Time to get to grips with social media

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As I write this article, Amazon Prime Day, which ran for 36 hours across July 16-17, has been and gone. But it wasn’t free from issues, with reported instances of links not functioning and pricing on some items not the lowest available.

This resulted in some abandoned baskets and frustration for consumers who had deliberately postponed their purchases until Prime Day, which had been heavily advertised in advance.

An omni-channel approach to retail, while not necessarily essential, is advisable if retailers are to compete effectively against strong online competition. But you have to get it right, as Amazon inadvertently demonstrated.

So why should independent retailers make the most of digital marketing and in particular social media?

Retail giants such as Amazon and Currys PC World have huge budgets to spend on marketing, but that doesn’t mean independent retailers can’t expand their reach beyond their local community or stand out. By better understanding your market and tailoring content, a digital strategy can increase footfall in-store and sales off- and online.

The new 2018 Global Digital suite of reports reveals that there are now more than four billion people around the world using the internet. Independents have an equal chance to capture the attention of new and existing customers.

Don’t be put off by how many online shoppers there are. In the considered purchases category, consumers still want to go to stores for the experience – if you give them a reason to.

Gekko’s recent OnePoll ‘influencer’ research has conclusively proved that ‘over 50 per cent off’ shoppers still want to head to a store to see, touch and experience a product in person. An effective digital strategy can help attract these customers in-store.

Be social

Twitter, Facebook, YouTube and Instagram can all help grow customer relationships and drive sales online and off-line. The trick is to listen, respond and promote in line with the customer profile you are selling to. Be creative, be professional and be engaging.

Many independent retailers don’t have an army of social media experts behind them. But it is still possible to leverage topical news and mentions of related products and conversations that can attract attention to specific products or brands you are ranging. A good example is the potential increase in SDA sales linked to news around broadcasts of Great British Bake Off (GBBO).

Don’t be afraid to use any opportunity to jump on the bandwagon. Get involved in the conversations across all social media channels to raise your profile.

Listen to your customers. If you are being messaged online, respond to and actually log what they are saying. The better you understand customers’ needs, the easier it is to sell to them and others.

If you build brand loyalty online, you can then direct the shopper in-store. It’s the perfect opportunity to build a fan base.

Responding to customer feedback online, good or bad, is vital to ensuring your profile and standing are heightened. Don’t ignore negative comments, these must be addressed and used to direct the customer to the store for more help or the chance to try another product – take the conversation off-line, but resolve it and then drive them to the store.

Ultimately, the main aim is to get people in-store. Social media is the ideal platform for retailers to post promotions, new products, launches and in-store events so that customers that wouldn’t normally see them are engaged and inspired to walk in. Promote ‘shares’ from other people and encourage a social culture among your staff. By doing so, it can only help to attract new customers to your store and more importantly your ‘high street’, with your store supporting a vibrant shopping environment for the community.

When considering promotions, the key to the right promotion is tailored communications. Experiment with Facebook advertising to target people near the store and send them an offer that they can’t refuse or a message that piques their curiosity.

Independent retailers have the opportunity to stand out from the crowd and be different from the generic multiples – customers appreciate this in a saturated marketplace where a ‘one-size-fits-all’ approach is all too common.

Keeping track
It’s vital to track any online campaigns that you run – big or small. Measure the number of customers that have gone into store as a result of seeing an online advert or post by using promotional codes and training your staff to ask how they found you. This heightens the personal nature of in-store shopping, while telling you more about their customer.

Once it’s clear what works best and how to communicate with the right customers, those that will purchase, a digital strategy offers a world of opportunities.

Those of you who firmly believe it’s ‘not for you’ are increasingly alienating yourselves from a target audience. If you use social media in your personal life, then so do your current and future customers.

Read the full article on ERT Online.

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IFA 2018: Substance or hype?

IFA Blog graphic copy

I’ve been coming to IFA for many years and as a self-confessed gadget addict it’s like being a kid in a sweet shop. But like deciding which sweets to buy all those years ago, it’s a bit overwhelming and disappointing if you don’t choose wisely and suffer from buyers’ remorse!

So, here’s my take on what consumers should look out for and how marketers and retailers can prepare themselves for what innovations are coming next:

This year IFA was very comfortable in its own skin. Its confidence bolstered by the fact that Europe is a big market and like it or not, the UK whilst important does not set the agenda – so we didn’t see Brexit significantly impact the conversation. But what we do have to be aware of is that there are new, more stringent energy efficiency ratings for Major Domestic Appliances being implemented by the EU in 2019, that if not adopted in the UK could mean consumers are being sold products which are less energy efficient and environmentally friendly.

It’s either going to be easier or more difficult for brands to distribute in the UK – which would be a sad day for British consumers, who are low on the list for renewable energies and could potentially have appliances that are uncategorised.

Over the last four years as, smart technologies evolved from infancy to real life products and applications, brands are feeling excited and confident about the future and not surprisingly and as predicted last year the voice assistant is driving the conversation. There are still only really two major players, Amazon Alexa and Google Assistant. And as you walked into IFA 2018 it was awash with Google branding, experiential and staff across the event on every third party stand with Google Assistant enabled products taking a lead compared to Amazon with Alexa.

Most of the innovation on show was about the connected home via voice control, from washing machines with Hoover, Candy and Beko through to smart speakers, thermostats, lighting and TVs. Infact, AI assistants are being integrated into pretty much everything you can imagine. But as I’ve said all along and continue to maintain, a smart kettle needs a human to fill it with water and pour said water, a smart washing machine needs someone to put the garments in and take them out…..need I go on?

Every brand had a big bold stand with beautiful products, displayed to meet the exacting expectations of the tech savvy consumer however there’s nothing really ground breaking. For brands operating in crowded categories, it’s difficult to gain cut through in all the noise. The mistake some brands have made is to overcompensate for no news by regurgitating the old to the disappointment of visitors. Sometimes a brand can gain more credibility by playing it cool like Samsung, Sony and LG.

Those who have something new to scream about are making themselves hoarse doing so but to great effect in some cases. Would B&O have received the media coverage it did for the Beosound Edge? Unlikely when you consider its £2900 price tag, not your average mainstream product. A close second is 8K TVs which are coming to market soon from LG with no firm launch date and from Samsung in September. However, the only problem with this is that no one is currently broadcasting in 8K, studios aren’t producing on mass in 8K and it’s going to be prohibitively expensive. The first mainstream broadcast in 8k is likely to be from Japanese broadcaster NHK for the Tokyo Olympics in 2022.

As Rory Cellan-Jones, BBC Technology Correspondent, suggested, “is it just another gimmick to sell us more TVs especially when only four years ago we were being told 4K was cutting edge.”

I agree but as marketers our job is to sell the boundaries of possibilities to consumers. New products like these benefit the industry and rejuvenate categories. And of course, there was the ridiculous. The Candy Millennial Pink Edition washing machine, a season too late, raised a laugh at the press conference in being ridiculed by a senior executive, although perhaps the real message was lost in translation. It does though provide a lesson on trends and press announcements. Brands should be aware of not desperately trying to create headlines with new colour variations of their products taking the place of real innovation.

One clear message I’ve translated from many brands is the lack of consideration for the customer journey. They have been so wrapped up in ‘bigging’ up the product launch, gaining distribution through retailer listings and advertising that the customer journey, the only true measure of the effectiveness ATL achieves, is left until last and is almost an afterthought.

Brands need to spend more time considering the customer journey and if they invest even 10% of the ATL budget, I know it will exponentially increase sales in retail where over 80% of considered purchases in the consumer electronics category happen. There’s a higher expectation from consumers than ever and technology brands need to nail it to succeed in crowded categories, so let’s make sure we listen to what they need, rather than just giving them what we want.

Read the full article at Lovely Mobile News

 

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MOP UP THOSE SMART SALES

Many people are afraid of smart tech, don’t understand it or how it can make life easier. This is where independent retailers have a golden opportunity, says Daniel Todaro, MD of field marketing agency Gekko

Gekko has once again proudly collaborated with ERT on this year’s Turning Point survey as part of the ERT Awards. It will be interesting to see what the findings are this year in relation to the smart home.

Last year’s survey revealed that 38 per cent of independent retailers that responded didn’t believe that selling the smart home was for them.

Now, I may not have a crystal ball, but I do have a clear view of the category’s growth since then and would be shocked if the figure remained this low in 2018.

I have commented a great deal over the past couple of years that the smart home is something to be embraced and is a category where physical retailers have an opportunity to outsmart their online competitors. It is early days for the category and there is the potential for a lack of understanding on the part of the consumer, made worse by scepticism about the real-world benefits.

Concerns about security are also a factor and so an assisted sales approach, where shoppers can properly experience products and talk to an expert, can make all the difference. In providing a superior customer experience, sales and your customer base can be developed to achieve smart profits.

Popularity
What is for certain, the smart home’s popularity isn’t going to fade – it’s no fad. This is evident from the fact that three-quarters of people have heard of the term smart home compared with just over half (57 per cent) in 2015. And with a current average of 10 connected devices per UK household, we aren’t scaling back on our connected addiction.

BBC’s Panorama recently predicted that by 2020 there would be 420 million connected devices across the UK. The smart home now even has its own ‘week’ – May 21-27 this year. This was a showcase for the very best in smart, connected and integrated home technology.

Its purpose was to inform, educate and reassure UK consumers about the benefits and opportunities of living in a smart, connected way.

Research conducted by Smart Home Week forecast that 42 per cent of consumers see the majority of UK homes being smart within the next 10 years.But I think it will be higher and sooner.

From my point of view, running an agency that loves both tech and retail, we’re passionate about understanding how the smart home is being marketed and identifying what the appeal is for the consumer, so we can support our brands in retail as best we can. Key to achieving this is identifying consumer purchasing habits and the sales opportunities the category presents.

One area to consider is what to range and sell. A lot has been said about smart speakers and voice-enabled AI devices integrating with home entertainment and that these are perhaps an easy, and relatively affordable, route into the world of smart technology. This is true, but we shouldn’t ignore some of the other product areas.

I think that smart home appliances is a category the general public is becoming increasingly aware of. While smart fridges and washing machines have been around for a while, high prices and doubts about their true benefits have meant they haven’t see adoption by the masses.

Active
Hoover Candy has been active recently with above-the-line campaigns talking about their app-enabled products.

While some may see a remotely accessible camera in an oven as unnecessary, many will warm to their Vision oven, where an integrated touch-screen provides recipes, instruction and a live view of what’s cooking. As lifestyles change, so do our opinions and habits. What we may have considered a ‘novelty’ may now be relevant to the lifestyle of the generation that these products are aimed at.

Smart tech is also extending to SDAs and outside into the garden space. Smart robotic vacuum cleaners are increasingly popular and a new device to me is the iRobot Braava mopping robot. In the garden, robotic lawnmowers are a desirable piece of tech and the market is expected to grow 20 per cent by 2022.
Apart from what type of smart products to consider selling, I think the approach taken in-store by sales staff should also be factored in – and I don’t mean reviewing sales skills, but rather appreciating how the end-user uses smart tech.

To better understand the consumer, we wanted to take a slightly different tack from previous studies and look at those who have bought into the smart home, how they use their products and what their concerns are.

Gekko’s Smart Home Shopper poll delivered some useful insights that can help brands and retailers increase their profits.

The study found that 56 per cent of adults had bought the latest must-have smart-home tech, including wi-fi controlled security cameras, heating systems and speakers, but had been left scratching their heads when they got them home as they had little idea what to do with the stuff they’ve bought. More than 30 per cent of the consumers we asked said they regretted buying at least one or more items of smart-home technology because it proved so difficult to get up and running, while many said they couldn’t get all their devices to connect – which is surely the whole point of having a ‘smart home’.

Coupled with this, nearly a third of them said they never read instructions or manuals when they buy a new piece of kit and 21 per cent admitted that, although they had a love of tech, they were intimidated by the complexities of it.

Forty-five per cent of people said the trickiest bit of kit to install was security equipment, including app-controlled doorbells, motion sensors and CCTV, while 28 per cent couldn’t get their smart lighting to work. And more than a third (35 per cent) came unstuck when installing their smart heating systems. Yet, these are the most popular items to purchase within the smart-home tech product portfolio.

And despite its current popularity, 30 per cent of adults that had purchased a smart speaker, such as the Amazon Echo or Google Home, didn’t understand all its functionality and smart features.

There’s clearly a customer need here that’s not being fulfilled by retailers. Smart-home tech is popular, but people don’t know how to fully utilise it to meet their lifestyle needs – whether that’s convenience, money saving, leisure time or learning.

Significant 
One significant barrier for shoppers is concern over how secure smart home devices are. Our study highlighted this, as did the findings from Smart Home Week, which found that 62 per cent of people were worried about the threat of smart homes being hacked. So be prepared to overcome this potential barrier and offer up some security advice as part of the sales process, or at least be able to point customers in the right direction.

All this is a great opportunity, especially for bricks-and-mortar retailers, to enhance the customer experience within the smart-home category by developing an environment where consumers can ‘play’, and a retail team that can articulate the features of each product in detail and match consumer needs to product performance.

The customer journey in retail needs enhancing to increase profitability and as the smart home establishes itself deeper across multiple categories, the approach in store must evolve to meet trends and the popularity of smart products.

Through an increased effort, what you do at the point of purchase will keep people coming back to traditional bricks-and-mortar stores for experiences they’ll never get online.

Top tips to sell smart tech

  • Show products in a proper context by displaying them in the way that consumers will use them, emphasising real-world use and benefits.
  • Demonstrate usability by linking the smart gadgets to one another as some clever retailers have done in selected stores, emphasising that they don’t have to be standalone products.
  • Seed or loan products to your sales staff so that they can become users and advocates and bring their real-life into the sales conversation.
  • Ask your suppliers and brands for support. Product training for your sales staff or brand ambassadors to engage with shoppers at peak times will all help drive business and a positive in-store experience. Whether directly, or using an agency such as Gekko, encourage brands to provide support on a campaign or ongoing basis to assist in maintaining continuity of customer experience in line with the advertising messaging.

Read the full article at ERTOnline

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Back to school: a lesson in brand relations

 

Back to school in my youth was always met with a heavy sigh when my parents calculated the uniform costs and I wanted the latest pencils and rubbers. These days, trends have changed. Thanks to the competition among discount supermarkets like Aldi, Lidl and Asda we’ve seen uniform costs and stationary prices plummet, giving consumers a far greater choice at more reasonable prices often using ‘event’ advertising campaigns increasing footfall into store and bolstering revenues in other areas of their business.

There’s one category that’s changed everything as it becomes a staple of the ‘Back to School’ event, particularly in higher education: consumer electronics – to be precise computing – adding a whole new layer of cost parents must budget for. While retailers should consider an all-year-round back-to-education strategy, back to school begins to increase in prominence from August, especially in the technology category. The value of the back-to-school market in the UK is estimated to be worth around £1.45bn and while uniforms and stationery will make up a large proportion of this market, the increasing requirement for technology in the classroom means that edu-tech continues to be a growth opportunity for retailers.

Every school, college and university around the UK differs, but they all require some level of ‘technology’ input and expense from parents. As government budgets for school funding continue to decrease, this need will only get bigger and more expensive. It’s a costly exercise and therefore something no parent or student wants to get wrong. A bring your own device (BYOD) policy is becoming common place and enables the market to grow to support this with the right advertising, marketing and in-store execution. As a considered purchase – and for many their first computer that they don’t have to share – the need to try before you buy is important. It’s a seminal moment for most teens. The look, the feel, the height and size are vitally important to most, especially in our streaming culture where the device is both for work and play.

Not everyone is tech literate and understands what product is best for their child and, yes, some schools have preferred suppliers, but often parents are sent out into the big wide world to get a lap top or a PC and the choice is overwhelming and confusing. This often leads to a whole host of questions: what hardware and platform do I opt for? What software will I need to buy? What about security? Is it going to be out of date before the end of the school year? Is it robust enough? Am I spending more than is necessary?

For teenagers going to University this is a chance to upgrade their old ‘shared’ kit and start fresh with new equipment that has the functionality to assist them in delivering their course and honing their tech skills ready for the workplace. This is a great opportunity for brick and mortar retailers to position themselves as the advisor – the place to go when you’re inundated with choice, don’t know what to buy or where to go to experience the products to touch and feel and work out if they’re right for you.

The ability to choose from a range in an environment geared towards making this decision is crucial for university and tertiary education students; different courses will require the technology to have specific functionality. Retailers need to be inquisitive and understand the student’s lifestyle to match the product to their needs. Technology purchases are not just about the one product these days, they are multi-functional lifestyle solutions, so in-store staff have to be trained to ask the most pertinent questions: What will you study? Is design (weight and size) a primary consideration? How do you consume media and home entertainment? What’s the budget?

Amazon will be a key back-to-school destination – especially for the 30% of Brits that now have Prime membership – but this is something Amazon and other online retailers can never do as effectively when a personal approach to a considered purchase is needed by a brand and retailer.

Never underestimate the first consumer interaction with your brand – an emotional connection that shouldn’t be undervalued. Not only is it a great opportunity for a brand to bring a new customer into their portfolio and up-sell them through their product ecosystem as their needs and lifestyle changes; it is also the chance to create an advocate and customer for life. Brands invest heavily in extra activity around back-to-education including Fresher’s Fairs and NUS affiliated marketing. Paying attention to planning and implementing in-store strategies within retail is an essential part of any back-to-education marketing strategy.

Daniel Todaro is managing director at Gekko

Read the original article on The Drum

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GIVE THEM A RETAIL EXPERIENCE THAT’S WORTH THE TRIP

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You will convert more customers if you sell them a ‘solution’ that solves their problem rather than a product at a price that may be cheaper online anyway, says Daniel Todaro, managing director at field marketing agency Gekko

Let’s be honest, it’s a challenge out there in retail and every one of us shudders when we see superb businesses like Maplin hanging up the ‘closing down’ signs.

It’s now more important than ever to offer a solution-based sales model to your customers, converting as many as possible of those precious shoppers who take the time to visit your store.

Whatever their motivation for coming into your store, consumers are looking for a solution to a lifestyle problem. As a retailer, it’s within your power to provide this solution, offering consumers the right product for their needs and reinforcing why traditional retail is still the best platform to buy consumer electronic products.

Overall online sales were up 13.9 per cent year on year in January, with footfall down 6.6 per cent and it was almost 12 per cent down in London and the South-East.

When you look at the CE category, this was only up 4.4 per cent online, suggesting that shoppers are more hesitant to go online for big-ticket, considered purchases.

That first face-to-face interaction is critical. Sales staff should be asking key questions of consumers to discover why they are in the store, their needs, budget and motivations, in order to create the foundations of a solution-sales approach.

Is your shopper looking to buy new, upgrade or has something broken down? What do they currently have? What features do they require? Where will it be used? How often? Is it a primary or secondary device? What is their preferred price range? Do they need it installed? A customer wants reassurance that the product will meet their needs.

It is important to ensure your staff can demonstrate the product and explain the benefits. And don’t ignore what the shopper tells you, so that the features link naturally to their needs. This could make all the difference to their decision to purchase.

If shoppers can see how the product will solve their unique ‘problem’, they will go away satisfied and come back for more. Online will never be able to provide this level of service, so retailers need to take control of their destiny and provide consumers with an experience that was worth the trip.

Gekko’s OnePoll ‘influencer’ research has conclusively proved that ‘50 per cent off’ shoppers still want to head to a store to see, touch and experience a product in person. Now you’ve got them in your store, you should also know that our research showed that 35 per cent are influenced by recommendations from shop staff.

So the training you give your staff is possibly the most important part of achieving effective solution-based sales. Imagine how great it would be to convert that 35 per cent. If a shopper has confidence in a salesperson who focuses on their needs as a whole, rather than just on a particular product, they are more likely to purchase. You will instil confidence in your shopper and also build that all-important relationship that converts them into a customer who will keep coming back.

If you don’t believe me, the research also showed that that only 10 per cent of customers were influenced by celebrity endorsement, or 15 per cent by bloggers, etc. This is because there is no tangible engagement with, or as much trust in, these opinions to create a meaningful relationship. Compare this with the 71 per cent who are influenced by word of mouth from friends and family. The back-and-forth conversation needed between shopper and salesperson for solution selling is vital for building the trust needed to buy based on their recommendation.

This underlines the importance of having well-trained staff that know the products inside out and the lifestyle issues that each product helps address. We work with our brands to understand what strategy works by measuring sales before, during and after. One example from a connected-home partner confirmed that the number of units sold in three store groups in the 10 days after a briefing and merchandising campaign increased by 45 per cent. But 10 days later, sales dropped marginally, as staff didn’t continue the solution-selling techniques they’d been trained in.

The need to retain and continue the solution-based approach highlights the need for regular training and is proven to convert your shoppers into customers today, tomorrow and long into the future.

Visit ERTOnline to view the original article

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Women of Silicon Roundabout

This week Gekko enabled one of our senior field team members to experience an inspiring centrepiece event for women in the tech industry, namely the Women of Silicon Roundabout conference at ExCel London. #wintechseries #womenintech #tech #gekko #fieldmarketing

Here is Katy’s superb review of her experiences from the conference:

Women of Silicon Roundabout is a two-day event held at London’s ExCel, designed to bring together women in the tech industry. Beginning with one small event two years ago and is now the centrepiece of a global series, the Women In Tech Series (WinTechSeries) runs across the USA, Australia, mainland Europe and the UK (and is growing).

Exhibition stands packed out the hall; from high street retailers and online services, to banks and investment firms.

Workshops, seminars, skills labs and inspirational speakers took to the stage across several breakout rooms, a huge auditorium and speakers’ corners.

Whilst the event is designed to inspire, educate, network and build technical skills; the exhibition area was a hive of business showcases with most companies also targeting talent for potential recruitment.

I attended several seminars and watched some speakers. Here are my top takeaways:

 

PwC and the #techshecan Charter – Robyn Stephenson and Sheridan Ash

PwC launched The #techshecan Charter back in February. The Charter is designed to bring together organisations to tackle the root cause of why women are in the minority in the tech industry. PwC have identified that STEM education in schools is not appealing to young girls, therefore they drop the subjects in favour of something they feel they are more suited to.

Gender norms and societal pressures at such a young age is fuelling under-representation in the tech careers – not only gender based, but other minority groups such as BAME and LGBTQ. This was a really interesting seminar, and I applaud their efforts to increase the diversity mix at PwC by going right back to the root cause and potentially waiting 15-20 years before we see any of the talent come through the education system and into employment age.

#techshecan collaborates with organisations to make the shift in education at a government level – working to reduce the amount of stereotypical representation children see and learn about during their early years education. In short, the Charter aims to change education from a young age so that girls feel that it is a career they can not only get into, but excel at.

 

The importance of building advocacy for ourselves – Helen Hunter, Group CDO of Sainsbury’s Group

This was my favourite seminar. Helen has a very candid way of speaking about her accidental career into data and technology. She surprised herself given that she has “an innate fear of maths”-  as she put it. Helen also has a family, and is incredibly passionate about self-promotion and supporting parents returning to work following a new addition.

On the topic of self-promotion, or “building organisational advocacy – both in private and in public”, Helen uncovers the mystery some employees experience when they see their colleagues being promoted ahead of them. She used the Johari Window method (ref here)- one which is decades old – to deliver useful tools to the audience for when they return back into the workplace.

Organisational advocacy is so important, yet so many misunderstand it’s power and how to correctly influence i.e. if you’re producing such great work, make sure people know! Build your personal brand, prove your worth and ensure that you check your “blind spot” regularly.

An interesting fact about feedback given by managers when an employee seeks it out and how it differs between men and women: Broadly speaking, men are given feedback on how they can enhance their business decision making skills and women are given feedback on behaviours. Helen’s point was not to complain that this is wrong, but to encourage the women in the room to ensure they probe for better feedback in order to support their development and careers.

The day was inspirational, thought provoking and educational. It was great to meet lots of people from other networks and find common ground, have debates and discussions. Oh, and there was a massive robot!

We have work to do in the tech industry to grow diversity. We need to be representative of the communities we are serving. That was a phrase repeated several times by many different speakers. They’ve got a point right? If the people writing the algorithms are over-represented by men, then we will likely be served up products, services and information that is skewed surely? Diversity in all of it’s senses means stronger workforces, more intense creativity and better business outcomes.

Growing your own advocacy and personal brand is key for anyone – not just women and not under-represented groups. As individuals, we don’t work on this anywhere near enough as and employers would certainly benefit from building this methodology into their development plans.

We all have a responsibility to the next generation that every single child feels that they can do anything they want to. The sad thing is a lot of children only get to see such a small percentage of what’s on offer out there, and then become disengaged because “that’s not for girls” or “you could never do that”. It’s time to smash through these ceilings and change the world.

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KEEP CUSTOMERS IN-STORE FOR LONGER

The show must go on

Retailers need to give people a reason to come into their stores and an experience that will keep them there for longer, and learn from the stores that are doing it right, says Daniel Todaro, MD of field marketing agency Gekko

 

In these challenging times, in-store theatre is possibly the retailer’s most powerful and effective way to attract more customers and convert more sales.

Some may argue that Maplin was a great loss to the high street, and I agree, as it served a niche exceptionally well. For the casual passer-by, however, it didn’t entice them in to browse and spend. It lacked theatre that appealed to a wider audience by not defining its ranging to demonstrate that it was a category expert – the place to go.

So what could Maplin have done better to attract a more diverse customer base and stand a chance of surviving? Perhaps translating the customer journey seamlessly through all of its marketing to entice a customer in to purchase through the power of in-store theatre?

When any kind of advertising is used, print, online or broadcast, the stock needs to be in place and the display easily understood, with the message clear to passers-by to remind them of what they saw in the advert. This should culminate in a working display that engages the consumer, backed by knowledgeable sales assistants to guide the customer through the brand experience and close the sale.

Up to 77 per cent of consumers say they research products before buying from a retailer in-store. For electronics, 52 per cent of those turn up in-store to see it, feel it and hear it with a view to then go and buy it online. This need not be so if the customer experience is exemplary and the interaction insightful. The shopper will more often than not be converted and buy on the day, because the item was in stock and the ‘considered’ sale was made easier with the help of knowledgeable sales staff and associated in-store theatre.

A recent above-the-line brand campaign we ran achieved 47 per cent of all sales within 21 per cent of a retailer’s estate by using retail theatre. Bringing the product to life in a real-world environment enabled consumers to understand the product and how they could use it in their connected home.

 

Beautiful

John Lewis recently invested £33 million in its new store at Westfield, London – and it is a beautiful store. It is laid out exceptionally well, but what makes it different from other stores is its theatre. They really get the concept of retail as theatre, as does the luxury sector, which cossets you in the brand.

While the luxury sector appeals to a narrow demographic, John Lewis appeals to a wider and, in some instances, very specific and aspirational audience.

In the CE category, this retailer appeals to the tech-savvy generation that are no longer having to take advice from the kids as they are wiser and more digitally active. Its approach is all-encompassing with an entrance that draws you in, with staff greeting you as you ascend through the store, and pointing you in the right direction should you find yourself getting lost.

The customer journey continues with a well laid-out and working display with a ‘partner’ on hand, should you need one, to guide you through the sale and down to the customer collection point. All strategically choreographed so you can carry on shopping or enjoy the catering on each level – all designed to keep you in-store for longer.

On the flip side, House of Fraser is considering closing 45 of its 59 stores, and Debenhams has reported an 85 per cent drop in profits and put part of the blame on the weather. That’s embarrassing.

Don’t just blame the weather, look at your stores. Where’s the theatre, where are the staff, where’s the customer journey that achieves a sale and entices the new shopper to come back again? Strip lighting, staff that daren’t make eye contact, clutter and constant ‘offers’ aren’t conducive to theatre and a positive customer experience.

There are independents that do theatre well, because they know the value of this investment in increasing footfall and converting sales. Take last year’s ERT Awards Turning Point panellists – Purewell, Moss of Bath and Avensys. They all evidently appreciate the value that theatre has added to their businesses to ease the shopper into a sale. Moss of Bath has seen custom installation grow beyond all recognition from what it was 10 years ago because it brought theatre into its showroom.

Owner Tim Moss has encouraged retailers to “make your showroom less about boxes and more about theatre – show customers something they haven’t experienced before”.

 

Future

Avensys head of retail Martin Jukes adds: “The smart home is the dream for a lot of our customers and that’s where we see our future. If you don’t do it now, you’re going to get left behind.”

Purewell operations manager Ed Griffiths says: “It’s very easy and churlish to think that your customers wouldn’t want the smart home – show it to them. Seeing is believing – people will want it.”

Some top brands also know the power of retail theatre – Apple, Dyson and rather interestingly the four UK mobile carriers EE, Vodafone, 3 and O2. They have become retailers and have decided to sell direct – and are successful at it. This dynamic industry spends proportionately more than others on refits to make sure it stays in vogue. The commodity is turned into a desire, because we always must have a device in our pocket, and the network we choose is not only driven by service and perceived value for money, but also a reflection of our personality. With more than 1,800 outlets across the UK, they are often anchor stores in a high street and offer retail theatre, so increasing footfall on the high street generally.

Coffee shops are a good cue to learn from, too, as their success depends on the way in which the space is used for social engagement, work or as an office. An office where your rent each day is the coffee you’ll order first, then the snack – and so it goes on, with no pressure to leave. Most chains continue to make a profit and are the one retail sector on the increase on our embattled high streets. It’s retail theatre disguised as leisure.

The merger of Carphone Warehouse and Dixons has developed theatre to great effect by borrowing from their respective expertise to blend something quite special. An engaging environment that evolves the proposition to appeal to those with the spending power in line with trends and the consumer zeitgeist. Pulling on all its brands as ‘partners’ to come along on the journey enables both the retailer, and the brands, to succeed together.

Investing in theatre that enhances the experience can bring brands closer to the right people, and the right people closer to the brand.

 

See the original article at ERT Online

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Retail evolution not extinction

A ‘seamless customer experience’ appears to be the current obsession for retailers – mobile, desktop, in-app – a preoccupation with working out what customers want, even before they do and they’re getting pretty good at it.  But Bricks and Mortar retailers have the added pressure of the in-store customer experience and this is where it’s all change.

I’ll continue to rant about the merits of brick and mortar retail (someone has to) but not because i’m old fashioned but because statistics say we should care. According to the ONS, while online sales continue to rise, e-commerce as a percentage of total retail sales in March 2018 was still only 17.4%.

I also read an interesting stat from Murphy Research in e-marketer that 69 percent of U.S. internet users make a retail brick and mortar purchase in an average month while only 22 percent make a retail purchase online in an average month (and 9 percent buy something online for in-store pickup).  Our own research conducted last year ‘shopper influencers’ also supports this hypothesis.

The importance of brick and mortar retail to a local economy and a town’s dynamic cannot be underestimated. Fewer shops equals fewer jobs, which increases instability and deprivation.  Fortunately, traditional retail isn’t dying it’s just changing and I personally don’t think retailers are keeping up with this pace of change and consumer demands for format, feel and functionality.

So, we had a look at smart home tech one of the fastest growing consumer categories – according to EY some 59% of UK households are expected to own a smart home device by 2022 – to see how or if retailers were capitalising on this surge in interest and the results were pretty insightful.

The study found that whilst 56 percent of adults have bought the latest must-have smart home tech including WIFI controlled security cameras, heating systems and speakers most have little idea how to use what they’ve bought.  To the extent that over 30% said they regretted buying at least one or more items of smart home technology because it proved so difficult to get up and running and many said they couldn’t get all their devices to connect – which is the whole point of having a ‘smart home’.

Coupled with this, nearly a third said they never read instructions or manuals when they buy a new piece of kit and 21 percent admitted that although they have a love of tech, they are intimidated by the complexities of it.

Of the most popular smart home tech items forty five percent said the trickiest bit of kit to install was security equipment including app-controlled doorbells, motion sensors and CCTV, followed by smart lighting (28%) and smart heating system (35%).

And despite its current popularity, 30 per cent of adults that have purchased a smart speaker such as the Amazon Echo or Google Home don’t understand or use all its functionality.

Smart home tech is popular, but people don’t know how to fully utilise it to meet their lifestyle needs – whether that’s convenience, money saving, leisure time or learning. Maybe the learning is lost for the majority of these customers because they chose to buy online but there’s clearly a customer need and experience that’s not being fulfilled by brick and mortar retailers.

We can talk endlessly about multi-channel integration, increased personalised experiences, fluid shopping between on and offline but ‘experience-centric’ shopping where consumers can ‘play’ and be served by a retail team that understand each product in detail and can match consumer need to product performance, is surely where brick and mortar retailers can always win?

We’ve seen huge strides in ‘experience’ shopping but there’s still a long way to go for brick and mortar retailers to make every customer visit worthwhile by fully utilising their USP – the fantastic team that meet and greet their customers every day.

Article by Daniel Todaro, Managing Director at Gekko

 

Read the full article here

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New study by Gekko reveals that SMART HOME TECH IS LEAVING NOT SO SMART BRITS BAFFLED

The results from a recent study this week by field marketing agency Gekko entitledSmart Home Shopper’ reveals that more than half of Brits have purchased smart technology for their homes – but have no idea how to use it.  The survey by was conducted among 1000 UK consumers between that ages of 18 and 55+.

The study which investigated smart home purchasing behaviour found that 56 percent of adults have bought the latest must-have smart home tech, including WIFI controlled security cameras, heating systems and speakers – but have been left scratching their heads when they get them home.  In fact, three in ten consumers regretted buying at least one or more items of smart home technology because it proved so difficult to get up and running.

Nearly a third of adults say they never read instructions or manuals when they buy a new piece of kit, while 21 percent admit that although they have a love of tech, they are intimidated by the complexities of it.  Thirteen percent of consumers who have invested in smart home technology said they couldn’t get all their devices to connect – which is the whole point of having a ‘smart home.’  More than one in ten have used a piece of smart home tech once and never again.

The trickiest bit of kit to install was security equipment (45%), including app-controlled doorbells, motion sensors and CCTV, however 28 percent couldn’t get their smart lighting to work and 35 per cent came unstuck when installing their smart heating system. Twelve percent claimed poor WIFI connection made installation difficult and 15 percent confessed to lacking any technical ability.

Surprisingly and despite its current popularity, 30 per cent of adults that have purchased a smart speaker such as the Amazon Echo or Google Home don’t understand all its functionality.

Those people that bought their smart home tech from a bricks and mortar shop did so to play, touch and feel the product (40%), get advice from sales staff (30%) and a demonstration (30%).

Dan Todaro, MD, Gekko comments: “It’s clear from our study that smart home tech is popular, but people don’t know how to fully utilise smart home tech to meet their lifestyle needs – whether that’s convenience, money saving, leisure time or learning.

This is a great opportunity for retailers, especially bricks and mortar to improve the customer experience within the smart home tech category by having an environment where consumers can ‘play’ and a retail team that understand each product in detail and can match consumer need to product performance.    By solution selling it’s a win win for the customer and the retailer – the retailer can enrich the sale by demonstrating the whole product portfolio and functionality and the customer gets a product that’s fit for purpose.

Traditional retailers have never been under so much financial pressure to adapt to today’s market conditions, so they must use what they’ve got to make every customer visit worthwhile.”

Other key statistics:

Key Stats – Pain:

  • 50% of consumers invested in smart home tech purely because they like trying new gadgets and 30% to save money
  • 54% of consumers think smart home tech is too expensive
  • 17% of consumers get stressed out trying to operate their smart home tech

Key Stats – Passion:

  • Consumers tend to use their smart home speakers for playing music (56%), getting answers to questions (46%), getting news & weather updates (35%) and making notes (27%)

Key Stats – Purchasing:

Thirty Seven per cent of consumers went to bricks and mortar stores to by their smart home tech so that they could play, touch and feel the product (40%), get advice from sales staff (30%) and a demonstration (30%)

 

Read Gekko research here

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All the gear, no idea: 56% of consumers don’t know how to use their smart tech

Gekko - Google Retail blog image

The results from a recent study published today by field marketing agency Gekko entitled ‘Smart Home Shopper’ reveals that more than half of Brits have purchased smart technology for their homes – but have little idea how to use it.  

The study which investigated smart home purchasing behaviour found that 56% of adults have bought the latest must-have smart home tech, including WIFI controlled security cameras, heating systems and speakers – but have been left scratching their heads when they get them home.  In fact, three in 10 consumers regretted buying at least one or more items of smart home technology because it proved so difficult to get up and running.

Nearly a third of adults say they never read instructions or manuals when they buy a new piece of kit, while 21% admit that although they have a love of tech, they are intimidated by the complexities of it. Thirteen per cent of consumers who have invested in smart home technology said they couldn’t get all their devices to connect – which is the whole point of having a ‘smart home’. More than one in 10 have used a piece of smart home tech once and never again.

The trickiest bit of kit to install was security equipment (45%), including app-controlled doorbells, motion sensors and CCTV, however 28% couldn’t get their smart lighting to work and 35% came unstuck when installing their smart heating system. Twelve per cent claimed poor WIFI connection made installation difficult and 15% confessed to lacking any technical ability.

Surprisingly and despite its current popularity, 30% of adults that have purchased a smart speaker such as the Amazon Echo or Google Home don’t understand all its functionality.

Those people that bought their smart home tech from a brick and mortar retail store did so to play, touch and feel the product (40%), get advice from sales staff (30%) and a demonstration (30%).

Daniel Todaro, MD, Gekko comments: “It’s clear from our study that smart home tech is popular, but people don’t know how to fully utilise the devices to meet their lifestyle needs – whether that’s convenience, money saving, leisure time or learning.    

This is a great opportunity for retailers, especially brick and mortar to improve the customer experience within the smart home tech category by having an environment where consumers can ‘play’ and a retail team that understand each product in detail and can match consumer need to product performance. By solution selling it’s a win win for the customer and the retailer – the retailer can enrich the sale by demonstrating the whole product portfolio and functionality and the customer gets a product that’s fit for purpose. 

Traditional retailers have never been under so much financial pressure to adapt to today’s market conditions, so they must use what they’ve got to make every customer visit worthwhile.” 

Read the article at retailtimes.co.uk

 

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