How to "reach out" to the buyer of the XXI century

Everyone who is involved in the retail business or is in the process of opening it already understands that retail is undergoing a period of dramatic transformation. All its players today are trying to realize - how to keep up with the rapidly changing market? What technologies can sellers use now to avoid being in the last rows in a couple of years? Yulia Veshnyakova, General Director of the Academy of Retail Technologies, discusses this topic.

Today, the buyer is waiting for the shopping process to be fun, easy, and have a positive emotional connotation. He wants to not just spend time shopping in the store, but to get some experience and take part in an adventure. It is important for the buyer to be fully and often informed in advance about the benefits of the purchased goods, so if some store does not give him such information, the buyer will no longer come to the store. Therefore, our task is to give him such an opportunity as much as possible. There is simply no other way.

Since smartphones became the dominant mobile device, most companies have embraced technology and apps to streamline the shopping experience, making it faster, easier, and more profitable. And this is just the beginning. A huge number of apps already exist for various platforms, such as location-based services that allow customers to quickly find information about desired products at the best prices, earn and send coupons, receive partial cashback, and accumulate bonus points using their smartphones. There are also apps that consolidate various discount cards, store and automatically enter passwords, and much more, making life much easier for the modern shopper. This trend has a huge impact on the future of retail. In Russia, such resources are not yet widespread, but this is only a matter of a couple of years. It's important to understand that the race is unavoidable, and if you don't get into these systems soon, customers simply won't see you.

It's clear that our most active and profitable customers are those who earn a significant amount of money. This means they're not only successful but also hardworking. Due to their busy schedules, they can forget to buy even the most basic everyday items. Therefore, customers are grateful for companies that relieve them of the burden of remembering to buy essential items. For example, in the West, delivery of basic groceries like milk and bread has long been widespread. In the past few years, new subscription services have emerged for products such as eye lenses, tights, medications, household cleaning products, flowers, and certain clothing categories. The depth of these services varies—from a simple reminder via SMS or email to direct delivery. Customers subscribe once, and then simply receive their items at home without any additional effort: even payment is processed automatically using the customer's bank card linked to the subscription. Developing such a service is extremely beneficial for retailers. They gain long-term loyal customers, which means they can plan purchase volumes and revenue, reduce advertising investments, and enjoy other benefits. There's demand for such services in Russia, but supply is limited. Consider what you can offer your customers. Perhaps shoe repair services? Or delivery of water-repellent products at the beginning of autumn? If you offer such a service, you're unlikely to regret it.

Previously, advertisers aimed to maximize product recall and create a predisposition to purchase. Today, influence tools based on human motivation and decision-making are becoming increasingly common. For example, creating artificial scarcity —the ability to purchase a product only if a certain number of customers participate in a promotion or the ability to purchase only by pre-order. Of course, this isn't to say these technologies weren't used before. They were, albeit not very actively. But their widespread adoption today is fundamentally changing the retail landscape around us, both online and offline. Such technologies include not only coupon sites offering deep discounts with time or quantity limitations, but also lotteries and sites offering rewards for purchases. Besides certain properties of human psychology, these technologies are partly based on the human brain's ability to release dopamine, the "happiness drug," in anticipation of life's joys, winning, or a successful deal. This makes a person feel happy during the shopping process and encourages them to come back again and again.

The gamification of these methods largely aligns with another desire our customers have: shopping and entertainment all in one. Today, simply offering customers quality products isn't enough. Success requires adding an entertainment component. The art of hosting in-store events and promotions is the best way to stand out from the competition, generate buzz and virality, and surprise and capture the imagination of your customers.

Marketers have long known that successful brand promotion requires planning comprehensive programs , so-called integrated marketing communications. Therefore, the goal of any entrepreneur is to ensure that potential buyers, when ready to make a choice, choose your store. To achieve this, it is necessary to influence the buyer comprehensively – across all channels of perception and media. However, the effectiveness of traditional advertising has declined sharply in recent years, and reaching consumers today requires experiential methods. People want products, communications, and advertising campaigns to evoke emotions and provide a sensory experience. But using emotional imagery is not enough: to fully capture consumer attention and immerse them in the brand, direct communication is necessary. Various events and activities are becoming increasingly important, allowing buyers to see the product in person, rather than simply read or hear about it. Global brands like Nike are building special villages where their supporters can thoroughly explore their products, and in Japan, various products are showcased at special virtual stands located in subway stations.

Regarding online sales, despite its convenience, virtual retail doesn't allow for a immersive shopping experience, making online shopping less engaging. Therefore, to combine the convenience of e-commerce with emotional engagement, augmented reality technologies can be used . For example, virtual fitting rooms have already been developed, even for shoe try-ons.

Interesting smartphone apps that already help retail overseas:

Tapestry allows the buyer to scan the tag on the product and enter it in this way into the virtual list of desired purchases, telling friends about it on social networks. The app already uses the Diesel brand department located in London's Wetfield department store

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The idea behind the Kiip app is that by playing games on their smartphone, users can earn real-world rewards in the form of discounts, coupons, and loyalty points from stores. Brands such as American Apparel, Disney, Sony, and Music have already signed up for the app.

Favor.it was developed by German developers to support small shops. Shop owners can mark their store on a map and regularly update app users about discounts, promotions, and company news.

On Pose, users can upload photos and tag clothing, shoes, and accessories, and the program will prompt viewers not only to like the look but also to see where they can buy similar items.

With the ShopKick app , shoppers earn points simply by purchasing items at their favorite stores. There's no need to fill out forms or take any additional steps: the app automatically recognizes what was purchased and where by linking a Visa or MasterCard. Earned points can be redeemed at the same stores.

Where should any Russian retailer infiltrate right now:

Yandex.Market is a smartphone app for the well-known service. The app can find similar products by scanning their barcode, compare prices, and suggest nearby stores.

Wizee Shopping is a guide to Russian shopping malls. Each store is marked on the mall map, along with information about discounts and promotions offered by the stores. The app features a global product catalog that allows shoppers to first view photos of an item and then find out where to buy it.

Locata is a unified catalog of multiple consumer goods brands. Users can mark their favorite products and find out the location of the brand's nearest store and its hours.