Tag Archives: Innovation

Five positive signposts on the road to retail recovery in 2021

The data presented in nightly news broadcasts is a strange hybrid of bad news and good news. Of course, we have the all too familiar grim updates on hospitalisations and deaths as a result of covid. But we also now have a counter-narrative – the numbers of people vaccinated who can look forward to a fear-free life again. We may be in the midst of a lockdown, but hope is not only on the horizon but in front of our eyes and shortly to be in our arms. The best of times and the worst of times.

Retailers are also facing a mixture of challenging and hopeful data. The British Retail Consortium (BRC) recently revealed sales growth overall falling by 0.3% in a year dominated by the Covid-19 impact – the worst annual change since the BRC began collating figures in 1995. Yet this is hardly surprising, with the Government forcing retailers to close. Unlike in the midst of other recessions, we can be confident an unprecedented bounce back is looming. A recent KPMG/Ipsos study points to a sales growth of up to 3% for 2021, despite the huge challenges in the first two quarters. Indeed there are several signals that point to a swift route to recovery in 2021.

Weathered and tested

The resilience of retail has been a remarkable success story of 2020 in the face of continuing huge challenges. Throughout the pandemic, retail has been written off only to bounce back whenever it has been allowed to trade. This is evidenced by the figures for lockdown two. According to the ONS, the headline figure for retail sales volumes in November during the second lockdown were 3.8% lower than in October, ending six months of growth. However, the drop was smaller than analysts had expected and, remarkably, sales remained 2.6% above February’s level in the year to November. This was all the more impressive given lockdown forced many shops to close during the month.

Throughout the past 12 months, retailers have had to adapt their trading at short notice, whether closing altogether or introducing a variety of safety measures and still enticing customers to spend. They have also needed to embrace new ways of trading, from click and collect to virtual shop floors to having sales experts in call centres rather than in person. This experience and ability to weather these storms and still attract customers mean retailers will be in much better shape when the good times return.

A shot in the arm for consumer confidence

Retail has always needed and relied on a confident consumer to sustain itself. You feel hopeful about the future and you are more likely to splash out. Over the past few months, we have had a perfect storm of negativity. Daily charts showing exponential infection and death rates highlighting the problem now, with no end in sight creating a feeling of hopelessness. This has created a mental health crisis to add to the immediate public health crisis. However, just as the confidence has been sapped by one thing – the coronavirus, so the cure can be the vaccine – a literal shot in the arm for consumer confidence. Of course, millions have been negatively financially impacted by the crisis, but due to the furlough scheme, many have been protected in a way that hasn’t happened in previous recessions.

Indeed this was the analysis by a KPMG/Ipsos retail think tank, which said retail should be able to look to a brighter second half of 2021. Pent-up savings, demand, a more confident consumer and a successful vaccine roll out all point to a strong rebound. However, it also points to some consumer behaviours changing during the pandemic, with performance varying across different categories.

Retailers have embraced an omnichannel strategy

The pandemic has speeded up the adoption of an omnichannel strategy for many retailers that was probably overdue. Dunelm is a good case in point. Despite huge challenges in its retail estate, the company’s investment in the online channel has paid dividends. Despite all of Dunelm’s 174 stores in Britain being closed to customers, the company expects pre-tax profit for the first half of its financial year to be about £122m, up 33.9% on the previous year. This is due to the investment in online and the trend for home furnishing during the pandemic. Similarly, Dixons Carphone Warehouse announced pre-tax profits of £45m for the six months to 31 October with online sales up 145%. Those brands that have a strong online presence have been able to trade successfully and will benefit even further when their physical stores re-open. Particularly given the next key signal.

Pent-up demand for physical retail experience

Despite online retail’s undoubted increase of the share of the cake, reports of the death of physical retail have been greatly exaggerated. After each lockdown, there has been huge pent-up demand in evidence whenever shops have been allowed to operate. This is despite uniquely off-putting circumstances for consumers to venture out. While we are in the midst of a third lockdown, we know from the end of the second one that footfall increased by nearly 20% as determined consumers returned to stores. With increasing numbers being vaccinated, we can expect an even stronger rebound this time. I am really confident we will see an unprecedented retail re-emergence when the impact of max vaccination is felt. Even retailers like Primark, which recently revealed a £300m hit to profits, remain bullish. As Jason Bason, finance chief of its parent company Associated Foods, pointed out, when its shops had been open sales were only down 14% despite the restrictions. After all, if people are still wanting to venture out during a pandemic, we can be guaranteed they will flock to stores when we have the vaccines rolled out and no longer have to be scared of strangers. People miss the retail experience.

Capitalising on the new trend of ‘shopping with purpose’

One real trend we have seen during the pandemic is ‘shopping with purpose’. This is consumers wanting to make fewer journeys out, but when they do, not returning empty-handed. Our own analysis for the last trading period, December showed really healthy growth in conversion rates of 51%. This was due to pent-up demand and people returning to stores with a real purpose to buy. Again, the result of lockdown is to make the return to retail all the more profitable – something that can give retailers something to look forward to as we focus on getting through this difficult time. This particularly applies to categories like consumer electronics with higher ticket items and people less willing to buy online. The pandemic has underscored we may be less willing to venture out, but when we do we want to make it count.

While we are in the middle of a really difficult period it may be difficult to keep optimistic, but as we approach the end game of this crisis we can be sure that the public will want to celebrate their new-found freedoms. Retailers that have adopted the right strategies can benefit when good times return.

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Brands Don’t Lose That Human Touch – Time to Get Creative

Brand ‘touchpoints’ are increasingly becoming digital, rather than physical, in a world of social distancing. With physical retail in a cycle of lockdowns and people subject to ongoing restrictions, the world of browsing and the art of touch are becoming lost – a necessity of social distancing and hygiene measures. But this key ‘human’ sense influencing purchase simply can’t be replicated in the information-led, online realm.

Luxury brands immerse a consumer in plush carpets underfoot, theatrical lighting in opulent surroundings in glamorous locations complete with the meticulous attention of an expert who has your undivided attention, making you immediately feel the brand is worth it. But with all of these luxury stores having faced periods of closure, we have seen a large reduction in footfall across major cities globally. The ability to capture the essence of the brand online is compromised. The case in point is Burberry who is perhaps a brand more advanced in e-commerce approach to high-end retail. However, the company saw a decline in profits of an estimated 80% coming in at £42m for the six months to September. Other luxury brands are not immune either, with Mulberry reporting a 29% decline in revenue for the first half of the year, due to store closures.

So how can brands fill the void that perhaps we all took for granted and relied so heavily upon? The role of other ‘touchpoints’ becomes even more vital in creating a customer journey that captures the consumer imagination and creates intrigue in the brand to explore more and make a considered purchase.

The new nature of shopping

When retail opened after lockdown one, we at Gekko uncovered a trend that consumers, starved of retail, were returning back to store and shopping with purpose. The journey was necessary and, on arrival, the budget in mind was set and the expectation to part with money was resolute and implied. We looked at all of our return-to-store campaigns across the considered purchase CE sector, focused on 6 distinct categories of Computing, Mobile, White Goods, TV, Smart Home & Wearables, and measured them week on week. The result was that we saw an increase of 28% in conversion rate from demo to sale and 22% in the average basket value.

Now, the increases can be attributed to consumer behavior but also significantly to the assisted sale element of the customer journey that facilitates the sale. The socially distanced engagement remained personal to the shopper and the ability to ask questions was imperative in not only cloning that sale but also increasing the consumers’ spend.

The best strategy and playbook in this new world to maximize the other senses to really sell a brand’s quality are a challenge. We must, therefore, meet the need to make traditional retail a destination worth a consumer’s time and safety.

The voice

Key to this is voice: A trained sales advisor, who can extol the virtues of a product and close a sale even if this is over the phone with outlets locked down or in person with a shopper making a ‘purpose-driven’ shopping visit. To engage the advisor in training, brands and retailers must adhere to covid-secure protocols, so the approach also needs to be reimagined. By keeping it succinct and energetic, and not like training but more a story with several chapters, some yet to be written but lined up to create excitement. By taking it virtual you can still be engaging if you follow the same approach and have the same energy as being in the same room – as if it’s still personal. Online, it’s a harder sell but call it engagement rather than training and it can become more creative. Gamify the process and link it to rich online content from your website, also advertising campaigns and events.

Product knowledge and brand advocacy amongst retail sales staff are crucial components to success in retail. It starts with effective product launches and is something that traditionally relies on face-to-face engagement and hands-on time with new products. Again, the lockdown has forced us all to think differently about the approach. A virtual approach can enable brands to create genuine excitement for new product launches, engaging retail sales staff and cascading knowledge and know-how to them, again making them more effective in their shopper conversations.

Don’t lose your touch

Touch: Displays of action and demo devices demarcated or constantly wiped down more often than they would probably do if in your possession as your own device. Keep it straightforward and clean. Stand back, encourage play, and keep the conversation flowing using open questions. Learn through specific questions and examples about the customers’ usage habits, likes and dislikes about their current device, and link to features you know are relevant to the user.

When it comes to effectively demonstrating products to shoppers, creative thinking can pay dividends. With some of the limitations indicated above, brands can take the initiative and facilitate the demo experience. Think creatively! Another initiative we implemented was taking the demo to the store and controlling the experience whilst on site. The brand was able to tell the story in their own distinct voice.

Leave a lasting memory

Finally, think about the memory that consumers will be left with. Poor knowledge and advice – when asked for – and an ill-thought-out display will create a negative lasting impression. Missing product information, price tickets, and the devices not being demo-ready will all provide a bad customer experience. The decision to purchase should create a smooth transaction for the customers and, if not in stock, it shouldn’t be a problem. The retail sales advisor should be able to order it online enabling the customer to click and collect or have it delivered. If in stock, the customer should be looked after through to the point of transaction and be on hand to answer any question on set-up and integration of the new device further validating their purchasing choice.

The positive engagement with a brand ambassador or retail sales advisor is the game-changer that increases conversion rate and average basket value, achieved either through a higher purchase price or connection sale and, perhaps, an advocate of both brand and retailer. This is much harder to achieve online and never as gratifying for the end-user as a customer journey that enhanced the individual’s perception of the brand, and worth in relation to their own very personal budget.

As a brand, put yourself in your customer’s shoes and consider what you aspire to achieve, and redouble your efforts. Use this personal approach to enhance the customer journey, engaging in the most effective manner possible with your target consumers. This begins with training that grabs the imagination. Explain creatively how to tell a personal story on the shop floor, that envelopes the consumer, enough to become a customer through informed choice and not merely through distress or promotion. In a world of reduced physical contact, we need to think creatively to ensure brands stay in touch with the needs of their customers.

To read the full article please visit Branding Mag.

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How Brands Can Still Engage the Senses in a Socially Distant World

The ability to engage all the senses has been an integral part of building brands for the past hundred years, particularly luxury ones. Yet the separating nature of the pandemic and the rise of ecommerce means they are in danger of losing their ability to engage all the senses. In a world of stay at home measures, social distancing and reduced browsing opportunities, brands need a new approach.

The immersive luxury experience

Luxury brands have always succeeded through their ability to provide an immersive experience for consumers. From wonderful lighting, an alluring product display and a beautiful carpet underfoot, all set in a glamorous location. Of course complemented by the soothing voice of a sales expert who provides a customer with their full undivided attention. It is a magic formula that helps make a premium price tag seem justified, enhancing a brand’s reputation.

But in a world where populations have been forced to retreat behind doors and spend more time behind screens, the world of luxury has been forced into retreat. These intangible brand qualities simply can’t be replicated in the information heavy online world. The figures paint a stark picture. Worldwide the sector is set to contract by a fifth in 2020. Burberry is perhaps a brand more advanced in e-commerce approach to high end retail. Yet, the company saw a decline in profits of an estimated 80% coming in at £42m for the six months to September. Other luxury brands have also felt the pain. Mulberry has recently announced it may have to close its London stores.

So in a world of social distancing, how can brands adapt and still create memorable customer experiences leading to sales? Particularly in a world where our opportunities to physically touch and engage with brands have been so reduced. A customer has to be taken on a journey, their imagination needs to be fired up and enough interest and excitement should be created to inspire them to make a purchase.

The trusted voice of an expert

Key to this is ‘voice’: Product knowledge and brand advocacy amongst retail sales staff are crucial components to success. Having an advisor who truly understands the product and can close a sale is key, even if this is on the phone in a world of dramatically reduced football. We have also identified a clear pandemic trend of ‘shopping with purpose’ when retail is allowed to open. People are looking to make less trips but ensure they have something to show for it. Therefore a human expert who has the empathy to respond to a customer’s specific needs should be deployed to maximum effect. This is something that cannot be replicated with product information on a website. With these advisors the key advocate for the brand – the process of training these experts needs to be thought through.

Advising the advisors

In a world of social distancing, the way to engage these advisors needs to be reimagined, adhering to covid secure protocols. Brands should focus on reaching these experts through virtual methods. Without the ability to deliver a message face to face, they need to make the experience as immersive and engaging as possible. Training should be gamified and linked to rich online content from their websites.

In a single week during the UK’s second lockdown, Gekko engaged with 1,476 participants from a major retailer, all done virtually, covering 6 unique brands across different categories. The inline sessions were created with the audience in mind and covering an average of 24 products the retailer needed to know about because they featured in the retailer’s Black Friday offers. This approach meant we could actually reach more people than we could ever have in person. It activated an army of advocates to help close vital sales.

A new vision for brands

To complement the advisor, the visual experience is more important than ever in a world where browsing opportunities may be reduced due to hygiene measures. Ensure you are able to bring a product to life visually with great lighting, an appealing display and clearly labelled offers. Once they have been enticed in, keep it straightforward, clean, stand back, encourage play (in a covid secure manner) and keep a great conversation going using open questions to find out more about the customer’s likes and dislikes and needs.

When it does come to effectively demonstrating products to shoppers, creative thinking can pay dividends. With some of the limitations indicated above, brands can take the initiative and facilitate the demo experience. In a ‘purpose-driven’ world we’ve been able to see increases of 28% in conversion rate from demo to sale. There is a golden opportunity for brands to engage all the senses with a shopper determined to make a purchase.

Imprinting a memory

Finally brands should ensure they leave a strong imprint on the ‘memory’. The reality is people are far more likely to remember a bad experience with a brand, so ensure you minimise any opportunity for negative feedback. Don’t leave a poor display or have missing product information. Ensure the product is always demo or display ready. No customer should leave disappointed. Even if it isn’t in stock, the advisor should be able to order it online with the customer able to click and collect or have it posted out. Particularly given the customer’s likely desire to minimise further trips.

Similarly the customer journey shouldn’t end at the point of agreeing the sale. Their hand should be held (metaphorically not literally in today’s world), until the transaction. Advisors should also be on hand to answer any follow up questions about the use of the product once taken home. Often these questions only spring to a customer’s mind after the actual sale has been agreed.

The positive engagement with a brand ambassador or retail sales advisor is the glue that binds a customer to a brand for the long term. This is much harder to achieve online and also crucially never as memorable for a customer in a price-driven environment with far more fickle brand loyalty. Being forced to do things differently and really focus on new creative ways to engage customers is no bad thing. Those that are able to do this effectively and engage all the senses will see the benefit when the good times return.

To read the full article please visit Brand Chief.

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Four positive signals of a happy new year for retailers in 2021

The resilience of retail has been a remarkable success story of 2020 in the face of continuing huge challenges. The pandemic has forced new ways of trading, from the obvious ways of ensuring COVID-safe spaces to rethinking how to target consumers spending the majority of their lives at home. For the retailers left standing, this period of dramatic change will have stiffened their sinews and made them lean, adaptable and ready for when the good times return. There are encouraging signs and we’ve looked at some recent data that provide four signals for real optimism about 2021.

Retailers embrace an omnichannel strategy
The first lockdown came as a hammer blow to the industry. With retail outlets shut throughout the country, consumers shifted rapidly online and overall sales fell sharply . Despite this, the growth in ecommerce couldn’t make up for the volume lost through the doors of physical retail. While the first lockdown was a shock to us all, this time retailers have been far better prepared. The BRC-ShopperTrak footfall monitor for November revealed that footfall across all UK shopping destinations fell by 65.4 per cent compared with the same month last year, due to England’s lockdown. According to the ONS, retail sales volumes last month were 3.8 per cent lower than in October, ending a six months of growth. However the drop was smaller than analysts had expected and sales remained 2.6 per cent above February’s level, in the year to November. This was all the more impressive given lockdown forced many shops to close during the month. Indeed Dixons Carphone’s recently released half year results indicating a strong performance despite the challenges.

This shows the ongoing resilience of retail with retailers coming up with the right enticing offers to encourage spending. They had adapted to the changed circumstances and ensured they could reach consumers instore or at home. In 2020 the old online/ offline dichotomy has become more irrelevant with all brands and retailers needing an omni-channel strategy to ensure they can best respond to the needs of customers. This is the best way to remain relevant and operate in the future.

Pent up demand for physical retail experience
Despite online retail’s undoubted increase of the share of the cake, reports of the death of physical retail have been greatly exaggerated. After each lockdown there has been huge pent up demand in evidence whenever retail has been allowed to operate. This is despite uniquely off putting circumstances for consumers to venture out. Recent data shows a bigger picture of the return to stores following the lifting of lockdown 2, with footfall increasing by over 19.9% as determined consumers returned to stores ready to purchase after weeks away. High streets and shopping centres have been the real drivers of growth, having suffered the most in November.

Our own analysis of consumer behaviour based on in store behaviour, the G-Index,  has continually been updated post lockdown and we now have over 200 responses from around the country in various stores. 47% remain happy coming into stores, while there has been an increase in those feeling cautious. With that in mind, 90% of retailers have staff on the door managing footfall amongst many other measures designed to maintain a safe environment for all customers. They have impressively reacted to ensure they are COVID safe and have made sure they have communicated this to their shoppers. They have responded in a responsible and agile manner and generated enormous good will that will stand them in good stead for the future. After all if people are still wanting to venture out during a pandemic, we can be guaranteed they will flock to stores when we have the vaccines rolled out and no longer have to be scared of strangers.

Capitalising on the new trend of ‘shopping with purpose’
One real trend we have seen during the pandemic is ‘shopping with purpose’. This is consumers wanting to make less journeys out but when they do, not returning empty handed.Our own analysis for December is showing a healthy growth in conversion rate of 51%. This was due to pent up demand and people returning to stores with a real purpose to buy. This is particularly the case with categories like consumer electronics with higher ticket items and people less willing to buy online. We may be less willing to venture out but when we do we want to make it count. Smart brands and retailers have realised this and have really focused on making the most of these opportunities for engagement. A great retail environment and well thought through customer experience is always crucial but never more so than now. Additionally a recent IDC Retail Consumer Insights Survey found that 59% of global customers are likely to shop elsewhere if they can’t buy online and pick up in-store. In comparison, 48% said they’d find another retailer if they can’t see in-store availability online.

The rise in prominence of the trusted sales expert

As we have been beset with Amazon packages we have realised something very crucial through absence, namely the importance of a trained expert to provide guidance and advice. For big ticket items, we simply haven’t been able to get the advice we need with information online perhaps answering the ‘what’ a product does and ‘how’ it works but is never able to respond to our unique reasons of ‘why’ we need it. This has been demonstrated by the impressive conversion rates we have witnessed of demonstrations leading to sales. When parting with a significant sum on considered purchases we want to speak to a human who can understand a product’s role in a customer’s life and make recommendations. A further investment in these experts will represent a smart strategy for the next year.  Of course this advice can also be given on the phone in a world of social distancing and many brands have invested in staff in call centres to answer more specific questions about how products can fit into changed lives.

While the vaccine offers the promise of a return to a more normal life, we will all be changed by this experience. Despite the tough times, retailers have shown the strength and adaptability to respond to customers’ changed needs. As the clock chimes midnight this New Year’s Eve perhaps we can be confident we can mean it this time when we say ‘Happy New Year’.

To read the full article please visit Retail Sector.

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Four strategies for mobile brands looking to build market share in 2021

Revised forecasts from IDC predict smartphone sales will have declined by 12% overall in 2020. Against this backdrop, the traditional approach to growing market share for mobile brands is as dated as music festivals, theatre trips or weddings. Instead, brands have needed to adapt innovative new strategies to weather the turbulence, respond to changing consumer needs and come out stronger. A 2019 playbook simply won’t cut it in a continuing world of social distancing and faded touchpoints. Here are four strategies for mobile brands looking to expand market share in 2021.

Focus on establishing credibility

It goes without saying, but it has been a very tough year for challenger brands, with consumers gravitating towards brands they already know. Market leader Apple has expanded market share in the UK from 49% in October 2019 to 53% in October 2020. In this new environment, it has been very difficult for new entrants to promote themselves and establish themselves in consumers’ lives, especially with the reduction in opportunities to physically see and touch a new product. Consumers will want to invest their hard-earned cash and goodwill into credible brands that they know and are likely to stay. Key to this is a brand that has a great portfolio, strong supporting ecosystem, great customer service and the marketing vision and ability to build a credible trustworthy brand. For those wanting to make inroads, they will need a best in class distribution strategy and the ability to really differentiate and personify a brand.

Build in-store knowledge and advocacy

A vital component for any brand intent on gaining market share is how the brand builds knowledge and advocacy among those tasked with selling the devices. This includes retail sales advisors and contact centre sales teams. When premium devices are pushing £1,000+, the customer also wants to have a touch and play, especially when moving into a new brand. While we are spending more of our lives on digital channels and less in shops, the fact remains that when people are shopping they are doing so with ‘purpose’. In other words, they are intent on buying something. A proof point for this is that we have seen conversion rates of over 40% of product demonstrations leading to a sale. Therefore having the right skilled staff in-store to make the sale on more infrequent trips is critical. Consumers also trust brands they can see in stores, as that lets them know that, as a brand, you are committed to the marketplace.

Being quick to adapt to rapidly changing circumstances

In today’s world, it is hard enough to plan two weeks ahead let alone six months. Therefore quick thinking and flexibility are critical. Brands have needed to adapt quickly to sudden government decisions, such as the two national lockdowns and various local restrictions we have seen. Many of the brands I work with have transitioned their activities back into distance sales with as little as five days’ notice. An omnichannel strategy has been needed with non-physical channels critical in 2020. Despite non-essential retail being closed, effective brand engagement continues through innovative e-learning and e-commerce. Many consumers upgrading or shopping for new devices won’t have the option of heading to the high street so have gone down the online or contact centre route. Brands that have been able to switch to providing virtual training and support to these channels have seen positive results.

Premiumisation is a good long-term strategy

A recent report by Counterpoint indicates that the wholesale average selling price (ASP) of the global smartphone market increased by 10% in 2020 despite a decline in shipments and the decline in premium products was less steep than the overall average. The reason being, there has been less economic impact on premium smartphone users. Huawei is a good example of a brand that established itself in the premium category in a relatively short space of time. To succeed in this marketplace, there needs to be a real focus and clarity on what your brand stands for and where you want it to go. A halo effect can drive the overall success for a brand. Driving customer buy-in at the mid- and low-level remains important, but solely targeting the lower- and mid-tiers will cause problems in the future. This is because you will need to buy your way into the premium market. The unintended consequence is that a brand can find itself in a low tier hole that is extremely hard to get out of.

While the market remains challenging, the brands that succeed are the ones able to adapt and respond to the changing needs of consumers. This customer-centricity is what has underpinned the success of innovative mobile companies over the past decade and will be the foundation for success whatever the next year holds.

To read the full article please visit The Drum.

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Brands Should Focus on Delivering a ‘Human’ Experience in the Brave New World

CXM Graphic

The uncertainty surrounding the fallout from lockdown and consumers’ changed behaviour makes the task of forecasting the future a difficult one for brands. While commentators obsess about the performance of channels and the extent to which ecommerce is replacing bricks and mortar, we are in danger of missing the key factor. Namely the customer.

As the global population responds to the coronavirus pandemic, key trends are emerging, reshaping the consumers priorities and spending outlook in the UK. The real dividing line is between those who respond and offer a great customer experience with those who don’t.

A changed context: New patterns of behaviour established

Every aspect of our life has been impacted. This ranges from the focus on the preservation of health & wellbeing to the renewed focus on the connection with family and friends to cope with the impact on personal safety and security.

Meanwhile, new behaviour patterns for work & play have emerged. We are staying at home to reduce travel and human interaction. This is, in turn, is changing spending habits as consumers adapt and fill their time in new ways.

Brands have had to find a new raison d’etre and are discovering new ways to communicate that emphasise empathy for employees and customers as they go into overdrive to overcome the downturn.

eCommerce can’t offer a true brand experience

While we have remained at home ecommerce has thrived and will be of growing importance. However, the evidence shows online sales will not completely replace lost revenue from traditional retail which needs to be examined.

Online retail sales share increased to 30.8 percent in May and June, however it is forecasted to decrease by 9 percent as stores open. The fact remains customer experience in considered purchases remain important as online can’t offer a true brand experience. Customers still long for the human interaction and advice that comes as part of the bricks and mortar shopping experience.

This was born out by a study we carried out last year that indicated 59 percent of people would always rather speak to a person than an automated system to find out more information about a product. Meanwhile, 73 percent preferred dealing with a human when trying to get a refund.

Innovation tackling safety concerns

So what lessons can retailers and brands take? The circle needs to be squared of people wanting an in-store experience when they are less likely to go to a shop. They also need to have their safety concerns considered when they do venture out.

Interactions can be managed and ideally, some element of browsing can already have been delivered.

Bringing the shop floor to the digital realm

For those more nervous about venturing out, innovative technology can deliver the desired customer experience. For example, Ikea has acquired AR startup Geomagical Labs, driving shoppers to purchase more big-ticket items without needing to visit a store. Geomagical Labs’ key product allows users to scan a room using a smartphone, render that into a panoramic 3D picture, remove all the furniture currently in it and then change the layout of items around the room by adding new items to scale.

This type of innovation and AR more generally will create more engaging digital experiences to help customers accurately visualise their home with new furniture. The same could apply to a whole range of product categories. Smart brands and retailers will be able to gain an advantage through differentiation of this kind.

It’s good to talk

While this may replicate the ‘show’ part of the in-store experience, a gap remains for the ‘tell’ part led by an expert. Retailers need to consider new ways of delivering human interaction, often required with higher ticket items. For example, instore advice can be replaced by training staff in call centres which could replicate the expert advisor instore. The human advice so desired by customers can be given but at a safe distance. This could range from product advice to refunds.

The focus should be a seamless experience delivered across all touchpoints, instead of obsessing about the false divide between online and offline. Retailers and brands need to put the customer’s needs front and centre and understand the need for a human touch. This is the best way of preparing for an uncertain future.

To read the full article please visit CXM.

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Five behavioural trends to take note of as the high street re-opens

The Drum Five Behaviour Trends

The latest signs of economic recovery look promising. So promising that Andy Haldane, The Bank of England economist, believes that the UK economy is growing at 1% a week. The V-shaped recession thought to be unlikely just a month ago now seems to be very much on the cards again.

Retail has been a big motor for this mini-recovery. People have been returning to the high street in large numbers with UK retail sales near pre-lockdown levels in June. According to the ONS, the amount of goods sold last month increased by 13.9% in June compared to May. The trend has continued in July as the reopening of shops supports pent-up demand punctuated with the roll out of marketing activity and campaigns to support retail in its reawakening mode.

The worry remains that the recovery may stall due to consumer confidence dipping. Consumers need to also have their safety concerns addressed. A real understanding of new behaviour is critical to maintaining momentum. So what are the key behavioural trends that retailers and brands should take notice of?

Safety is now the top priority

The starting point for bricks and mortar retailing pre-coronavirus may have been expert salespeople, attractive window displays, in-store offers and branding. Today the starting point is safety. Many shoppers still do not want to venture into public spaces without a purpose. In fact more than half of consumers, who would have shopped instore pre-coronavirus, now believe the risk to be high. This poses a serious challenge for many retailers seeking to draw shoppers back to stores. The focus has to be on reassuring these customers and clearly demonstrating your credentials across all your communications touchpoints.

Late adopters have finally embraced ecommerce

With new fears for safety, evidence shows some consumers intend to permanently change their shopping behaviour. This includes purchasing more online due to the continuing risks of infection. Many late adopters are the new converts to online. They have been slow to adopt online banking and shopping but they have done it now. This has not been driven by choice but due to fear about offline shopping. In fact, shoppers are now four times more likely to shift to online in the long term, particularly if they have health concerns. Local lockdowns like that in Leicester will only serve to reinforce the wariness.

In-store consumers are more likely to convert

The good news is that those who like to shop in person will continue to do so to have a decent customer experience. While online retail sales increased to 30.8% in May they are forecast to have decreased by 9% as stores open. In other words, while online is growing it still can’t fully replace the bricks and mortar experience. In response many brands and retailers have adopted an omnichannel proposition, rather than choosing one over the other. The resilience of instore is more evident in considered purchases and in the CE category where we are seeing consumers shopping with purpose. They are travelling and entering retail with a clear determination to purchase. As a result we are seeing a conversion rates of over 40% of product demonstrations leading to a sale. Naturally, this is determined by the experience and engagement they receive in-store. Therefore, a bad retail environment or salesperson pre lockdown isn’t going to change that post lockdown.

The home will remain our new centre of existence

In response to the lockdown, the reality of working from home has meant a likely shift in the workplace dynamic for many on temporary or permanent basis. Therefore, many technology brands in the market have shifted focus to home productivity and accessories. Retail must take learnings from this to support the initiatives and messaging put out by brands. This will ensure they are able to engage consumers looking for technology to support their change in working habits and in turn grow with the trend. As we spend more time also that clear winners throughout and ongoing are food retailers and also home stores with many opting to tackle home improvement projects whilst in lockdown and on furlough.

The rise in demand for appointments

As we are moving from a browsing culture to a purpose driven one, we are going to see the rise of the appointment booking. This will certainly be the case in the considered purchase space. It seems those who commit to the appointment do so with a clear intention to purchase within the set appointment duration. This trend seems to be speeding up the customer journey and increasing much needed sales.

To succeed in this new environment retailers need to be creative, follow the trends and create a customer experience worthy of a sale.

To read the full article please visit The Drum.

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Let Me Engage You

LMEY

Our experience of working with tech and CE brands in retailers such as Currys and John Lewis has taught us that engagement with RSAs doesn’t have to complete once our brand ambassador has left the store.

At the beginning of the year we invested in developing our own digital Learning Management System (LMS) and engagement platform to extend the support Gekko provides for brands beyond the physical store. With the subsequent lockdown and challenges of getting back in-store, we’re glad we made that decision and are now pleased to be able to offer this innovative service to brands.

Let Me Engage You or LMEY is aimed at third party retail sales teams, whether based on the shop floor, in contact centres or online sales teams. As a fully brandable platform, LMEY can supplement the face to face engagement and training provided by field teams as well as extending reach to retailers, stores and regions not covered by such teams – a ‘digital first’ approach.

Speak to us and let us show you how we can make LMEY work for you an inexpensive and effective tool.

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Gekko expands with key senior appointments

New Recruits

Gekko, a field and retail marketing agency specialised in enhancing the shopper journey on behalf of brands across both the physical and digital retail space, has made four key appointments as it invests in new initiatives to drive growth for the business and clients and reflect the current retail landscape.

Jeremy Daniels has joined as a senior Account Director for the business where he is responsible for directing and expanding the agency’s strategic partnerships with key clients. With a wealth of experience in the Telco sector, Jeremy brings not only industry knowledge and commercial acumen but also the drive to spot and maximise sales opportunities. His most recent role was managing the UK launch of Xiaomi into key retailers as well as the distribution channel. Previous roles have been at LG Mobile, ModeLabs and Kondor. 

Coming from Oppo Mobile, Wilkin Lee joins as Client Services Director to oversee all strategic client relationships. Recruited for his tech industry experience and understanding of the retailer landscape, Wilkin will ensure that as the business grows, that clients continue to receive the strategic support and commercial direction they need to succeed in retail both online and in stores.  Aside from Oppo, his career has seen him in roles at industry leading brands including Xiaomi and Huawei.

To lead Gekko’s data and reporting team, Tom Harwood joins as Data & Insight Manager from within the retail industry having worked at QVC and Cotswold Outdoor.  His role is to provide campaign, category and marketing information and analysis to Gekko’s portfolio of clients and the retailers they partner.

Finally, to expand Gekko’s ecommerce marketing capabilities, extending and complimenting the services provided to clients from traditional retail to the online retail space, Charles Burrows joins in the newly created role of e-commerce manager. By understanding the online retailer environment in relation to third party e-commerce sites and Original Equipment Manufacturers (OEM) positioning of brand products and messaging, Gekko will now be able to direct and guide e-commerce strategies and improve sales opportunities with customers and retailers. Charles is a digital expert with many years’ experience in the Gaming and Telco sector including roles at EE and Carphone Warehouse

Commenting on the appointments, Daniel Todaro, MD, Gekko said: ““During this pandemic, we’ve seen the increasing trend of the contraction of brick and mortar retail expedite.  As a company that specialises in helping brands be more successful in retail, we’ve spent this time working closely with our clients to establish how best we can continue to help them to thrive across both bricks and mortar channels and e-commerce to improve the customer experience and sales.  The above additions to the team will help us to strengthen our business and deliver on our promise to clients and demonstrates Gekko’s resilience and adaptability during the lockdown by deciding to invest in leading industry talent”.

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Covid-19 is temporary, but attention to the environment must be permanent

The Drum Covoid is Temporary

We’re living in a society where we’re constantly encouraged to do ‘better for the planet’. And I don’t disagree. But we’re at a point of inflection when a lot of people don’t know what’s best for the planet. From fake news to real news – it’s information overload everywhere you turn.

Recycling your plastic should be simple, but that’s another article depending on where you live and which type of plastic it is. Buy more sustainable products. Shampoo in a block is great if you have the money to buy more expensive products.

And there’s the biggest conundrum for most people when we’re thinking about the environment and greenhouse gas emissions. If I order online for delivery am I burning more carbon than necessary? Or is it more environmentally friendly to go to the shops, buy a less environmentally friendly product but save the delivery van a journey? How we expect people to know the answer, when many of us in retail don’t know it, is beyond me! It’s all rather complicated.

The impact of FMCG

I read an interesting study from the American Chemical Society that looked into the estimated emissions created by UK sales of FMCG goods, typically low-priced toiletries, packaged foods and cleaning supplies. Although shoppers have traditionally bought these items at brick and mortar shops, online sales are increasing.

The study compared the carbon footprints of three different shopping practices: old fashioned ‘bricks and mortar’ shopping and the two main forms of e-commerce, bricks and clicks and pure play (which both have different supply chain configurations). Included in the three models were emissions from transport, warehouse storage, delivery and packaging.

The results showed that the total emmissions per item purchased from bricks and mortar retailers were higher than bricks and clicks vendors in 63% of cases, but lower than pure play in 81% of cases. It appears that more items are usually purchased from bricks and clicks retailers is used and this leads to a smaller carbon footprint per item than for the same shopping trip via a brick and mortar retailer. Another factor is, of course, that one van driver bringing multiple deliveries into one area will create fewer emissions than all those people driving to the shops.

The study made some clear but obvious recommendations for consumers for cutting emissions across all three shopping categories: walking, cycling and trip chaining for brick and mortar; and purchasing from a single retailer and bundling for bricks and clicks and for pure play online retailers. Importantly for pure play businesses – whose share of the FMCG category is on the increase – switching to electric cargo bikes could cut emissions by 26%.

I’ve tried to simplify what is actually a complex study, but it does highlight the dilemma and responsibility we have as consumers and retailers to the planet. In a recent online shopping survey we conducted among 2,000 consumers, 73% said they were concerned about the environmental impact of excessive packaging, 75% single use plastics and 42% multiple deliveries to one address. There is a clear will from consumers to want to do better for the planet but it’s far too complex for them to work out how. So, retailers, trade bodies and governments need to do more to educate consumers so they can make the right choices not just any choice.

Our current Covid-19 situation is only temporary, so my mantra as we come out of the other side of it is just to take a little more time to think before you shop.

To read the full article please visit The Drum.

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