Brands bringing interactivity into physical stores: SapientNitro Study

Despite the rush to add kiosks, in-wall displays, and other digital interactions to store layouts, only 4 of 71 leading retailers earned passing grades in a four-month evaluation of in-store digital retail experiences, out today by SapientNitro, part of Sapient® (NASDAQ: SAPE). The findings appear in Insights 2013, SapientNitro’s second annual publication, examining the evolving nature of consumer experiences in today’s digitized, borderless world.

Through a combination of observation, proprietary research and commentary, with Insights 2013, SapientNitro’s Idea Engineers present their global perspectives on key trends that are impacting today’s experience-led business transformations. The four main trends identified in this 156-page report are:

·         The rise of the connected consumer demanding real-time control;

·         The role of business infrastructure and data;

·         The blurring of lines across the online and offline worlds; and

·         The increasingly global nature of the marketing environment.

“One of the themes that stood out was the convergence of the digital and physical worlds,” said Hilding Anderson, SapientNitro director of research and insights, and editor-in-chief of Insights 2013. “Today’s consumer is flooded with pervasive, innumerable brand messages, and it’s up to brands to share their stories by utilizing the best times, places and tools to shape purchasing decisions. Combining technology with powerful ideas and insightful perspectives on human moments is key to creating highly relevant ways to connect.”

To lead off Insights 2013, the SapientNitro research team began by conducting an in-depth review of the in-store digital experience. The team independently visited 71 retail flagship stores throughout New York City and ranked them according to SapientNitro’s proprietary scorecard. Surprisingly, only 4 of 71 retailers studied achieved “benchmark” scores for effective use of in-store digital integration -- with Sephora, Bloomingdale’s, Macy’s, and American Eagle Outfitters scoring highest, but still far below, the maximum score of 75. Additional key findings of the four-month audit include:

·         Digital in-store displays are powerful tools – but too often are poorly executed. More than 50 percent of retailers evaluated had no visible digital displays.

·         Poorly planned digital is worse than no digital at all. Companies that optimize their mobile web content outperform those that don’t by 80 percent in year-over-year increases in web traffic.

·         The right tools generate positive ROI. In-store sales increase 10-40 percent on average as a result of increased web to in-store functionality.

·         Retailers need to increase focus on digital in-store experiences that support user tasks. Fewer than 22 percent of brands had interactive tools to support user tasks.

Following the In-store Digital Retail study, Insights 2013 delves into SapientNitro-authored points of view on key marketing trends and initiatives driving brand business decisions over the next year. Essays include:

·         Responsive Design 101: Optimizing for Multiple Screens
·         The ‘Big Data’ Era: Learning to Act in Real Time
·         Storyscaping: Building Worlds, Not Ads

·         Retail Goes Rogue: How Digital Convergence Will Revitalize the In-Store Experience

Rounding out the report are Q&A perspectives shared by SapientNitro experts around the world.

“In this world of unprecedented innovation and change, we hope our readers are as excited as we are about redefining the landscape together,” said Alan Herrick, president and CEO of Sapient. “Through last year’s inaugural Insights report, we explored the power of mobile and the rise of the always-on consumer. In Insights 2013, we were fascinated by the collapsing of boundaries and spurred by the notion of Connected Thinking. We believe this report provides a guidepost, of sorts, to charter unknown terrain for continuing to find new paths to connectivity going forward.”