Retail is now a 'two-track' market, physical and digital - and here comes 'clientelling'

A GLOBAL retail industry specialist believes the most successful retailers in European and US markets have now evolved what he calls ‘two-track’ engagement with customers – melding physical and digital – and Australian companies need to take notice. He has also flagged the rapid emergence of so-called ‘clientelling’ digital retailing support systems.

Retail and mobile payment entrepreneur Dan Wagner, CEO of Powa Technologies, said the record levels of online sales throughout the latest Christmas holiday season has highlighted the ‘two-track’ nature of retailing. He calls it “a new paradigm where traders with a higher commitment to technology and a multichannel approach are in the fast lane”.

On the way is a new system to boost customer engagement, labelled ‘clientelling’.

“A new concept known as clientelling is another way physical shops can offer something more to the customer,” Mr Wagner said.

“Using clientelling techniques, when a staff member serves a customer the IT (information technology) systems can bring up the individual customer’s engagement record and automatically flag if they have ordered something online that they could be collecting from the store.

“The shop worker, even if it’s their first day on the job, has all the information they need to assist the customer, extend the engagement in a number of ways and perhaps identify otherwise unexploited opportunities to up-sell.”

Mr Wagner said slick multichannel retail operators offering consumers the flexibility to shop how and when they like have clearly been the most successful this holiday season.

Even though extreme weather in many parts of Europe and North America dampened the usual end of year shopping activity, online sales accounted for their highest share of the spend ever.

Mr Wagner said with distinct winners and losers there was now a clear ‘two-track’ situation in retail and those traders with the highest commitment to their online operations are in the ‘fast track’.

Retailers that have invested significantly in their websites and improving their delivery times have struck a chord with customers who value flexibility, choice and convenience whenever and wherever they do their shopping.
 
Mr Wagner said it was now “make or break for Main Street” with retailers needing to leverage online-style technologies in a converged multichannel model to survive.

“Traditional Main Street stores really need to up their game to compete in the new shopping era that we are entering,” Mr Wagner said.

“They need a multichannel approach that adopts best practice from online and adapts its techniques and technologies to traditional brick and mortar retail.”

Mobile technologies are now coming into their own in retailer relationships with customers.
 
“Smartphones are becoming the focus for customer engagement with shops and retailers should be employing mobile app technologies to improve the customer experience and transforming their premises into data-rich browsing environments,” Mr Wagner said.

“For example, low-energy Bluetooth beacons can be strategically placed around stores, messaging shoppers as they approach special offers. In this way shopping becomes a more interactive and personalised experience.

“The technology also has the additional bonus of adding value by retaining valuable data about shopping behaviour.”

Often an extensive network of shops and distribution centres is seen as a massive overhead for retailers, but a national footprint can offer big benefits in the multichannel paradigm, Mr Wagner is finding.

“Retailers with a network of stores and distribution centres should be using this to their advantage by offering immediate delivery for online orders,” he said.

“They could use geolocation information about where orders are being placed and contact the customer by text to suggest a visit to the nearest store to their current location to pick up their shopping, or perhaps to suggest delivery in the next half hour. This contact also offers another valuable opportunity for engagement and up-selling.”
 
Mr Wagner said retailers who focused on using the technologies to help build relationships with their customers would succeed, making best utilisation of their existing brands and physical assets.

 “Mobile technologies along with clientelling and the use of local stores as delivery/distribution points, in concert with developments in the design and layout of shops offer more convenience and a customer experience that is on a par with and often richer than the online alternatives,” Mr Wagner said.

“Traditional retailers now have no excuses not to up their game and adopt online techniques.

“The number of ways that they can engage with their customers is increasing but they urgently need to adopt a more technology-led, multichannel approach to get them coming back in through their doors.”

Mr Wagner has developed Powa Technologies as an international commerce specialist that creates technologies to integrate the physical and digital world. Previously he established Venda – which developed into one of the world’s largest on-demand ecommerce providers – and Locayta, a sophisticated search and profiling technology.

http://www.powa.com/

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