Driving Omni-Channel Experience in Offline Retail: Nucleus Vision
Retail as a whole represents a whopping 31% of the global economy with a contribution of more than $28 trillion. More than 90% of this revenue is generated from brick-and-mortar stores, while the remaining is from M-commerce and E-commerce combined.
Developing economies such as India have more opportunities than the developed economies to disrupt the retail industry. With a growth rate of 8.2 %, the Indian economy is one of the fastest growing in the world and has all qualities of being a key player in the global Retail.
India’s high potential retail industry
By 2017, the size of Indian Retail has grown to $672 billion and stood one of the top five markets in the world. Driven at a rapid pace, it is expected to touch $1 trillion mark by 2020.
The economic and social conditions in India have improved in the recent days. There is a considerable growth in the number of middle-class consumers and working women. This has caused a rapid growth in the buying power of consumers in India. The unorganized sector has been the major contributor with over 90% of the total revenue in the Indian retail space.
With just 10% of market share, organized retail in India has been untouched and is seen as a bright spot for retailers who are bullish on unleashing its potential.
By the end of 2019, the organized retail market in India is estimated to expand exponentially and projections forecast a whopping 100% hike in revenue.
Customers Want Omni-Channel Retail
The modern consumer shopping trend demands a personalized shopping experience at brick and mortar stores. However, effective personalization has not been achieved in offline retail like in the M-commerce and E-commerce platforms. Online retailers rely on cookies, customer profiling, heat mapping, and web browser history to offer recommendations, personalized offers, and an effective targeting mechanism, the offline market relies on sourcing consumer information from point of sale, thus limiting the scope for offering a personalized experience.
An omni-channel shopping experience is what a modern-day consumer expects from retailers.
The conversion rate from the overall footfall of retail stores is only about 15%.
However, this tiny portion of offline retail conversions is accounting to a whopping $26 trillion of the market. In a rough estimation, we can create a gigantic $173 trillion market out of brick and mortar stores alone.
Challenges for Loyalty Rewards Programs
While offering a unique shopping experience to customers, customer retention comes as another major challenge for retailers. As per a research, getting a new customer costs 5 times more than that of retaining an old customer. So, this is obvious for a retailer to focus on creating a loyal customer base and lucrative rewards programs.
A study reveals that 73% of the customers who avail rewards program of a brand are most likely to recommend the brand. This word-of-mouth publicity is miraculous in gaining in-store conversions as many as 5X more than the paid campaigns do.
With more than 48 trillion reward points worth 360 billion USD going unredeemed every year, a need for a unified rewards program becomes quintessential. Effective rewards systems have showcased the potential to increase brand affinity by 2.5X.
According to a survey more than 50% of retails consumers avail are attracted to loyalty programs but more than one-fifth of them had never redeemed their rewards. And, consumers who do not redeem the rewards are 2.7x times more likely to defect one program and join another firm.
Powering personalization element in offline retail with IoT & AI
With an Omni-Channel strategy, retail brands will be able to offer their users customized experiences by computing data from its offline and online sources. According to the 19th Annual Third-Party study, less than 2% of brands are equipped for Omni-channel selling globally.
Nucleus Vision with its prowess in AI, IoT, and blockchain enables retailers in its ecosystem to execute an omni-channel strategy by empowering them with seamless customer identification, customer preferences including shopping behaviour, spending volumes, recommendations, heat mapping, recent purchases, and a plethora of other actionable data points to offer a personalized experience which was once limited to the E-commerce and M-commerce retailers.
Universal Loyalty Rewards Program with nCash
With Nucleus Vision’s interoperable rewards program- ncash, the retail market can drive customer retention and will have easy access to customer acquisition. nCash serves as the backbone for the Nucleus Vision rewards program. It can be used to reward customers for shopping transactions and can easily be redeemed across different retail brands in the Nucleus Vision ecosystem.
Within the ecosystem, the permissioned incentivization program allows the user to decide which retailer holds their data and is incentivized for the same in the form of nCash. Upon registering, Nucleus Vision’s users are vested with the power to choose who their data is shared with and to what extent. With Credit Attribution, all the stakeholders in the data sharing cycle, including the user, are incentivized for playing their role in data sharing through a reward program that is accepted throughout the ecosystem.
The user can choose who their data gets shared with and get rewarded for authorizing the data exchange.
With Nucleus Vision’s proprietary technology, retailers are now powered with data points which were only available in the e-commerce space.
An intelligent layer comprising of Artificial Intelligence, Internet of Things, and Blockchain working in tandem to offer the retail world a personalized experience right from creating a tailor-made experience to rewarding its users with a unified rewards program that is acceptable globally.
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