By Sonya Davidson
At Dx3 this week in Toronto, MasterCard Canada had invited us to step into their 'Retail Collective' and visit the changeroom of the future. It's a mind-boggling look at ways that could change the way consumers approach retailers and the way we shop.
We're now in the phase of no-card-present payment technology with the use of our mobile devices and Apple Pay, but at Dx3, MasterCard took it several steps further pointing us to the future working with wearable technology like the Nymi Band - that uses biometrics to authenticate in-store purchases. Could this be the ideal solution for a better security system?
Jason Davies, Vice President of Emerging Payments for MasterCard Canada, explains during a panel discussion with Shawn Chance, Vice President of Marketing and Business Development at Nymi, that there's no such thing as an average consumer anymore. We all have our own methods shopping but the experience and security will always be important factors in the retail landscape.
The Nymi Band is a Toronto-based wearable start-up and has partnered with MasterCard during Dx3 to demonstrates how this works. The device, using biometrics, authenticates the user based on their unique heart rhythm and thus eliminating the need for PIN numbers and chips. If an alpha-mumeric password is compromised you get a new password. If hearbeat information is compromised, you can't get a new heart. So, there is a different approach to privacy and data ownership.
And what is the value of sharing data? During the panel discussion we had learned that Canadians are open to sharing data if they are getting something in return like incentives, discounts and tailored experiences. Davies explained that retailers don't really need to know specific consumer information like address, age, gender and income but it's more important to know understand what that person has done in their store before in order to create a customized experience.
As we spoke of experiences and the difference shopping habits, MasterCard invited me to step into the future with Changeroom - an enhanced way to shop from computer to the store. Ideal for someone like me who knows what I want but, would like to still visit a retailer to confirm possible sales. The Changeroom app would give consumers the opportunity to find the desired item, reserve sizes/colours, and book changeroom appointments directly at the retailer thus eliminating the 'noise' of the sales floor. Take it a step further and with app the consumer could simply eliminate the unwanted items on their mobile device and simply check out on the app without having to waste time in long line ups.
So, of course, we're wondering how this would affect the retailer's landscape and impulse buyers? Suggestion selling would probably still be prompted on the app but the reality is the type of shopper who already knows what she wants isn't going to be much of a wanderer anyway. Give her valuable suggestions on the app to enhance the experience would be of value.
There was discussion on the panel about 'ambient commerce' that may remove much friction from the retail experience. An example would be smart fridges that prompt when you're running out of eggs or milk before you would even notice (I need this now) based on your family's average consumption, perhaps even weight of items and associating with a grocer to make this experience a greater convenience. Another example, avid runners -- the tracking fitness devices are already there use the technology to tell the runner that she's about due for a new pair of shoes and take it a step further, literally, and your favourite shoe retailer can send you notices or fulfill orders based on your number of steps and wear-and-tear.
The future of retail and wearable tech is not just about tech, but it's a trust issue and the value of the experience.