Retailers missing the real in-store link to the online world

An article published today in eMarketer discusses the ways multichannel retailers bring the Web into the store. Among the methods listed are internet kiosks, WAP enabled handheld devices, and point of sale terminals. Almost all of the emphasis is on the ability of the consumer to access online inventory when/if the store itself is out of stock. Pushing it one step further is the ability to present a significantly expanded assortment, with range and depth beyond that available on the shelf.

Still, the most powerful opportunity to bring the Web into the store is being missed completely, and it does revolve around mobile phones. That opportunity involves the use of 2d or QR codes. What are these? Simply, they are powerful open source 2d barcodes designed to bridge the gap between the offline and online worlds. I've recently reviewed the beta version of a new site, 2dCodeMe.com, which has been created to educate consumers about this technology. I was immediately struck by the powerful potential of the technology to vastly improve in-store customer service.

2d or QR codes are scan-able by almost any smartphone (after downloading a scan app....check out 2dCodeMe's at the iPhone App Store, it's excellent). The codes can be configured to auto-launch an array of applications in the smartphone, from uploading a text document (warranties, additional specifications, customer testimonials) to downloading a coupon (gee....see a product, scan a code, have a coupon on your iPhone!) to linking to a page deep within a retailer's website offering specific customer support (product demos, customer reviews, video programming, even the item page itself). The point is that all of this happens solely as a result of the consumer scanning the code and letting the phone do the rest of the work.

The Web has an almost infinite amount of purchase support available to the consumer. Instead of letting a consumer wander around aimlessly in that soup of information, why not send them directly to the content you've already created?

The real power of bringing the Web into the store is doing exactly that. Bring the real power of the Web. Accessing online inventory is not ground breaking, and honestly, could be done from most current point of sale registers simply by integrating the inventory in the data base. No, the real power of the Web is to engage, inform, entertain and empower. Imagine doing all that at the point of sale.

Accessing customer reviews (which already exist online and cost you nothing to make available), specifications and buying guides (which also already exist onlin and cost nothing), or product videos (which already exist too!)....these are the ways retailers need to be thinking. And the really amazing thing is that the technology is open source, already mature, and could be implemented with almost no additional resources.

Ecommerce websites add video: no consistency or sustainability

In January of 2009, Internet Retailer reported that 43% of merchants surveyed intended to add video to their site for the coming year. To test the actual penetration of video into ecommerce sites, a study completed in October 2009 by Future Merchants, Inc., shows that 67 of the Internet Retailer Top 100 have some form of video on their site. However, the adoption and incorporation of video remains, at best, an inconsistent and difficult to sustain effort for most of Internet Retailer’s Top 100.

Although retail as an industry seems to be acting on the desire for site video, there is very little consistency and seemingly no emerging consensus on what type of video programming to include. Nor does any of the Top 100 demonstrate a consistently sustainable model that delivers fresh and relevant content with any form of coherent frequency.

Despite the actual presence of some form of video content on a large percentage of retail websites, a follow up study published in November of this year by Internet Retailer shows that 36% of the respondents still list video as the most desired site enhancement. So even though a large number of retailers have actually added some form of video content, the topic remains one of the most cited for desired enhancements. There’s a disconnect somewhere! The explanation lies in the type of video assets ecommerce organizations found economically and technically feasible to implement.

Proprietary video programming and repurposed content have limitations of cost, availability and “fit”. Although a few retailers have a large amount of this content most have one or two pieces. The number of video assets found for both product demos and image animation has to be considered against a SKU base in the thousands for most of the Internet Retailer Top 100.

More insight into the issues and answers to retail websites and video programming will be delivered at the upcoming eTail West convention. Don Delzell, Managing Director of Future Merchants will be a Panelist on the Day Two Session: Driving Returns from Online Video With An Understanding of the Nuts and Bolts Behind Execution. Don will be offering a unique perspective on the issues behind the current industry experience with video.

Future Merchants has created RetailTV®, a revolutionary innovation combining over 50 years experience in retail merchandising, the art and science of master storytelling, and best in class technology to bring retail clients a powerful new method for driving cross-channel volume for key items.

Combining Solutions™ programming with the RetailTV® platform enables retailers to easily integrate powerful video storytelling anywhere on their website, while creating an interactive and seamlessly shoppable experience for their customers, driving sales on featured items across all channels.

The Future Merchants mission is to provide multi-channel retailers an affordable, high impact alternative to the declining effectiveness of traditional key item marketing techniques; an alternative that simultaneously engages the consumer, enhances the brand, and drives volume.