Image courtesy of Home Retail Group / Argos

Initially recognised as a service provided by coffee shops, airports and hotels, free Wi-Fi access for customers is now trending among retailers.

As mobile devices integrate further into every day shopping, it makes sense for the high street to stop fearing the digital era and join it instead by bringing the perks of the internet in store.  According to a consumer survey carried out by Econsultancy, 43% of UK shoppers use smartphones while on the move to compare prices and read product reviews. Ultimately the concept benefits the retailer while also servicing the customer in the process, through the exchange of consumer data for free Wi-Fi connectivity and convenience when shopping.

At least 44% of all age groups say that the availability of in-store Wi-Fi influences where they shop, according to the Econsultancy survey. With this in mind we took a look at the benefits to both the consumer and retailer that come from the provision of Wi-Fi in store.

Consumer benefits

• Free connectivity is available to any shoppers entering a store with a mobile device such as a smart phone or iPad. Customers who have already signed up to the internet operator’s Wi-Fi service will automatically connect, but new customers will have to go through the sign-up process first.
• Access to the retailers extended online range will while in store enables the consumer to take advantage of any exclusive online deals and offers that wouldn’t usually be available to them if they where shopping in a store without Wi-Fi.
• Customers can continue their usual browsing and social media activities by using the in store Wi-Fi and therefore have no interruption to their lifestyle while shopping.
• Comparing prices with competitors online before they buy gives the customer added confidence in their buying decision. It also prevents them leaving the store to check other options and buying elsewhere.
• The lack of restrictions and additional services created through offering in store Wi-Fi greatly improves the customer’s shopping experience by making it as convenient and simple as possible.

Retailer benefits

• By tracking consumers’ devices through Wi-Fi retailers can follow the path taken around the store and begin to further understand consumer shopping behaviour and how their customers move through the store.
• The advantages provided to the consumer while utilising Wi-FI and mobile devices during shopping, has been seen as an extension of the traditional loyalty card. In exchange for special offers the retailer is able capture important data about their consumers.
• Individual offers can be tailored to customers as they navigate the store. Depending where they are and what they have bought in the past, the retailer can target the consumer with an appropriate offer. For Example, a customer who has bought a new bed and mattress could receive a special offer while walking through the bedding area of the store. According to an OnDeviceResearch survey, 74% of respondents would be happy for a 
retailer to send a text or email with promotions while they’re using in-store wi-fi.
• Wi-Fi opens the door to mobile technology such as iPads that are much cheaper than full PC-based till systems and have a smaller footprint. As a result the flow of store can be focussed around customers’ interaction with products and the buying journey.
• Interaction with the customer is heightened when staff members are mobile with an iPad in hand. They can approach a customer and help to search for product stock, place orders or reservations, take payments and confirm that they are getting the best price.

What the retailers say

For:

“If you make the in-store shopping experience the best it can be and provide what the customer needs, the chances are people in the store will buy in the store.” Dom Keen, Chief Executive at MoPowered.

“It allows you to interact with the customer, particularly at the fitting room. They huddle around the iPad and talk to the customer about what they’re buying and what they’re doing with it.” Richard Glanville, CFO in charge of IT and distribution at Aurora Fashions.

“You’ll be walking around a store and picking up objects that you might not buy and there’s analysis around the store to say: ‘John looked that item up but didn’t put it in his basket, but he did put this in his basket.’ What retailers actually want to do is better understand their customers,” Paul Crutchley, Strategic Engagement Director at the GSM Association.

Against:

“One thing you can do with connectivity is shop around other retailers without moving.” Rob Bamforth, Principal Analyst at Quocirca.

“It’s important for retailers to invest in Wi-Fi correctly, otherwise it will turn off customers. For example, if a store puts a limit on downloads – such as restricting streaming of YouTube – this could irritate customers and drive them away.” Paul Crutchley, Strategic Engagement Director at the GSM Association.

Argos, one of the leading UK online and high street retailer that has always been quick to implement digital practices in store, uses Wi-Fi in its new digital concept stores. Customers shopping in-store will use iPads with expanded shopping applications such as product videos and customer reviews, or personal mobile devices via free in-store Wi-Fi provided by O2.  Users will also have access to extended online ranges and exclusive online deals and offers, as well as using the network for personal browsing. The Wi-Fi-enabled iPads willreplace static sales literature and paper posters, and together with flexible product displays will offer innovative ways to inspire customers and support suppliers. With customers increasingly using digital channels for shopping and transacting, Argos says store colleagues will help customers on the sales floor to navigate digital resources and make the right purchase decision.

A few quick tips for retailers that are ready to bring Wi-Fi in store:

• Make sure your website works on mobile.
• Prompt mobile users to use the Wi-Fi and let them know about it in store.
• Look at promotions for mobile users that encourage consumers to visit your store and use your Wi-Fi.
• Don’t make Wi-Fi registration too difficult or ask for too much information up front.