“Showrooming”, a phenomenon when a shopper visits a store to check
out a product but then purchases it online has often been blamed for the demise of
brick and mortar stores. After all, with a smartphone
in her handbag, the consumer has the world at her fingertips. She can access product
pricing instantaneously and compare them for the best deal faster than any store
assistant. She can have payment secured in a few
clicks, and loyalty dollars and points accrued for repeat business. She can tap into
her network of friends and their friends via a range of social media channels for
recommendations, and inspiration.
So as retailers kick and fight, gasping their supposed last breaths, is it all doom
and gloom?
In this article, we’d like to argue that no, not all is lost. In fact, if the
likes of Amazon opening physical retail stores, and “webrooming”, a
phenomenon where consumers research products online before
going into the store for a final evaluation and purchase becoming increasingly
popular, it seems there is still life left in the retail business.
So, if you’re a retailer, fighting the good fight, here is a list of 5 things
you can consider, as you evolve your retail strategy to better serve your customers,
wherever he or she may be.
1. Know your customer, watch, listen, observe
closely – then be where they shop at
Like it or not, the retail environment will continue to evolve, as new shopping
channels and trends emerge. Today’s shoppers move seamlessly along their
shopping journeys, across whichever channels are most convenient. So,
first things first. Know your customer and how your product is woven into their
everyday lives. Online, in-store, via a mobile app, social, wherever the customer
journeys may be, establish a presence in these channels
to serve them. Build a profile of who your customer is and then set out to create an
experience that fulfils those needs.
2. Go small, get personal
Big stores that try to be something for everyone, often end up being nothing for
anyone. Customers know when retailers are not interested enough in them. They know
it in the way you design your store, the way your sales
assistants interact or don’t interact with them, and what happens when they
leave. According to a report from Accenture,
75% of consumers are more likely to buy from a retailer that recognises them by
name, recommends options based on past purchases or knows their preferences.
So, if you are a retailer, and haven’t done this, get interested in your
customers. Be focused in amassing a database of them and invest in the time and
effort to know who they are, how they shop with you, their preferences,
birthdays, special occasions. Then, stay in close contact with them via email
blasts, FB and Instagram posts and even text messages, always being helpful,
offering tips, interesting content, offers, promotions that
are catered to them.
Use data to get personal. The internet has led customers to expect a
hyper-personalised shopping experience that is competitive with e-tailers the likes
of Amazon and Taobao. Hence, retailers who learn to embrace CRM and
other tools to integrate data accumulated from customers’ smartphones,
tablets, point-of-sale systems, inventory and contact centres to create a
personalized customer experience have much to gain.
Truth be told, physical stores have a significant advantage over their online
counterparts. The real live customer is right there, in-store and at the point of
sale. With the right data, offers can be sent to mobile phones
or using in-store digital signage. When it comes down to it, personalisation comes
back to improving the customer experience. It’s also a way for stores to
differentiate their service, reward loyal customers and
build a more sustainable business.
3. Go the extra mile with customer
service
A Kissmetrics blog titled The
Fastest Way to Lose Customers found that “71% of consumers have
ended their relationship with
a company due to poor customer service,” and that once these customers are
lost, the average cost to replace each consumer is $243.
So, look at customer service at the retail store level to really create a
differentiated shopping experience for your customers. Ensure your staff are well
trained and knowledgeable about not just your products, but also
how they stack up against the competition. Arm your retail assistants with mobile
apps to help them check stock availability, sizes without disappearing into
storerooms for hours. Enable them to access detail product
information, look up demonstration videos and product reviews, and collect customer
data to inform and personalize future purchases. Establish fuss free, customer
friendly shipping, delivery, returns, exchange and/or
try before you buy policies especially in-store.
It is worth noting, that technology alone is not the answer. Raising the customer
service benchmark depends on integrating that technology seamlessly within the
environment and training your staff so that they feel comfortable
and confident operating within that “phygital” space.
By combining good customer service with a good engagement program, retailers can
offer tailor-made, personalised experiences that keep customers coming back to their
brand again and again.
4. Create a unique store experience
Unfortunately for many retailers, the one size fits all in-store design does not
endear itself to most shoppers. Imagine instead, if a store could be designed
to welcome, surprise, and delight the customer, making
everything easy and making her feel special.
We’re not talking gimmicky features like magic mirrors or DJs spinning records
in the middle of the showroom but retailers have the unique opportunity to provide
the information their customers want in a way that
is real, meaningful, useful that will draw them in. Imagine for example, walking
into a retail home furnishing store where customers can learn something real about
home design, or a jewellery shop and being able to
customise a piece of jewellery and watch how it’s done. By thinking beyond
just the product and catering to customers’ higher-level needs and lifestyles,
dreams and aspirations, retailers can start to create
store experiences that offer real value.
5. Keep customers engaged after a sale
Many retailers forget that a relationship with their customers does not end once they
have made a purchase and leave your shop. In fact, retailers should be proactive in
keeping customers engaged and lure shoppers back
into the store with initiatives like embedding calendar reminders for upcoming
sales, embark on regular email campaigns to communicate new product releases and
offering discounts on purchase anniversaries etc,
Running small, social events at retail stores is another way in which to get real
face time with customers. Williams-Sonoma gets customers back in their stores
through their cooking demos featuring celebrity chefs whereas
Saks Fifth Avenue holds invitation-only trunk shows, giving their best customers
previews of what’s in fashion each season. When you plan an in-store event,
don’t forget to invite local influencers, who
can help take your message far and wide on social media in turn helping you gain
more awareness for your products and future events.
In short, to compete and grow, retailers have to work harder than ever to reach,
attract, and engage with shoppers both online and in the physical stores. If you
think about it, success in the future of retail isn’t
all that different to success in the past, it’s just that the advent of
technology and disruptive trends have made the tools and integrations more
complicated. It is a huge task no doubt, but you don’t have
to go it alone. Come talk to us.