Tag Archives: Daniel Todaro

GIVE THEM A RETAIL EXPERIENCE THAT’S WORTH THE TRIP

ERTlogo

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

Tagged , , , , ,

Are retailers providing an experience that’s worth the trip?

Save the shops! A mantra I’ve heard numerous times having worked in retail for the last 20 years. Yes, consumers love shopping online, but there’s no doubt they want to preserve the ‘real’ shopping experience especially for high-value tech/electrical products.

Whether they are looking to upgrade an existing device, buy into a new product category such as the smart home, or make a distress purchase to replace a product that has failed, 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, in doing so, reinforcing why traditional retail is still the best platform to buy technology products.

I think there’s a big disconnect between what consumers need from retailers and the experience they get. We’ve recently seen the news that Maplin has collapsed into administration, yet the sale of tech/electrical goods is on the increase – one of the fastest growing categories. Consumer electronics retailing lends itself like no other as a tool for retailers to be more dynamic in showcasing solutions and brands to lure consumers.

The information gap

Let’s look for example at the popularity of streaming and how it’s driving the sale of hardware. Streaming is becoming increasingly the norm for many, curating the music, TV and media that’s preferred at a time that suits consumers’ lifestyle. Netflix revenues have increased 36% year-over-year and Apple’s purchase of Shazam for $400m shows the market is continuing to evolve.

These brands are the new media giants, beating down the once dominant studios who are now consolidating to survive. But without hardware and devices, none of this is possible. I’m ensconced in this world and most of the consumers we speak to have very little understanding of what hardware to purchase and want help and advice.

This is where retailers can win, but they are not making the most of their assets – the team on the ground. These people are the face of a retail brand, interacting with the customer, the first port of call, the golden ticket to success, the ones that can transform your business but only if appropriately trained – and therein lies the problem.

Make the most of being face-to-face

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 and their needs, budget and motivations.

Are they looking to buy new, upgrade a device or has something broken down and needs replacing? What do they currently have? What specific features do they require? Where will it be used? How often? Is it a primary or secondary device? What is their preferred price range? A customer wants reassurance that the product will meet their needs and solve their ‘problem’.

It is important to ensure your staff can demonstrate the product, are trained on core ranges and brands so that they can explain the benefits to shoppers and don’t make the mistake of ignoring what the shopper has told them so that the features link naturally to the customer’s lifestyle or specific needs. This could make all the difference to their decision to purchase, helping to close the sale.

Shoppers need to know how the product will solve their unique ‘problem’ so that they walk away satisfied and hopefully 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.

Click here to read the article on The Drum

Tagged , , , , ,