The mobile consumer has turned every business on its head. Armed with data, competitive deals and Amazon’s website, this digitally connected consumer is changing the playing field for both retailers and quick service restaurants (QSR). As such, driving loyalty among this fickle – but highly lucrative – customer segment has proven challenging.
Traditional brick-and-mortar retailers are facing decreasing footfall traffic as eCommerce continues it’s rapid pace of growth. At the same time an overwhelming majority of customers prefer shopping in physical stores, with over $4 trillion in transactions happening in brick-and-mortar. As the omni-channel customer transcends online and offline, how do retailers transform their physical spaces from transactional to experiential?
Similarly, quick service restaurants (QSRs) fight a never ending battle of identifying, rewarding, and retaining their best customers. In fact, a majority of QSR loyalty programs are inactive. As loyalty and points programs lose their luster, how can QSRs boost repeat visitors across their chain or franchise?
The solution, according to a new study conducted by Euclid Analytics and EKN Research, is right under the nose of today’s brick-and-mortar retailer and QSR chain: Use your in-store Wi-Fi.
Euclid and EKN surveyed executives at 60 top retailers and QSRs to understand how they plan to leverage their in-store Wi-Fi to create a frictionless shopping and dining experience. Based upon the respondents who have already deployed Wi-Fi, over 80 percent currently leverage or plan to deploy in-store analytics to identify and segment customer behavior. These companies will also leverage the Wi-Fi-based insights to deliver new in store services and personalized experiences.
Over the next 12-24 months, the top 3 areas of focus for retailers and quick service restaurants include:
1. Customer opt-in: Wi-Fi provides an easy vehicle to capture customer credentials via an opt-in process. Once opted-into the network, customers can be identified to receive offers, promotions and enhanced services (i.e. in-store concierge). Best of all, shoppers and patrons will immediately be recognized through the Wi-Fi the next time they enter the store or restaurant.
2. Targeted in-store and -restaurant location-based messaging and marketing: By identifying specific customers and segmenting them by purchase history or preferences, retailers and QSRs can send targeted messages, promotions or services via the Wi-Fi to a mobile device.
3. Measure and report Wi-Fi usage metrics (frequency of visits, repeat visits, etc.): Retailers and QSRs can leverage the location-based data from the Wi-Fi infrastructure to identify traffic patterns and customer behavior across the chain of stores or restaurants.
The report recommends that businesses incentivize Wi-Fi usage for their customers to create personalized in-store experiences. At the same time, businesses should integrate Wi-Fi analytics tools to realize operational efficiencies and measure marketing effectiveness. Finally retailers and QSRs should disseminate key Wi-Fi and location based metrics across the chain to empower employees, managers and executives and facilitate data-driven decision-making.
Click here to download your free copy of the EKN/Euclid report.