Commentary

5 ways physical retail can drive revenue and add value in an era of e-commerce

If brick-and-mortar stores adjust to these new times and all the technology that comes with it, they will see that they might not only continue to do well but also actually thrive in such a bold and different environment.

Image courtesy of iStock

May 11, 2020 by Marc Grens — Co-Founder and President, DigitalMint

In an age of smartphones and smartwatches, bitcoin and e-wallets, e-mails and e-commerce, the importance of a retailer's willingness to adapt to the times cannot be understated or undervalued. This modern era requires brick-and-mortar stores to evolve with all the latest technologies and innovations if they are to both increase revenue and give the customers what they want. That is why retailers should give strong consideration to improving their locations by doing any or all of the following.

1. Add cryptocurrency point-of-sale services

As a modern currency on the rise, someday bitcoin will be just as common as cash or credit cards. That is why retailers should consider adding cryptocurrency transactions as an option for customers. Cryptocurrency providers equip store owners with the latest technology, ATMs and/or point-of-sale systems that allow their customers to purchase bitcoin through a kiosk or directly at the check-out counter. There are numerous benefits to including this option at a store.

Grow the customer base: Millennials are one of the most common customers who transact with cryptocurrency. Especially if a store has a particular demographic of regular customers that often does not include people between the ages of 18 and 40, it's worth growing and expanding that customer base by offering an innovative and modern service.
Increase cross-selling opportunities: Those same customers who are in the store to purchase cryptocurrency might make an impulse buy, refill their gas tank or buy other items they may have at their usual grocer.
Provide an additional revenue stream: Without much effort, retailers get additional passive income from these cryptocurrency transactions completed in-store.

2. Diversify payment options

Financial technology is constantly evolving and rapidly changing before our eyes. The ways we have dealt with financial transactions in the past are no longer nearly as prevalent or relevant. And the last thing a retailer would want is to have to turn down potential customers because the retailer does not accept the type of payment that the customer desires to use. That is why diversifying payment options is key. This means that in addition to traditional payment by cash and check options, customers should be able to pay with any or all of the following:

Credit cards and debit cards with chip protection.
Mobile devices (smartphones, smartwatches, tablets, etc.) using digital payment services, such as: Apple Pay, Google Pay, Samsung Pay and Fitbit Pay.
e-wallets.
Online payment companies (if available for physical locations) such as: PayPal, Venmo and Cash App.

3. Modernize purchasing technology

As technology changes, physical retail locations must adapt to trends. The retailer can already start thinking about modernizing purchasing technology. It might be worthwhile to eventually eliminate that old card reader or at the least upgrade it. In particular, it is a good idea to repurpose tablets and smartphones for new POS systems, such as Square, Shopify, Lightspeed, ShopKeep and Clover, to name a few.

This enables a more mobile payment acceptance solution (the "cash register" is anywhere the vendor is). In addition, what is particularly useful about many of these systems is that they have additional services and features that will also help streamline the store's business and help it run more smoothly and easily adjust to an e-commerce environment should the retailer later wish to take the business online.

4. Offer a variety of banking dervices, both traditional and e-commerce

If a customer has multiple errands to run, including picking some things up at the store and going to the bank, wouldn't the convenience of being able to do it all at one location be a major benefit? Make retail locations one-stop-shops for all things financial in addition to the merchandise being sold there. This will give customers even more reason to shop at that store. Include any or all of the following options:

Debit withdrawals upon purchase.
Traditional bank ATMs.
Check cashing services (while it can be offered through a specialty company, a retailer might want to offer it through his/her own store at a more affordable cost just to drive more customers to the storefront).
Wire transfer services, such as MoneyGram and Western Union.
Cryptocurrency transaction capabilities.
Bill payment services (utilities, government payments, rent, etc.).
Foreign currency exchanges.

5. Rebranding opportunities

Overall, implementing the aforementioned tips at a brick-and-mortar retail location will enable a massive rebranding of the business. Customers will look to that store for the latest and greatest in technology and convenience. They will look forward to any new and exciting features that the store might have in the future, making the entire shopping experience more interactive, enjoyable and convenient. Retailers who modify their offerings in this way will be ahead of the pack. They will set themselves apart as truly differentiated: an early adopter and an innovator in the marketplace.

The advent and success of e-commerce does not mean physical retail locations are a dying breed, quite the opposite. If brick-and-mortar stores adjust to these new times and all the technology that comes with it, collaborating with those who offer the technology and integrating that technology with their customers' overall shopping experience, then they will see that they might not only continue to do well but also actually thrive in such a bold and different environment.