It may seem as every retailer in the world is talking about integrating mobile into their operations. But implementations of game-changing technologies continue to lag the idealized promise of a retail revolution. If retailers really want to attract customers through seamless uses of technology in stores, they must make significant investments of time and money to develop the appropriate software and hardware.

Some versions of these technologies already are available for purchase from external developers. For example, PowaTag integrates geo-location services with mobile commerce, as well as touch-to-buy functions. Relying on smartphone capabilities, PowaTag enables customers to purchase products they like instantly, whether they see the item in the store and take a picture of it or scan a watermark printed in a magazine spread. Rather than needing to stand in line, or fold down the pages of a printed catalog to prompt a later purchase, shoppers can simply tag the item through their phones and complete the purchase in virtually no time.

PowaTag also makes use of beacon technologies, which are growing rapidly in prominence. These sensors are small, battery-operated tools that locate consumers in stores, then send them targeted messages through Bluetooth-enabled functions. Some options include sending a shopper a coupon the moment she walks through the door or providing detailed information about a particular electronic toy to a shopper when he pauses for more than a few seconds in front of its display. As the CEO of one beacon provider explains, “Shoppers now can engage with the store almost like clicking a mouse, by using their phone. They are clicking their mouse all around your store and you’re able to bring them digital content over those beacons.”

Another function, produced by IBM, focuses more specifically on enabling retail employees to help customers. The Presence Zones technology relies on location-based information to determine where shoppers are in the store and for how long. Thus, if someone has been hanging around the shoe department for several minutes, the resource prompts an employee to check in with that shopper to provide assistance; it also can suggest offering this customer a coupon for socks in the next department over, to encourage cross-sales.

Saks Fifth Avenue sought to develop a similar tool that would be unique to its stores. Its tablet tool gives sales associates detailed information about each customer who agrees to have her or his data entered into the system. The moment a shopper enters the associate’s zone, the sales clerk gains access to the customer’s past purchases and thus can recommend new offerings from favored designers or a new tie to update the suit purchased last year. The mobile technology also provides inventory information for the entire Saks chain, so if one store is out of stock on a requested item, the sales associate can make sure the item gets delivered from another outlet to the customer’s home. Current promotions come up as soon as the salespeople open to tool, then allows them to send personalized messages to selected clients whose purchase histories suggest they would be interested in a particular marketing offer.

These examples all rely, to varying extents, on making connections with customers through their smartphones. Therefore, a prerequisite for seamless technology-based interactions with customers is making sure that the store’s WiFi or cellular connections are easy and consistent. The RFSpot is a software-as-service platform that measures, constantly and in real time, whether customers can connect through their phones using the retailer’s network. Such a tool is critical for retailers, because if the connection fails, the customer never even has a chance to learn if the store’s technology app is appealing.

As IBM’s general manager of industry cloud solutions notes—in relation to Presence Zones, though the message applies more broadly to innovative retail technologies—“Once the shopper agrees to let the retailer interact with them, the opportunities to deliver more personalized service and reward loyalty grow exponentially. Initially not everyone may want to connect to a retailer, but it only takes a couple of positive experiences to realize the value of exchanging information.” Fortunately for retailers, many customers seem to be accepting this deal: According to recent research, approximately half of all shoppers read product reviews on their phones before making a purchase decision, and nearly as many check in at retail locations in return for receiving a discount or price match.

Still, the adoption of these technologies is not without challenges. Perhaps the most prominent is the continued questions about whether and how they invade consumers’ privacy. Shoppers have complained when retailers tap WiFi signals to determine their locations without permission. When one retailer sought to avoid controversy by posting signs telling customers about what it was doing and how they could avoid being tracked (i.e., by turning off their phones), it still came in for intensive criticisms.

Ultimately, the success of these mobile technologies will depend on the trade-off that retailers offer. If mobile sales tools can sufficiently enhance consumers’ convenience and lead to improved, targeted, personalized sales interactions, in ways that seem easy and seamless, shoppers are far more likely to agree to grant retailers access to their personal information.

Discussion Questions:

1. How can mobile technologies transform the way people shop?
2. What are the impediments to implementing mobile applications in retailing?

Source: Susan Reda, Stores, April 2014; “A Retail Ray of Light,” M.V. Green, Stores, April 2014; “The State of Mobile Shopping,” Fiona Swedlow, Shop.org, April 1, 2014