Introduction to Retail IoT
The world of retail is changing, and it’s changing fast. Analysts predict that consumer-based augmented and virtual reality won’t take off until recently, but for retailers, there is no time like the current to start out leveraging the tech to create engaging in-store experiences. "Retail IoT," encompassing such technologies as Augmented Reality (AR) and Virtual Reality (VR), is fast becoming a key tactic for retailers within the battle for patrons’ attention—and due to this fact, their business. While the primary wave of IoT in retail was about data and analytics, the subsequent wave will likely be about affecting in-store behavior with interactive marketing.
The Power of Interactive Marketing
Interactive displays, “magic mirrors,” and other immersive technologies are helping retailers construct a bridge between brick-and-mortar and online shopping experiences. In the method, retailers are unlocking a wealth of digital content on the critical point (90 percent) of in-store retail purchases being made as customers are touching products. To be clear, brick-and-mortar retail remains to be roughly a $4 trillion dollar market! In-store retail is an untapped field for brand new types of media delivery. An influx of next-level technologies is enabling retailers to draw shoppers with seamless, personalized shopping experiences which have them coming back for more, driving 5-10x customer engagement and 30-80 percent sales lifts.
Virtual Try On and Customer Exploration
Saks Fifth Avenue’s magic mirrors, called “Bourjois,” allow customers to try on products virtually and experiment with different looks. Sephora is doing something similar. Virtual browsing is more convenient than physically trying on makeup and coping with unsanitary samples or having multiple colours smudge. Customers may even experiment and alter their hair color without the long-term commitment. Such experimentation makes it easy for shoppers to explore quite a lot of options and have their experience be not only comfortable also enjoyable and entertaining.
Engaging Customers Through Personalization
Augmented reality (AR) enables customers to interact with unlimited inventory while concurrently informing retailers on tips on how to adapt to changing customer preferences in real time. For example, Lowes jumped on the AR/VR bandwagon by implementing AR to permit customers to assist visualize potential purchases of their homes. They reduced a key friction within the buying process. Kate Spade, New York uses AR in-store to assist customers personalize their "Make It Mine" line of baggage. Kate Spade’s visitors can explore hundreds of options, not all of which could also be available in-store. By reducing the pain points of product exploration, retailers will help customers sift through a much greater number of products while ensuring that they are more emotionally engaged with the brands that touch them.
Brand Message Fidelity, Targeting, and Continuous Improvement
AR and VR technologies give brands an enormous advantage by enabling them to distinguish their products and maintain direct control of their digital content, marketing, packaging, and pricing. These technologies also provide larger retailers struggling to steal back market share the chance to create unique, personalized experiences for his or her highest margin products in-store. They can distinguish themselves from the competition by creating the sorts of experiences that drive traffic with digital-first audiences. Digital integration is just as vital as getting your pricing, packaging, and marketing right. Once normalized across databases, the large accumulation of information on shopper interaction and preferences will help retailers and types make mission-critical decisions.
Improving Omnichannel Service
AR and VR have been the missing ingredients in the continued means of merging physical and digital retail worlds—otherwise referred to as “retail IoT.” Both AR and VR allow retailers to create a frictionless customer experience for users. These technologies facilitate the natural integration of recent experiences with customers’ historical preferences—without the necessity for consumers to develop recent shopping behaviors. Sales associates can now arm themselves with tablets from Salesfloor or Tulip to assist customers browse different looks not seen in stores. They may even help customers complete their purchase online. When the client hops back online and visits the shop’s website, the net chat could be routed to the actual sales associate the client met in the shop.
Adapt, or Fall Behind
In today’s competitive landscape, brands who don’t think ahead will likely be left behind. Toys “R” Us has did not sustain alongside online giant Amazon’s ever-expanding presence. The former toy giant has closed its doors within the US. How amazing would a toy store be if each toy could come alive as you touched it? What if every product could tell a story, construct a memorable experience and translate your physical shopping into long-term digital experiences? Online toy retailers have a protracted solution to go before they might replace those sorts of experiences. Retail is not dead. Boring retail is. The large retailer Nordstrom is constant to weed out weaker selling brands as they plant a brand new flag in Manhattan. With the convenience and selection that e-commerce brings to the table, retailers should incorporate these elements into the in-person shopping experience or risk losing traffic and the revenue potential of those premium locations.
Conclusion
If utilized strategically, the technological revolution that’s transforming retail lends brick-and-mortar stores a bonus. Technologies like AR and VR are only recuperating at delivering truly immersive experiences. AI is recuperating and higher at predicting demand, determining what consumers want and the way they need it, and thereby eliminating the struggle of buyers “going with their gut." The combination of AI, VR, and AI in brick and mortar retail settings could give e-commerce a run for its money—literally. As consumers increasingly expect more from their shopping experience, retailers holding on to physical stores should adapt their practices through the convenience and depth of insight that AR and VR provides. Their very livelihoods may rely on it.
