Tech Innovations Fueling Retail Comeback

It’s no secret that retail has had a tough couple of years recently, but it looks like the tide is turning, and better days are ahead. Despite inflation, grocery retail remains strong, and a large part of the return to normalcy is due to investments in tech. In fact, Amazon recently announced that it plans to double down on its efforts to bring its Go stores to more shoppers, and Amazon’s Fresh stores will also be debuting in more markets.

Convenience Technology Plays a Larger Role

Convenience is at the heart of the technology boom in retail’s comeback story. Shoppers returning to stores after the direct-to-consumer trend fizzled out and Covid restrictions eased are looking for a new type of shopping experience. This new experience blends the convenience of online shopping with the immediate gratification of in-store purchases.

Going back to Amazon, the company has been using innovative scanners, cameras, and machine learning systems in its Go and Fresh stores to allow customers to make purchases without visiting a point of sale. In addition, convenience retailer Circle K has implemented touchless self-checkout systems made by Mashgin, allowing customers to place purchases in a scanning station, pay the total by tapping a credit card, and then walk out with the purchases.

What Does This Mean for Grocery Retail?

Grocery retailers are paying attention to the impact of innovative tech on the customer experience. Many stores have already implemented self-checkout options, but some are now investing in retail marketing systems that incorporate engagement strategies. Some of these systems provide shoppers with live information upon picking up a product, while others help shoppers navigate stores using SMS messaging.

These technologies are more than mere novelties – they are part of a larger retail marketing strategy that is picking up steam. Retailers planning to stay ahead in the post-Covid return to brick-and-mortar stores must find ways to connect with shoppers. They must find ways to make the shopping experience the reason consumers walk through the doors. Of course, selection and pricing are still important, but shoppers have learned through the pandemic that they can get products and low prices from multiple retailers. The shopping experience made possible through engagement strategies will win the day.

Connecting With Customers Online

Aside from in-store tech, grocery retailers are also increasingly turning to experiential marketing to capture foot traffic, generate word-of-mouth marketing and increase sales per square foot. Holding an in-store demonstration is an example of a retail marketing solution that connects. When a retailer puts on an in-store demonstration, the retailer can connect in ways that traditional retail marketing cannot.

Where the tech comes into play is the promotion of user-generated content. This is content that shoppers can create and post on social media to boost WOM marketing opportunities in the digital space. For example, an interactive showcase featuring a demo of products using interactive elements involves shoppers making a significant impact. In addition, when shoppers share their experiences online through posts, pictures, and videos, retailers receive more attention for their store experience than just their prices and selection.

How Innovative Tech Will Lead Retail Surge

If you’re looking for a strong retail marketing strategy in 2023, embracing tech is inevitable. Giant retailers like Amazon are betting big on innovative tech going into 2023, and while your store may not have a huge footprint, it can still learn from current trends. As shoppers drop the direct-to-consumer model in favor of the brick-and-mortar customer experience, tech solutions are paving the way for a hybrid model that marries the convenience of online shopping with the immediacy of in-store purchasing.

Amazon Giving It Another “Go”

Looking to Amazon, the retailer, has recently stated that it is doubling down on its efforts to bring its brand of “Go” and “Fresh” stores to more shoppers. These Amazon concept stores feature innovative tech that allows shoppers to pick up items and have the items automatically scanned while shopping. This occurs through various tech, including cameras, machine learning modules, scanning equipment, and mobile devices.

Regarding Amazon’s Fresh stores, shoppers use Dash Carts, a type of specialized shopping cart that scans items as they get placed in the basket. As with Amazon’s Go stores, the premise is that shoppers can pick up items and skip the checkout process. Items get added to the shopper’s total as they are selected. Amazon’s goal is to remove the barriers to purchasing found in the traditional brick-and-mortar shopping experience.

Other Tech Innovations in Retail to Keep an Eye On

Convenience retailer Circle K has also partnered with checkout tech maker Mashgin to include its touchless self-checkout systems across Circle K stores in the United States. These automatic systems identify purchases when items get placed in the Mashgin scanner.

Additionally, new systems are in development or are already deployed on a limited basis that enhances the shopping experience by providing real-time information. As a retail marketing solution, one such system tells customers about the nutrition information of products as the customer handles the item, and shoppers can even receive recipes that customers can make using the products they are holding. Another way tech is helping is through SMS store navigation systems that guide shoppers to products as they traverse a sales floor.

Solutions for All Retailers

While the above tech innovations are exciting and certainly point toward a digitized future in retail, your store doesn’t have to spend millions of dollars to take advantage of the tech. Experiential marketing and social media can effectively provide a memorable customer experience without breaking the bank.

For instance, an in-store demonstration or store sampling experience can bridge the gap between convenient online shopping and the excitement of purchasing items in real-time. The web allows consumers to shop a wide selection of products simultaneously, but they must wait for these items to ship. The web also allows shoppers to read online reviews and watch videos demonstrating products, but these types of media don’t provide real-world experience. A demo of products in a retail environment not only offers shoppers the ability to see and touch products to get firsthand experience, but these experiences also allow for on-the-spot purchases.

Retailers can also generate word of mouth marketing opportunities and increase sales per square foot by promoting in-store demonstration experiences on social media. By encouraging shoppers to take pictures and post about their experiences on various social media platforms, the store and the shopping experience, it provides become the stars of the show.

Focus on the Customer Experience

Experiential marketing is all about the retail customer experience. Promoting these events on social media is a way to extend this experience beyond the shopping trip. When WOM marketing develops on social media surrounding in store marketing events, shoppers and their friends and family are reminded about the experience., sometimes days, weeks, or even months after a purchase was made. Retailers can make this more likely to occur by utilizing automation software solutions. When an in-store experiential marketing event goes smoothly, it’s more likely to enhance the customer experience, making it memorable and something shoppers want to share.