Using Mobile Technology to Bridge the In-Store Information Gap

Four Trends are changing IT Departments“Mobile” and “Information” were two of the four main forces that Gartner recently identified as changing the use of technology by enterprises, the other two being “Cloud” and “Social”.¹

The cloud offers new delivery styles and options; social computing is an interaction style allowing collaboration between virtual teams deployed across the globe; mobility offers new access channels to applications and data, and the concept of “big data” is changing forever the relationship of technology to information consumption. Data coming from multiple sources in structured and unstructured forms must now be analyzed using new methodologies to help companies make strategic decisions.

Modern retail in-store operations are comprise of different teams working in each store of a multi-store brand. Virtual teams need to communicate with counterparts inside and outside the store and interact with their customers using real-time information. This communication is essential today in order to increase staff efficiency and the overall productivity of in-store.

These four forces are affecting everything companies do and can open the door to new opportunities they don’t even know exist today, raising the productivity of virtual teams as users expect to get access

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Executive Summary

Mobility and information are two of the strongest technology forces facing retailers today. There is a huge communication gap between tech-savvy shoppers and offline store employees. Consumers are well prepared and equipped when they visit a store to shop. Increasingly they use their smart phones to control multiple aspects of their digital life. They search the internet for product information, compare and evaluate offers and look for the best deals via price comparison websites, a phenomenon called ‘show rooming’ that is threatening the in-store sales channel. This access to mobile information has become one of the shopper’s most powerful tools and yet retailers have mostly failed to equip their staff in a similar way, opening up the potential to lose out in a consumer versus retailer mobile technology arms race.

In-store remains the number one place where consumers make their buying decisions and purchases. Wider adoption of mobile technology and greater use of truly customer-centric applications will prove an essential tool in preserving the strength of the in-store channel against the growth of online, mobile and omni-channel competition. Mobile devices have been commonly deployed for standard inventory management applications. A new breed of multi-function devices integrated with customer-centric applications has been deployed only by few players.

Wireless mobile platforms for in-store assisted sales applications increase staff productivity and allow retailers to introduce more flexibility in their in-store sales processes raising store profitability and improving the overall in-store shopping experience.

¹ Gartner Predicts Report, 2012

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to personal, work, business applications and data from any device, anytime and anywhere. But how many retailers are providing in-store sales associates with real-time mobile access to the critical information they need to close a sale?

Mobility and information gapThe question is even more relevant when we look at how the new connected shoppers master mobility and information. Today’s consumers are well prepared and knowledgeable about the products they want to purchase. Before entering a store, they may have searched the web for detailed information, compared product features and prices, consulted ratings at product comparison sites and evaluated other customers’ opinions on social networks.

Used to the immediacy of online retail channels, shoppers expect in-store personnel to be at least as informed and knowledgeable as they are, looking for personalized service and care that continues to make in-store shopping the main retail channel.² However, even the best-informed store assistant cannot amass detailed knowledge for each product available on the shelf without the help of mobile access to online information.

This information gap in today’s relationship between the in-store sales staff and the connected shopper is costing multi-store brands the most important high street asset: customers’ loyalty.

The empowered sales assistantTo engage with such demanding and connected customers, store staff needs to be empowered with tools that allow immediate access to real-time information on product features, stock availability, prices and promotions, making them more effective and prepared to face and interact with the omni-channel shoppers. The goal is to increase both in-store profitability and enhance the in-store customer shopping experience.

Leading retailers are deploying the latest mobile solutions to empower the virtual teams working across their store networks. Connected via wireless LAN, they can look up product details from the corporate store system or if necessary browse the internet for additional information. Once mobilized , the sales assistant does not have to leave the customer to go to a computer terminal in the backroom to find the correct answers. Right on the shop floor they can

see if the item is available at another store, on the online channel or when it will be replenished and offer a direct delivery, or have it ready to be picked up the next day.

For a long time retailers have been using mobile data entry systems for inventory management tasks. Now leading companies are using the latest multi-function mobile solutions to add customer-facing applications and bring customer experience at the centre of in-store processes.

Innovation through mobileExcelsior, a new luxury department store in Milan, uses an innovative retail format with only a limited number of items displayed on its shelves. The clean aesthetics draw attention to its exquisite interior design, but more importantly, the format also encourages greater interaction between sales staff and customers, leading a superior personalized experience.

On the display shelves, unique items of every product are exhibited, while the rest of the product range, such as different sizes and colours is kept in basement stock rooms. Customer requests are handled through real-time

Excelsior store, Milan Italy

² IBM® Institute for Business Value, Winning over the empowered consumer: why

trust matters, St Leonards, 2012.

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communication between the point-of- sale staff engaged with the customer and the stock-room staff, called runners.

When a customer requests a product specification that is not on display, the sales staff check stock room availability in real time using Honeywell Dolphin™ 6000 multi-function mobile devices equipped with application software for product range management. In case of a positive response, a message is sent to the runners in the stock room requesting that the item is immediately brought up to the store for the customer. Every runner is also provided with a mobile device and uses it to verify in real time the fulfillment of the request. When voice communication is required, the point-of-sale staff and the runners can also use the phone function of their mobile devices.

This innovative application of mobile technology drives greater sales staff productivity and a better shopping experience for customers: Excelsior can also use it to provide sales staff with real-time information regarding available offers in the store. Moreover, sales assistants can give more personalized assistance to customers by providing a real-time response to inquiries about the product range, prices and promotions.

Battle against showrooming“Showrooming” is the growing trend that sees shoppers try out products in-store but buy them cheaper on the web, often using their smart mobile phones while still on the retailer’s premises.³ Retailers and their sales teams can counter this trend by taking full advantage of mobile access to data and systems.

For every retailer, full transparency of customer data enables sales assistants to make personalized offers and advise on new offerings to complement previous purchases. With a mobile device in hand they can access vital information,

such as brand preferences, sizes, names of family members or birthdays, or they can interact with shoppers by reading the mobile loyalty card or by redeeming mobile coupons stored on a shopper’s smart phone as digital QR codes.

Sales assistants can compare prices on the internet and make a counter-offer based on the margin of the product, or knowledge about planned promotions and the customer’s shopping history. Sales assistants can also use the same multi-function mobile device as a mobile POS to complete the sales transaction on the spot, at the point of decision, saving the shoppers precious time spent in a queue, or finally capture returns from the customers and update inventory in real time.

Retailers have to make completion of the shopping process as easy as possible. This includes providing the right services and letting consumers choose how they interact. Over 40 percent of customers want to check product prices wherever they are and get promotions based on the items they scan. And 50 percent are willing to use a personal mobile device to avoid the checkout lane.4

The world’s most innovative retailers go beyond productivity enhancements to focus on flexibility and connectivity in their in-store processes. The same mobile device platform and sales processes that are used to counter showrooming can also be used to engage with and help brands adapt their offering almost in real time.

How Honeywell can help Honeywell offers mobile retail solutions that empower store associates with real time access to store and customer information. Whether Windows, Android or iOS is your operating system of choice, Honeywell delivers enterprise-class devices that operate a full shift without changing the battery. Devices that are proven to endure knocks and drops and that provide retailers with class-leading barcode scanning performance.

³ Deloitte Touche Tohmatsu for Telstra, How You Can Join The Omnichannel Shopper in Transforming Australian Retail, 2012

4 IBM® Institute for Business Value, Capitalising on the smarter consumer, St Leonards, 2011

Honeywell Dolphin™ 6000

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Conclusion• In-store remains the most important place for consumer

decisions and purchases.

• There is an information gap between customers and retailers driven by mobility and the internet.

• Showrooming is an increasing trend in retail stores.

• Customers want to be served not sold to, they want retailers to listen.

• In order to engage with customers, store staff needs to be empowered with tools that bridge the information gap.

Learn more about the Captuvo iPod sled, the new Dolphin 70e Black rugged enterprise hybrid device and Honeywell devices for Google Android at www.honeywellaidc.com.