Omni-Channel Customer Engagement Article

When it comes to the retail race, Amazon and Macy’s have been dominating the market. A recent prediction from analysts at Cowen shows that Amazon will seize the lead as the top apparel retailer in the U.S. by 2017, overtaking Macy’s. Interestingly, while Macy’s has a reputation as a brick and mortar establishment, the company is taking combative action in a decidedly untraditional way.

Macy’s has already made a number of moves that fall under the umbrella of omni-channel customer engagement, an area they previously hadn’t had to work in. But in the new age of customer empowerment, when traditional brick and mortar clients are demanding new ways to interact, shop and engage with companies, Macy’s really has no choice but to step up to the plate by using technology to its full advantage.

The biggest change Macy’s is making is the announcement of same-day delivery in nine new markets, bringing the total to 17 regions. But the company still has work to do on the omni-channel front if they want to stay competitive with Amazon. Initiatives like in-store use of mobile devices are a good start, but the company will also need to step up its game in the areas of social media and marketing.

According to Vend, a company specializing in POS software as well as ecommerce and customer engagement and loyalty, there are several trends shaping the age of the enlightened and engaged customer. Social networks serving as shopping platforms is one of the main ones, and social media is no longer simply an avenue for brands to market their offerings. Not only can companies interact with their customers directly via social media, but now they can actually sell directly from Facebook (News - Alert) and Twitter, thanks to customer demand.

Additional trends are geared toward brick and mortar stores like Macy’s, which bode well for the apparel sector, where many customers still want to view and try on products before purchasing. Cloud-based POS systems are becoming extremely popular with merchants and customers alike due to increased performance and functionality, and they will continue to become more robust.

Beacons, which Macy’s is already using, are also becoming popular and are producing desirable results. These mobile devices communicate with smartphone apps indoors using Bluetooth, enabling retailers to communicate with customers while they’re shopping. Business Insider forecasts beacons will directly influence more than $4 billion in U.S. retail sales this year, with the number increasing next year. It is also expected that they will be used in tandem with loyalty programs and apps to reward customers for visiting brick and mortar locations.

There are definitely technology advantages for brick and mortar retailers building up their omni-channel customer engagement strategies. Cloud bigwigs like Amazon may have a leg up on competition in certain areas, but if companies like Macy’s continue to evolve to meet the increasing demands of customers, they just may be able to pull ahead of their online competitors.