5 Technology Trends for the Future of Retail
We understand the retail industry has been severely impacted by the global pandemic. The fact is, many of these retail trends are here to stay. Our team helps retailers every day troubleshoot technology whether it is making sure WiFi is stable to keep online orders flowing, or adding new features that their customers expect in this new age of virtual shopping. We hope this guide helps you shift your business to a more digital shopping experience in the future of retail.
1. Get a cloud-based point-of sale + integrations
COVID19 has accelerated the process of business owners adding new digital sales channels - whether they are a brick-and-mortar store or e-commerce. Now it’s vital that they use a cloud-based POS system that can support e-commerce and integrate all of these new sales channels.
The top 3 cloud-based POS systems we recommend for retailers are: Shopify, Lightspeed and Square.
Shopify is one of the best e-commerce platforms available for SMBs. It provides all the tools necessary for setting up an online store and even goes as far as integrating with other marketplaces such as Amazon. Credit cards can be accepted directly through Shopify so no third party payment processor necessary. In response to the COVID-19 crisis, Shopify launched an updated POS system that integrates online and in-person sales for a unified shopping experience. They also have a full list of add-on apps for detailed reporting or streamlining order fulfillment.
What does it cost?
Credit card rates range from 2.4% - 2.9% + 30¢ depending on your Shopify plan. Based on how advanced the features are, monthly subscription pricing starts at $29/mo up to $299/mo.
Lightspeed is a POS system that recently became released an e-commerce platform. You don't have to be an existing customer to use their web builder to create an online store backed by apps that offer techniques to help manage inventory and customer management. These include SEO tools, marketing tools, storefront, payment processing... the list goes on! However, it should be noted that to use many of these features are only available with higher-level packages.
What does it cost?
Pricing starts at $69/mo -$229/mo and a processing fee of 2.6% + 10¢ for card-present (CP) transactions, or 2.6% + 30¢ for card-not-present (CNP) transactions.
Square is a leader in regards to usability, and affordability. There are a variety of dashboards that help keep track of the customer journey, and marketing features that help support everything from email marketing to paid advertisements. Square recently purchased the website builder Weebly which allows sellers to create an integrated online store for free under their account. This has streamlined the process for sellers looking to offer curbside pickup or local deliveries with the entire purchase done online. Square also integrates with many third party apps such as Quickbooks (accounting), Mailchimp (email marketing), Shippo (shipping and fulfillment), or developers may use their open API to integrate with other apps.
What does it cost?
Square is free to join but charges a transaction fee of 2.9% + 30¢. It can cost as much as $299/mo plus a 2.6% + 30¢ transaction fee depending on which additional features you use such as payroll, loyalty or marketing. They do offer custom rates for businesses processing +$250k annually. One of the biggest perks to using Square is that you can run your business from your phone and get started in minutes - or purchase more advanced retail POS hardware such as barcode scanners and printers directly from Square.
Still don’t know what POS to choose or having trouble installing? Our team of technicians specializes in POS installations for any system. Reach out to get started.
2. Staff-free and cashier-less stores
As we limit contact between people and need to eliminate touching anything other than the items being purchased - another trend becoming increasingly popular is cashier-less and staff-free stores. This is especially becoming more common in larger retail chains. While it may not be feasible for all small businesses to do all of these things, there are some cost-effective ways to alter the shopping process to limit contact and limit crowds forming.
QR Codes & RFID Tags
Some of the tools to accomplish a completely contactless shopping experience include RFID tags, computer vision systems, machine learning, IoT devices, and facial recognition. However, some more affordable ways to limit contact include scanning barcodes or QR codes to gain information about desired products through a smartphone, thus, reducing direct interactions in-store. Implementing Apple Pay can also reduce the need to touch anything when paying.
In reality, most stores aren't ready to become an Amazon-Go store but one example of a smaller retail chain that is meeting in the middle is one of our favorite retail stores - The Spice House. They’ve created an efficient system for fulfilling orders through curbside pickup — customers can shop and pay online and have their purchases delivered to their car. Another way to shorten the lines forming in your store at checkout is to have sales associates complete purchases on mobile tablets throughout the store. See below for more about implementing in-house delivery and curbside pick-up solutions.
3. Use data to understand consumer behavior
It is important now, more than ever, to use data to know more about your customers and their buying habits. Here are a few tools and technologies that can help to accomplish this.
Retail Aware uses a sensor-based platform that measures consumer behavior and retail execution in real-time. Their sensors can collect data on product engagement, dwell time, temperature, and much more.
Unacast is a human mobility data company that harnesses device location data, map data, and strategic intelligence to tackle business challenges not only for retail but a myriad of other industries. Their “Real World Graph” provides innovative solutions and insights to operational challenges. They’re even providing a scoreboard of social distancing based on their data!
RetailNext has revolutionized in-store analytics by using cameras, Wi-Fi detection of mobile devices (including Bluetooth), point-of-sale, and more to inform retailers about customer engagement within their stores. This platform easily integrates with a number of store data sources, including promotional calendars, staffing systems, and even weather services to analyze how numerous factors impact shopping behavior. With this, retailers can identify opportunities for growth, measure success, and areas that need improvement.
Machine Learning for Demand Forecasting (bonus)
With many uncertainties of how the pandemic continues to affect the demand of certain products, many businesses are baffled by what is considered essential today - resulting in a shortage of a product seemingly arbitrary such as yeast. As technologies are constantly improving in regards to gaining actionable insights from “Big Data”, demand forecasting powered by machine learning is becoming an innovative method to achieve this search for actionable insights and reliable information. This can help you manage your CRM (customer database), logistics, or even the manufacturing processes.
Using tools as simple as POS data or external data such as exchange rates and market data, you can fairly accurately predict recurring demand patterns such as those impacted by weekends, holidays, seasons etc. Some other types of demand impact machine learning can capture are the impact of promotions, price changes, weather, local events, and even a change in demand for which the impact factor has not been recorded, such as a competing store opening or construction nearby that disrupts customer traffic.
4. Set up In-House Delivery or Curbside Pickup
Delivery services are increasingly popular as customers have become uncomfortable shopping in stores. While multi-billion dollar companies such as Amazon, Target, and Walmart are implementing complex delivery systems, There are cheaper and more effective ways for smaller retailers to implement local delivery. Some affordable technologies that use your own staff for delivery to reduce commission fees are:
Get Swift is a great retail delivery management software that lets you manage delivery from all your retail locations easily, quickly, and efficiently by integrating orders through your POS and using your own staff for the delivery process. Even with a variety of features that help aid the process, the fee comes out to only 29¢ per delivery. You can charge your customers any price you want to deliver to them locally with your own staff.
Shopify: As discussed earlier, Shopify offers new local delivery solutions that are available with certain plans.
Curbside pickup isn’t just for restaurants. Square, Shopify and Lightspeed have all added new features to streamline the pickup/delivery process for retail too. Or, if you need more advanced features, there are technology companies such as Zapiet that plug into your Shopify store or Glympse that provide an advanced dashboard and notifications for your staff and customers.
5. Communicate MORE with your customers
Constant communication with your customers is more important than ever as store schedules and procedures are no longer a give-in. Adding a banner on the top of your website with your response to COVID-19 is paramount. At the bare minimum, this includes acknowledging COVID-19 and your shipping capabilities.
Here are some great website banner examples:
"Yes, we're still shipping!
"We're experiencing shipping delays"
"We're out of stock"
"Our store is closed" or "Our hours have changed"
"Here's how we're contributing" and social responsibility
"Here's what you need to know now"
Don't forget: update your auto-attendant message on your phone's answering system and change your Google my Business with updated hours of operations or send them to your website. If you don’t have access to these administrative tools in your business - reach out! We help our restaurant and retail customers manage their listing and their phone system settings. We can help take that process off your plate so you can focus on selling awesome products and fulfilling orders.
Still have questions on how all of this applies to your business? We’re here to help!