1. CONSUMER EXPECTATIONS:
IT’S TIME TO MERGE THE DIGITAL AND PHYSICAL WORLDS

2. CONSUMER EXPECTATIONS: IT’S TIME TO MERGE THE DIGITAL AND PHYSICAL WORLDS2
WE ASPIRE TO CONVERT CONSUMERS
INTO LOYAL CUSTOMERS. IN OUR
DIGITAL WORLD, THIS TRANSFORMATION
OCCURS THROUGH KNOWING AND
EXCEEDING THEIR EXPECTATIONS.
IMPRESS THEM AND REAP IMPRESSIVE
RESULTS. OR DON’T AND GET LEFT IN
THE DUST.
This paper in intended to arm you with knowledge
around:
HOW PLACE-BASED DIGITAL HAS BECOME A
CRITICAL ELEMENT IN THE DIGITAL AGE
HOW PLACE-BASED DIGITAL CAN BE UTILIZED TO
ENHANCE THE CUSTOMER EXPERIENCE
THE IMPORTANCE OF UNDERSTANDING AND
PLANNING AROUND CONSUMER EXPECTATIONS
A solid grasp of these three points will properly equip
you to battle and win in today’s highly competitive
marketplace.
1
2
3
A QUICK INTRO TO PLACE-BASED DIGITAL
When we couple high digital usage with stunning
technological advancement, we create new avenues
for brands to connect with consumers. This
convergence of digital behavior with technology has
produced a booming digital niche called place-based
digital.
There are many examples of place-based digital:
digital signage, projection mapping, large-scale LEDs,
augmented reality, etc. Think of it as bringing digital
technologies into stores or other physical venues in
order to accomplish business objectives.
And boy is it booming. According to the
International Data Corp., the use of digital signage in
retail outlets will grow from $6 billion in 2013 to $27.5
billion in 2018 1
. Investment in place-based digital is
growing because companies have seen how digital
experiences can tangibly impact their business.

3. CONSUMER EXPECTATIONS: IT’S TIME TO MERGE THE DIGITAL AND PHYSICAL WORLDS3
55%
PLACE-BASED DIGITAL DELIVERS IMPRESSIVE RESULTS ALONG THE KEY STEPS IN THE SHOPPER’S JOURNEY
TODAY’SCHALLENGE
OF CREATING MEANINGFUL CONNECTIONS
WITH CUSTOMERS IS MORE DIFFICULT THAN
EVER. THEY’RE WELL INFORMED, ON A
MISSION, AND THEY POSSESS AN AVERAGE
ATTENTION SPAN OF 8 SECONDS 7
.
HOW ARE YOU GOING TO CAPTIVATE
ATTENTION, BUILD RELATIONSHIPS, AND
STAY AHEAD OF THE COMPETITION?
AWARENESS
Utilize a dynamic platform to attract eyeballs and influence purchasing behavior.
Receives ten times the eye
contact of static signage 2
Increased Shopping
Experience 3
Sales increase when adding
digital technology 3
Unaided recall 3
Increased store
traffic 5
Sales lift on
promoted
items 5
Guests surveyed noticed the
digital media programming 4
Engaged, entertained, and
improved experience 4
Basket size increase in stores
with digital 6
ENGAGEMENT
Use relevant, real-time, and localized content to enrich the customer experience.
CONVERSION
Create compelling results that deliver strong returns on investment and objectives.
10x 70%
30%80%
30-300%
79%
89%
2-3%
up
to

4. CONSUMER EXPECTATIONS: IT’S TIME TO MERGE THE DIGITAL AND PHYSICAL WORLDS4
DIGITAL IS HERE.
YOU CAN TOUCH IT.
Welcome to the digital world. The way we
communicate, transact, learn and live our lives has
evolved through connections to our digital devices.
The present day is changing in exciting ways thanks
to behavioral shifts and the adoption of cutting-edge
technologies by consumers.
Let’s talk behavior. Interacting with digital
experiences is now such a familiar thing that
people seemingly don’t require any real
thought to perform these “involuntary
actions”… breathe, blink, tweet. Riding
an elevator? Check your Facebook
news feed. Standing in line for a
latte? Read a mobile app alert
from your favorite retailer. In the
not-too-distant future, this “second
nature” behavior will expand to
include even more place-based digital
technology. Can’t find the perfect swimsuit
at Macy’s? Search their in-store touchscreen
catalog. Want to get your friends’ opinions
on a new Neiman Marcus outfit? Share your
shopper video using their Memory Mirror.

5. CONSUMER EXPECTATIONS: IT’S TIME TO MERGE THE DIGITAL AND PHYSICAL WORLDS5
We are connected at all times. This “living online” behavior has created an idea that everything should be
available at a moment’s notice – immediate gratification means just that. A smartphone has been called “a
human appendage that needs to be charged periodically.” Funny and all too true.
HERE ARE SOME ATTENTION-GRABBING STATS THAT SHOWCASE HOW DIGITAL IS INTERWOVEN INTO OUR DAILY BEHAVIOR:
THIS CONNECTIVITY HAS DRAMATICALLY SHIFTED WHAT CONSUMERS EXPECT FROM BRANDS:
They expect to seamlessly consume content when and how they want it.
They expect content to be easy to find and understand and in a format that provides optimal usability on their device.
They want it all. No pressure.
WE CHECK OUR PHONES
150
TIMES
EACH DAY 7
WE CONSUME
2
HOURSOF DIGITAL VIDEO PER DAY 8
WE SWITCH BETWEEN
DEVICES AS MANY AS
21
TIMESPER HOUR 9
WE CHECK A STORE’S
APP OR WEBSITE
DURING
50%OF STORE VISITS 10

6. CONSUMER EXPECTATIONS: IT’S TIME TO MERGE THE DIGITAL AND PHYSICAL WORLDS6
CHECK OUT THE CHART BELOW. Technological innovation enables new consumer behaviors. These behaviors drive consumer
expectations around how they want to connect with people and brands. Through research and insights, we can then
understand consumer expectations and take appropriate actions to build a relationship.
ALTERED
CONSUMER BEHAVIOR
CONSUMERS BECOME MORE COMFORTABLE
WITH TECHNOLOGY AS IT BECOMES EASIER TO
USE AND READILY AVAILABLE. TOUCHSCREENS,
APPLICATIONS, AND DIGITAL CONTENT ARE
EMBRACED.
REVISED EXPECTATIONS
FOR MAKING
CONNECTIONS
“I EXPECT INSTANT ACCESS TO APPS, CONTENT,
AND FUNCTIONALITY TO MAKE MY LIFE EASIER. I
WANT CONTROL OVER HOW AND WHEN I RECEIVE
INFORMATION.”
TECHNOLOGICAL
ADVANCEMENT
THE SMARTPHONE IS LAUNCHED.
COMPANY ADJUSTS TO
MEET EXPECTATIONS
COMPANIES EXPAND AND ENHANCE THEIR DIGITAL
TOUCHPOINTS. THIS INCLUDES THE DESIGN OF
RESPONSIVE WEBSITES, CONTENT, AND APPS
THAT WORK ACROSS SCREEN TYPES - TABLETS,
SMARTPHONES, AND PLACE-BASED SCREENS.
Even when companies adjust to meet expecta-
tions, they are no longer in control of how messages
and media are consumed (known as the old “push
communication” model). The consumer is now in the
driver’s seat, and their expectations are the corner-
stone on which all strategies must be built. Without
clear consumer insights that paint an accurate pic-
ture of what they expect from brands, we’ll invariably
fail to make connections and create an advantage
over competitors.
More and more brands are carving out portions of
the digital marketing mix for place-based digital. Be-
cause of the measureable impact place-based digital
delivers, it’s important to be considered as a part of
the overall customer experience. Defining how it can
enrich this experience is again based on insights and
what consumers expect to get from your brand –
mobile interactivity, personalization, share-ability, etc.
Look at the whole digital ecosystem when creating
a strategy and know the role each tactic can play,
including place-based digital. THIS INDUSTRY IS EVOLVING
QUICKLY, BOTH IN TECHNOLOGY AND ADOPTION. AND WHAT’S
BEHIND THIS? BEHAVIORAL SHIFTS, CONSUMER EXPECTATIONS, AND
A LITTLE MAGIC.

7. CONSUMER EXPECTATIONS: IT’S TIME TO MERGE THE DIGITAL AND PHYSICAL WORLDS7
MARKETING EVOLVED.
In the pre-digital days, the marketing mix was pretty slender in scope –
television, print, OOH, direct mail, etc. It was all offline. Then, we got the
Internet, the ability to search and consume content (bring on the cat videos),
and marketers’ eyes were opened to new possibilities. Digital marketing started
to prove worthy in the early 2000’s, and marketers started to invest resources
heavily into understanding how this medium could drive business growth.
There wasn’t yet a solid understanding of what business objectives digital
could directly achieve. However, once attainable objectives started to come into
focus, marketers then constructed digital strategies and tactical plans that could
help attain success. Before the mass adoption of e-commerce that we see today,
most retailers used elements in their digital marketing mix like websites, social,
mobile, web video, etc. to drive consumers into a store or venue. In this “push”
model, the idea was to connect with an attentive audience and deliver a succinct
call to action: find a store. Even with some businesses today, clicks and searches
on the “Find a Location” webpage equate to a conversion.
Let’s take a look at retail as an example. Strangely enough, the job of digital
was seemingly finished once the customer actually walked through the doors of
the brand’s physical location. At that point, it was incumbent upon store staff,
static signage, merchandising, and pricing strategies to compel the shopper to
pry open their wallet. Over time, marketers have become increasingly savvy in
the digital space and are now turning their attention to incorporating digital into
the physical store. But in this digital age, why should we care about the physical
store? Isn’t e-commerce taking over the world? Won’t all designer jeans, pool
supplies, and dog food eventually be delivered by drones?
THE EVOLUTION OF WAYS TO CONNECT WITH CONSUMERS OVER TIME

8. CONSUMER EXPECTATIONS: IT’S TIME TO MERGE THE DIGITAL AND PHYSICAL WORLDS8
physical waters, dedicated stand-alone locations are
increasingly becoming a part of the overall strategy for
many online brands. While some of these efforts are
still experimental, toe-in-the-water programs, many
examples are proving to be quite successful to brands
seeking to move beyond the confines of the digital
world to establish valuable face-to-face connections
with customers.
Best-in-class examples of this migration include
Amazon, Warby Parker, Birchbox and Rent the Runway.
These brands realize the value to shoppers by having
a physical presence, but the decision to construct
physical stores was driven by insights around how
their customers actually want to shop. For Rent the
Runway, their physical presence not only allows clients
to conveniently pick up and drop off merchandise, but
they can also work with a personal stylist who enables
them to quickly try on different outfits to find that perfect
dress and accessory. Granted, their core shopper can
still get that stuff through the website, but the physical
location offers added convenience along with significant
upsell opportunities by showcasing other merchandise.
These online-to-offline retailers have great online
properties and best-in-class stores, but they have not
yet mastered how to incorporate digital experiences into
their physical locations. This is surprising considering
their digital derivation and online savviness. By contrast,
Amazon is doing this very well with their “Order Online.
Pick Up Here.” in-store offering. All in all, there is still
room for these e-retailers who possess a strong digital
pedigree to starting offering customers digital tools that
will enrich the shopping experience.
Remember, the store is a precious asset. It’s not
an antiquated medium for transactions; it’s a valuable
resource that should evolve and receive investment.
This information translates well for any brand with
physical locations – it’s not just about stores. Place-
based digital works wherever people go. Whether they
are visiting a museum, dining out, watching their favorite
sports team, or seeking thrills at an amusement park,
digital is being employed to bridge the physical and
digital worlds to heighten our everyday experiences.
SHOPPERS LOVE STORES.
YOU SHOULD TOO.
So, here’s a stat to accept and embrace: 94% OF ALL
RETAIL SALES TAKE PLACE WITHIN THE CONFINES OF A PHYSICAL
STORE 10
. E-commerce has become an intricate part of
our buying behavior as it adds value through variety and
convenience. However, physical stores are still relevant
and likely aren’t going anywhere. For many brands,
the physical location is the crux of driving shopper
consideration, especially for those shoppers who want
to interact with the manifestation of the brand:
IT’S THE PLACE WHERE BRANDS CAN ENGAGE AND DELIGHT SHOPPERS,
TURNING CONSUMERS INTO CUSTOMERS
CUSTOMERS CAN TOUCH, FEEL AND EXPERIENCE THE BRAND
AND IT’S THE MOMENT OF TRUTH FOR THE MAJORITY OF TRANSACTIONS
Here’s another stat to consider: 84% OF US DIGITAL
SHOPPERS ENJOY THE EFFICIENCY OF DIGITAL SHOPPING COMBINED
WITH THE TOUCH AND FEEL OF THE RETAIL STORE EXPERIENCE 11
.
Because of the evident value in having a physical
location, some online businesses are voyaging into
the physical realm. While many brands have leveraged
pop-ups and store-in-store implementations to test the
BEST-IN-CLASS E-COMMERCE TO PHYSICAL MIGRATION

9. CONSUMER EXPECTATIONS: IT’S TIME TO MERGE THE DIGITAL AND PHYSICAL WORLDS9
In today’s jargon-filled world, one buzzword has
been getting a lot of attention: customer experience.
Here’s a boiled down definition of customer
experience – “The practice of going above and
beyond for your customers in hopes that meeting or
exceeding their expectations will generate a positive
impact to your business.”
Of course customer experience is not the only
determining factor in why customers choose a
brand. Price, convenience, selection and other
variables will always be a factor, but the overall
quality of the experience is definitely a part of the
decision-making process.
Beating your competition is increasingly difficult
considering the saturation of competition along with the
commoditization of goods & services. The good news
is that customer experience is a space where brands
can truly stick out in the minds of consumers. Fortune
500 companies are bringing in more C-level leadership
who own the customer experience, and most of these
leaders work in collaboration with marketing. They
hope that collectively they can shape and tailor every
interaction a brand has with a customer.
CUSTOMER EXPERIENCE.
IT’S MORE THAN A BUZZWORD.
CONSIDER THAT 80% OF U.S. CONSUMERS WOULD PAY MORE FOR A PRODUCT
OR SERVICE TO ENSURE A SUPERIOR CUSTOMER EXPERIENCE 12
.
INCREASED REVENUE
INCREASED RETENTION, LIFETIME
VALUES, AND WORD OF MOUTH
RESEARCH FIRM FORRESTER REVEALED THAT AMONG RETAILERS, CUSTOMER
EXPERIENCE ACCOUNTS FOR 47% OF LOYALTY, WHILE PRICE AND VALUE
CONTRIBUTE ONLY SLIGHTLY TO CAPTURING CONSUMER LOYALTY 13
.
WHAT CAN A POSITIVE IMPACT LOOK LIKE?

10. CONSUMER EXPECTATIONS: IT’S TIME TO MERGE THE DIGITAL AND PHYSICAL WORLDS10
Before marketers turned their attention
to the physical venues, digital activity was
happening within locations, but marketers
were not taking advantage of that data to add
value to the customer experience. It was a
missed opportunity for personalized, one-to-
one interactions. The good news is that we
can now bring the right parts of digital out of
the invisible realm and into the physical world.
We’re creating win-win moments between the
brand and customers – brands leverage more
effective messaging to meet objectives while
customers get a tailored shopping experience
that exceeds their expectations.
CONSIDER, IF YOU’RE NOT SHAPING THE DIGITAL
EXPERIENCE WITHIN A PHYSICAL VENUE SUCH AS A
STORE, CONSUMERS WILL FIND WAYS TO ENGAGE
IN THE DIGITAL REALM WITHOUT YOU. In-store
digital experiences should harmonize with
existing shopper behaviors and enable them
to consume information and browse selections
when and where they want.
MAKING DIGITAL CONNECTIONS
Over time, businesses have become more customer centric and digitally savvy. They now possess
the knowledge and digital tools to create meaningful connections with their customers. Instead of
a “push” model, brands are going after an engagement model that creates a two-way dialogue
between brands and customers. Here are a few points which can guide how to build connections with
customers:
• CONNECTION THROUGH INSIGHTS: Data and insights are a critical piece in strategy development and in truly
knowing what customers want and expect. Brands need to harness the power of insights. They are
guideposts in making lasting connections. Tap into your customers’ passions.
• OMNI-CHANNEL ACCESSIBILITY: Audiences want to connect. As we all know, an effective omni-channel
strategy is a requisite for staying competitive in the market. It’s all about being accessible and flexible in
giving them what they’re looking for, when and how they want it.
• CONTENT ENGAGEMENT AND CONTINUITY: It’s important that content and experiences are relevant and
consistent. Without relevancy, messages will not resonate. You lose interest. Without consistency in
words and actions, you lose trust, and without trust, a connection cannot grow.
If you aspire to have lifelong relationships with customers, acquire a deep intuitive understating of
what makes them tick. It’s critical to always be authentic with audiences - authenticity in core values,
interactions, and content.
As brands create compelling content, bring that content into the physical world so it can influence
consumers where they are. Compelling content, especially that which is created specifically for the
real-world medium, will help in making emotional connections with people.

11. CONSUMER EXPECTATIONS: IT’S TIME TO MERGE THE DIGITAL AND PHYSICAL WORLDS11
ADOPTION CREATES DEMAND
Customers now have a heightened
awareness of digital experiences within
physical locations, and they are more willing
to engage if there’s value. They realize
the benefits digital can offer as part of the
overall customer experience – it’s now
commonplace. From the adoption of place-
based digital by consumers, in conjunction
with its compelling business results, more
businesses are using place-based digital as a
critical part in their marketing strategy.
This proliferation has created a heavy
demand for improved technology within the
space. We want a more robust toolkit that
can complement behavior, meet customer
expectations, and enhance the customer
experience.
APPLICATIONS ARE MULTIFUNCTION AND ABLE TO
INCORPORATE OMNI-CHANNEL EXPERIENCES
(SHOP, LEARN, BROWSE SOCIAL MEDIA, SHARE CONTENT).
These technological advancements have allowed brands to move beyond
storytelling within the store environment and move into story making.
HARDWARE IS LESS EXPENSIVE, TOUCH
ENABLED, AND EASIER TO MAINTAIN.
TECHNOLOGY PLATFORMS ARE RELIABLE, SCALABLE, AND
FLEXIBLE. CONTENT CAN BE PARSED OUT AND PLAYED AT
STORES BASED ON LOCATION, TIME OF DAY, AND EVEN BASED
ON THE TYPES OF PEOPLE CURRENTLY VISITING A LOCATION.
CONTENT IS BEING CREATED WITH THE PHYSICAL
VENUE IN MIND AND WITH A PURPOSE.

12. CONSUMER EXPECTATIONS: IT’S TIME TO MERGE THE DIGITAL AND PHYSICAL WORLDS12
CONCLUSION
We need to be customer centric. In order to be customer centric, we need to know as much about them as possible. Their
preferences, disinterests, behaviors, and of course what they’re looking for in their relationships.
Give them what they need and more. It will pay off in the long run.
PLEASE KEEP THESE HEADLINES IN MIND AS YOU ENTER THE COMPETITIVE BATTLEFIELD:
KNOW YOUR CUSTOMER AS WELL AS YOU KNOW YOURSELF
GIVE CUSTOMERS WHAT THEY WANT, WHEN AND HOW THEY WANT IT
ADAPT TO ENHANCE THE CUSTOMER EXPERIENCE
USE TECHNOLOGY TO CREATE MEANINGFUL CONNECTIONS (they love that stuff)

13. CONSUMER EXPECTATIONS: IT’S TIME TO MERGE THE DIGITAL AND PHYSICAL WORLDS13
SOURCES
1. HTTP://WWW.DIGITALSIGNAGETODAY.COM/ARTICLES/DIGITAL-SIGNAGE-LEADING-THE-WAY-FOR-RETAIL-IOT/?UTM_
SOURCE=NETWORLD%20ALLIANCE&UTM_MEDIUM=EMAIL&UTM_CAMPAIGN=EMNADST07102015
2. THE TORONTO STRATEGY INSTITUTE
3. ALCHEMY – MADISON AVENUE DIET
4. REFLECT CLIENT CASE STUDY & NIELSEN
5. REFLECT CLIENT CASE STUDY
6. EWI WORLDWIDE AND THE ASSOCIATION FOR RETAIL ENVIRONMENTS
7. HTTP://WWW.RETAILWIRE.COM/DISCUSSION/18582/HAS-MOBILE-CREATED-A-NEW-MARKETING-MOMENT-OF-TRUTH
8. WWW.EMARKETER.COM, APRIL 2015
9. WWW.GARTNER.COM
10. HTTPS://WWW2.DELOITTE.COM/CONTENT/DAM/DELOITTE/US/DOCUMENTS/CONSUMER-BUSINESS/US-RD-
THENEWDIGITALDIVIDE-041814.PDF
11. HTTP://WWW.EMARKETER.COM/ARTICLE/DIGITAL-BUYERS-STILL-WANT-PHYSICAL-STORES/1013208
12. HTTP://BLOG.CLIENTHEARTBEAT.COM/WHY-CUSTOMER-EXPERIENCE-IS-IMPORTANT/
13. HTTPS://WWW.FORRESTER.COM/CUSTOMER+EXPERIENCE+DRIVES+MORE+LOYALTY+THAN+A+GOOD+PRICE/-/E-PRE5164

14. AUTHOR
Mason Page
VP of Strategy & Creative
Reflect
817-689-7122
mpage@reflectsystems.com