Eric Steckling, Pitney Bowes Business Insight
CompUSA is attempting to neutralize the Internet’s one big advantage: Information. In an effort to improve the retail shopping experience, CompUSA has upgraded 23 of its 32 stores to the “Retail 2.0” version. Chief executive of parent Systemax Technology Products Group Gilbert Fiorentino has designed new product displays that include touch screen computers which provide specifications, pictures, customer reviews, competitor’s prices and other information about the products on display. The idea was to change the passive approach to retail and engage the customer. CompUSA has found that information empowers the customer and allows them to make more informed decisions, which Fiorentio says is translating to loyalty and increased traffic.
So what’s next for “Retail 2.0”? Amazon.com often gets me to buy items by simply suggesting them to me based on items I have in the cart, have already bought or even looked at. These (usually on target) suggestions are generated from a vast database of the browsing and purchasing records of myself and the other 76 million unique visitors last month. The difference is data. Online retailers have an easier time collecting and storing customer data. Most brick and mortar retailers have been slow to collect or utilize transactional data, which is instrumental in improving stores’ customer experience.
It is evident that technology will play a key roll in helping retailers “engage” their customers. RFID controlled inventory and smart shopping carts could perform the same suggestive functions by identifying items in your cart and making suggestions based on prior customers’ cartloads. To fully leverage transactional information retailers must also know who you are, another task Internet retailers have no trouble with. Once the customer is identified, Retail 2.0 should include social media interaction as well as purchase driven targeted emails. Only time will tell what other innovations brick and mortar retailers will create to slow the market share loss to online vendors.
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