A recent report by Samsung, ‘Future Shoppers’, has stated that retailers need to rethink their in-store experience for younger shoppers to avoid missing out on bricks-and-mortar sales.
Delving into the shopping experiences of the 16-24 year old market, the report suggested that high street is in “a state of flux” and that stores must become ‘Retail Theatres’ to bridge the gap between online and offline identities of digital natives.
Currently, 74% of future shoppers say that while they usually end up buying a product online, they enjoy being able to see it first-hand at a retail outlet before they commit. And even when they’re out shopping, 61% will use their mobile to research a product they’re interested in.
This behaviour has divided stores into two categories a) Retail theatres, where innovative store experiences engage shoppers to convert to sale and b) brand showrooms, where shoppers are merely presented with products that they rationalise as a cheaper purchase online.
While online shopping is clearly the default for many, a significant number of 16-24 year-olds are frequenting stores on a near-daily basis. That presents a clear opportunity for retailers of all kinds and the trick, of course, lies in knowing how to engage those shoppers in the right way no matter which channel they opt for.
So how do you engage future shoppers?
The report found that 44% of the market actively visits retailers who enhance the shopping experience with technology. They also found that 79% want that technology to deliver vouchers or discounts from smartphone apps.
1. Don’t underestimate the sophistication of young buyers
The 16-24 year-olds of today, while somewhat limited in their spending capacity, will ultimately come to shape the future of retail. And there is no mistaking that tomorrow’s shoppers are confident, clever, and ultimately highly complex.
As a result, the retail experience is becoming increasingly non-linear, with multiple touchpoints creating challenge and opportunity in equal measure. Retailers that can successfully engage young shoppers across the whole buying cycle – not just one or two points along the way – will reap the rewards.
2. Don’t just replicate the online experience
With online becoming the go-to standard for many young shoppers, it’s tempting to try and transform physical retail space into a real-world interpretation of an online site. But to do so is to miss the point of what future shoppers are really looking for.
Currently, 63% of shoppers have downloaded a retailer’s app — and a third of those say they rarely use them. This is hardly surprising when the most common apps are designed for simply store location and product information.
Young adults have a clear understanding of the individual benefits that each of these channels offer, and are not looking to make a choice between one or the other. Instead, they want unity between the two, and a system that makes it easy to browse and buy no matter where they are.
Those retailers that can provide this seamless experience are most likely to gain the loyalty and continued custom of tomorrow’s shoppers. Those that don’t, run the risk of becoming outdated in the eyes of this empowered demographic.
3. Use technology to be useful and stand out
Young adults are smart enough to see past attempts to use technology as a way to make a store seem modern or cool. Tech is viewed positively by this demographic, but only when it is used constructively and with purpose.
Unless it makes their experience better – no matter whether that is purely functional or in a wholly visionary way – they are unlikely to engage.
Those retailers that can find the sweet spot of providing technology that not only brings their physical environment to life, but also provides young shoppers with a compelling reason to use it, will enjoy the benefits of a connected, engaged clientele – both now, and in the future.
Underscore thought leader:
Rachael Bradley, Strategic Account Executive.
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