In-Store is Still the Primary Revenue Earner, But Digital Tools Drive Additional In-Store Revenues Consumers globally have rapidly adopted digital retail channels. Online retail sales in the US are expected to reach $370 billion in 2017, up from $231 billion in 2012. However, this does not ring a death knell for bricks-and-mortar retail stores. Despite the rapid double digit growth rate of e-business, online channels are expected to contribute to only around 10% of all US retail sales by 2017. The physical store still remains the primary point of sale for a large proportion of consumers. Physical stores are also indispensable to retailers because of the higher sales conversion rates that they achieve. A study indicates that during 2011, US store sales conversion rates were 14 times higher than their e-business counterparts. In this infographic we look at how digital technologies can help retailers match the growing interest in online channels with the higher sales conversion benefits of physical stores, examining a range of digital services that can be used to drive more traffic in-store and increase revenues.

1. Increasing In-Store Footfall and Sales Through Digital
Consumers Prefer In-Store Experience Compared to Online
Why consumers prefer In-Store over online
Despite rapid growth, online will contribute only
To establish relationship
with Merchant
to US retail sales
in 2017
10%
To get answers
for questions
51%
In-store
50%
12%
Store sales conversion rates in the US are 14X higher
than e-tailers
For better
Customer Service
13%
Online
In-store
40%
16%
Online
In-store
Online
Digital Shopper Services Drive Additional In-Store Revenues
Online Shopping List secures brand loyalty
Appointment Booking drives up-sell
In-store sales advisors
assist shoppers
Motivates customers
to buy more
Increases average
basket size
Allows consumers
to plan purchases
%
Increases average
shopping basket
50%
10%
Offer
Updates in real time
with sharing feature
Recommends
relevant offers
35%
60%
40%
16%
NA shoppers say helpful store associates motivate them to spend
more in-store
48%
Potential additional revenues
Consumer Electronics
Up to $
780 M
Potential additional revenues
Do-It-Yourself
Sportswear
Up to $
125 M
Up to $
Non-food superstore
180 M
Up to
Food superstore
$ 125 M
Up to
$ 1300 M
Retailers Lack a Cohesive Strategy for Digital Shopper Services
73% of retailers offer Online Shopping List as compared to only 20% offering Appointment Booking service
66% record consumer data while only 25% share personalized offers
Only
26%
EU Retailers Offer Less Advanced Online
Shopping List Features
EU
73%
US
63%
15%
11%
allow the Online Shopping List to sync with mobile
A mere
13% allow Online Shopping List to be shared across social media
Sources:
1. Forrester, “US Online Retail Forecast, 2012 to 2017”, March 2013
2. Motorola, “Holiday Shopping Study”, December 2012
24%
20%
Basic Services
Differentiators
Premium Services
e/m-coupons, Store Locator,
Barcode Scanning & Sharing
via email/SMS
Synced with Mobile,Social
media sharing, Inventory
check & comparison tools
In-store aisle location/
navigation, Voice enabled
search & Offers based on
in-store location
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