The final stretch of the customer journey: physical shops

But this contest does not pit the online and offline camps against one another; rather, they are allies on the same playing field, which has become hybrid by necessity. ‘After years of e-commerce taking centre stage, the physical shop remains strategic for relationships, service and direct experience. Today, the challenge is to integrate the best aspects of digital into the shop: simplicity, personalisation and continuity of the shopping journey. This is the approach taken by Alkemy Group with projects such as Iconic Smart Cart, which brings the seamless experience of e-commerce closer to the richness of the physical store: less friction and a smoother checkout process,” says Duccio Vitali, CEO of Alkemy Group.

For years, point-of-sale software was seen as a technical component, whereas today it is a strategic asset. “The quality of the customer experience depends on the ability to orchestrate data, processes and touchpoints in real time. The store is no longer an isolated channel, but part of an ecosystem that interacts with e-commerce, CRM and loyalty. The major enterprise players have never occupied this space: too much local specificity, differing tax regimes, and processes that cannot be standardised. Today, fragmented models are giving way to integrated platforms, to players who combine technology with an understanding of the Italian retail sector,” concludes Vitali.

Meanwhile, retailers are transforming their shops into entertainment venues. Ikea is moving into urban neighbourhoods with lightweight digital formats. Walmart is transforming its stores into omnichannel hubs that connect stock, logistics and customer relations. 7-Eleven uses data and AI to tailor its offering to the needs of each local community for a personalised experience. At the Burberry store in Shenzhen, developed with Tencent, every physical interaction generates connections via WeChat: customers book appointments, discover products and take part in experiences. A pioneering model of social retail. In Copenhagen, there is Son of a Tailor, a tailor’s shop guided by algorithms: it produces made-to-measure garments using algorithmic models. It has opened physical stores where customers are measured, advised and guided through the personalisation process. In this way, technology eliminateswaste and strengthens the personal relationship.

‘The shop has always been a medium, but the industry has chosen to monetise where it was most convenient: intermediary channels, familiar metrics, and established revenue streams. This has led to an obsession with e-commerce, which accounts for less than a seventh of the market. The real challenge is to bring data, content and measurement into the shop, where the purchasing decision actually takes place. The direction is omnichannel: choosing the best channel for that specific customer, at that moment, for that shopping mission, and delivering the service perfectly,” says Lamberti.

Forget about frictionless, i.e. a seamless experience. “The most underestimated friction is late identification: customers often only log in at the till, by which point their shopping is already finished. If the retailer helps them choose thanks to their expertise and knowledge of the customer, then the irreplaceable valueof local retail,” says Lamberti. In the conversational era, the consumer expects continuity.