Shopping: how retailers are using the latest technology to boost in-store spending

Shopping: how retailers are using the latest technology to boost in-store spending

There are certainly a ton of advertisements in your online world that will convince you to make a purchase with only a tap of your phone. Retailers, however, actually spend the majority of their digital budgets inside of their conventional brick and mortar stores, away from those personal screens and the latest technology to boost in-store spending

For in-store marketing methods have advanced far beyond flashy banners and piped music in favor of a rapidly evolving range of electronic strategies intended to encourage you to make purchases.

One of them is aggressively enticing you to use your phone while you’re in a store by offering free internet, utilizing QR codes, or sending you social network suggestions. This may seem unusual because shops would undoubtedly prefer that you look at their products instead of your screen.

In fact, according to our research, consumers’ distractions can be highly profitable. The amount spent by customers who used their phones in-store increased by 40%.

We discovered that using a phone significantly changed how consumers felt, diverting them to the point where they were not fully aware of their immediate surroundings. (This is why using a phone when driving is so dangerous.)

Three times as likely to return to a section of the store that they had previously viewed and left were the customers who had been using their phones while shopping. They essentially started their shopping anew after interacting with a personal screen, sort of like pressing the “refresh” button on their buying experience.

Therefore, every time you use your phone and put it away, it appears as though you have freshly entered the store from the perspective of the retailer.

Screen time

Additionally, stores will use their own digital screens to display their products (sometimes several at once) in use. One study revealed that consumers were more motivated (to make a purchase) after viewing a brief video of a product in action as opposed to a still image of the same thing. This could, for instance, be video of furniture being presented in a household environment or a cuisine being prepared using a variety of groceries.

Consumers appear to discover an additional depth that comes from seeing items in use. It even increases their propensity to purchase additional products to match what they see on the screen, such as a new pan with a new set of cookware or a sofa together with the cushions and the side table.

Giving out samples of delectable supermarket products can boost sales by as much as 3,500%, according to studies, making personal selling another effective retailing strategy. This has a cost, though, as staffing expenses eat up a large portion of the additional earnings.

Therefore, why not digitalize personal selling? In the course of our research, we conducted an experiment in which a sizable vertical screen displayed a video of a subject in front of the unrestricted samples. The findings showed that even without the actual person, up to 80% of the sales gain persisted.

A holographic or multi-sensory “mixed reality” display, in which a computer scene is superimposed on the actual physical world, can be used to advance this concept further. Our research on this topic revealed that shoppers related to a product more favorably when it was projected in front of them.

In the experiment, we installed high-tech projectors over the ends of supermarket aisles, which then showed customers a movie with noises and even fragrances, similar to a laser show. For instance, the video can show someone making pasta while there are sounds of cutting and frying nearby and the smells of tomato sauce cooking.

Sales of the products on display increased by nearly 60% just due to the visual stimuli. This was further enhanced by including the sounds and smells.

Digital days

The term “experiential retailing” refers to the use of digital devices throughout a physical store. The goal is to increase the customer’s ability to view a product in action rather than merely on a shelf and to improve their overall shopping experience.

Therefore, every time you go shopping, be prepared for the real store to contain an increasing number of digital components that are there to inspire and help, but also push you to make more purchases.

Also, don’t ignore the impact of the piped music. According to studies, music over the holiday season boosts a store’s overall sales by about 3%. The effect is stronger if the music uplifts your mood, so if a store’s playlist makes you feel good, you’ll probably spend more money while you sing along.

What are the Digital Days and Digital Month?

These days were created in 2021 to give society as a whole a chance to periodically reflect on, experience, and review digital challenges. In order to accelerate the transition to a more digitally-based society, the public and commercial sectors are collaborating to put numerous projects into action. By organizing a range of events and limited-time deals during these dates, we seek to accelerate Japan’s digitalization. Sunday and Monday, October 2-3, 2022, have been declared Digital Days, and the entire month of October has been designated Digital Month.