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Retailers? mobile experiences should be as inspirational as their stores: report

Retailers frequently overlook the true value of mobile, which is to connect the brand experience across channels and continually engage with customers, according to a new report from Razur Agency. 

The Future of Retail 2016 report highlight a number of key trends that retailers will encounter, such as the Internet of Things and the growing need for curated content. A key takeaway is that the best digital experiences look beyond the Web to unify customer experiences.

?Your mobile application is a representation of your brand and a customer needs to experience it in that manner,? said Chris Merkle, founder of Razur Agency. ?Your mobile experience should invoke the same thoughts and emotions as it does when someone walks into your brick and mortar store. 

?Design for mobile: don't simply chop up your large advertisements and put it into your app,? he said. ?Create real value for your mobile customers so, simply put, your app is worth their time.?

The report is based on interviews with retail experts and content from the National Retail Federation, Sachs Insights as well as Razur. 

Innovation labs
The Internet of Things trend has arrived, promising retailers the ability to increase internal and operational efficiencies while also being able to develop a richer customer journey and deeper, long-lasting relationships. Retailers such as Amazon, C&A, Target, Lord & Taylor, Macy?s, Rebecca Minkoff and Urban Outfitters are already testing to see how IoT can drive loyalty. 

To get started, retailers need to create a use case that customers will value enough to justify their entry. A successful strategy must be about improving the customer experience in online and offline interactions with a retailer. 

Retailers should also borrow a page from tech giants such as Google and put a bigger focus on talent, culture, innovation and agility. This becomes critical as digital increasingly becomes a driver of all commerce. 

Retailers such as Walmart, Nordstrom and Macy?s are addressing this need by opening their own innovation labs. 


Looking beyond the Web
There is also a growing need for customer privacy controls as consumers become more connected and businesses such as retailers collect staggering volumes of customer data. 

Some retailers have already taken steps to address the need for privacy controls. Instead of tracking users to figure out what they want, PS Dept asks them and then connects them with a personal shopper. 

To get started, the report recommends retailers begin testing messaging and give customers a place where they can see what data is collected and manage that data. 

An important trend going forward is how the best digital experiences think beyond the Web to unify all of the channels. This means looking for potential partnerships and finding opportunities in customer service, fulfillment and shopping and inventory management. 


In-store mode
As retailers focus on building out their digital experiences, it is also important to not overlook the in-store experience. If experiences are consistent across channels, this can erode brand perceptions. 

For example, a growing number of retailers are introducing in-store modes for the apps or enabling customers to place an order in the app and pick it up in store. 

Mobile is critical to providing a consistent 360-degree cross-channel experience as it can connect experiences between the various channels to tell a cohesive story. This evident in the popularity of apps that tout QR codes or coupons and being able to scan and pay for an in-store purchase from an app. 

To ensure the best possible mobile experience, retailers need to consider if their mobile offerings feel aspirational. It also necessary to optimize Web sites for mobile search, performance and overall user experience. 

?It's still surprising that brands are making assumptions about their mobile applications instead of listening to their customers,? Mr. Merkle said. ?For example, there are brands that think they have a wasted investment because they are not driving mobile sales in-app. 

?When we look at a client's data we may see huge engagement and no sales - but they are driving customers to the stores and amplifying their content on social,? he said. ?The true value in your application may not be what you think it is.?

Curation vs. customization
One trend retailers should be taking a close look at is how curation increasingly trumps customization for helping consumers address the overwhelming volume of choices they have. This is evident in the uptick in consumers following influencers and lifestyle gurus on social media. 

The report recommends retailers consider partnering with brand ambassadors or experts to curate content. 

The report also points to the growing need for reviews to be contextually relevant and should be perceived as real and not overly positive. 

For example, when shopping for credit cards, consumers are not interested in reviews but do appreciate expert testimonials. Expert recommendations are often preferred for small-ticket everyday items as well. Reviews are best for tangible, static products such as televisions. 

Rent the Runway and ModCloth do a good job with reviews by including photos of their customers wearing their purchased items. 

Online marketplaces
Retailers should focus on creating real solutions to customers? real problems and not jump on new purchasing strategies such as a site-specific social network or videos just because others have adopted these approaches. 

Consumers want and expect help during purchases. Target?s Cartwheel app is resonating with consumers because it enables users to create shopping lists, calculate their savings and compete against their friends. 

Another key trend is the growth in online marketplaces as digital savvy consumers look for central locations to find a wide assortment quickly. 

For example, Alibaba Group?s Tmall and Taobao had 334 million active buyers in 2014. Also, traditional retailers such as Sears and Walmart have developed marketplaces on their own sites to broaden their assortment. 

To address the marketplaces trend, retailers should strategically evaluate and use each marketplace to achieve distinct business objectives.

?Focus on the digital experience as a whole and how mobile complements the experience,? Mr. Merkle said. ?Don't think of mobile as it's own world, but as an extension of your brand where you can continually engage with your customer - while also allowing them to engage at their own pace. 

?Take the time to understand how customers use your apps and listen to drive new features and functionality,? he said.