As the virtual online sphere becomes inseparably entwined with daily reality, more brands are embracing web-based solutions to increase customer engagement. These schemes have included tidal waves of digital apps, increasingly sophisticated online platforms, and the ever-present appeal of social connectivity.
But many brands seeking to build customer loyalty in this new digital age may be overlooking one of the most basic and straightforward answers to improve customer engagement. And that is to simply offer free in-store Wi-Fi.
This was one of the startling conclusions reached by a recent study, but not for the reasons one might expect.
During the study conducted by partnering research teams from EarthLink Holdings Corp., a leading network and security manager, and IHL Group, a global research and advisory firm, and, AirTight Networks, cloud Wi-Fi solutions provider, research teams measured the connections between retail store online networks, Wi-Fi security, and customer engagement.
Perhaps not so surprisingly, the study titled, Impact of Store Networks and Wi-Fi on the Customer Experience, found that the occurrence of in-store Wi-Fi was significant for determining an increase in revenue and customer loyalty. More than one quarter (28%) of retailers showed an increase in customer loyalty after offering free in-store Wi-Fi to customers. This was also associated with a 2% increase in sales.
What was surprising, however, was that this previous figure was eclipsed by the finding that both revenue and customer loyalty showed even greater increases in stores that offered employee Wi-Fi. This was associated with a 3.4% increase in sales across almost half of all the stores studied.
These findings mean that employee Wi-Fi is an even bigger driver of customer loyalty than customer Wi-Fi. The report points out that this may be due to the importance of supporting a connected and flexible staff that can take advantage of instantly accessible online information to better serve customers.
“What also unquestionably emerged from the study data is the greatest bang for the buck for increased loyalty and sales is the deployment of Wi-Fi to store associates for use with mobile devices,” said Greg Buzek, Founder and President of IHL. “This allows them to get more item information and save sales otherwise lost as well as replicate the experience of their best salespeople across the chain. Subsequently many retail segments see further growth by offering Wi-Fi to customers. Smart retailers are racing to upgrade their stores to take full advantage of the opportunities.”
Other important findings pointed out that, aside from customer loyalty, in-store Wi-Fi had a host of additional benefits as well. It was connected to a significant increase in customer dwell time in 21% of retailers. The report also found that an average of 40% of IT budgets is now allotted for the development and integration of various technological systems. This is up from 15-30% of the budget in recent years.
“The IHL report shows that savvy retailers are already seeing revenue increases from deploying in-store Wi-Fi, be it for employees or customers,” said Kevin McCauley, Director of Retail Market Development at AirTight Networks. “Increasing same store sales is a team goal, and that's where IT and marketing can both draw on the IHL’s research data to justify the Wi-Fi investment.”