Monthly Archives: June 2021

Carefully consider the customer in this new age of retail

As consumers were forced online, bringing back a sensory experience through a carefully considered customer journey, is where independent retail is amongst the best says Daniel Todaro from Gekko.

It’s been a tough few months for all retailers but we’re back and now more than ever the customer experience is the tool many retailers must be reaching for to recapture shoppers and remind them what they have missed.

Based on findings from the CBI, retail sales have risen above seasonal norms for the first time this year. The reopening of non-essential stores in England and Wales brought relief to the sector. April’s retail sales volumes were viewed as “good” for not only the first time this year but also since June 2018, according to the CBI’s latest monthly Distributive Trades Survey.

After reopening on the 12th April, the early signs suggest that shoppers were particularly eager to visit fashion retailers, and on the day, spending on clothes was double the typical pre-pandemic level. Furthermore, the figures are stronger than when stores reopened after the first lockdown in 2020. The number of people shopping online in the past month fell for the second time in a row, and while it is still strong, the rate is half what it was at the height of the pandemic. The data points to a growing sense that the worst of the pandemic is behind us, and people are becoming more comfortable with venturing out to stores.

Retail will undoubtedly regain its mojo over the coming months and if as hoped we are out of complete restrictions this summer, it should rebound and take full opportunity as the burden of these rules no longer apply. It’s going to be different and it will no doubt continue to evolve but retail as one of the most dynamic industries, has always done this. It evolves to meet the expectations of generations, trends and attitudes. Brands and retailers must therefore work to create more experiences spread across a wider space to offer consumers an immersive experience that makes a customer buy from your store and continues to do so, wanting to visit again based on the experience received.

Since reopening we have already seen a 12% shift from online to the high street in the first two weeks. Whilst the growth will have added to the overall online retail space, consumers are increasingly bored of online shopping just as they are Zoom calls. For the entire nation, lockdowns forced us to shop online whether we liked to or not. If we wanted that thing for that purpose, customers had to go online and research, buy, deliver or collect and in many cases return it because it wasn’t right. Whilst this may have felt convenient for some, this meant that for many the sensory experience was immediately banished to a 2D experience and brown boxes dumped on our doorstep.

Human nature is to be stimulated through a sensory experience and even for those with no real passion for shopping, I suspect they have missed some of the pleasures that physical retail offers. In specific categories, this is enhanced more than others such as considered purchases in the MDA and CE categories. Sustainability is another factor many will be considering now that they have a choice. Our increased carbon footprint created by ordering items that have travelled several hundred miles will once again prick the consciousness of all of us as we look to increase our sustainability initiatives, not increase them with unnecessary additional miles and packaging.

We are gradually coming out of lockdown and consumers continue to be excited about it. Indeed over 85% of consumers from our latest retail survey results claimed that they have already taken advantage of physical shops being open to make purchases. They are emerging with a determined mind-set, using their newfound online skills to narrow down their options before heading to the store to browse and make the final purchase.

The retail environment is changing and has been particularly fluid over the past year. This data is critical to understanding the new trends that have emerged and forming (or re-forming) brand strategies. Insight from Kantar, online shopping fell in April for what was the second time in a row, and Springboard footfall data showed an increase of 88% week on week for the period that non-essential retail reopened after the 12th. All of this points to the fact that there are more shoppers out there than there have been for 14 months, so there is a chance here to connect with them while confidence is high and a (hopefully) high-spirited summer begins.

The online share of retail sales is decreasing, although the benchmark remains above the pre-pandemic figure, settling at about 36% in April vs 23% in 2020. This of course indicates the acceleration of a trend that has been growing for a while, but it does mostly remain product specific, and nothing will ever really replace the experiences that in store shopping can offer. The store should now become more of an experience hub as well as a purchase point. In-store marketing continues to have the power to not only increase actual sales, but also other key factors such as brand loyalty and even helping to drive social media interactions.

When it comes to consumer electronics and large appliances in particular, many consumers will always prefer to touch a product and hear about its benefits first hand rather than reading a specification sheet online. Hearing their input, from questions to reasons for purchase, can then be fed back directly to a brand, enabling them to react and stay ahead of the competition.

In this new age of retail, the smartest businesses will be the ones that can leverage the opportunity to reach consumers at every level relevant to them, and that is where effective brand experience and a carefully curated customer journey can step in to help exceed your customers’ expectations.

To read the full article please visit ERT Magazine.

The photo that accompanies this article is by Artem Beliaikin from Pexels

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A hybrid approach: Five retail innovations the pandemic has speeded up

Every business has been forced to change in the past year, it doesn’t matter the industry you are in. Retail is no different, but unlike others, it has always been a dynamic industry at the forefront of responding to consumer trends and the manner in which people want to consume things. Retailers have always understood they are at the vanguard of that change. This past year has truly focused the mind on this and the need for innovation like never before.

It’s not just about entirely new initiatives. Many trends that were already taking place have had their roll out compressed from years to months. Here are five innovations that the pandemic has speeded up that can offer a pathway to sustained growth to those who take advantage.

1. Click and collect

There is renewed and growing enthusiasm for click and collect. In part that’s linked to the general increase in online shopping but it’s also because of the convenience and importantly the hygienic, social distancing aspects. A pandemic trend that is set to stay, it is now an embedded part of many consumer journeys, especially in grocery shopping, but also increasingly in all non-essential retail. Our own research has shown that over 35% of people want to see this trend continue even after the pandemic. Click and collect certainly appeals to more sustainability-focused customers. These shoppers want to shop online but also have a focus on sustainability with concerns about the environmental impact of the deliveries in terms of the distance travelled and packaging. Retailers should think about how to maximise the opportunity to boost profitability. An obvious example being upselling products in a collection environment.

2. Using Augmented Reality to assist big ticket purchases

As we can see from the figures post-lockdown, physical retail has an enduring appeal with huge pent up demand being realised. However with more consumers having been forced to buy higher ticket items online, smart brands are looking at new technology to fuse the offline and online world and assist sales. Ikea is a brand that has always focused on innovation and disrupting the traditional retail experience. They made a smart play last year, acquiring AR imaging startup Geomagical Labs. The intention was to drive shoppers to purchase more big-ticket items without always needing to visit a store. Its technology allows a user to quickly scan a room using any smartphone, render that into a panoramic 3D picture in a few minutes, remove all the furniture in it and then add in new items to scale, helping shoppers picture products ‘in-situ’. This will be implemented by Ikea into its website and apps to let people start to create accurate visualisations of their spaces, and how they would look with Ikea pieces in them. While the technology remains nascent, other retailers should definitely take note.

3. Joining up the omni-channel experience

Ecommerce has been a big winner from this past year with millions more now comfortable with shopping online. However the experience remains disappointing for many. A recent survey by Ayden found that more than two thirds (68%) of Brits say they will now not shop with organisations if they had a bad experience either online or in store (an increase of 18% since June 2020). Meanwhile, 53% believe retailers need to do more to link their physical and online stores. Invariably the offline and online experience is not joined up and inconsistent. Too often the focus online is based on the ‘what’, product specs, price etc without thinking about the ‘why’ a consumer wants a product. Smart retailers and brands know it shouldn’t be the ‘channel’ that is the focus but the customer experience, which is then realised across all its touchpoints. Starting with an audit across all channels, brands need to ensure they are visible and joined up. The evidence shows brands who are joined up have succeeded over the past year.

4. Training the experts at scale

A key element of the formula for success instore is a shopper’s engagement with retail sales advisors. Are they proactive, helpful, skilful, knowledgeable, and capable of providing a personalised experience? This is something the online experience can’t replicate and physical retailers need to capitalise upon. Much is down to individuals, their training and management the retailer provides, but when it comes to talking about a brand and its products it is vital they are informed, motivated and most importantly advocates. This is often down to brand led initiatives and while in the past these experiences were provided in person, the pandemic has forced new innovative ways through virtual training being offered with face to face communication not being possible. For example Gekko has developed a new digital learning and engagement platform for brands to talk directly with Retail Sales Advisors, allowing them to choose when and how they learn, with gamification and incentives driving uptake. It’s meant we have been able to train many more staff members and have far more impact. While we will still be visiting face to face – a hybrid model will be our new way of doing business. A bit like peoples’ changed working arrangement, it’s taken a major event to force through a sensible and more efficient way of doing business.

5. The advisor’s new domain – the video call as well as the shopfloor

While digital methods are proving successful to train more instore experts at scale, the digital world can also be utilised to provide direct expert assistance to those making a considered purchase. Curry’s are one brand who tried a new approach during the pandemic with the ShopLive service offering expert advice to assist the sales process. A popup appears asking if you need buying advice, but rather than the experience being a frustrating one with a generic chatbot, shoppers can then start a one way video call with one of their experts. ShopLive now has over 800 ‘tech-perts’, aiding customers through their essential tech purchases. Each new expert goes through two days of specialist training to ensure they can help customers with every tech query. While a face to face conversation with a live product demo and test will always be the best way of answering any customers’ needs, this certainly can aid the sales process for those who would still rather not venture out or can’t for any reason.

Despite the atypical nature of the past year, we have seen many retailers react to the adversity with typical dynamism. The changes and digital transformation that has taken place will in the long run only be a good thing for the industry. A lot of the confident retailers have really begun to find their voice and discover a new way to navigate these uncertain, but exciting waters.

To read the full article please visit Bdaily.

The photo that accompanies this article is by Sora Shimazaki from Pexels

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