Aside from excitement related to the Olympic Games (see previous blog post), the British nation is feeling a bit sorry for itself. At the end of April 2012, it was declared to be in a double-dip recession and the unemployment rate over Q4FY11 was at its highest since 1995. Pretty grim, and this is for a nation which doesn’t always see the glass half full at the best of times.

All this has had a substantial impact on UK retail; a -2.3% slump was reported at the end of Q1FY12. The Technical Consumer Goods (TCG) market in particular was extremely disappointing (according to the latest TEMAX report (1) ). Market volume fell by -7.2% year-on-year which was the lowest Q1 turnover in the past four years. The only growth was in the IT industry, which is largely attributable to innovation.

In an age when consumers research their purchases thoroughly online, talk to their friends for recommendations, and test out their potential purchases in store, exactly what role do store staff have to play beyond facilitating the experience? Recent research by GfK shows that the suitable mix of in-store recommendations and demonstrations, achieved by store staff training, can be highly effective at increasing sales.

A new GfK research programme has provided some unique insights into the ROI of store initiatives by combining mystery shopping results with individual store-level sales data. The programme reveals how the in-store experience translates into sales and shows the average uplift in sales resulting from different types of in-store activity. This is highly useful for brands that want to understand how to prioritise in-store marketing budgets, benchmark against competitors, negotiate better rates for display space, and calculate the ROI on in-store marketing spend.

So what are some of the key findings of this programme that are useful for marketers?

The pressure on offline retail is growing with online retail’s move onto mobile platforms creating instant price transparency. The GfK finding that customer journey patterns are mixing online and offline in the purchase process means that retailers now need to invest in a truly omnichannel approach where both online and offline retail complement each other. By taking this creative route, bricks and mortar will continue to have a successful role in the market for tech products.

The first 2012 edition of our magazine, TechTalk, is now out, exploring current trends, issues and market developments affecting technology organisations today. In this edition we take a closer look at the customer purchase journey for technology products, with a particular focus on retail (read it here).

Retail, both online and offline, represents the part of the customer journey where value is ultimately generated and money changes hands. Given the current tough trading environment technology brands are facing across markets worldwide, it is hardly surprising that there is so much interest in how retail is evolving. Retailers are feeling the effects of disruption as technology itself changes the way consumers shop for technology products. It is this which sets the topic for the lead article where we explore the nature of these changes and set out a vision for traditional ‘bricks and mortar’ stores through an omnichannel approach.

There is little doubt that online now forms an integral part of the retail experience for many consumers, particularly in Western markets.  In 2011, UK online trade accounted for 12% of all retail, the highest in Europe[i], and this trend only looks to increase with the inexorable rise of mobile commerce that recently achieved the milestone of over 5% during Q4 of last year[ii].

Using the internet for retail has become so commonplace that for many, the added benefits of convenience, easy research ability, and price comparison tools outweigh the effort required to physically visit the traditional bricks-and-mortar store.

But is online delivering everything consumers need from a shopping experience?  As we move further into the digital age, consumers expect a personalised, tailored and social shopping experience regardless of the medium through which it is conducted.

At a time when innovation in devices, mobility and connectivity continue to drive the way we use everyday services, socialise and communicate, what trends can we expect to emerge in the forthcoming months? Using GfK data to explore how technology is likely to evolve throughout this year, we’ve identified five consumer-led trends to look out for…

1 – Reaching the Cloud

This is the year that cloud-based solutions will creep into the mainstream. Offering internet-based computing where shared information, software, and resources are accessible on demand, this trend is largely driven by the ever-increasing use of smartphones, connected devices and other advanced mobile applications. As such, it is an essential development to complement the ecosystem as it facilitates consistent service usage and storage across any device.

We recently took over the AOP Gallery in Shoreditch to hear from former AdMob top exec, Russell Buckley and his thoughts on the future of mobile technology, retail and civilisation. So sit back, have a cup of tea and prepare to embrace ‘The Singularity’.

(You can read the full version of this article in the latest edition of GfK TechTalk here.)

As consumers, we’re handing over more and more data about ourselves in exchange for products and services we take for granted. It’s this individual-level data that’s likely to provide the next generation of recommendation models, and the user experiences they fortify.

Recently, for the first time in ages, a friend recommended an album to me and I went straight out and bought it. No listening to samples on iTunes, no streaming on Spotify, no whatever it was that we did before these formats existed – just me and my credit card. As it turned out, the album was disappointing. I don’t want to point fingers, and I’m not going to bore you with what it was, but it did spur me on to think about how the role of recommendation is being changed by technology.