Keys to a Great Unboxing Experience

Unboxing is more than opening a package

Unboxing is about providing a branded, aesthetic opening experience that builds excitement. The customer purchase experience shouldn’t end when the package arrives — that’s when the experience really just begins. The way customers feel about your brand after the purchase determines whether they become repeat customers or remain a one-time buyer.

The unboxing experience is an essential part of that journey and influences those feelings. This can be especially true for online-only retailers, as this is the only physical touchpoint the brand has with the consumer.

Click below to read my thoughts on the makings of a great customer unboxing experience, which includes:

• The package

• Product wrapping

• Packaging materials

• Inserts

• Samples

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Retail Predictions: How Small Retailers Will Change In 20 Years

FUTURE OF ECOMMERCE: HOW SMALL RETAILERS WILL CHANGE IN 20 YEARS

Mom and Pop stores, once the bread and butter of the retail world, are all but becoming relics of a former time. As large retailers and big box stores sprawled across the country, undercutting prices while offering more inventory, smaller niche retailers simply couldn’t compete. Over the years, many of these shops that would try to plant their seed at a physical location have found that online or ecommerce offerings were more suitable to their needs and means.

From Amazon to Etsy, to Magento Community and Shopify, there are numerous outlets for smaller retailers to get their products in front of consumers. But what happens in 20 years time when these large retailers begin to consume one another, when name brands become less meaningful in place of price and quality, or as the desire for more meaningful experiences becomes vital to product sales? In the year 203,7 we may not quite be on planet Mars, but one thing is certain: the face of retail and ecommerce will have drastically changed, and this is particularly true for smaller retailers and mom and pop shops. I, along with other industry professionals, was asked about how small retailers will change over the next 20 years. Here is what I had to say.

WHAT ROLE WILL PHYSICAL RETAIL STORES PLAY IN CONSUMER BUYING, AND HOW WILL THEY HAVE CHANGED?

Greg: The concept of the store really hasn’t changed in 100 years. Stores have gotten bigger, but in most instances, the fundamentals are the same. You go there to purchase something and take it home the same day. I don’t think this model is doomed, even with advances in technology.

People are social by nature, and I think they will continue to want to touch, experience, and take home purchases on the spur of the moment. Assuming people will always be willing to wait for products is assuming people will no longer want immediate satisfaction. If anything, with the expectation of fast and free shipping, we are moving closer to consumers’ expecting immediate gratification.

It’s possible we will see an increase in store locations, but with less inventory. For this to be successful on a large scale, shipping costs will need to come down. Housing all inventory in several key locations around the country means retailers will have to ship one product at a time, rather than bulk ship to key stores. This might lead to one mega-store in each metropolitan city, with smaller showroom stores around the city. This will allow products to bulk ship locally without forcing retailers to build out distribution hubs around the country. As of today, Amazon and Walmart are probably in the best situation to execute this strategy.

The concept of checkout-less stores is sure to expand over the next 20 years. As technology improves in this space, I think more and more retailers will take to it. I am skeptical that it will be adopted widely by retailers. I think it is better suited to products like clothing than it is for groceries, for example.

WHAT DO YOU BELIEVE TECHNOLOGICALLY OR CULTURALLY WILL BE THE BIGGEST FACTOR IN HOW CONSUMERS BUY IN 20 YEARS?

Greg: Virtual reality and augmented reality will play the biggest role here. I think consumers will be shopping in their living rooms using headsets or other applicable technology, where they can try on products, see holograms, or 3-D views of themselves with products. Similarly, virtual in-store shopping certainly will be more advanced than it is today. People will be able to visually shop their local brick-and-mortar store using VR or AR and have orders shipped to them.

Finally, on this same note, we can expect online-only retailers to create virtual storefronts to better connect consumers with their brands. Where an online retailer used navigation bars to direct people, they can create their own virtual stores that bring together a consistent look and feel for their brand and ease the shopping experience by allowing the user to “walk” through their stores.

WHAT KIND OF JOBS WILL BE NEEDED TO SUPPORT FUTURISTIC RETAIL AND ECOMMERCE BRANDS?

Greg: For virtual stores, we’ll need virtual retail designers or virtual architects. These people will be in charge of designing a virtual floor map, as is done with brick-and-mortar locations. However, knowing what works in the physical retail storefront will be quite different in a virtual storefront. Counter-clockwise shopping, brand merchandising/placement based on eye level, and size of shopping carts are not likely to be as meaningful in an online world. It will be interesting to watch how the online version evolves.

Software engineers are already becoming a permanent fixture for nearly every company, but positions in designing virtual environments, as with video game creators, will become a more common role for retailers or agencies.

I don’t believe the role of a human marketer will go away. Commerce marketing automation will make their jobs easier, surfacing data and related analytics faster, making it easier for marketers to predict ways they can boost revenue. The marketer’s role will continue to shift as consumer adoption of new marketing tactics is accepted and rejected. Humans marketing to humans will always be important.

LASTING THOUGHTS

Greg: I think there will be a time within the next 20 years when there will be a bit of a technology backlash. I think people will crave the “quiet” that comes from being disconnected from the online world. Technology won’t go anywhere, but you may find people sharing less online and doing more in person. This may lead to the re-emergence of brick-and-mortar stores as a destination, much like the shopping malls of years ago.

Click Here to View Other Experts' 20-year Predictions

VIEW MY 5-YEAR PREDICTIONS FOR MID-SIZED RETAILERS HERE

VIEW MY 10-YEAR PREDICTIONS FOR LARGE RETAILERS HERE

Retail Predictions: How Amazon and Giant Retailers Will Change In 10 Years

FUTURE OF ECOMMERCE: HOW AMAZON AND GIANT RETAILERS WILL CHANGE IN 10 YEARS

Physical retail stores are closing at a record pace, all while giant brands such as Amazon and Walmart are expanding their digital footprint. Of the largest retailers, they too are shifting to an omnichannel world, though many remain lagging behind. Even grocery stores, the goliaths that commonly take up more physical real estate compared to that of any other retailer, may feel safe for the time being, but disruption is on the horizon. Between grocery deliveries, smaller specialty shops, and online ordering with store pickup, grocery stores of today will function differently in the years to come.

In the year 2027, it’s hard to imagine going to the same big box grocery store when already so many technological advancements are making their way into each business. Beyond grocery stores, similar changes can be found in the fashion and general merchandise industries. This poses the question: What will happen to the largest of retailers over the next 10 years? Will there be a shift in physical size? Will experiences become more meaningful than general displays and product availability? These are the kinds of questions we asked our partners, and here is what they came up with:

FOR GIANTS BRANDS (AMAZON, COSTCO, HOME DEPOT), HOW WILL THEY CHANGE OR ADAPT TO MEET CONSUMER DEMAND IN 10 YEARS?

Greg: From a consumer demand perspective, Amazon is leading and will continue to lead in many of these areas. Their distribution centers and warehouses have put them in a position to provide quick and cheap delivery. However, in 10 years, Amazon may be seen as more than just a retailer, as they are today. Today, they have plenty more to offer, but people think of them as a store. I think they will be seen as more of a media company that sells products. I believe they will continue offering TV-type services, such as network shows, original content, sports programming, and movies.

For big-box retailers, like Home Depot, they will be more aligned to execute on changes in consumer demand. Consumers expect their online and in-store inventory to be accurate and for customer service reps to have a full view of product locations to assist customers. We also expect associates to have a connected device so they can assist as needed. The thing to watch is how they control the user experience after someone leaves the store. Will installers and hired third parties deliver better service than they do now? These hired guns become the face of the organization, and in many cases, they ruin a relationship between the consumer and the brand. The store itself had little to no control over that experience, other than sourcing that third party.

HOW WILL CONSUMERS RECEIVE ITEMS PURCHASED FROM A VIRTUAL OR ONLINE PLATFORM IN 10 YEARS?

Greg: This will depend on areas of the country. In places where there is one mall, and shipping times are longer, I think you’ll see similar footprints as you do now. For larger metropolitan cities, I think the changes will vary a bit by product vertical. As a whole, I  believe there will be a shift to smaller store footprints, which will predicate smaller inventories. But this is a double-edged sword because smaller stores are only sustainable with fast and free shipping for the consumer.

I do believe that as consumers become more integrated with technology, their desire for human interaction in-store will grow. This makes the sales associates in these stores more valuable. They become the face of your brand. They become your customer service department. Because they hold more value for the brand, they likely become more of a career position than an hourly worker.

I would not be surprised to see more cohabitation of storefronts, where you have two complementary brands in a single storefront. This can bring the allure of “one-stop shopping” to the offline world, without competing products like you would find in Walmart or Target. It also allows retailers to save on the cost of the physical storefronts while effectively doubling their marketing efforts, as each store would have two marketing departments.

I think the pickup centers will be the most adopted of all of these. These centers may turn into a requirement for free shipping. Shipping is expensive for retailers, especially the last mile, so we could see more free shipping to centers, while having to pay a small fee to have it delivered to your doorstep. Again, this provides consumers a choice of cost versus convenience.

Robots may be employed by select stores to deliver in-store pickups, but retailers should view this as an opportunity to put a human face to the brand. When in-store pickup is managed by a robot, retailers create a very sterile interaction. At that point, what is the emotional connection to the brand?

I am skeptical of drones and don’t believe them to be a long-term delivery solution. There are too many obstacles, such as the potential for lawsuits, terror threats, and general public safety issues, to make this a viable strategy.

LASTING THOUGHTS

Greg: Retail technology is advancing faster than adoption at this point. While exciting times are ahead, 10 years is an eternity for technology. What we see from a shopping perspective in 10 years may be completely alien to us now. I expect browserless commerce (voice control) will have a much larger footprint than it does now. Kids today use Siri and other voice-controlled devices as normal, everyday tools. When they are in their teens and ordering something using their voice, it won’t seem like a new concept. They will already have assimilated the use of that mode of communication.

CLICK HERE TO VIEW OTHER EXPERTS' 10-YEAR PREDICTIONS

VIEW MY 5-YEAR PREDICTIONS FOR MID-SIZED RETAILERS HERE

VIEW MY 20-YEAR PREDICTIONS FOR SMALL RETAILERS HERE

Retail Predictions: How Mid-Size Retailers May Change By 2022

FUTURE OF ECOMMERCE: HOW MID-SIZE RETAILERS MAY CHANGE BY 2022

Now that emerging technology like virtual reality, beacons, and voice assistants is finding its way into more consumer homes, what role will these play in the future of ecommerce? Not only is hardware improving and creating new ways for consumers to buy goods, but the software, such as artificial intelligence, is improving how products directly correlate with needs and wants.

Over the next five years, mid-size retailers such as L.L. Bean, Hasbro, and Wayfair will see large impacts and face the most challenges. While we may not have a crystal ball, industry experts, like Greg Zakowicz, have a direct tap into the changing landscape of retail, so we asked them how they see mid-size retail and ecommerce shifting over the next five years. From emerging technology to shifts in how consumers receive their goods, there are a lot of iterative changes that our industry is likely to see.

HOW WILL MID-SIZE RETAILERS CHANGE OVER THE NEXT 5 YEARS?

Greg: I don’t expect we’ll see drastic changes from many of them. I think retailers will do more behind the scenes to integrate data sources and share. We might see retailers put more emphasis on improving the overall value they provide to customers by providing more personalization and value-driven loyalty programs, for example. Of course, much of this requires accurate, integrated data. Without that, marketing programs likely will fall short of expectations.

WHICH IF ANY EMERGING TECH WILL BECOME WIDELY ADOPTED WITHIN THE NEXT 5 YEARS?

Greg: In some cases, yes. In most cases, no. I believe virtual reality will be more prominent, but I don’t think people will be wearing headsets to do the majority of their shopping. For brick-and-mortar stores, beacons will probably become more mainstream than they are today, but it will take some time for retailers to figure out how to use them to provide value to their shoppers. They need to make sure they get it right – almost from the start. Otherwise, consumers won’t adopt them readily over time. Again, it’s all about value for the consumer.

Some online retailers will likely rely on some technologies more than others. Looking at ways furniture retailers can help people picture items in their house is a great example. How much more can this be improved than what we see today? Who knows. Does it need to be improved drastically? I am not sure it does.

Voice assistants are an intriguing topic because that technology puts us at the front end of “browserless commerce.” No one really knows what the user’s experience will be. Will we be able to shop using voice commands? Already, we can purchase items on Amazon using our voices. But will our daughters use it to purchase a prom dress? I don’t think so. I don’t think anyone can predict this, but the run-of-the-mill ecommerce retailer will not be using it on a day-to-day basis the way Amazon users do now.

As with any technology, simply implementing it does not improve the shopping experience. If the technology makes the experience better, then it will be adopted. If the experience is about the technology, ultimately, it will fail.

HOW WILL SHIPPING CHANGE IN THE NEXT 5 YEARS?

Greg: Wow, great question. U.S. consumers already expect free shipping, and their tolerance for longer shipping windows, even with free shipping, is lessening. We will likely end up in a place where free shipping in 3 or fewer days is expected. There will always be exceptions for custom products. However, I would not be surprised to see a slow revolt against the “big guys” where consumers purposely choose to wait the extra day, or pay a little more so they can buy from a smaller retailer. People love the underdog, and when mass consolidation happens, many times consumers have pivoted in the opposite direction.

This is all predicated on domestic purchasing. As more consumers participate in the global marketplace, they might be willing to wait a little longer for their product to be delivered. This could help train people that immediate shipping is not needed, and their tolerance for slightly longer shipping windows or cost could be expanded.

For brick-and-mortar retailers, I think we will see a bigger push to drive people in-store. These retailers may stick to a shipping charge or longer shipping windows for at-home delivery, while quicker and free delivery will happen for in-store pickup. This would provide consumers the option to receive fast and free shipping, while providing retailers with what they want – in-store traffic.

Click here to view other experts' 5-year predictions

VIEW MY 10-YEAR PREDICTIONS FOR GIANT RETAILERS HERE

VIEW MY 20-YEAR PREDICTIONS FOR SMALL RETAILERS HERE

Why Mobile Payments Are Killing the Checkout Form

A colleague recently told me over lunch how much he loves pizza apps. “They’re just so easy.” When I asked him what was so easy, he said that while picking from the menu is part of the ease, the bigger part has to do with paying. It’s one touch.

Now, before you run out and hire a team to create an app for your brand, let’s think about how to make paying easier – whether someone visits your website from a desktop or wants to take advantage of email offers directly from their mobile device.

We talk a lot about omnichannel and the customer experience – making sure the cart is available, regardless of device, and providing a seamless shopping experience. But simply making shopping easy is just step one. Making it easier to pay is the key to conversion.

Mobile Shopping Is Here to Stay

According to eMarketer, 58% of mobile sales came from smartphones in 2016, and that number is expected to grow. Overall, mobile made up 29% of all ecommerce sales. But by 2021, it’s predicted that mobile will make up more than half of all ecommerce sales.

Retailers need to consider what this means for their sales. When consumers are looking to purchase on their devices, they expect a frictionless experience. And what provides more friction than being asked to enter an endless stream of billing and shipping details, often moving manually from box to box, all while on a small mobile screen?

Another colleague tells me she frequently abandons items at checkout when trying to buy on her mobile device. “Those forms are better than a strict budget for keeping my spending in check.’’ She recently recounted how she suffered through one form on a national retailer’s site solely because her too-busy-to-shop teenage daughter actually liked one of the dresses she had selected, and she couldn’t bear to abandon the shopping trip after thumbing through 120 sleeveless mini-dresses. She completed her purchase out of necessity, not convenience. If she could have found that baby blue skater dress on Amazon, she might have been tempted to bail altogether.

If your competitor offers a frictionless purchase experience and you do not, you may not only lose a sale now, but customers may remember this and bypass you altogether the next time they shop.

Security Plays a Key Role In Mobile Payment Behavior

The counter-argument is that most retailers allow users to save their credit card information on their site to make future checkouts easier. However, online security issues have minimized the usage of this tool. In fact, due to hacking concerns, 33% of consumers never save their credit card information, and 30% only use trusted payment methods, such as PayPal.

The result? More and more consumers are storing their payment information in their phones. There are one million Apple Pay accounts being activated weekly worldwide. As consumers continue to adopt mobile payments on their primary connected device, creating an easy way to allow consumers to check out will be an essential requirement in the very near future.

An intriguing facet to mobile payments is that Amazon’s U.S. patent for one-click payment technology expires this year, leaving the door open for other retailers to implement their own one-click solutions without licensing the technology from Amazon. Google is reportedly working on a one-click payment system that integrates with the Chrome browser.

This integration with Chrome goes beyond just mobile, and that itself is telling of the power that mobile payment options hold. The purchase process between an app, a laptop, and a mobile version of a site is almost always different from one another, but the goal is symmetry. As mobile purchasing becomes the standard, non-mobile devices will be forced to match that experience. Storing payment info in Chrome will allow users to easily check out regardless of the device they are on. Creating a symmetrical experience not only allows for a quicker checkout (which should decrease abandonment), but also improves the customer’s overall experience with your brand.

The time is right for retailers to provide a more simplified, convenient checkout experience. Don’t think of it as simply a way to optimize for mobile. It’s not. Mobile is the norm. Think of it in terms of giving your customers what they want. Long checkout forms on mobile devices are a thing of the past. Don’t believe it? Ask 100 people if they’d rather fill out a long form on their phone or make their next mobile purchase with the simple touch of a thumb.

This was originally published on Multichannel Merchant.