Today, consumers who are well-versed in digital technology expect a modernized version of in-store shopping that incorporates the conveniences they enjoy while shopping online. This concept defines digital retail: utilizing technology to simplify access to the latest and most pertinent product information, empowering consumers to make well-informed decisions while shopping in physical stores, tailored to their budgets, preferences, and health concerns.
Simultaneously, brands are seeking fresh opportunities to promote their products at the point of purchase. Historically, brands had limited insight into the effectiveness of their in-store advertising and displays, along with limited influence over consumers during the final stages before a purchase. Digital retail holds the potential to enhance this influence and gauge consumer responses to advertising efforts in real-time.
Retailers need to rethink the in-store consumer experience to cater to both consumer demands and brand objectives, all while safeguarding consumer privacy. Earlier iterations of digital retail and major tech companies relied on collecting personal data and linking it to individual shoppers to gain insights and drive sales. However, new standards are emerging for the next wave of advertising. In this context, digital retail needs to adopt a new approach, integrating brand safety and consumer privacy into every facet of its technology and operational model.
In 2018, Cooler Screens faced various challenges posed by Walgreens concerning customer experience, brand promotion, and privacy. The solution involved transforming the experience within the cooler aisle in three primary ways:
1. A contemporary in-store experience that appeals to customers
Cooler Screens developed an exclusive digital merchandising platform, replacing traditional cooler doors with advanced digital smart screens that seamlessly blend into the existing retail environment. Shoppers can instantly and effortlessly access the most relevant and current product information in-store, mirroring their online shopping experience. In a 2019 trial run across 50 Walgreens stores, over 80% of consumers found the screens enhanced the attractiveness of products and made them easier to locate.
2. A chance to enter the digital media realm
With the assistance of Cooler Screens, Walgreens seized a substantial growth opportunity by entering the digital media landscape. For the first time, brands could engage consumers digitally within the cooler aisle, delivering contextually pertinent messages during the purchase process. Simultaneously, real-time analytics improved the visibility of performance. Products that were advertised witnessed 2-10 times faster growth compared to non-advertised products in stores equipped with Cooler Screens’ digital doors.
3. An “identity-blind” business approach
Cooler Screens’ high-resolution smart screens and sensors track inventory management, product placement, foot traffic, and consumer interactions — all while maintaining an “identity-blind” nature. This consumer-safe platform avoids the privacy risks associated with other digital commerce platforms by refraining from collecting or storing personally identifiable information. The company has fully embraced the “Privacy by Design” framework, a robust system developed by privacy advocates to promote user privacy.
The Outlook for Digital Retail
Consumers deserve an improved experience in physical retail compared to what is presently available. Digital retail solutions should modernize the in-store shopping experience by enhancing access to information, relevance, and transparency, while simultaneously mitigating privacy risks and enabling brands to engage consumers in novel and more meaningful ways.
