New physical store technologies to reduce breakdown

On his workshop held on last May 4th at 2016 ExpoGestão, Marcio Nunes, Omni Channel Linx Director, addressed the benefits of new technologies for the physical retail, for both consumers and retailers.

According to Marcio, “we are living an important moment for the sales channels, which changes the way we deal with our customers on a daily basis”. The need to set increasingly effective engaging linkages becomes one of the main methods to attract customers. Márcio mentioned the evolution of the channels and the need for different relationship formats – Below are some examples:

Single channel: Consumer has a single option to interact with retailers, which operates by physical stores only;

Multi-channel: Many customers’ touchpoints are used, such as physical store, e-commerce, and directories, but operating fully independent of each other. The operations of each channel are carried out separately;

Cross channel: Consumers acknowledge multiple touchpoints with the same brand. However, retailers do not have a single view of the customer, since it operates in functional silos;

Omni channel: Consumers are impacted by the brand and not by its channels only. Retailers share the customers single view in strategic and concerted actions.

Understanding the different interaction formats that have emerged in recent years in retail helps you to anticipate consumer behavior. Being trustful enough to check the reaction of those coming to a store or online shopping and watching the organic movements that evolve over time is part of the “stimulation” culture that stores need so much.  

Showrooming trend

When we observe shopping behavior, we can identify how new consumers are engaging the shopping experience. “The new consumer is not concerned with the costs that a physical structure creates for retailers; he/she is concerned about getting the best product for the best price in the most convenient format”, says Nunes.

The showrooming phenomenon is found on retail on a daily basis. It is the behavior of those customers who go to a store to peruse, try and know the products, but they check out using Web environment.

According to Nunes, one of the biggest challenges of the retail is precisely to avoid sales breakdown at the POS, which is also caused by this kind of behavior with direct impact on profitability. That is exactly the scenario we used to put Omni channel in place, thus prioritizing the independent channel shopping experience.

Physical world Integration

Providing both physical stores environments and virtual stores with integrated inventory may be burdensome and even increase retailer’s costs significantly. But to understand the benefits and many other sales opportunities that this change may bring, note that initial costs are outweighed by the volume of sales and positive experience to customer.

Some examples of how the use of integrated inventory strategy could significantly reduce physical store sales breakdown:

– Buying an item using e-commerce that can be picked up at the store, thus generating new sales opportunities during product claim; 

– Buying an item at the store that can be delivered to consumer’s home – customer’s convenience leading to store owner’s customer satisfaction; 

– Buying an item at physical store that can be claimed from another physical store – in the event of inventory shortage locally, the sale will not be lost.

Using this format, customer’s shopping needs are fully met, and he or she will be able to buy the desired product, thus reducing sales breakdown at the same time. “Keeping a full time inventory highly increments retailer’s costs, but if with integrated inventory retailer saves space, retains the customer and increases customer’s satisfaction regarding the brand”, says Márcio.

Providing a pleasant experience

On many occasions retailers understand that there are several ways to attract the customer using a number of existing technologies. But it is common knowledge that these solutions are not part of the country’s reality.

However, when we look more closely, it seems that many resources are effectively mingled throughout Brazilian market.“Today we have stores working with mobile POSs, sales being performed by mobile devices, physical stores selling products through e-commerce, and even stores fully created over Omni channel concept”, he adds. Many of the new technologies are already available for retailers in any environment or at the nearest point – just search for opportunities. 

Check out the video concerning some features that are already being used by Brazilian retailers:

Learn more about Linx Fast Pass, Linx Mob Checkout and Showroomer solutions