The digitalisation of points of sale: challenges in the retail sector

The digitalisation of points of sale, also known as web-in-store or phygital, has been gaining momentum for several years now. Faced with the evolution of consumer expectations and habits, this digital transformation appears a prerequisite for today’s retail players. We take a look at this growing trend, and its challenges.  

The digitalisation of points of sale: what is it all about?

As its name suggests, phygital entails combining the advantages of online commerce and physical stores by integrating digital technologies and tools into points of sale. The objectives are numerous: to improve the customer shopping experience, to reduce checkout waiting times, to boost profitability, to optimise stock management, etc. However, this strategy aims first and foremost to offer a complete and seamless multi-channel experience to consumers in the face of the widespread use of e-commerce.  Here are some examples of tools that can be integrated into a connected store:

• The installation of interactive kiosks, allowing consumers to discover the full product offer, and including product reviews and information.
• The integration of digital checkouts to reduce waiting times.
• Smart labels with QR codes for customers to scan to learn more about a product.
• The use of connected tablets to allow sales staff to rapidly access the information requested by a customer.
• Connected fitting rooms with interactive mirrors to see how a garment or accessory looks on the customer.
• Image walls and screens to broadcast information.
• Click & Collect (the possibility of reserving a product online for collection in store).

 

Phygital: a necessity to adapt to new consumer habits

In this age of digitalisation and e-commerce, consumer habits and expectations are constantly evolving. Phygital is a key step for keeping up with these new trends. According to the “Digitalisation of commerce” study conducted by the Oney group and OpinionWay in 2020, many customers naturally combine digital and human aspects in their purchasing process. For example, 70% of in-store shoppers use their smartphones to compare prices and consult product reviews. In addition, many visit a store to check out items but finalise their order online, especially for toys and childcare products (17%), high-tech equipment and household appliances (16%), and clothing (14%). Thus, French consumers remain very attached to physical points of sale, even in the context of the health crisis: 91% believe that human presence is important, even essential (54%) in the purchasing process. However, 82% of consumers have very clear expectations in terms of store digitalisation. For example, they want to:

• Be able to pay anywhere in the store without passing through the checkout (61%).
• Be able to locate or check the availability of products on the shelf (69%).
• Be recognised in order to benefit from bespoke offers (61%).
• Access customer reviews (45%).
• Benefit from a pre-sales or after-sales service in a video call (42%).
• Benefit from more details on a product content (49%).

 

What are the challenges of phygital in the retail sector?

The digitisation of touch points responds to multiple challenges for retail and distribution players: It makes it possible to:

1. Improve the customer experience

The figures mentioned above show that although digital technology undoubtedly plays a central role in the customer experience, the human element remains essential for the consumer. Thus, creating a true omnichannel customer journey, with phygital stores, is a very strategic approach to improve customer satisfaction and loyalty.

2. Know your customers better and personalise your offer

The implementation of digital tools in physical stores facilitates data collection. Thus, brands can offer personalised products and services, adapted to the needs of consumers. The web-in-store is therefore highly beneficial to better know your customers and to adjust your market positioning.

3. Stand out from the competition

Retail is an ultra-competitive sector that evolves at full speed. The digitalisation of physical stores is therefore an excellent way to stand out from other market players.

4. Boost turnover

With digital transformation, the act of buying is simplified, waiting times are shorter, and customers are more numerous, loyal and satisfied. Digital transformation is therefore a powerful growth lever that generates more traffic at the various points of sale, thus boosting company turnover. If you are looking to implement an efficient cross-channel strategy and to digitalise your points of sale, an interim manager is your best ally. At WAYDEN, we can mobilise an interim manager with 15 to 25 years of experience and specialised in a targeted sector (ready-to-wear, convenience stores, mass retailing, etc.). They can assist your company in implementing an omnichannel strategy, digitalising points of contact, training teams and exploiting data. With impressive human and managerial qualities (leadership, dynamism, audacity, pragmatism, etc.), this expert while drive your entire digital transformation process, obtaining tangible and measurable results.