Gail Chiasson, North American Editor
Manolo Almagro, Managing Director Digital / Retail Technologies, TPN, who will be speaking at the Retail Evolution Summit, sharing the stage with Anne Marie Stephen, founder and CEO of Kwolia and co-founder of Swirl (Smart Women in Retail Leadership), says that retailers will always be chasing what’s needed by consumers and what is needed to connect with them.
“There’a a lot of hype out there,” says Almagro. “It’s confusing. Consumers want convenience and efficiency. People will still go stores, but they do a lot of research online. But really, only about 10% of sales are online, and even then, Order on Line, Pick Up in Store is becoming popular.”
Why? “Because people don’t want to wait for delivery. They want instant gratification.”
“And when people are in the store, even if they’ve researched a number of products, they see a whole lot of similar products in front of them and are confused. Retailers have to know how to help them choose.
“Even online retailers are beginning to open bricks-and-mortar stores. Zappo has done it. There’s even a rumour that Amazon is planning it.”
The current generations have grown up with technology and they expect instant gratification, especially the millennials and younger, says Almagro. They have high expectations. Older consumers are more interested in efficiency and a certain amount of personalization.
“Retailers have to know when the consumer is in the store,” he says. “As retailers, you may have already invested a lot in revising the back end, but now it’s more than knowing that the consumer is in your store. And you may have used a lot of big data to know something about that consumer. But you have to know how to talk to them, to take advantage of those shoppable moments.“
Almagro says that people are willing to trade privacy for convenience, especially the millennials (GenY and GenZ). They have a ‘on demand’ mentality when they are shopping. But he also pointed out that people are now renting rather than buying. Bikes are an example. In many cities, people just a bike when they want on, which is hurting bike retailers.
“Devices have changed consumers,” says Almagro. “Retailers have to adapt to these consumers. And there are many ways that retailers might adapt to them. You have to decide what matters. You may have to test several different ways before you find what works for you. Nordstrum did this and is doing well at a time when Target in Canada, Mexx, Jones and many other are closing.”
Almagro says that it’s more than knowing that the customer is in the store. For the consumer, it’s more than, ‘I’m in the store.’ It can be ‘I’m looking. Help me pick what I want.
And, he says, you have to know the difference between Big Data and Fact Data and how to use them. That Fact Data is the trigger that will allow you to change the message when you know the customer is in the store.
You’ll get this and a lot more from Almagro and Anne Marie Stephen when you attend the Retail Evolvement Summit Feb. 18 and 19, 2015, in San Francisco.
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