Tag Archives: Opinion

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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Back to the future: Retailers need a new approach for winning customers

The easing of lockdown measures, although slow and steady, has come as a welcome relief for retailers. We can now work towards rebuilding through the eventual easing of all restrictions.

While the lockdowns have been long and painful, the appetite to return and shop in-store remains strong. But it would be naive to just act as though it was still 2020 in reopening and returning to the same plan. It is incumbent on retailers to recognise how consumers have changed their shopping behaviours.

Successful retailers have always understood the motivators and triggers for different customer groups and then offering an appropriate, tailored approach. This needs to be recognised and acted upon.

We recently took the temperature of the nation with a survey of changed shopping behaviours – with some interesting and encouraging results. The vast majority polled (70 per cent) revealed they were planning on visiting stores as much, or more than pre-pandemic. Only two per cent of respondents said they wouldn’t return to the high street. But digging into the detail we can start to see some distinct trends within this.

Localism remains strong

A new appreciation of localism has been one big factor that has brought our communities closer and changed perceptions that local perhaps meant less choice, as 35 per cent of respondents said they have purchased from a local or independent store that they would not have done pre-pandemic.

Meanwhile, the expectation might have been the very oldest might be the most loyal to the high street; interestingly, 35-44 year olds in our survey were the most loyal.

With the different factors motivating consumers to return to shops, 27 per cent of over-55s said the enjoyment of shopping was the thing they were looking forward to most. But this compared with only 15 per cent of under-55s. 81 per cent of respondents cited convenience as a key factor; this trend was most prominent in 18-24 year olds.

There is potential for physical retailers to target younger consumers with a focus on the unparalleled customer experience in-person shopping can achieve.

Flaws in online

Despite the huge choice online, the idea that consumer behaviour has been entirely different digitally was somewhat dispelled by the research. 49 per cent of respondents said they mainly shopped from the same stores online that they always used to visit offline.

But our research also really highlights the flaws in the online experience. A massive 58 per cent cited issues with ordering as a key disadvantage to online shopping. Interestingly, issues with orders was selected most prominently in people aged 34 and under.

Those most concerned by returns were 55-64 year olds in comparison with 18-24s who were least concerned. This highlights the different ways people have been brought up shopping. Given environmental issues are a concern to younger shoppers, we should perhaps emphasise more the fact physical retail can reduce a consumer’s carbon footprint.

A hybrid approach

Rather than just focusing on one channel now at the expense of another, if the pandemic has taught us anything it is the strength of having a hybrid omni-channel offering – being agile and flexible to respond to changing customer requirements.

Certainly consumers seem adept at mixing and matching their in-person and online shopping. For example, 38 per cent would use new online skills to research an item online and then buy it in-store, and over-65s are the most likely to do this (54 per cent).

This underscores the need for a joined up brand and retail experience. This is particularly the case with the considered purchase sector; as we came out of previous lockdowns, consumers have shown a willingness to ‘shop with purpose’ in- store for items they have researched online.

As we return to something akin to normality, it is clear just rolling out a 2019/2020 strategy won’t cut it. The desire for physical retail is there, but we need to understand people’s changed realities.

Retail is one of the most dynamic industries, and changing to meet the needs of consumers has been the hallmark of great retailers in the past and will be tomorrow. Let’s get back to the future.

To read the full article please visit ERT.

The photo that accompanies this article is by Kaique Rocha from Pexels

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Boosting your productivity and mental health for home working

While we may have wanted to start the year on a positive footing and ready for the new working year, the latest lockdown has made this a challenging time. For those able to work from home, it can be difficult to differentiate or define mentally and physically the difference between where you work and where you relax. With so many now having to face up to home schooling this adds a further layer of stress on an already tricky situation. But one consolation might be – we really are all in this together.

The New Year remains a good time to develop new positive habits and also recognise the bad habits you may have picked up. Let’s make the best of the situation and work from home productively while looking after our mental health.

Here we have outlined a few tips and tricks Gekko have used with our teams to manage and achieve the best work life balance with all our lives being within four walls.

Create a ‘home office’, however small

You may well have begun the first lockdown with a dedicated home office. Over time you may have witnessed ‘office creep’, increasingly working from the sofa or checking emails in bed. Have a renewed focus on creating a place you can separate from the rest of your home life. This will psychologically create an important distinction enabling you to switch between home working and home living. If you are able to use a separate room, close the door when the working day is over. This will help the active brain switch off from the thoughts of the working day.

However many don’t have the option of a dedicated working space but we can still apply the same methodology. Make sure you switch off the laptop, ipad or work phone and put them in a cupboard or drawer. Having a laptop out of sight will help put it out of mind meaning you can enjoy your evenings without being distracted. Make sure you do it every day to embed this as a habit. This will be your own version of leaving the office at the end of the working day – without the commute to have to contend with.

Support your posture, your lap shouldn’t be your desk

Working from home means it is all too easy to have no barrier between work and playtime. The ‘soft office’ is a phenomena that has developed throughout the country with a couch replacing your chair and your lap becoming your desk. This of course is bad for your posture. Look to find a more sturdy working space one that may emulate your office set up and ensure you have a chair that supports your back properly. One great tool is Upright Go, which can track and train your posture. This app also provides a visual representation of how you look when you are working. This can be eye opening.

One option is a Standing Desk for your Laptop. These are adjustable to suit any height and will bring your laptop to eye level, which is also perfect to present and work at.

For those using a monitor rather than a laptop screen there are great affordable options for a home office out there. Many brands have a range of different size monitors at reasonable price points to suit any task and will help you to lean into your laptop screen less.

Have a test week to monitor your productivity

You may have put boundaries in place when you first started working from home but over time they may have disappeared. These might be languishing alongside those plans to learn a new language or play an instrument. If they have, take some time to figure out out how you feel most comfortable and the ways you work which make you most productive. You might even start off with a test week where you assess your productivity and how long you are spending on different tasks.

One great exercise is monitoring how long tasks take. You can use a laundry cycle to monitor how long you have focused on one piece of work. Activity trackers like Rescue Time or Clockify are great for showing exactly where your time goes. You can even get Alexa or Google assistant involved. Set timers to get them to remind you to move onto another task or manage your workflow throughout the day.

Don’t skimp on breaks – schedule them in

If you have been working from home for a while it is easy to forget what a usual day in the office looks like. In some ways it is harder to take a break without the natural conversations with colleagues etc to break up the day. The day marches on without notice meaning lunch is grabbed on the hoof between calls. Also it is also possible not to see any daylight, particularly in winter months. This can all serve to burn you out, meaning you become less productive.

Combat this by planning your days in the morning. Add in breaks where you may have had them when working in the office. Your Fitbit should come in handy for this. You will be able to set reminders to take a break and track your steps. If you don’t make your 10,000 steps during the day it is the perfect excuse to get back out once the working day ends. One technique to look at is The Pomodoro Technique. This technique uses a timer to break down work into intervals, traditionally 25 minutes in length, separated by a short break. This can help you reset your mood for five minutes with some soothing music or a set time to grab a cuppa or fill up your water bottle.

Boost your mood and steps with on the go meetings

Working from home can certainly feel isolating, particularly for those used to an office environment. However remember your other colleagues will likely feel the same. Schedule times for an all team video call or even walking meetings to catch-up. You can increase your steps and even set team challenges.

If you know you do not need to be in front of a screen for a meeting why not use it as a chance for some exercise? It can be a real win/win. Grab your trainers and ear buds and go somewhere quiet while participating in the meeting. Just make sure it is somewhere you can get good reception and limited background noise, just hit mute when you’re not talking and remember to unmute when it’s your turn.

Working from home may have its positives but it’s not always easy. Remember to not be too hard on yourself while adapting to changes you can’t control. The great thing about lockdown is it creates an opportunity to work ‘your way’, whether listening to your music or taking breaks when you want. Make the best of the situation to embed some positive new habits while working from home, even one change will make a difference.

To read the full article please visit Bdaily.

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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.

The photo that accompanies this article is by Sam Lion from Pexels

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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.

The photo that accompanies this article by Tim Mossholder from Pexels

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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.

The photo that accompanies this article is by Porapak Apichodilok from Pexels

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Smaller suppliers need the support of big business like never before

Fresh Blog

Small British businesses are facing an existential crisis like never before on the back of COVID 19. Recessions bite slowly and in those circumstances small businesses can see and plan for every eventuality across sales, cashflow, headcount etc, but this virus has hit us like a bolt out of the blue and a lot of small businesses have seen revenue ravaged literally overnight and that’s both consumer and b2b.

So now more than ever big and small business need to work together.  This is no longer about David and Goliath, but the fabric of the business ecosystem that keeps this country afloat and people able to feed their families.  Often small businesses find themselves in situations where they are scared to ask for help or argue with big business in case they lose a contract – but this isn’t the time for self-deprecation, it’s fight for what’s right.

Big brands often have more support and cash to deal with such challenges yet many are pulling deals, campaigns and agreed contracts at a stroke.  And having been in this situation myself here’s my advice when faced with big brands not playing fair.

Practice what you preach:

If you own your own business, you are in charge of your own destiny and the people that work for you.  Rather than shareholders telling you what to do, in these unprecedented times, you do what’s right.  Be proud of the strategies you are implementing and articulate clearly to big business – especially if you’re currently operating not for profit so you can keep your team employed.

Scalability:

If big businesses want to stop contracts overnight, push them with alternative solutions like scaling down spend slowly rather than switching it off immediately, paying a proportion of fees for their next project.

Don’t believe the Hype:

Diageo has this week announced a $1million pot to help its on-trade customers through these difficult times, so it is possible for big business to put people before profit. Don’t be fobbed off, keep working with them on a solution that works for them and you.  They also have a moral duty and it’s incumbent on them to do their bit to support you.

Unscrupulous brands who turn their back on their responsibilities, relationships and partners are the brands that need to be called out. When they act in this manner, they also fail the consumer as the brand values that portray in their marketing are the antithesis of the brand values they trade on.

To read the full article please visit Fresh Business Thinking.

The photo that accompanies this article by fauxels from Pexels

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Why millennials are ignoring the environmental impact of online shopping

The Drum Blog

As high street retail continues to deplete and more people shop online, increasing to 19% of all retail sales in December 2019, a new report by retail marketing experts Gekko shows there’s increasing consumer concern about the environmental and societal impact of this transition and a marked difference in attitude depending on age.

The younger generation may tout their eco credentials but they are more easily lured into wasteful spending and shopping online with over half (53%) of 18-24 and 46% of 25-34 year olds admitting to being tempted into buying things they don’t need online, with just 19% of canny 55+ year olds saying the same.

More than five times as many 18-24 as 55+ year olds admitted to regularly buying goods online that they regret, so return them – 17% versus just 3%. And 45% of 18-24 and 42% of 25-34 year olds also admitted to being wasteful buying items they didn’t want and failing to return them, compared to only 17% of older consumers.

Surprisingly and despite the high profile of Extinction Rebellion and Greta Thunberg, younger shoppers make less conscious choices than some may think about the environmental impact of online shopping versus older consumers. In general, 73% of consumers are concerned about excess packaging associated with online purchase and deliveries and 74% are worried about the amount of single use plastic in packaging.

However, just over a third (38%) of 18-24 and 33% of 24-35 year olds are unconcerned about the use of excessive packaging. This compares to 19% of over 55 year olds. And despite it being such a huge national issue and talking point over the last year, 34% of 18-24 year olds and 31% of 24-35 year olds aren’t concerned about single use plastic, versus 19% of over 55 year olds.

Even the gig economy does not seem to be a problem for the generation arguably most likely to be more exploited by it, with 50% of 18 to 24 years olds unconcerned about online shopping increasing it versus 33% of 55+ year olds. And 44% of 18-24 year olds don’t fret about the impact on the High Street and local economy of online shopping, versus 23% of 55+ year olds.

According to Daniel Todaro, MD of Gekko: “Younger generations spend more time online and are therefore less inclined to resist that impulse buy. They are far more likely to buy things they regret, order more than one size, items they never intend to keep and send the goods back, but this convenience has an environmental impact.

“The future of the High Street is a vital societal component and offers a more ethical approach to shopping. If you can try before you buy there’s less transport, packaging and waste without the need to order multiple sizes or colours of the same item. The High Street sustains the heart of a community, no shops means no point heading to the High Street – there’s only so much coffee a community can afford or want to drink.”

Please visit The Drum to read the full article.

The photo that accompanies this article is by Mister Mister from Pexels

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Do millennials ignore the environmental impact of online shopping?

gekko-retail-marketing-new-gekko-survey-finds-the-majority-of-shoppers-have-returned-to-stores

As high street retail continues to deplete and more people shop online, increasing to 19% of all retail sales in December 2019*, a new report by retail marketing experts Gekko shows there’s increasing consumer concern about the environmental and societal impact of this transition and a marked difference in attitude depending on age.

The younger generation may tout their eco credentials but they are more easily lured into wasteful spending and shopping online with over half (53%) of 18-24 and 46% of 25-34 year olds admitting to being tempted into buying things they don’t need online, with just 19% of canny 55+ year olds saying the same.

More than five times as many 18-24 as 55+ year olds admitted to regularly buying goods online that they regret, so return them – 17% versus just 3%. And 45% of 18-24 and 42% of 25-34 year olds also admitted to being wasteful buying items they didn’t want and failing to return them, compared to only 17% of older consumers.

Surprisingly and despite the high profile of Extinction Rebellion and Greta Thunberg, younger shoppers make less conscious choices than some may think about the environmental impact of online shopping versus older consumers. In general, 73% of consumers are concerned about excess packaging associated with online purchase and deliveries and 74% are worried about the amount of single use plastic in packaging.

However, just over a third (38%) of 18-24 and 33% of 24-35 year olds are unconcerned about the use of excessive packaging. This compares to 19% of over 55 year olds. And despite it being such a huge national issue and talking point over the last year, 34% of 18-24 year olds and 31% of 24-35 year olds aren’t concerned about single use plastic, versus 19% of over 55 year olds.

Even the gig economy does not seem to be a problem for the generation arguably most likely to be more exploited by it, with 50% of 18 to 24 years olds unconcerned about online shopping increasing it versus 33% of 55+ year olds. And 44% of 18-24 year olds don’t fret about the impact on the High Street and local economy of online shopping, versus 23% of 55+ year olds.

According to Daniel Todaro, MD of Gekko: “Younger generations spend more time online and are therefore less inclined to resist that impulse buy. They are far more likely to buy things they regret, order more than one size, items they never intend to keep and send the goods back, but this convenience has an environmental impact.

“The future of the High Street is a vital societal component and offers a more ethical approach to shopping. If you can try before you buy there’s less transport, packaging and waste without the need to order multiple sizes or colours of the same item. The High Street sustains the heart of a community, no shops means no point heading to the High Street – there’s only so much coffee a community can afford or want to drink.”

To read the full article please visit BDaily.

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