Mar 26 2014
Brick and mortar and online retailers are often seen as completely different entities, each with their own benefits and drawbacks. However, through the use of data-mining and other technology, brick and mortar retailers can gain an edge on their online competition by attaining the advantages of increased customer knowledge without sacrificing the benefits of in-person customer interaction. This leaves brick and mortar retailers with a situation that is the best of both worlds.
Technology that tracks and targets shoppers helps brick and mortar retailers make a better in-person shopping experience through the use of personalized recommendations, targeted advertisements, and improved cross-selling tactics.
Technology Helps Brick and Mortar Retailers Give a Personalized Touch
Technology that tracks customer shopping habits provides data to retailers that gives insights as to the top grossing products, items that are co-purchased together, and merchandise that is bought with coupons, to name a few.
Improved customer data results in improved customer understanding, allowing brick and mortar retailers to provide a more personalized shopping experience based on findings. Behavioural data is so valuable that 68% of marketers affirm that personalization based off it has a high impact on ROI.
Technology Helps Brick and Mortar Retailers Target Advertisements
Technology that gathers customer data allows brick and mortar retailers to improve their marketing efforts through the use of targeted advertisements. Rather than widely distribute generic coupons, technology reveals trends that tell retailers which advertisements would be appealing to which customers.
The ability to target ads not only improves marketing efficiency but also strengthens customer relationships. Studies show that 40% of customers make more purchases from retailers who personalize the shopping experience. Targeted ads meant just for them lends to this personalized experience. Furthermore, surveys suggest that 35% of people buy an item using an emailed coupon every week. As a result, advertisements targeted at the right people yield measurable results for retailers.
Technology Helps Brick and Mortar Retailers Improve Cross-Selling Tactics
Online retailers have been cross-selling—i.e. suggesting buyers to purchase items together—since their inception. In fact, it is reported that 35% of Amazon’s sales were gained from cross selling in 2006.
But with technology, brick and mortar retailers can also implement cross-selling tactics to great effectiveness. Tracking customer purchases can reveal purchasing trends that retailers can account for when offering bundled deals. A sports retailer`s data could suggest that customers who buy running shoes are more likely to purchase a yoga mat. Retailers can capitalize on this information by placing the two items beside each other in the store and offering a deal for the purchase of both.
In short, using technology helps brick and mortar retailers narrow the gap between their online competitors. With increased consumer knowledge, stored-based retailers can be analytical and strategic marketers, while leveraging technology to personalize the shopping experience to a level passed what any online retailer can offer.