Will the latest mobile App really be another nail in the high street coffin?
The widely reported Amazon Mobile App has been labelled the "high street killer" by some parts of the press, but will it really hammer another nail in the coffin for stores on the high street?
There have been mobile bar code reader apps around for a while. But it appears that Amazon has created a really slick compare and buy process - consumers are always looking for bargains, so why not? A Sunday Times investigation using the app revealed considerable savings on consumer electronics, books and homeware, which is understandable – given Amazon’s forte - but will the app be such a problem across every sector of the retail market?
Some may be less susceptible - speciality retailers for instance, where there is tight control between stores and online. But there will be many who see this move as a major threat to their bricks and mortar channel.
Savvy consumers have, for some time, been using the internet to research products and goods and then buy in store, or visa versa, but with the take-up of smartphones now having reached the tipping point, consumers have the ability to purchase cheaper online…whilst standing in the store, if they so wish.
So what are retailers to do?
Improvements to in-store conversion – driven by better staff training and the use of in-store technology – are some things to consider. But a major weapon in the retailer’s armoury is loyalty. Capturing customer details both in store and online to identify loyal customers across channels; using targeted email campaigns to drive consumers to the store with promotional offers;using surveys to understand buying habits; working with incentives such as coupons or vouchers…are all essential building blocks for customer retention.
Savvy consumers will continue to exploit technology to get a better deal, but it's how retailers respond to this and the way they can foster customer loyalty that will retain their place in the market.
Intellegentia provides sales and marketing consultancy, digital marketing and customer retention services across a wide range of sectors. Our experience in the retail sector includes projects with House of Fraser, B&Q, and Virgin Holidays.
Image courtesy of Vlado
