Richard Jones, VP of national accounts for Groupon UK and Ireland, considers how shops need to adapt to the changing needs of the connected consumer, without forgetting their roots. 

The future of the high street and its shops has been a hot topic of conversation ever since the recession hit. Amidst claims that eCommerce, mCommerce and out of town shopping centres are killing local stores, attempts have been made to revive it. A big part of the debate is centred on having the right technology to better compete, both in-store and online. But, what is it that shoppers actually want to see in their stores?

We recently launched a report with Kantar Retail asking just this. We found that 58 per cent still prefer the personalised in store experience, so shops know who they are and what they want. This is even true for online retailers, as nearly half of shoppers said they would like them to have physical stores, so they can touch and see what they want to buy and have human interaction.

But this doesn’t mean there is no room for technology. For example, assistants in the Apple Store are all equipped with tablets and mobile payment facilities as they move around to speak to and deal with different customers in store – whether it’s helping them with a problem device or making a sale. In this way, technology is enhancing the customer experience, but the all-important personal touch is maintained.

Self-service
However, some technology that retailers are using really divides the crowd. For example, we found that while some shoppers are open to having more self-service facilities in-store (37 per cent), almost half say that having more of this type of technology is a negative thing. While they are intended to reduce queuing times and make the shopping experience more convenient, they are not to everyone’s liking.

Another self-service alternative is having tablets in-store to enable customers to check stock levels more easily, and this is something that the bigger retailers like Debenhams are already investing in. To get it right, retail marketers have to think about the groups of customers they are targeting, and whether such tools will support or alienate them.
Offering mobile payment technology in store is also a big consideration right now. According to Forrester, mCommerce revenues are expected to reach €19.2bn (£16bn) in Europe by 2017, and in N. America, almost 50 per cent of our transactions are carried out on mobile devices.

Mobile payments
While it’s unlikely we’re heading for an entirely cash-free society, consumers are likely to become less dependent on cash in store as more choice in payment methods open up, particularly via mobile. So, it’s important that shops get on board to support this trend. The problem is that it can seem complicated and expensive, which is why we launched mobile payment services for smaller retailers, so they can easily and cost-effectively accept payments on mobile devices. But, this is just the beginning.

For mobile payments to become mainstream, there are a number of barriers that need to be overcome. Firstly, the market is currently fragmented, with many different types of business, including banks, mobile operators and payment providers all developing their own solutions. What’s really needed is one, consolidated mobile payment method that retailers can invest in and that consumers can embrace.

Secondly, there have already been some problems with existing mobile technology, which need to be resolved. For instance, NFC terminals have been installed in various outlets, so people can swipe cards or mobile phones to pay for goods instantly, but they don’t always work, and sometimes customers forget about them all together.

Finally, there seems to be a lack of awareness among many people about the payment options currently available, which the industry needs to address. Essentially, shops need to get on board with a mobile payment option that provides a convenient, seamless and secure customer experience – one that customers are aware of and will use time and time again. While cash won’t completely disappear from our lives as many shoppers prefer to pay in different ways, businesses will need to provide a wider range of payment methods.

New technology
At the more radical end of the scale, 31 per cent of respondents in our study said that being able to use hologram projections to try out a product or item on themselves in store, and also at home, would improve their shopping experience. While this might not be put into practice any time soon, retail marketers do need to think about the kinds of technology they provide, what will work for their customers and embrace this change. In this respect, Tesco’s experiment with Oculus Rift’s Virtual Reality tech is worth noting.

Above all, it is important to remember that having specialist staff on hand and providing a personalised customer experience is still seen by consumers as critical, and should not be replaced by technology.

Consumers want to emotionally connect with the brand, talk to experts and physically see and touch products. Our study also found that they want more bang for their buck, so marketers must consider how to make their shop’s offer stand out to deliver better value, quality and customer service. By acting on what customers want, shops can enhance the customer experience and boost sales – we are helping retailers do just this, so that they thrive both now and in the future.

Richard Jones is VP of national accounts for Groupon UK and Ireland