By Ally Azzarelli, GSP Retail
As the retail landscape continues to evolve, finding
innovative ways to enhance the customer experience is key. Frictionless or
cashierless shopping helps customers save time while allowing retailers to
gather detailed customer data and boost revenue. From connected cars and
curbside pickup to mobile ordering and Scan & Go technology, these
time-saving solutions are delivering mostly positive results.
Popular Frictionless Shopping Options
- Connected cars — cars equipped with internet access — make it easier to order ahead or pay at the pump. U.S. drivers spend $212 billion during their commutes, connected cars help drivers seamlessly utilize apps that communicate with retailers. Applebee’s, Dunkin’, TGI Fridays and Wingstop are just some of the retailers exploring how their customers are using connected-car systems.
- Mobile ordering and order-ahead solutions help retailers increase sales and loyalty — Starbucks loyalty is up 13% year-over-year — while customers enjoy the convenience. Some order-ahead apps, like the Chick-Fil-A app, even account for user errors. If a customer arrives at the wrong Chick-Fil-A restaurant, employees are automatically notified, and the order is moved to the current location to accommodate the customer.
- Scan & Go technology lets customers scan, pay and go using a
mobile app. Stores such as BJ’s, Kroger and 7-Eleven keep busy shoppers coming back by offering Scan & Go. And although it wasn’t a hit with Walmart customers, Sam’s Club is seeing success. A nearly five-star rating from 57,000 Sam’s Club shoppers proves the retailer is doing it right. - Curbside pickup and delivery is by far the ultimate convenience for most shoppers. Walmart’s leading the soon-to-be $35 billion curbside with free grocery pickup service within 3,100 stores by the end of next year. Mass market retailers like Kroger, Target (approximately 1,000 stores) and Whole Foods are also adding curbside delivery to its locations.
How Frictionless Shopping Benefits Customers
Customers will do anything they can to save time, and
retailers failing to provide frictionless shopping options risk losing sales
and customers. According to these
stats, 86% of customers avoid entering stores with long lines and 74% of
customers will shop at a competitor’s store to dodge lengthy checkout lines.
Today’s tech-fueled conveniences empower shoppers and offer more seamless experiences.
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How Frictionless Shopping Benefits Retailers
Juniper
Research forecasts that retail spend at frictionless payment stores like
Amazon Go will grow from an estimated $253 million in 2018 to more than $45
billion by 2023. The research company expects most of these transactions to be
in convenience and general stores, with an average transaction value around $30
per visit throughout the forecast period.
How Frictionless Is Causing Friction
Though curbside pickup and mobile ordering is driving
additional sales, cash-free shopping isn’t welcome in all U.S. cities and
states. Critics and legislators argue that cashierless QSRs and stores
raise privacy concerns and discriminate against lower-income customers without
bank accounts, bad credit or no credit. With areas such as Chicago, New Jersey, Philadelphia, Massachusetts, New York, San Francisco and Washington,
D.C. banning or attempting to ban cashless technology, Amazon Go recently announced it will start
accepting cash. Another way to keep shoppers happy is by digitally transforming
while still providing customers payment alternatives.
Ally
Azzarelli is a Content Strategist at GSP
Companies a retail services provider located in Clearwater, Florida, with
three regional production facilities (Clearwater; Provo, Utah; and Madison,
Wisconsin). By using surveys and a proprietary software system, GSP helps
retailers accurately measure and store site data, guaranteeing the right size
sign is delivered to the right store every time with no overage. GSP offers
award-winning marketing, design services, visual merchandising, food
photography, best-in-class graphics and smart POP program management to more
than 60,000 retail locations throughout North America. Recent growth led GSP to
add AccuStore, a survey, app and site profiling software brand, and the
large-format graphics lab Great Big Pictures, which specializes in fashion
retail.
