5G is poised to change retail as we know it. That may sound like a bold prediction, but there’s really no overstating the value that the fifth generation of wireless technology can deliver, particularly in the retail space.
I’ve closely followed the evolution of 5G as our business relies heavily on mobile technology and the sources of location data that it gathers. Advances in device speed, GPS and satellite technology are all areas that our business is deeply interested in. It’s been exciting to watch the technology improve, and I’m excited to see what the future holds.
It’s no wonder that 5G was a hot topic of conversation at this year’s Consumer Electronics Show (CES). In discussions about the impact that 5G will have on our society, experts proclaimed that capitalizing on it will allow retailers to unleash their full potential. “Through 5G, you have a better opportunity to leverage the data that’s already out there in the (retail) universe,” said Amelia Powell, 5G program marketing manager at Verizon Wireless. “You can bring it right to your consumers at the point of sale, and even leverage things like video that are creative and new.”
With significantly faster data transfer speeds than 4G, 5G can do a lot for a brand. As reported by TheStreet, “the technology will connect billions of devices and sensors, and will have a formidable impact on major industries” — and retail is high on the list. For brick-and-mortar stores, it means you could create interactive in-store experiences for your customers that may include everything from style quizzes delivered via mobile device to augmented reality (AR) displays that allow customers to try on clothing virtually.
It also puts massive amounts of customer data at your fingertips that you can use to engage consumers. Let’s take a look at exactly how retailers stand to benefit from 5G.
Increased Personalization
We all know the importance of personalization for capturing consumers’ attention and converting that interest into sales. Accenture reports that 63% of consumers surveyed — and 69% of millennials — are interested in receiving personalized recommendations from brands. Today’s consumers demand a customized brand experience that reflects their wants and needs, and with 5G, retailers can make it happen.
Increased personalization creates a more seamless and convenient experience for retailers and their customers. When I’m shopping, I often think about the possibilities of a 5G-driven world. With the help of faster data transfer speeds and other capabilities, it seems likely that facial recognition technology and internet of things devices could alert in-store sales clerks when there’s a VIP customer nearby and allow them to access previous purchase information to determine that consumer’s preferences. It might not be long before we’re all exiting stores without having to take out our wallets simply because our payment data is already on file.
Better Insight Into How Consumers Shop
Count on 5G to both better connect retailers with shoppers through smartphones and to help marketers leverage real-time mobile data and create more exciting ad experiences. Having faster access to more customer data puts physical stores in a position to maximize their datasets and glean more insight into critical information like their customers’ behavior, habits and likes.
Augmented Reality And Beyond
As 5G becomes more pervasive throughout society, we’re bound to see more surprising uses for the technology, and more ways it can enhance brick-and-mortar shopping. For instance, I think we may see things like mirrors that record product and pricing information when a consumer tries on an item and AR tools that provide nutrition information and reviews prior to making a purchase. According to one expert, 5G has the power to stream AR/virtual reality experiences in real-time, which is exactly what retailers eager to connect with on-the-go-consumers may need.
According to Gartner, as early as next year, 100 million consumers will be shopping with the help of AR both online and in-store. Retailers continue to upgrade their retail experience in order to motivate consumers to shop in physical stores, and AR — along with virtual reality — will likely prove to be an invaluable tool for simulation and graphical visualization.
While it’s still too early to determine all of the ways that 5G will impact retail, I’m betting that the above applications will be on the list. The sky’s the limit on how 5G can support the customer experience, so it behooves retailers to prepare by understanding the various types of 5G networking capabilities.
With the rise of 5G, it’s likely that more consumers will be using their phones in-store to both compare prices and consume media. I believe that brick-and-mortar stores will need to cater to these behaviors instead of trying to distract from them or guard against them.
It’s important to think of 5G not as a marketing tool, but rather as a vehicle that can be leveraged for marketing. How can faster internet usage or app usage help you? That’s the question that retailers and marketers may need to ask themselves.
