To meet customer needs, leading retailers have begun investing in new technologies and tools to capture customer behavioral information and analyze it to deliver the goods and services customers need. Retailers have focused on increasing their investment in physical stores because most of the consumer's shopping decisions are still made in physical stores. Store clerk must be equipped with mobile terminal tools, which can improve work efficiency, help to better communicate with customers and provide personalized service.
With these next-generation tools, retailers can grasp the key factors in consumer demand and product information that determine today's retail strategy, and link the two into business operations. Honeywell calls it the two-dimensional retail model.
Commodity-centric retail strategy faces challenges
The current retail model faces challenges because it basically focuses on one level – commodities.
In this model, products are produced and distributed to retail stores around the world. Consumers get the wrong information through the retailer's traditional mass marketing medium and find and buy them from local retail store shelves. This is a one-way process around the product's EAN/UPC (one-dimensional) bar code information. Over the past 40 years, the tremendous advances in retail supply chain optimization have largely been attributed to the standardized application of EAN barcodes. However, 40 years later, if retailers lose business opportunities, there are two main reasons:
• First, excessive backlogs are not needed in the market, resulting in a discounted sale at the end, resulting in a shrinking profit.
• Second, the supply of goods required by the market is insufficient, resulting in a decrease in total sales.
Excessive discounts and empty shelves are the main consequences of a commodity-oriented retail model. In this model, sales forecasts are based on past sales results without considering what consumers really want.
Consumers in the Internet age
Today, we only need to look at how these new mobile technologies that provide customers with more product information and decision-making power are highly regarded by retailers, and they can focus on product-centric retail models and customer-centric retail models. The gap between the two has a deep understanding. In fact, the use of the Internet, as well as the popularity of mobile devices that provide Internet access anytime, anywhere, is reshaping consumer buying behavior. Consumers in the Internet age can search for product features, learn about product promotions, and compare prices. Whether in the store or outside the store, they use the Internet and mobile technology to communicate with other consumers and friends, view reference information, confirm purchases, share shopping experiences on favorite social networks, and make business or products/services comment. While most shopping decisions are still based on the perception of goods in a physical store and ultimately in a physical store, consumers in the online age still want to get a direct shopping experience in a physical store while still hoping to get online shopping or smartphone shopping in the store. Interplay and seamless connectivity.
The physical store is still the first channel
According to a survey conducted by the IBM Institute for Business Value, nearly 90% of global retail transactions still occur in physical stores. In addition, physical stores are the second source of information on product awareness and the third source of information for product surveys. Internet and mobile technologies can help consumers search for the goods they need, where they are, and the price, but most buyers still want to shop in-store for the following reasons:
• Get instant satisfaction: Consumers can immediately get the satisfaction of shopping by picking, purchasing, and taking home the product directly in the store.
• Hands-on experience: Consumers can use traditional shopping methods for centuries – see, try, touch, listen to or taste the products they like.
• Personal services: Consumers who shop in physical stores are often dominated by emotions, and clerk can also help and advise from the side.
However, retailers must change to cater to the needs of consumers in the online age for seamlessly connecting shopping experiences across channels such as Internet shopping, mobile shopping, and physical store shopping. Store retailers need to transform their physical store operations into consumer-centric, product categorization, pricing, and promotion strategies that align with consumer needs. The clerk is critical in this model, and the business needs to equip them with new tools and techniques to help them identify potential consumers, participate in the shopping process and actively engage with consumers in order to provide consumers with personalized shopping and higher quality. Service. This will increase the loyalty rate, and this group will increase their spending by 30% each time they shop in a physical store.
Understand consumer expectations
In order to provide a new shopping experience in a physical store and meet the expectations of consumers in the Internet age, retailers not only need to obtain consumer shopping behavior, but also need to integrate their understanding of consumer behavior into the operational process, and constantly adjust the provided The goods or services align with the value orientation of the consumer. Therefore, the insight into consumers has become another dimension that merchants need to master in order to improve retail productivity. Product classification, pricing and promotion strategies must be consistent with the buyer's behavior and expectations. The two elements of product information and consumer insight need to be captured through scanning and mobile technology solutions to prepare for what we call a two-dimensional retail model.
To successfully implement the 2D retail model, it is not enough to master product data and information. Many companies are investing in high-end technologies and solutions to help them understand and analyze consumer needs, group characteristics, personal preferences and expectations. In this new model, the physical store becomes a micro data center without IT staff, and the automatic identification solution equipped in the store can acquire, connect and discover information about products and consumers. The focus of the clerk's work is also transformed from task and sales-driven to consumer service. This model subverts the way retailers have refilled their shelves based on last quarter sales, but instead understands consumer needs and considers how to better cater to consumers with personalized service and enhanced shopping experience. Demand.
Product + Consumer Insight = 2D Retail Model
Arming shop assistants with sales tools to engage customers in the shopping process and interact effectively with customers
Today, retail store clerk uses tools to perform routine tasks quickly, manage inventory, and help customers quickly checkout. However, to meet the expectations of consumers in the Internet age, retailers must provide employees with new tools that increase productivity and transform them from simple task performers to truly business-savvy employees, providing customers with deeper information. and service. Retailers need to equip employees with the equipment and technology to enable them to:
• Participate in the customer's shopping process: The clerk needs to get real-time information about product features, inventory, current prices, and promotions to guide customers in making purchase decisions and increasing sales.
• Interact with customers throughout the process: Shop assistants use new tools to provide customers with the knowledge and services that cater to their shopping preferences (eg, redeem discounts on 2D mobile coupons or electronic gift cards, provide mobile cashier services to reduce checkout queuing time, and scan The 2D barcode on the customer's mobile phone electronic membership card can provide more personalized services, etc.)
In addition, the wide application of electronic QR codes (also known as mobile phone barcodes) in mobile marketing has made the interaction between retail store clerk and customers more and more effective. Retailers use mobile phone barcodes instead of paper coupons, gift cards, membership cards, and gift money. Consumers can receive and store barcodes on their mobile phones and redeem them when needed. The advantages of personalization and portability of 2D barcodes are higher in mobile marketing than paper coupons. According to a survey by Juniper Research, the use of mobile coupons is as high as 5%, while the average usage of paper coupons is only 1%. Mobile barcodes are the hallmark of the new two-dimensional retail model that helps retailers better cope with the challenges of consumers in the online age.
To understanding
Interactive 2D retail mode equipment
participate
How Honeywell can help retailers
Honeywell's Scanning and Mobile Technology Division offers a full suite of advanced 1D, 2D and 2D image scanners and mobile terminal solutions to help retailers:
• Master product data and customer behavior to adjust supply strategies to meet customer needs
• Armed clerk to participate in the buyer's shopping process and interact effectively with buyers, improve operational efficiency and service levels, and bring customers a better shopping experience
Honeywell is setting the standard for a two-dimensional retail model and is working to create a business system of agents and technology partners that provides integrated, complementary solutions to help retailers:
• Transition from point of sale model to point of service model: Provide multiple payment options, including mobile POS, to minimize checkout latency and improve service levels. In addition, application solutions based on QR code and new mobile marketing can be implemented to provide personalized services such as mobile coupons, electronic gift cards and mobile membership cards.
• Real-time, demand-driven inventory: With real-time access to closed-goods and customer data, these solutions help retailers improve supply chain efficiency, increase sales, reduce out-of-stocks, increase profits, and ensure that they are in the right store The goods that customers need are sold at the right price, supplemented by accurate promotional methods.
• Equipped with the right equipment for the store staff: With a mobile terminal with merchandising and inventory applications, the store staff is equipped with indispensable high-tech productivity tools that can participate in the customer shopping process, interact with customers, and provide guided sales services. Including in-store inventory and product supply information, price information, targeted promotional information, mobile payment and mobile marketing related information.
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