As brick-and-mortar and e-commerce companies continue to fight for consumers’ attention and dollars, today’s customer has a plethora of shopping options at his disposal. Though online sales are expected to reach $414 billion by 2018, according to Retail TouchPoints, the majority of all retail sales still occur in physical stores, pushing companies to try to offer their clients the best of both worlds. Consequently, a lot of companies now use a variety of tools and technologies to attract customers and get them to visit their stores or websites again. Omni-channel retailing Amazon is making a foray into the bookshop business, with plans to open a number of brick-and-mortar bookstores across the country, in order to reach a much wider audience for its products. Expansions such as these emphasize the importance retailers now place on omni-channel retailing, where companies offer customers a variety of ways to shop, whether it’s online shopping through a desktop or mobile device, or the traditional retail store. Often times, a customer will visit a showroom or physical store, then they will order the product online instead, so it’s crucial for retailers to offer both options. Same-day delivery Shipping time is another important factor that customers take into consideration when placing an order. The faster the shipping time, the more satisfied the customer and the more likely they’ll shop again. Amazon is already ahead of the curve with same-day and two-day delivery service, with Sainsbury planning to also launch a grocery same-day delivery service to compete with faster rivals. Fast shipping time is crucial for customers who wish to save time and have their groceries delivered to their doorstep. Chatbots In an effort to come up with new and groundbreaking marketing strategies to attract customers, numerous companies have adopted chatterbots—a new...
Digital Meets Physical
Enhanced Shopping Experience
Although shoppers can find just about anything online these days, more than 90 percent of Americans continue to shop in brick-and-mortar stores. The satisfaction of a multisensory experience still appeals to consumers. The convenience and flexibility of digital shopping stands to make physical shopping even more appealing. By dissolving the distinction between in-person and digital commerce, retailers can rack in the benefits of both worlds. The following companies offer a few examples of how you can unite the benefits of digital and physical commerce: Promote Loyalty Few shoppers take serious interest in clipping and carrying coupons. Customers do, however, appreciate awards for their loyalty. Digital rewards programs by companies such as Ibotta offer mobile convenience at the point of sale. Shoppers receive relevant discounts and cash-back offers during their visit to the store. While standing in the women’s clothing department at JC Penny, for example, shoppers receive coupons for women’s apparel. Savvy shoppers love to research. Millennials are known for researching online before making a purchase. QR codes allows brands to accompany physical items sold in your stores with digital ads and additional details about the product. These barcodes minimize the gap between buyers’ emotional response to ads and the point of sale. Once consumers have decided to make a purchase, apps like Swipely correspond with card-free payment options. When consumers pay with a smartphone, they received customized incentives via text or email. These offers reward customers for their patronage and encourage them to return to your business. Another way to promote loyalty comes through the Cheers experience. As soon as a customer walks through the door and checks-in with Perka, the app alerts staff members. Staff can then greet the guest by name and offer customized services to return customers, such as new styles in the customer’s preferred brand or promotions on items of interest. Want to reward yourself for a job well done? LevelUp eliminates your payment processing fees and offers rebates for each new enrollee that uses the program. The startup also issues rewards as a form of commission when employees successfully enroll consumers in the program. It’s one of the few loyalty initiatives that reward employer and employee effort. Enhanced Customer Experience One major benefit to physical shopping is the ability to interact with the product: try it on, feel the quality of its construction, and see its colors true-to-life. Digital media can now make reality even more real. Augmented reality mirrors offer the fun of trying on products without the drama of restocking, messy samples, or hygiene issues. Shoppers can to try on various finishes and shades of makeup before making a purchase using the Shiseido’s Magic Mirror. Clients can “try on” make up without the mess, clean up, or skin irritation caused by using multiple products in a short duration of time. Augmented reality mirrors are also showing up in dressing rooms. This is one feature that you won’t want to overlook. A special tag alerts the mirror of what a shopping is wearing and its size. The mirror then displays additional size and color options that are available in-store. There are also options to coordinate the clothing with accessories to complete the outfit. The mirror alerts staff members when the shopper would like to view additional items. You can maintain a tidier inventory and improve customer satisfaction with one device. Lastly, you will want to hear what your customers think about their shopping experience. This is the best way to continually improve your services. Wyzerr app captures digital, in-personal feedback before the customer leaves the store, at a time when your business can actively correct errors. Data from this feedback can also be used to drive customer satisfaction, retention, and...
Easy Package Pickups
New 7-Eleven Service
Some people hate shopping. Like myself. The idea of spending numerous hours walking in and out of countless stores, not finding the items I want, but buying some which I had no idea I needed, exhausts me mentally and physically. The day e-commerce became available, I felt relief. I no longer had to waste my time on never ending shopping trips, but could get what I needed without leaving the comfort of my couch. In the meantime, the industry has evolved. So have its shortcomings. One shortcoming is related to the wait: you place the order and then you wait. Or you stress out not knowing if you’ll be at home when the delivery guy shows up. Because you don’t like having your packages left on your doorstep. Perhaps you should have used your office address? What if your boss announces you that you have to travel on the exact day your package is due to arrive? To help solve this problem, Amazon and 7-Eleven have come up with the delivery locker system in 2011. The program proved to be highly successful, as recently 7-Eleven announced it made space for more lockers at a number of its North American stores where customers can pick up packages from FedEx, and United Parcel Service. In fact, any retailer that ships via UPS or FedEx has the locker as a delivery option. Moreover, the company said they will install Wal-Mart lockers in six locations in Toronto. The locker system is quite simple: anyone who shops online from a retailer who uses UPS or FedEx has the option of having their package sent directly to the nearest 7-Eleven for pick-up. When the package is delivered, the customer receives an email notification along with a bar code to his...
7 Key Drivers
E-commerce conference
Accessibility on several counts tops the list of secrets to success in e-commerce. That was the determination of a session on e-commerce site and building selection at NAIOP’s second annual E.Con e-commerce conference, held late last week in Atlanta. Moderator K.C. Conway, senior vice president of credit risk management at SunTrust Bank, led the spirited discussion among attendees and panelists Scott Belfer, senior vice president at CBRE Inc.; Amy Gerber, executive vice president with JLL; Michael Mullis, senior vice president of real estate for J.M. Mullis Inc.; and Hugh Williams, principal with Avison Young. The top seven drivers were determined to be: Proximity to customer demand clusters. While e-commerce consumers currently accept an average delivery time of three to five days, next-day deliveries are growing in popularity. Developers that can offer their e-commerce tenants fulfillment centers with cost-effective same-day and next-day delivery will have an advantage. Access to high-quality labor. Community colleges and universities become increasingly important as tenants seek sources of quality surge labor. Proximity to 3PLs. Ground and air hubs are still the life source of e-commerce. Avoiding driver vacuums. Ground transportation is in a precarious state. The nation is facing a projected shortage of 240,000 truck drivers. While this issue is sorely overlooked, panelists agree that any city or state that manages to address this concern would be appealing. Opportunities for infill buildings. While 1 million-square-foot distribution centers for Amazon and Walmart have recently grown in popularity, panelists foresee a high demand for smaller DCs within metropolitan areas. This will facilitate faster and less expensive delivery options for consumers. Automation may also decrease the need for large footprints, since there will be fewer humans and personal vehicles to accommodate. Heavy power and life systems. Large numbers of employees, an increasing amount...
e-Commerce Delivery
From Drivers to Drones
The NAIOP Commercial Real Estate Development Association recently held its second annual E.Con in Atlanta, a conference dedicated to e-commerce innovation. During the two-day event, last mile delivery stayed at the forefront of conversation. As the nation faces a shortage of 240, 000 truck drivers, e-commerce companies are actively seeking alternatives to traditional delivery methods. Panelists and attendees discussed four current trends: Unmanned vehicles The lack of CDL drivers and the high costs of employing them are leading e-commerce retailers to seek other ways of getting products from distribution centers to the homes of consumers. Removing drivers altogether could be the solution. That’s one approach that has been tried in Europe and Asia. Those programs started 10 years ago. Unmanned vehicles still haven’t caught on because studies (and many companies) suggest that automated trucks are most suitable for interstate conditions. The last mile in urban and suburban areas has risks associated with pedestrians, frequent construction and redirects, varying laws, and erratic behavior from human drivers nearby. More research and innovation will be needed to make companies and consumers comfortable with unmanned delivery vehicles in heavily populated areas. Uber-style delivery systems Independent delivery services are also popping up across the nation. Drivers for hire (those with a standard non-commercial license) can carry out deliveries from urban and suburban distribution centers to doorsteps. They do not require the pay or hours of career truck drivers. Start-ups and smaller e-commerce companies are exploring these options. They may become more prevalent in the future. There is one major problem. Currently, there is no software that coordinates product size, weight, and shipping distance with these drivers for hire. Everett Steele, CEO of Kanga says, “There is this idea, ‘I want to be the Uber for delivery,’ but one of...
Evolving E-Commerce
Impact on real estate
Today’s retail market is something of a “living” sector, seemingly in a state of constant change as manufacturers and retailers learn to harness ever-advancing technology to attract and retain customers. Over the years, advancements have led to a variety of concerns, some of them significant: The growing popularity of online shopping has at various times fanned real estate owners’ fears that demand for bricks and mortar would wane. Retailers have feared a loss of turf to e-tailers, in particular Amazon and other mega-players. Consumers have feared invasion of privacy as their preferences are recorded and targeted in minute detail. All are valid concerns. But like any advancement, over time technology has also brought brand awareness, better customer service, greater convenience—even a competitive edge. And the refinements keep coming. As the speed of e-commerce increases, the types of technology needed to meet higher expectations grows ever more complex. Same-day delivery of consumer and business goods is one new wrinkle. Once limited to local delivery in big cities (Barnes & Noble has long offered the service in New York City, for instance), this trend promises to spread in the not-so-distant future. But with volume and distance come complications: Extending the reach and volume of same-day service demands new types of machinery and new sorting capabilities—and that presents a challenge not just for the machine manufacturers and logistics providers but for the property owners, as well. In fact, the new machinery requires a variety of changes in space: more complex internal layouts and technical capabilities to accommodate the machinery; larger mezzanine areas with higher clearance for packaging and other back-office tasks; greater life-system components ranging from lighting to HVAC to parking to fire protection because of an increased employee presence. The warehouses, though necessarily more locally based...
