advertisement
advertisement

Are Stores Really Helpless Against Amazon? That Question Has It Backward

Written by Frank Hayes
April 2nd, 2013

There’s a jarring bit of retail insight buried in a story from The Register last Thursday (March 28). The story itself is about a new Motorola (NYSE:MSI) “smart badge” for in-store associates that can do much of what an iPod Touch does at many stores—except the smart badge is “ruggedized,” twice the iPod’s price, and can’t be fitted with a swipe sled for taking payment cards. Line-busting? Not with this device.

But here’s that insight: “No one can compete with Amazon when a customer knows what they want,” The Register’s Bill Ray writes. “Stores need to excel at selling things the customer didn’t know they were after, and greater technology might not be the best way to achieve that.”

That sounds depressing, even though it’s probably not quite true. Sure, Amazon has cutthroat pricing and isn’t paying for all your expensive retail floor space. It has the ability to sell to customers anywhere and anytime with a single click. Customers know they can stroll through your store and then buy from Amazon for the best of both worlds. And selling customers things they don’t know they want? That’s a long shot at best.

But let’s turn that “no one can compete with Amazon” statement around: If a customer isn’t a pure-play showroomer who really just wants to see whether that gadget looks cheesy or that blouse is the right color before buying on Amazon.com (NASDAQ:AMZN), what kind of in-store technology can help associates do a better job of helping customers find what they want—and convince customers that here and now is the right time and place to buy it?

That unwieldy question wipes out many of the ideas that retailers are bounced around for in-store mobile devices.

Product videos? Very pretty, but what’s the point of a tiny image on a tiny screen when the actual products are right there—full-size, 3-D and interactive? Or what about access to the chain’s e-commerce site? That’s an invitation to search the Web and lose the customer you’ve actually managed to get into the store.

Stores have always been plagued by what’s now called showrooming: “shoppers” who want to see what you’ve got but know they won’t be spending any money with you. Forget them. How can you move the customers who are actually shopping?

Naturally, that depends. If a customer thinks he know exactly what he wants, an app that lets an associate see similar alternatives—with full details—might make a difference (We’ve found a cheaper version that does what you want! or We’ve found something with that one missing feature!).

Or if she has already decided but is visiting stores to compare prices, an app that actually pulls up those price comparisons—even if some competitors’ prices are lower—might bring the shopping odyssey to a close (You’ll only save this much by going across town or online—buy now and you can save gas and wear it tonight!).

And for times when the customer is still hesitant to buy, an app that automatically generates a package deal, bundling add-ons or accessories that the customer is likely to want, with a discounted price for the entire deal—and if the customer wants a different selection, a feature that can handle substitutions (You’ll need these things anyway, and the bundle will cost you less than anywhere else!).

Face it, you are competing with Amazon. If you’re going to equip associates with handheld technology, it should give them the tools to outsell Amazon—or at least have a fighting chance.

Oh, and don’t forget the swipe sled. It’s as close to 1-Click as a store is going to get.


advertisement

Comments are closed.

Newsletters

StorefrontBacktalk delivers the latest retail technology news & analysis. Join more than 60,000 retail IT leaders who subscribe to our free weekly email. Sign up today!
advertisement

Most Recent Comments

Why Did Gonzales Hackers Like European Cards So Much Better?

I am still unclear about the core point here-- why higher value of European cards. Supply and demand, yes, makes sense. But the fact that the cards were chip and pin (EMV) should make them less valuable because that demonstrably reduces the ability to use them fraudulently. Did the author mean that the chip and pin cards could be used in a country where EMV is not implemented--the US--and this mis-match make it easier to us them since the issuing banks may not have as robust anti-fraud controls as non-EMV banks because they assumed EMV would do the fraud prevention for them Read more...
Two possible reasons that I can think of and have seen in the past - 1) Cards issued by European banks when used online cross border don't usually support AVS checks. So, when a European card is used with a billing address that's in the US, an ecom merchant wouldn't necessarily know that the shipping zip code doesn't match the billing code. 2) Also, in offline chip countries the card determines whether or not a transaction is approved, not the issuer. In my experience, European issuers haven't developed the same checks on authorization requests as US issuers. So, these cards might be more valuable because they are more likely to get approved. Read more...
A smart card slot in terminals doesn't mean there is a reader or that the reader is activated. Then, activated reader or not, the U.S. processors don't have apps certified or ready to load into those terminals to accept and process smart card transactions just yet. Don't get your card(t) before the terminal (horse). Read more...
The marketplace does speak. More fraud capacity translates to higher value for the stolen data. Because nearly 100% of all US transactions are authorized online in real time, we have less fraud regardless of whether the card is Magstripe only or chip and PIn. Hence, $10 prices for US cards vs $25 for the European counterparts. Read more...
@David True. The European cards have both an EMV chip AND a mag stripe. Europeans may generally use the chip for their transactions, but the insecure stripe remains vulnerable to skimming, whether it be from a false front on an ATM or a dishonest waiter with a handheld skimmer. If their stripe is skimmed, the track data can still be cloned and used fraudulently in the United States. If European banks only detect fraud from 9-5 GMT, that might explain why American criminals prefer them over American bank issued cards, who have fraud detection in place 24x7. Read more...

StorefrontBacktalk
Our apologies. Due to legal and security copyright issues, we can't facilitate the printing of Premium Content. If you absolutely need a hard copy, please contact customer service.