TECH 2020 Gene Marks Technology Columnist Forbes and Inc. Magazines President, The Marks Group PC
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TECH 2020
The Latest (and Coming) Technologies, Trends, Services and Tools Every
Retailer Needs to Know
Gene Marks
Technology Columnist
Forbes and Inc. Magazines
President, The Marks Group PC
Trend 1: Beacons and Lights Will Track Everything
ALL ABOUT THE INFRASTRUCTURE
Bluetooth® Low Energy technology radios embedded in LED lights.
LED lights are always powered and digitally connected through lighting control
networks.
Ubiquitous and dense grid of nodes – located within 10 to 20 feet of every person
or thing that we want to connect within a retail space.
HUGE ADOPTION
75% of US retailers have integrated beacon
technology into their marketing strategies and seen a 9%
increase in profits and 175% ROI. - Chain Store Age
BEACONS
By the end of 2019, retailers will have 3.5 million active
beacons - Business Insider
MARKET GROWTH
Market worth is expected to be worth USD 52.46 billion by
2022, at a CAGR of 29.8% between 2016 and 2022.
CUSTOMER REACH
By end of 2020, beacons are expected to reach 60
million customers, and more than 400 million beacons are
to deployed by 2020. - Beaconstac Research
QR CODES
Over 11 million households will scan a QR code in 2020 in
the US alone. In 2018, around 9.76 million QR code scans
took place - Statistica
IMMEDIATE CONNECTION
When a customer walks into a brick-and-mortar
location, their smartphone can be connected to
in-store services and products, so long as they
give permission.
QUICK SCANNING
Customers use their device to quickly scan
an item on a shelf, which will pull up reviews
CONSTANT COMMUNICATION and further information in order to give helpful
Creates notifications about items insights.
that have recently become
available or sales that are currently
in progress in order to peak their
interests and encourage a store
REAL TIME FEEDBACK
visit
Useful immediate audience feedback without
a massive amount of time and money
needing to be invested
INVENTORY MANAGEMENT
When a customer pays for a shirt,
it triggers software that calls for a
replacement to be pulled from
DISCOUNTS the store’s back room. If the
Uses beacons to send item is in stock, it will quickly
discounts to shoppers in appear on the floor.
the area of their stores
PRODUCT MIX
Piloting radio-frequency
identification (RFID) in a new
store on Fifth Avenue in New
York City. Use data collected
by RFID chips on men's shirts,
traffic counters and other in-
BEHAVIOR store data points to identify the
Beacons track optimal merchandising mix.
customer behavior to
better understand their
actions while in stores
Trend 2: Facilities Management Goes All- Cloud
Facilities Management In The Cloud
Key Functions:
-Mobile
-Daily Workflows
-Order Entry
-Tracks Activities
-Vendor Management and Procurement
-Technician Management
-Project Management
-Asset Management
-Quick Reports and Dashboards
10 Retail Tech Trends – What We’ve Learned So Far 1 - Beacon, Lighting and RFID technologies are becoming a critical part of retail’s customer experience and inventory tracking tools. 2 – Cloud and mobile apps are changing the way you are managing your facilities.
Trend 3: Robots Are Taking Over The Store
Autonomous Shopping Cars
First Generation:
-Product Information
-Suggested Products
-Scanning/Image Recognition
-Self Checkout
-Testing by Walmart, Stop & Shop, Kroger
Next Generation:
-Remote arms for picking
-Remote controlAutonomous Warehouse Carriers
Goods To Picking
Self-Driving Forklifts
Inventory Counters
Internal DronesGIANT FOOD STORES -”Marty” Robots -500 Locations Planned -5G -Identifies spills/safety issues -Alerts employees, takes photos -Future uses: answers questions, searches, scans
WALMART -Autonomous Floor Scrubbers, -Autonomous Shelf Scanners -~2,000 stores by 2022 -Leveraging 5G technology -Same as Marty: answer questions, etc. Lowe's – LoweBot Target – Tally Best Buy - Chloe
Pepper SOFTBANK’S PEPPER -Interactive, answers questions -Tour guide -Answers complaints, problems -Fetches products -Commercial and consumer strategy Customers: “10,000 in use” HSBC Pizza Hut Cruise Ships Smaller retailers
Trend 4: Retailers Are Getting Creepier With Their Customers
Watching, Watching, Watching WALGREENS - MAKING RECOMMENDATIONS -COOLER DOORS Testing Internet of Things-enabled smart displays installed in cooler doors. -FACE DETECTION The screens, sensors, cameras and other technologies, including face detection, that make up these systems can sense the likely age of an approaching shopper, which products they've picked up and other clues that allow it to display what it computes is an appropriate ad for that shopper. -TARGETED ADS Capable of showing targeted advertising to shoppers.
Watching, Watching, Watching KROGER - COLLECTING INFO -SMART SHELVES Testing smart shelves and coolers with penny- sized cameras that collect information on shoppers and their purchases. -MORE FACE DETECTION Cameras are embedded in price signs above shelves to play ads and show discounts. -PRIVATE? The cameras don't store data, though they can guess age and sex.
Watching, Watching, Watching SENSORMATICS SHOPPERTRAK -SENSORS Uses sensors placed within stores -SHOPPER TRAFFIC Tracks shopper entrances, exits, and where they spend their time -ENGAGEMENT, INVENTORY Customer engagement while shopping Tracks inventory and assets for loss prevention Harry & David, Crate & Barrel, Godiva stores, Mandalay Place among customers
Watching, Watching, Watching HEAT MAPPING – RETAIL FLUX -utilizes existing cctv -converts to analytics -identifies “hot” and “cold’ areas
10 Retail Tech Trends – What We’ve Learned So Far 1 - Beacon, Lighting and RFID technologies are becoming a critical part of retail’s customer experience and inventory tracking tools. 2 – Cloud and mobile apps are changing the way you are managing your facilities 3 – The robots are coming. In fact, they’re already here. 4 – Creepy? Maybe, but more retailers are using technologies to watch customers’ behaviors inside their stores.
Trend 5: BOPIS (or “click and collect”) Is Creating New Tech Challenges
Buy Online, Purchase In-Store
-MULTIPLE BUYS: Over half (68%) of more than BEST BOPIS RETAIL EXPERIENCE:
2,000 U.S. shoppers have made multiple buy Best Buy
online, pick up in-store purchases. Home Depot
-PREFERRED BUY: 50% of respondents have Bed Bath & Beyond
decided where to shop online based on whether Kohl’s
or not they could pick up in-store. Target
-ADD-ON SALES: 85% of shoppers surveyed said
they have made additional in-store purchases 2019 IHS Study
while visiting stores to pick up what they already
had bought online.
Doddle Parcels – 2019 Survey
-In 2018 BOPIS grew 73% between Thanksgiving and Black Friday.
-BOPIS increased from 53% in 2017 to 61% in 2018.
GartnerBOPIS Becoming The Norm WALMART -2018 - rolled out 200 Pickup Towers -2019 - 500 additional TARGET -BOPIS services have more than doubled their sales in the last year. -BOPIS accounted for more than a third of Target’s digital sales, up from about 20% in 2018. -Roughly 1 in 5 customers placing a same-day order in the second quarter were placing an order with Target for the first time.
BOPIS Causing These 5 Challenges Changes in store layouts to accommodate quick pickups More outdoor space needed for drive-thrus, faster parking Enhanced algorithms to manage supply chain. Is FIFO obsolete? Better e-commerce/in-store POS integration Employee training
Trend 6: Augmented/Virtual Reality Is Becoming Essential For Retail
Top Shop Virtual Water Slide
Garnier Hair Shade Selector
Helzberg Diamonds Ring Selector
Neiman-Marcus “Memory Mirror”
In-Store Search
Home Depot
Google Glass Microsoft
HoloLense10 Retail Tech Trends – What We’ve Learned So Far 1 - Beacon, Lighting and RFID technologies are becoming a critical part of retail’s customer experience and inventory tracking tools. 2 – Cloud and mobile apps are changing the way you are managing your facilities 3 – The robots are coming. In fact, they’re already here. 4 – Creepy? Maybe, but more retailers are using technologies to watch customers’ behaviors inside their stores. 5 – BOPIS/Click and Collect is creating new opportunities - and tech challenges - for retailers. 6 – Virtual/Augmented reality apps are helping to bring in traffic and get customers to buy.
Trend 7: Self-Service Technology Is Exploding
SHOPPER FRUSTRATION -37% shoppers said they are frustrated by researching features and reviews for products. 24% were frustrated when checking prices or availability - 2019 NRF Study SAVE TIME -72% of respondents said technology that reduced checkout time was most valuable to them - 2019 A.T Kearney Study -44% of convenience store shoppers said they would be interested in technologies that let them pay instantly and bypass checkout lines - 2019 Zynstra Report LESS CHIT-CHAT -73% of 526 shoppers surveyed prefer retail self-service technologies, such as self-checkout, over engaging with store associates - 2019 IoT and mobile device management firm SOT study
MEIJER - CHICAGO -Bringing Shop & Scan checkout program in 77 stores. -Company said more than 80% of people who downloaded the app used the Shop & Scan feature multiple times. -Users scan bar codes to add products to their digital shopping carts -App provides a running total as customers shop. -Users also bag their items as they scan them throughout the store. -Once finished, shoppers scan their phone at a self- checkout lane to complete the transaction.
AMAZON GO -3,000 stores planned nationwide by 2021 -15 stores open already, including NYC, SF, Seattle -Leverages IoT for inventory, re-ordering -QR Code scanning -Amazon app administers payments
Self Service Techs To Watch
STANDARD COGNITION
Check-in. Checkout. Start-up using AI
technology with advanced cameras.
AiFi
AI, sensor and camera network-based system
scales mom-and-pop shop to big shop.
MICROSOFT/WALMART
Shoppers Would Scan Their Smartphones Upon Entering A
Store, Sensors Would Detect Items Being Removed From
Shelves, And Cameras Would Track The Items In The
Shopping Cart. Shoppers' Accounts Would Be Charged Once
They Left The Store.Trend 8: Not everyone is so honest. New loss prevention techs are addressing that.
ENHANCED TAGS -RFID -Hard to discover -De-activated at time of sale, otherwise sounds alarm -Key Players: Avery Denison, InSync
FACIAL RECOGNITION -Identifies known shoplifters as they enter the store -Alerts security -Scans faces of all traffic -Security concerns -Key Players: TrueFace, FaceWatch
BIOMETRICS -Finger prints, retinal scans -Identifies employees handling products -Identifies customers taking products -Key Players: Fujitsu, Hitachi
GPS TRACKING -Tags on products, people, assets, vehicles -Tracking in and out of store -Key Players: Samsara
RETURNS FRAUD -Embedded, invisible tags in garments -Difficult to remove or re-attach to a less expensive item -Key Player: 360IDTag
SURVEILLANCE -Enhanced video -Mobile viewing/reporting -Store planning effectiveness -Key Players: Tyco Retail Solutions, Checkpoint Systems
UNUSUAL ACTIVITY -Fake scanning by cashiers -Self checkout video monitoring -Basket weighing tools -Analytics -Key Player: NCR Stoplift Checkout
10 Retail Tech Trends – What We’ve Learned So Far 1 - Beacon, Lighting and RFID technologies are becoming a critical part of retail’s customer experience and inventory tracking tools. 2 – Cloud and mobile apps are changing the way you are managing your facilities 3 – The robots are coming. In fact, they’re already here. 4 – Creepy? Maybe, but more retailers are using technologies to watch customers’ behaviors inside their stores. 5 – BOPIS/Click and Collect is creating new opportunities - and tech challenges - for retailers. 6 – Virtual/Augmented reality apps are helping to bring in traffic and get customers to buy. 7 – Smart retailers will be employing self-service techs to save customers and improve customer satisfaction. 8 – Loss prevention system technologies are getting smarter – and more varied.
Trend 9: AI Is Bringing Customers Back To The Store
Big Retail is Chatting -CHATBOTS DOUBLING Retail sales from chatbot-based interactions are forecast to almost double every year to $112 billion by 2023 from $7.3 billion this year. -INTERACTIONS MULTIPLYING 10X Chatbot interactions also will surge to 22 billion by that year from an estimated 2.6 billion this year. -HUGE COST SAVINGS Retailers can expect to cut costs by $439 billion a year in 2023, up from $7 million this year, as AI-powered chatbots get more sophisticated at responding to customers. Juniper Research
H&M -KIK Uses messaging app Kik (used by 40% of US teenagers). -CATALOG ACCESS Chatbot allows customers to see, share and purchase products from H&M’s catalogue. -STYLE SERVICE Offers a personal stylist service, using photo options and asking questions to create a profile. -CREATE OWN OUTFITS Shoppers can use the bot to create their own outfits, vote and browse outfits created by other users, and shop.
TOMMY HILFIGER -FACEBOOK MESSENGER Chatbot on Facebook Messenger. -CUSTOMIZED/PERSONALIZED Instantly introduces the consumer to a customized collection. -CONVERSATION OPTIONS Gives three options for the conversation: style advice, browsing, or a behind-the-scenes look at the latest fashion show. -SUGGESTIONS Proposes a list of options to choose based on queries.
SEPHORA -KIK Also uses Kik. -PROFILE Quizzes first time shopper on preferences. -CUSTOMER QUESTIONS Users can then ask for tips or reviews on specific types of product or application. -RECOMMENDATIONS Each of these comes with product recommendations. -MAKEOVER Ability to book a makeover by simply clicking on ‘Book a Makeover’.
WHOLE FOODS -SEARCH Makes finding a supermarket easy. Customers can enter a zip code or an address -FACEBOOK MESSENGER Also uses Facebook Messenger chatbot -INGREDIENTS Makes finding the ingredients people want easier -DIETARY SUGGESTIONS Suggest foods for people with dietary restrictions. -IN-STORE FOCUS Focus is on in-store experience.
CVS -Interactive for prescriptions. -handles alerts, reminders and re-fills.
Trend 10: New Fintech Is Increasing Customer Loyalty
Fintech – 2 Cool Techs
IMMEDIATE RETURNS
-Issuing of refunds immediately in store
-Refunds WITHOUT returning the product
-Easy to use mobile interfaces
-Manages accounting for retailers
-Key Player: Returnly
LAY-A-WAYS REDUX
-Customer buy on the spot
-Credit check performed onsite
-Customized lay-a-way programs
-Cash acceptance/remittance
-Key Players: LayBuy, Klarna, PayPal Credit10 Retail Tech Trends – What We’ve Learned So Far 1 - Beacon, Lighting and RFID technologies are becoming a critical part of retail’s customer experience and inventory tracking tools. 2 – Cloud and mobile apps are changing the way you are managing your facilities 3 – The robots are coming. In fact, they’re already here. 4 – Creepy? Maybe, but more retailers are using technologies to watch customers’ behaviors inside their stores. 5 – BOPIS/Click and Collect is creating new opportunities - and tech challenges - for retailers. 6 – Virtual/Augmented reality apps are helping to bring in traffic and get customers to buy. 7 – Smart retailers will be employing self-service techs to save customers and improve customer satisfaction. 8 – Loss prevention system technologies are getting smarter – and more varied.
10 Retail Trends – What We’ve Learned So Far 9 – Chatbot technologies are keeping customers busy in and outside of stores. 10 – Retail Fintech is turning to lay-a-ways and returns to help stores increase customer satisfaction.
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