailing.
The mix of physical and digital stores is sometimes referred to as " phygital". It's a concept that's been talked about more and more in recent years: it's set to revolutionize the in-store sales sector.
Another concept, "web-in-store", brings together all practices that introduce web-connected tools into a boutique, store or point of sale. Behind all these concepts lies a fast-growing phenomenon: the digitalization of sales outlets, which you need to master to boost your store's potential.
Is the concept still a little hazy for you? We've put together 12 examples of point-of-sale digitalization to give you a clear idea. These highly varied practices include initiatives in boutiques, stores, franchises and major chains. Although not exhaustive, they provide an overview of what's possible:
Want to know how to digitalize your point of sale? Discover Hey Pongo, the customer data platform for retailers:
Digitizing points of sale makes for a much smoother, more complementary shopping experience. While customers can always seek the sales assistant's attention, they can also consult products, obtain information and pay independently. By multiplying in-store contact points, digitization creates new purchasing acts.
The product range is so extensive that it's impossible to present it in its entirety in-store? Interactive terminals give you access to the full range of products, enabling you to purchase them for next-day delivery, either in-store or at home. Connected terminals can also personalize the experience to generate more sales.
The "phygital" concept builds on the intrinsic advantages of the physical store, the proximity of products and salespeople. By adding the best of online tools, the customer experience is enhanced by :
By multiplying points of contact in the store, interaction with the sales assistant can become more qualitative and complementary. The customer can also interact with connected kiosks, tablets, showrooms, interactive mirrors... The digitalization of points of sale makes it possible to develop a customer-centric user experience thanks to data. The customer journey is more diversified, more modern, and creates more in-store traffic thanks to click & collect and e-reservation practices.
Particularly at peak times, checkout is sometimes identified as the black spot of the in-store customer experience. Although crucial, it's also a task that can become time-consuming and repetitive for staff.
The connected store is reinventing checkout. Digital tools offer a host of alternative ways to pay for purchases: remote payment terminals, mobile payment via a "scan & go" app, sales assistants equipped with payment terminals in the aisles, etc. All of these initiatives are designed to lighten the burden of the checkout process, and give priority to interactions enriched by personalized service.
Digitization means a return to the essence of the sales profession. It allows them to spend less time at the checkout, or even managing stock. The relationship with the customer can be more advanced, including in terms of quality, thanks to customer data, moving towards a role of enhanced personal shopper.
The connected store is home to an expert salesperson, supported by web technologies and tools. Some retailers use chatbots on interactive terminals to answer the most frequently asked questions. This also frees up time at the checkout, enabling sales staff to provide customers with personalized, no-holds-barred assistance.
Connected stores use interactive terminals to initiate deliveries or supplies in real time. In this respect, connected stores draw on online sales methods and platforms to manage inventory in real time.
The connected store can also deploy tools to detect out-of-stock products. This is what French startup Angus is proposing, using AI and in-store cameras to anticipate missing products, but also to analyze customer behavior.
Customer data enables us to better understand their in-store habits and preferences. Data is at the heart of the web-in-store: it is used to offer customers a personalized, more complete experience.
Customer data can be collected in a variety of ways, such as with connected tablets or interactive kiosks, or via the web outside the store. Most customers are quite happy to entrust their data to us, as long as it enhances the customer experience (and is put to good use). Collection is, of course, voluntary, based on the opt-in principle, to comply with all RGPD criteria! This is what Pongo offers , helping retailers to build up an effective customer database database.
The database allows you to analyze, understand and bring back your customers with personalized offers. The objectives are adaptable to all sectors and all marketing strategies! It can combine strategic information such as age, consumption habits, average basket, type of behavior (VIP customer, occasional, to be seduced...), preferred products... A smart data, qualitative and customer-centric approach is decisive for taking digitalization to the next level.
The digitalization of stores is only effective if it is backed up by a coherent marketing strategy, if possible with measurable and quantifiable objectives. It must be centered on the customer experience, and bring together the online and in-store experiences. The idea is to offer an enriched customer journey thanks to web-connected tools. Digitization aims to blur the boundaries between the physical and online worlds.
Behind the concept of phygital lies a simple idea: the in-store experience can be a seamless continuation of the online experience. The two are mutually enriching in an omnichannel strategy.
For example, the web provides access, both in-store and at home, to a large volume of product information (more comprehensive product offering, personalized recommendations, access to customer reviews, etc.). The store, on the other hand, allows you to try out a product seen on the Internet. The product can be purchased in-store, or ordered and delivered to your home. In all cases, it is the interconnection of the store and digital tools that makes a successful digitalization strategy for points of sale.
Successful digitalization of sales outlets depends to a large extent on training salespeople. The new tools are not always easy to grasp, and require a new approach.
In addition to training,sales staff buy-in is fundamental to the successful transition to the connected store. It's all about communicating the stakes and the many advantages of the new tools, as well as the shift towards a profession of expert, connected sales advisor, taking ideas from personal shoppers or Apple's genius bar.
Success also depends on customers' ability to adopt the new tools, which are not always understood by everyone. Presentation and support are both necessary and decisive. It allows the web-in-store to be truly integrated into the customer's experience, to the point where it becomes second nature.
After deployment, digital tools must enable objectives to be tracked using newly collected customer data. This monitoring is fundamental to adjusting systems according to results.
The digitization of sales outlets also requires a technological watch. In vogue for the past 4 or 5 years, this phenomenon continually brings new tools and new interactions between the store and the web.
Far from being set in stone, this process is fueled by the contributions of virtual reality and AI, with many areas still to be cleared. Trends to watch closely: the digital revolution has already transformed most stores!
You too can take the plunge: discover how to digitalize your points of sale with Hey Pongo, the customer data platform for retailers!
