Monthly Archives: July 2017

Connect with your customer

Once the stuff of science fiction, the connected home is now a reality, with smart technology now found in almost all categories across consumer electronics and domestic appliances.

Consumers are starting to take a real interest in the smart home. But it’s up to retailers to bridge the gap between desire and knowledge, offering consumers a personalised service. This is an area where independent retailers can excel over their multiple counterparts.

Although there is clearly demand among consumers for smart products, many retailers may still be sceptical that the smart home is the future. If you are a sceptic, take a look at your top-end TVs and MDAs – chances are they all include smart features that your customers aspire to have in their homes.

New smart MDA products, such as the LG InstaView fridge-freezer (pictured) and the Hoover Wizard smart oven, have additional features to complement your customers’ lifestyles. You can offer these smart MDA solutions as the top of your ranging. Soon all appliances and CE products will be smart. Customers who have bought that smart TV or washing machine are likely to come back in-store looking for the next appliance to complete their smart home.

If you are thinking about ranging smart-home products, but don’t know where to begin – start small. There are plenty of products that require only a small investment, but can have a huge lifestyle impact for consumers. Smart plugs, such as those from Hive and TP-Link, allow users to control their appliances from any smart device. From turning on a lamp, to making sure your hair straighteners are turned off, smart plugs are an inexpensive and easy to install and a great way to introduce customers to the category. Likewise, ranging at around £70, smart light bulbs, such as Philips Hue or Lifx, are a great smart-home product, allowing consumers to switch on their lights or change the colour, and can be linked to a device such as Google Home.

Excitement

Then you can move on to other key smart-home areas, such as thermostats from Hive and Nest, and smart security products, such as the Ring video doorbell. These products are more of an investment with an average basket value of £123, but the lifestyle benefits will appeal to interested consumers. Similarly, smart speakers are an up-and-coming category creating a lot of excitement.

As recently published in ERT, a survey by German electronics retailer Reichelt found that 56 per cent of Brits were already using, or would consider using, a voice-controlled connected device in the home. However, 55 per cent did not know how to install them or would need to seek professional help.

There is definitely an opportunity for independent retailers to fill this gap, offering customers professional installation or even training in-store from a member of staff. With some multiple retailers lacking the wi-fi connection needed to fully set up a smart speaker or security system in-store, set your shop apart by offering a full demo-ready model of all your smart-home products for shoppers to try out. This could make your store an obvious destination.

But it’s important that you don’t confuse shoppers with technical jargon. Make sure your staff are communicating what the smart home offers each customer, be it peace of mind when leaving their home for a long period, the money-saving benefits of a smart thermostat, or even the convenience of a smart assistant.

Equally, make sure that, when demoing a product, your staff have been thoroughly trained and are able to answer any questions. Shoppers will want to be reassured that the device is easy to install, unobtrusive and convenient for them.

This will help inspire customers to come to you to upgrade all their appliances to create a smart home for themselves. With the average basket value of a smart-home purchase trending at £105, the prospects are good.

 

Read more at http://ertonline.co.uk/opinion/connect-with-your-customer/

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Positive news for UK retail

Recent yearly results published by Dixons Carphone are good news for all retailers, whether multiple or independent.

Despite price increases and decreasing consumer confidence following the Brexit vote, Dixons has been able to beat the downward trend, increasing pre-tax profits by 10 per cent and like-for-like sales by four per cent compared with 2016.

Looking at the whole of the UK, some key categories have seen lower sales. With TV, for example, seeing a 14.9 per cent unit sales decrease last year, it’s positive news for UK retail that the number-one consumer electronics retailer is proving that consumers are still heading to the high street to buy household tech.

As an agency that represents tech brands in UK retailers, including Dixons Carphone, Gekko’s results in-store agree with theirs, with sales having increased by 5.6 per cent relative to the same period in 2016.

One category that has been particularly significant in improving results for tech retail has been the smart home. Still a growing sector, expected to be worth $58.47 billion (£45.3bn) globally by 2020, the smart home is enthusing consumers to upgrade their appliances and home technology.

In a recent campaign for a smart-home brand, Gekko’s training team created a 68 per cent uplift in knowledge among store staff, which helped deliver a healthy 36 per cent sales uplift in the following weeks.

For independent retail, the strong results seen by Dixons Carphone set an optimistic tone. Gekko knows that 74 per cent of consumers prefer to shop in-store, because it allows them to see, touch and experience the product before buying. Dixons’s results show that consumers are still heading to the high street when looking to purchase a high-ticket item.

These ‘considered purchases’ – products that shoppers need time to think about before deciding it’s right for them – require that additional assistance only found in physical retail.

To match the large retailers in their success, independents need to create a welcoming, ‘showroom’-style atmosphere that will encourage shoppers to try out products before they buy.

A conversation with knowledgeable store staff can easily transform a browser into a customer. Developing categories, such as the smart home, are important areas for potential growth.

Set your store apart by offering shoppers an experience they can’t find in larger retailers, and you too can see these positive results.

Read more at: http://ertonline.co.uk/opinion/positive-new-for-uk-retail/

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