New Store Techology: 'Must' or 'Bust'

Reviewing some recent video clips for potential tekSESSIONS speakers, I ran across a presentation by James Dion called “The Twelve Most Common Mistakes in Retail Technology and How To Avoid Them.” Within the first 2 minutes of the presentation he states “Do not place any technology in your store that will not benefit the customer.” (He also talks about how never to trust a sales person, but that’s another blog!)

Benefit the customer… hmmmm. In the marketing world, I often struggle with what’s just new and cool and what will actually drive sales. So for retail IT professionals, who live and breath technology, I can imagine its equally challenging to sort through what’s ‘new and cool’ versus what actually brings value to your customer. Even more challenging, once you determine it could bring value to your customer - now you have to make good on it.

Digital Signage: More than just a glorified TV?
The buzz everywhere is digital media and digital signage, but does it actually benefit the customer? I think the reality is that it could, but in most current applications its not. Take a grocery store for example. In a recent shopping experience I noticed digital signage at two points of contact - one over the produce and one at the checkout. The produce screen was a cooking demonstration for the seasonal vegetables found below. Great idea, right? Well, maybe if I had a way to get the recipe that didn't involve me scrounging through my purse for pen and paper. The TV at the checkout was really just that, a glorified TV with current show clips and news. Again, didn't really serve any purpose - there were no great tips or ideas on how to save time, money or make food more nutritional and enjoyable for my family.

Now lets take Smith & Hawkin's who has recently added digital signage in their stores - they are using the screens to take people to their website to see products that are not available in the store. Beneficial to a customer? Absolutely. Example: I need a patio set that is larger than anything they have in the store, but I am not going to order anything without seeing some images and specs on the set.

Mobile Technology: Customers only a text away?
In theory, this could possibly be the most beneficial technology a retailer could learn how to use simply because everyone has a mobile phone and its always on them. Two great examples of mobile technology in action:

• Dairy Queen recently launched a mobile loyalty program, where they are issued a chip, called the Tetherball Tag, which enables customer to receive offers via robust text messages. These promotions can be redeemed at the store’s point-of-sale system during checkout, or at an RFID-enabled kiosk located inside the store.
• Burger King launched an iPhone application that enables users to instantly log in and connect with Burgerkingnow.com. They can choose their closest restaurant, input their order through the touch screen, and pay through their phone. The order is fulfilled at the selected destination.

Self-Checkout: A real line-busting solution?
Research has stated that people like self-checkout. There are certain demographics that use it frequently and prefer it to traditional checkout. Yet, I was at a store last weekend where there were checkouts backed up into the aisles and all 6 lanes of self-checkout were closed. So yes, it’s a technology that can and will benefit the customer but only if implemented correctly.

Kiosks: More than gift registry?
I rarely see kiosks in any other application than flight check in and gift registries, but can think of a million places where they might be useful. For example Jack-in-The box is placing kiosks in their restaurants so people can order and just pick up. I believe that 7-Eleven has recently done the same.

Was at a presentation a few weeks back from where Zebra Technologies made a valid statement: Why do we print coupons off at the checkout when people are leaving rather than giving them to the customers when they enter the store? Everyone in the audience sat in dumbfounded silence, because it is over the top logical. Yet no one is doing it.

So the moral of the story: Its not enough to just place technology in your store that in theory benefits the customer, its up to you to make sure its implemented in away that is actually useful to your customers' shopping experience.

Happy summer!