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What In-Store Experiences Look Like In A Post-Pandemic World

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When the pandemic hit, dozens of industries suffered from its effects. Particularly affected was the retail brick-and-mortar industry. As retail sales plummeted, in-store visitations slumped, and browsing all but became a thing of the past, many wondered if the in-store shopping experience was extinct. But lately, we’ve seen a resurgence of in-store shopping, with many eager to return to that brick-and-mortar experience.

I spoke with Bobby Marhamat, CEO of Raydiant, the leading in-location experience platform, to learn more about how retailers can create a seamless shopping experience. I wanted to understand how brick-and-mortar retailers could offer both the benefits of online shopping and the in-store experience while surmounting the industry's current challenges.

Gary Drenik: What’s the major challenge brick-and-mortar businesses are facing in a post-pandemic world?

Bobby Marhamat: During the pandemic, consumers became accustomed to the online shopping experience. It made sense, too. After all, shopping online offered convenience and ease. People could “shop” wherever they wanted, whenever they wanted – all from the safety of their homes. Online shopping became a potent tool during the pandemic. But as restrictions eased and the world began to open up again, people began returning to stores. In fact, retail sales are up almost 14% compared to the pre-pandemic levels.

But some challenges arose when stores reopened, the most prominent of which was the convergence of online and offline experiences. Since people were conditioned to the online shopping experience, retailers needed to find a way to bridge the gap between online and in-store experiences. Just this year, a survey found that nearly 50% of brands say unifying online and in-store operations and data will be their biggest challenge over the next year.

Online, customers have access to an incredible amount of information: price, reviews, videos, product information, dimensions, specs, and similar products. In-store, however, you essentially have the price, and that’s about it. That just isn’t sustainable. If retailers don’t find a way to create that online/in-store convergence, they’re destined to fail. Some stores are taking measures to bridge that gap, but others haven’t connected the online/offline experiences yet. Mitigating this challenge will be a major factor in determining who succeeds in retail – and who doesn’t – in the years ahead.

Drenik: Do you think brick-and-mortar will continue to have a stake in the future of retail and how will this future connect with e-commerce?

Marhamat: 100%. A bunch of brands have learned how to engage and sell to their [ideal customer profile]. Part of what happened during the pandemic was that 75% of people were changing brands because everything felt commoditized. That’s huge, especially considering a recent survey by Prosper Insights and Analytics found that 61% of consumers currently participate in customer loyalty programs. People want to see, touch, and feel the brand. It isn’t just about the online experience anymore.

Brand loyalty is paramount to the in-store shopping experience. Not only does it cement brand loyalty, but it also offers opportunities to upsell and improves dwell times. A customer who shops in-store spends 31% more rather than online. Online is about convenience, but in-store is about the experience.

Drenik: What role will digital signage play in the future of retail?

Marhamat: Its most prominent role will be around engagement. Yes, digital signage is great for displaying a menu or advertising a recent promotion. But digital signage must be interactive to truly transform the in-store experience. One of our customers saw an 8% increase in consumer spending once they started playing music from their digital displays.

We recently acquired Perch because we know digital signage isn’t enough. This technology is a game-changer for the retail industry. If somebody interacts with a product on a shelf, stores can play ads curated for the product they just picked up. Yes, this is still digital signage, but now we’re able to create smart, personalized digital experiences for consumers in the store – all because we know what item is currently off the shelf. Retailers will need to embrace that cohesive experience.

Drenik: What can retailers do to modernize their business right now?

Marhamat: Frankly: invest in technology. They need to become familiar with more products beyond digital signage. It isn’t just about digital signage anymore; that’s only one part of modernizing the in-store experience. Education with Lift and Learn.

People want to engage with brands, and retailers need to find engaging ways to do this. Creating that positive in-store experience using the latest technology has already produced results. Raydiant did a survey recently and found that 61% of consumers are likely to spend more at a location – and 90% said they are likely to return to that store – if they have a positive in-store experience. Those are numbers brick-and-mortar retailers can’t ignore.

Drenik: The metaverse has been quite the buzzword lately. How do you see retail evolving once the metaverse becomes mainstream?

Marhamat: There are a lot of brands tinkering in the metaverse right now. Many questions people currently have pertain to whether this will be mainstream or not. Can companies effectively tie in AI and AR to physical locations?

Given where we are today, there are a lot of investments in the metaverse – but those investments aren’t universal. I know Adidas is investing heavily in it, but other brands like Sephora aren’t so much. This circles back to the same thing we’ve been talking about. Should retailers invest in the metaverse or virtual experiences in a real-life environment? It’s a tricky line right now, but these are questions many retailers should be asking now.

Drenik: What’s in store for the future of brick-and-mortar?

Marhamat: The future of brick and mortar is digitizing the physical store locations. It’s already shown it can increase revenue and brand loyalty. The ones that are well-versed and investing in this digital transformation are going to be the ones to succeed. Walmart is already investing heavily in this. They have virtual agents in many of their stores’ sections – no employees, just these virtual agents. Retailers need to bring that online experience inside the store. If they do, they’ll separate themselves from the retailers that thrive and those that fail.

Drenik: Thank you, Bobby. We look forward to seeing how these insights play out for the future of brick-and-mortar retail.

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