A Beacon Of Hope For Winning Centennial Shopping Dollars

By Shekar Raman, co-founder and CEO, Birdzi

Ecommerce has long been the dominant disruptor in retail. But with the rise of mobile and always-on connectivity, everyone, at all times, is a potential consumer. But the biggest disruption today is coming from the demand side. The emergence of centennials – generally considered to be those born after 1997 – as an influential demographic is revolutionizing the way marketers engage with consumers, and leaving them in search of tools that capitalize on their digital literacy while building brand affinity, trust and, eventually, loyalty.

In 2016, retailers in the U.S. will deploy 1 million new beacons into their retail strategy, with over 6 million proximity sensors deployed globally as of Q1 2016. Especially in fast moving consumer goods, beacons can help retailers recognize, reward, and get to know their best customers, increasing loyalty and, in turn, building a stronger relationship with them. From consumer intelligence to more efficient operations, beacons can be the key to connecting with today’s young shoppers, who will be tomorrow’s big spenders.

Mobile

Not surprisingly, centennials love their phones and social media and other digital communities play a huge role in their daily lives. For example, 95% rely on the Internet to read online reviews before making a purchase. Old advertising methods that play on emotion are much less effective when almost everyone checks out what other consumers have said about a product before parting ways with limited cash. Just as retirees on fixed incomes aren’t relied on to convert valuable impulse sales, centennials managing a small allowance or summer job income spend more strategically than their young professional elders.

For physical store operators, the great news is that centennials are actually bigger fans of shopping in-store than online, preferring to complete their purchase lifecycle at a physical location at higher rates than millennials. These cautious and strategic shoppers are attached at the hip (or hand) to their phones and have a strong desire for brand connection and personalized experiences when choosing a retailer. Leveraging these realities, it becomes clear how store managers can use technology to spur impulse buys and increase average basket size among these consumers.

The Role of Shopper Data

There is a difference between brands being mobile-friendly and mobile-masters. To create optimal strategies to win the modern shopper, you not only need to be communicating on mobile but also using the data to curate ideal experiences.

Beacons hold unique potential to be the real-world counterpart to the vast analytics that ecommerce platforms provide. They transform a static, analog space into a digital representation of that world to know exactly what shoppers are doing, what items they review and choose (or review and put back on the shelf) and help break down the messaging, branding, signage etc. that motivate changes in behavior. They allow retailers to understand the behaviors of shoppers who generally have vastly different worldviews and motivating stimulants than themselves.

For marketers, the dream scenario is to know exactly when to reach out to a consumer and with what message. Using data trend analysis and real-time push notifications allows them to deliver precise, unique information to each shopper, automatically. This high level of customer service, seamlessly integrated into an in-store experience breeds the consumer trust that is so essential for winning younger shoppers.

Data empowers adjustments to in store layouts, product placement, target market penetration, and on-site displays. Highly simplified, they create the intelligence that leads to less waste leads and bigger margins.

Operational flexibility

Internally, beacons can assist in tracking staff efficiency and productivity. Retailers with mass product quantities are able to track vendor activity, monitor deliveries, and ensure vendor compliance. These improvements don’t directly create better conditions for shopping experiences, but by leveraging the data to make improvements in service, the customer wins again.

With the omnichannel imperative so near to executives’ every decision, the flexibility that beacons provide is unrivaled. Centennial shoppers who love to poke around the Internet analyzing their next big purchase can order online and pick up in store, known as ‘click and collect’. They don’t have to wait for a delivery and their branded mobile app uses beacons to find that item in the store immediately. They’ve already paid, and the checkout line can be bypassed.

As we head into the holiday season, it is timely to think about how beacons can make shopping for holiday wish lists easier. Kids, teens, parents, couples, family members and more can set up online wish lists and those buying the gifts can be guided directly to the items. They’re in and out in no time, and everyone has a happy holiday.

Centennials are already a sizable consumer population, establishing themselves by behavior as quite independent from the millennial generation retailers are finally figuring out. But just like millennials, their incomes will rise and their buying power will increase. Retailers need to prepare now, and beacons offer a comprehensive solution to appeal to their digital prowess and win their in-store business.