February 3rd, 2010
Industry Insights: 2010 Will Be the Year That Smart Phone Ubiquity Changes the Face of Retail
This post is the first in our “Industry Insights Series,” and is guest-written by Colin Hynes, Director of Usability, Staples, Inc.
By now, it’s well documented and accepted that customers research online before buying in a store. In fact, a recent survey of in-store customers showed that 88% said they had shopped at that retailer’s web site while 75% said visiting the store’s site helped them shop in-store (2009 RichRelevance/Envirosell Study). It’s clear that bricks and mortar retail and the web have become inextricably linked. Even casual web users are weaving the mediums together to make more informed decisions.
So, as the mobile landscape evolves, smart retailers are now grasping the fact that customers are not just researching at their desk or kitchen table, but on the way to the store and while in it. This dynamic shift has profound implications on every element of the retail experience from associate training, to branding, to pricing and promotions, and everything in between.
For example, the store associate was once the exclusive bastion of product knowledge when a customer walked through the doors. Now customers feel empowered to rely on getting product information from the device ringing in their pocket. They perceive many sites like CNET as unbiased and unwaveringly reliable. Do customers feel the same way about an associate in a store? Maybe with some associates in some stores, but that trust is undoubtedly more situational and inconsistent based on the store and the associate standing in front of them. As more apps get built that make the product selection process easier, will customers eschew the face-to-face interaction with a store associate for the shiny glow of their iPhone? And while a device will not fully replace a face-to-face interaction with a trained and knowledgeable sales associate, the prospects are frightening for many retailers.
Also consider what smart phone ubiquity does to pricing. A customer could see a physical product in a store, scan a bar code, and research prices from land-based and internet-only retailers. It is the ultimate in price transparency. And this capability is not something that is coming—it’s here. At a recent NRF Conference, Forrester Research analyst Sucharita Mulpuru stated that 39% of consumers with mobile devices are now using them to comparison shop (Live from NRF: Consumers Want Cross-Channel Synergy, Jan 12, 2010 By Tim Parry). And that number will only grow as the year goes on.
There are many more use cases for what will evolve in retail as we all carry computers in our pockets. Ultimately though, it will force the smart retailers to focus on the aspects of the experience that they can control and are important to their customers. For example, companies like Staples will continue to be laser focused on price while ensuring an exceptional in-stock position. Will a customer standing in front of a product on the shelf want to buy it on their cell phone through an online retailer with whom they have no relationship, wait for delivery and then hope they can return it in a hassle-free way all to save a few bucks? Perhaps, but probably not many.
In addition to focusing on differentiators, smart retailers will embrace the wireless world in ways that will transform how customers interact with their brand. We ran a test at Staples a couple years ago where we placed customer review cards adjacent to the product facts tags. The test was successful on a number of key metrics. However, the costs to create, post, and maintain the paper review tags made it a non starter. Now with smart phones, customers can have those reviews in their hands via the WAP-enabled Staples.com site. With a few swipes/presses/clicks, a customer can easily pull up product reviews on the mobile Staples.com site while touching and feeling the product in a Staples store. It’s akin to instantly having 100 people you trust who bought the product you’re considering at your beck and call to give you their viewpoint. Very powerful indeed.
While we are in the beginning stages of understanding the transformative impact of wireless on retail, it will undoubtedly continue to change the landscape of shopping. Much like the disruptive technology of the web, the winners will be those who do not run away from the light but toward it. They will realize that experimentation is key, failing fast is essential, and customer focus remains paramount. These are qualities that Staples bleeds and breeds, and why it is well positioned for success as we enter the wireless age.
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About the Author: 
Colin has spent the last 15 years designing user-centered experiences for electronic and physical environments. He founded, built and currently runs the usability group at Staples, which is responsible for information architecture and usability research for the corporation. Colin is a frequent author, keynote speaker and is a faculty member in Bentley’s Information Design program. He has also been interviewed by more than 30 publications including the Wall Street Journal, BusinessWeek, Forbes and Boston Globe. Colin has also been featured in five books including The Persona Lifecycle and Cost Justifying Usability. Colin sits on the PowerReviews Product Advisory Council, Creative Good’s Customer Experience Council Advisory Board and is a former advisory board member of TargetSurf.
Additionally, Colin is a foremost authority in online selling and was recently named by Internet Retailer Magazine as the Design and Usability Executive of record for Staples Inc–the second largest ecommerce company.
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