Consumers used to be retailers\u2019 marionettes. Now it\u2019s the shoppers pulling the strings.<\/p>\n
What\u2019s changed the retail\/brand\/shopper paradigm is that every conceivable product and service can be found on a smartphone. Seemingly all of a sudden, consumers hold the keys to the stock room of every retailer, unlocked by the mini computers in their pocket. And the sea of sameness is numbing.<\/p>\n
If we had to pinpoint the tech innovations that helped plant the seeds of personalization and collaborative commerce, Amazon\u2019s customer recommendation engine and product review features would be it.<\/p>\n
The e-tailer pioneered the \u201cif you bought that, you might like this,\u201d feature, suggesting complementary products to shoppers based on their buying behavior, defining a standard of personalized interactions that shoppers have come to expect from both online and brick-and-mortar stores.<\/p>\n
Meanwhile, the etailer\u2019s customer review feature granted shoppers a voice like never before, signaling the rise of the empowered, collaborative consumer.<\/p>\n
The upshot is that now consumers are often more savvy about merchandise than store\u2019s sales staff, as a hefty seven in ten U.S. shoppers research products online, before entering a store\u2014so you better offer them something more.<\/p>\n
Today, collaborative commerce means knowing the wants and needs of individual shoppers and making them feel seen.<\/p>\n
The shift has set the stage for the emergence of crowdsourced fashion from ModCloth.com, whereby shoppers vote on what designs get produced; 3D-printed, personalized products at Converse and Lowe\u2019s; and apps like L\u2019Oreal Genius, which recognizes one\u2019s facial characteristics for a virtual makeup try-on session.<\/p>\n
It all amounts to mass customization emerging on a continuum, as retailers collect data points from shoppers\u2019 physical and digital footprints along the way.<\/p>\n
And it extends to how retailers are heightening shopper engagement in-store with digital technology designed to create newly immersive and customized brick-and-mortar moments.<\/p>\n
Offering a \u201ccustomer-first\u201d service experience these days means delivering personalization at scale, according to PSFK.<\/p>\n
Quick Study: The Lowe\u2019s Hologram Experience<\/strong><\/p>\n Retailers are increasingly experimenting with virtual reality<\/a> to do just that, as well as offer in-person services and experiences that can\u2019t be duplicated online.<\/p>\n Lowe\u2019s, for one, is testing Microsoft\u2019s HoloLens in a handful of stores, a mixed-reality headset that allows consumers to see virtual objects as if they were part of the real world.<\/p>\n It gives the home-improvement chain\u2019s shoppers the ability to visualize a mock kitchen prior to making a final selection, sans swatches or samples. They can view a full-sized holographic kitchen that they can then customize\u2014from changing cabinet styles, sizes and colors to tweaking the scale of an island\u2014before making a final decision.<\/p>\n The technology utilizes Microsoft\u2019s Cortana Intelligence Suite to analyze customers\u2019 Pinterest boards and make design recommendations, and deliver real-time feedback back to Lowe\u2019s.<\/p>\n It\u2019s a partnership that reflects digital technology enhancing the\u00a0in-store experience,\u00a0while enabling\u00a0shopper\u00a0personalization via analytics.<\/p>\n \u201cFoot traffic continues to fall, and stores need to find a way to make the in-store shopping experience better,\u201d said Yoram Wurmser, an analyst with digital research firm eMarketer. \u201cPersonalization of the shopping experience is a big theme and crucial for brick and mortar retailers to compete with online.\u201d<\/p>\n And while retailers are working to personalize the shopper experience via things like clienteling apps for store associates, \u201cLowe\u2019s\u2019 HoloLens test takes this to the next level,\u201d he said. \u201cIts bigger significance lies in how it brings augmented or enhanced reality to another level,\u201d which heightens engagement.<\/p>\n You can see for yourself in the below video.<\/p>\n In my next article on digital transformation within the industry, I\u2019ll talk about incubating innovation and the rise of retail innovation labs among other things in the spirit of digital disruption. In the meantime, you can also access our new Microsoft resource on transforming retail<\/a> for the digital age.<\/p>\n LinkedIn: Tracy Issel<\/a><\/p>\n