The digital world has rapidly evolved into an environment that aims to give us everything we need, and sometimes delivers. Consumers seem to think so: U.S. e-commerce spending now tops a trillion dollars annually. Catalyzed by the pandemic, remote work has become entrenched. As online experiences continue to improve, how can we make physical spaces so compelling that consumers prefer them?
Two paths for motivating people to patronize real places
Two paths are available to venue operators. One is to provide something of value that simply can’t be experienced online. A picture of Michelangelo’s David is pretty, but traveling to Florence to actually see the David is a revelation. Problem is, Michelangelo only made one. To be sure, some of the physical world's advantages—in-person interactions, tactile engagement, immediacy—scale better than priceless works of art. But increasingly, these benefits alone aren’t enough to get people out the door to, say, do their shopping.
The second path is utilitarian: make your physical space more convenient than any online alternative. This is already a tall order, and digital retailers are constantly raising the bar with greater selection and faster shipping times.
These two paths to preference—uniqueness and convenience—aren’t mutually exclusive. Any venue operator hoping to avoid the fate of the dinosaurs must pursue both, though the relative emphasis will vary according to purpose: Pebble Beach is firmly in the uniqueness business, and convenience stores are all about, well, convenience.
But what about brick-and-mortar retailers? How can they offer the best mix of uniqueness and convenience to remain a compelling choice for consumers?
Embrace digital tools for physical spaces
Ironically, the solution for physical retailers is to co-opt aspects of the very digital realm that’s working overtime to unseat them. A number of digital technologies can boost the value of brick-and-mortar stores. Here are some that deliver the highest ROI.
Arm store associates with real-time inventory information. This requires a sophisticated inventory management system and an effective employee app. Leading retailers also use RFID tags to efficiently track floor inventory. When a store doesn’t have a shopper’s desired size or color, an associate armed with inventory data can direct them to a nearby location or place an online order on the spot. Outcomes like this aren't a failure but rather a success: no physical outlet can hold infinite inventory. But the store propels the customer along their journey, and the digital tool enables the associate to make the sale—and ensure a positive experience for the shopper.
Give customers searchable maps and navigation tools on their smartphones. The best solutions make this frictionless: shoppers simply scan a QR code onsite to instantly launch a lightweight “applet” that doesn’t need to be installed. The key value is both obvious and powerful: customers more easily find what they want to buy. But providing these tools can also give you insightful analytics about visitor behavior. Finally, best-in-class solutions also offer features to drive downloads of your customer app. In doing so, you both improve the in-store experience and recruit new omnichannel customers.
Use augmented reality to make shopping easier and more fun. For example, smart AR mirrors let customers effortlessly see what clothes look like—when being worn—in different sizes, styles and colors. Certainly, some online retailers are adopting phone-based AR tools. But richer in-store solutions deliver a wow factor you can’t get at home, and readily convert visits into transactions.
Retail's winners are digitizing their physical stores
Despite the rapid growth of online commerce, brick-and-mortar stores deliver the vast majority of retail revenue. But survival alone isn’t success. The most successful operators are leveraging digital technologies to create an unbeatable combination of uniqueness and convenience that customers are compelled to seek out.
