Tag Archives: Opinion

Dec 21 2022
Leave a comment
Posts

Adapting For The Peak Season & Beyond

The Festive period is here and every retailer is gearing up for a rather different Christmas than we may have considered normal, the Christmas cookie-cutter approach is no longer relevant and adapting to your local audience is critical to success. We are living in a time of significant disruption and reimagined stability, requiring an updated approach to brand communication in sync with our times, a more cost and sustainable time. Established brand value propositions built up over many years are increasingly becoming irrelevant in a world reeling from a pandemic, a nonsensical war in Europe, embedded inflation and a recent economic crisis. The retail environment we all knew as recently as 2019 is becoming more like a faded memory of a bygone era.

The question is do brands and retailers need to redefine their appeal to stay relevant to a shifting consumer appetite based primarily on economic and environmentally, socially relevant trends? Particularly when facing a predicted period of prolonged economic downturn throughout the world, making the most of this festive trading period is essential in order to capitalise on the nation’s consumers’ appetite to shop either for themselves or as gifting.

A New Paradigm

Due to the change in how we lived that we experienced recently, the legacy lives on and our needs have been radically redefined. The pandemic’s cultural legacy has been a shift to a life where many of us are at home more and need products and services that cater to a new stay-at-home existence.

Meanwhile, the aftershocks of the pandemic and political instability and market fluctuations have caused enormous inflationary pressures impacting many. This has created a new economic reality where affordability trumps desirability in the purchasing behaviour of millions. Including those who perhaps considered themselves more ‘well off’.

The climate crisis is also front of mind and certainly hasn’t dissipated despite the more immediate worries. Events like COP 27 educate us to do more by increasing awareness and encouraging changes in living habits.

For every retailer, a new brand playbook is needed for this new age. Our understanding of consumer behaviours is understood better through research. A recent study we conducted with YouGov pointed to five key motivating factors driving consumers’ intent to purchase. These may assist to ring in the cheer for your store during this ‘peak’ period.

1) Affordability

In a survey of 2,000 consumers, we asked people what were the key drivers that would persuade them to make a considered purchase? The number one reason, perhaps unsurprisingly, was that it was within their budget. I recently spoke at the ERT Turning Point conference alongside AMDEA, the body that represents the white goods industry in the UK who did some research in relation to the Eco buttons on washing machines and dishwashers etc.

They revealed it was saving consumers on average £90 a year. They now really highlight this facet to drive consumers in-store to purchase their members’ products. Knowing that affordability is a critical criteria for consumers, brands can smartly promote the long-term savings they can offer. Perhaps paying back the cost of the appliance within five years. When you multiply these savings across several appliances in the home, you can see how the savings increase.

Furthermore, the energy-saving ‘eco’ modes can provide a win/ win of appealing to sustainability-minded consumers, particularly Gen Z, who also want to save money and the planet, as we all should be focussed on. Retailers can also benefit by highlighting appliances with these features as part of their promotional marketing as more and more consumers are having to rely on eco settings to reduce energy bills.

2) Essential Trumps Desirable

For 73% of consumers in our survey, the idea that a product was ‘essential’ was a key reason they would consider a considered purchase. Therefore positioning your products ranged as ‘essential’ items in the psyche of your target audience is important as part of the marketing mix.

Perhaps the days of assuming there is an implied need for the categories are no longer relevant due to changing consumer lifestyle and habits. Disposable income in all households, even middle earners, is becoming more scarce. They may want a product. That desire may be there. They may covet it. They may feel that they need it, but unless it’s absolutely essential and integral to their life, they are not going to buy it. At least not just yet maybe, unless you can convince them otherwise. Think about how you do this.

The lesson is therefore highlighting why your ranges are ‘essential’ to their needs. It is not so much that it may be that there’s an offer but more, how do they add genuine value to their lives? Why is it potentially going to be a product they can’t live without? Tapping into the primal needs of the user in these turbulent times is a way a retailer can craft their story and resonate honestly with their target audience.

3) Durability

As an extension to being essential, people will need to feel that the item that they are buying from your store is built to last for more than the lifespan of your average reality star.

Rather than offering a lifestyle associated with a brand, as retailers, you can focus on the quality of the products you are selling them. This should be the starting place for a conversation about a brand and how it will last for someone whose budget is going to be squeezed for some time. The hardiness of your product, particularly for those more expensive items you may range, is crucial. No one likes being mis-sold an item but people are far less willing to tolerate buyer’s remorse in a recession. Dob this at your peril, as it’s likely that you’ll never see that customer again

Consumers are also now genuinely asking, why do I have to pay more for quality? Surely, even if I’m buying at the entry-level of the range, it should still be a quality product. The craftsmanship of its build and robustness need to be communicated to the customer clearly and honestly by your staff to all without bias. 

Indeed we are now in a new reality where brands have to accept quality and durability is delivered at a more affordable price point. Certainly, if they want to maintain market share. Losing market share in a downturn can be very difficult to recover from when times return to being good. Long-term thinking needs to trump short-termism. This changes the way in which you sell to your customers of all demographics.

4) Sustainability

The longer something lasts, of course, the more sustainable it is. Sustainability is a huge driver for younger generations. In our research sustainability came through as a top driver of behaviour for 23% across all age groups and rising significantly to 38% for Gen Z. 

Far from moving away from this priority at a cash-strapped time, consumers are in fact doubling down. Indeed new research from SAP reveals that despite the cost of living, over half (52%) of UK consumers aged 18-34 are actively looking to shop more from retailers with strong sustainability credentials this Christmas.

They want to understand that a product is not destroying the planet. This is not greenwashing but also understanding this generation will do their research about the full life cycle of a product. The good news is the extent to which communication forms part of the sales process enables these factors to be included in the discussion. If something can save money by assisting less energy use or being more durable, it is therefore more sustainable and solves many current consumer concerns.

5) Innovation

Finally, innovation is the other key driver of consumer purchasing behaviour in the current climate. Indeed innovation plus value has also been a winning facet of the trend for air fryers. Indeed according to research by price comparison website PriceRunner, demand has soared by 3,000 per cent since 2021. This an opportunity to be understood and embraced to appeal to your consumers this gifting season.

However, critically the air fryer answers several other current consumer needs states. We, post-covid are eating at home more and it is a way of getting your family and your friends and getting your kids involved. It is also healthier. This addresses the growing trend for healthier versions of popular meals.

Most crucial to the surging trend though is the value proposition. The money that can be saved through cooking at a time of rising energy costs is significant and of course energy efficient. This is why we can be sure that this may be one of the most popular Christmas gifts this year as already on Black Friday it became a sell-out line in numerous brick-and-mortar stores and online with Curry’s stating they sold more than 18,000 during the week of Black Friday.

In summary, retailers do need to recognise changed behaviour and a new paradigm on the back of a series of interconnected trends and crises. These centre on changed lifestyles that are more based in the home, a growing movement for sustainability and most crucially the need to save money.

Consumers simply won’t invest in the way they did before, meaning retailers need a laser-like focus on their customers’ new needs. The narrative a retailer needs to highlight is value for money, why it’s essential, the product’s durability, sustainability and its innovation.

To remain relevant as we face an economically challenging climate is tough.  For some, this will require a radical step change. For others, it’s underway and the new normal.

To read the full article by Dan Todaro, Managing Director please visit ERT Online

Photo by Carl Raw on Unsplash

Tagged , , , , ,
Nov 21 2022
Leave a comment
Posts

How retailers can win customers in a more challenging climate

As we enter this critical quarter for retailers, they are faced with a series of new challenges dampening consumer confidence. The impact of inflation with consumers facing real term pay cuts, the impact of increased energy costs and now surging mortgage costs on the back of a disastrous mini-budget, which the effects are unlikely to be reversed as quickly as they were created. 

A headache-inducing cocktail of challenges in this critical time for boosting the bottom line. Yet retailers have shown remarkable resilience and adaptability over the past two years to continue to offer customer-centric strategies. They will need these qualities to continue to survive and thrive. 

So how to react? In a recent study we carried out in conjunction with YouGov, we wanted to look at the impact of this inflationary period on consumer behaviour. What are the drivers of purchasing in these challenging times and what is the impact on cross category purchasing? By understanding the motivations of different consumers at this time retailers can ensure they truly focus on their needs. Those that do will be rewarded.

Consumers cutting spending on essential items

The research highlighted that the cost of living crisis is being felt at the sharpest edge by those on the lowest incomes. Many are struggling to afford the basics as energy bills have rocketed, despite the support package now being provided.

For essential household items, more than 2 in 5 respondents revealed they had reduced their spending (43%). Of these, 1 in 3 (32%) have cut spending on essential household items by more than 15%. 3% have cut spending on essential items by more than 50%.

There are some significant variations, based on gender, location, age and financial situation. 48% of women have reduced spending on household items, vs 38% of men. Of those who have reduced their essential household spending, home owners (of any type) are the most affected, with 63% saying they had cut spending by up to 15%, compared to 51% of renters.

Londoners are least likely to cut spending significantly. Of those who have reduced their spend on household essentials, just 2% of Londoners are cutting spending by more than 50%. Meanwhile in the East of England this rises to 6%, and 7% in the North West.

This highlights the uneven nature of the situation and the need to not have a one size fits all strategy in communicating with audiences.

Spending plummets on big ticket items

For considered purchases, 52% of 18-24 year olds have cut back on spending, compared to 68% of 25-34 year olds and three quarters (75%) of 35-44 year olds. The categories hit hardest by a cut back in spending of consumers of these goods are: Consumer electronics and homeware and home furnishings with 61% of consumers of these goods reducing spending. Next was Clothing & apparel 60%, DIY and garden, 50% and Baby and child, 41%. As the cost of living increases and the ability to secure a new mortgage or afford the one you already have will impact further the decision factors around a considered purchase.

The factors driving purchases in today’s climate

Of those factors we know that are driving purchasing behaviour for more expensive items. In today’s environment the number one factor driving a considered purchase is that something is within budget, 69%, durability/ being fit for purpose was next, 52%. Third in the list was sustainability, still favoured by 23% of respondents. Brand awareness was considered by just 13% of respondents. For Gen Z (18-24 year olds), the result for sustainability was far higher at 38%.

Millions of consumers looking to switch brands

Another key takeout is that brand loyalty has plummeted in the current climate. 60% of people would switch brands for essential items and 48% of people revealed they are more likely to switch non-essential considered purchase brands.

This suggests the need for a tailored approach for brands to remain relevant in the current environment. Ephemeral qualities like brand values seem less important when people are rightly concerned about affording bills.

Quality and price consideration crucial

The focus in generating sales and retaining customer interest should be price and durability as the two key factors driving buying decisions. People still need big ticket items but necessity trumps desire in the current environment.

However, it is important for brands to have expertly crafted messages for different audiences.  with sustainability still crucial, in particular for younger audiences. Having the right tone and audience-centric approach will help brands and retailers remain relevant and necessary during the next few months.The results reveal the cost of living crisis has had a dramatic impact on consumer spending at all levels. It highlights that there is a real need to focus on value and  longevity to win customer loyalty with the need to craft audience-specific messages like never before. If retailers and brands keep this in mind, without the need to apply offers, they can still thrive amongst the turbulence and uncertainty. 

To read the full article by Dan Todaro, Managing Director please visit Retail Sector

Photo by Rachel Hannah Photo on Unsplash

Tagged , , , ,
Jul 29 2022
Leave a comment
Posts

How physical stores can ensure they are refit for the future

The events of the past couple of years have accelerated the pace of change in the retail industry. Retailers have simultaneously had to react quickly to events out of their control, while also embracing the ongoing trends that were clear even before the pandemic hit.

The role of the physical store has been one of the biggest topics in the spotlight. The absence of stores during lockdowns created two slightly paradoxical trends. Firstly their importance was maintained and even strengthened in certain ways. 

With the growth of ecommerce during the lockdown era, some feared that the writing was on the wall for traditional bricks and mortar retail. These concerns, however, were short lived as shops re-opened their doors and visitors flocked back. 

Yet at the same time, the need for change in the industry was also apparent. Ecommerce was embraced by everyone, even the most hardened luddites, meaning physical retail needed to redefine its purpose. 

According to ONS figures, online share of retail has consistently fallen since its peak back in February 2021. Still far higher than the pre-pandemic level of 19.9%, but with the balance restored somewhat by the opening of the high street. So the demand remains strong yet evolution is required to keep up with the pace of this new retail world environment.

The return to prominence has been so strong that the idea of growing a bricks and mortar presence has become a priority for both existing and new entrants to the market. Many previously online only retailers are developing ambitious plans to expand their portfolios. Amazon itself is reportedly planning on rolling out 260 Amazon Fresh stores across the UK over the next few years in a challenge to the existing grocery hegemony and an effort to make a physical imprint in the market.

So with more stores on the agenda for many, and occupancy rates back on the up as footfall gradually rises once more, how do they need to adapt to succeed in this current retail landscape?

Play to their strengths

Consumers have grown more used to utilising both online and offline channels when shopping. Our own research found that 85% of people now research online before heading to a store to purchase. As a result, they are looking for a shopping journey combining the ease of online browsing, with the added ability of being able to try things for themselves and ask for real advice when needed.

Retailers need to ensure they have the most in demand products on display, with all the relevant information at hand, so customers can enjoy getting to know their potential product with ease. Better yet, have knowledgeable brand advisors on hand to answer any questions and demonstrate useful features.

This part of the store experience should be built upon by retailers and the brands they stock as part of wider omnichannel improvements. Invest in improving these elements for the customer in order to create a positive shopping journey, playing to the true strengths of the store. This includes ensuring they truly understand what makes your retail space both an efficient and enjoyable place to be. 

Incorporate your online channels

Store expansion does not mean you can forget about the online channel, in fact customers are now expecting their interactions between the two to be seamless.

Consumers should be able to look on your website or app and see product availability in the store they are heading to. Offering an immediate connection to the store keeps the customer on side and more likely to remain loyal in their hunt for an item.

Physical retail can also now play a huge role in online order fulfilment by being a base for deliveries and click and collect orders. Complement this with accessible pick up points so that online customers are satisfied with their entire omnichannel shop, while also helpfully adding to your footfall figures.

Embrace technology

We have already touched on how technology might help create a better shopping experience, but there remain many opportunities to embrace it in physical retail.

For example, utilise your app to connect users to their store experiences through better personalisation, stock locations, or further product information.

One brand who are great advocates of this approach is H&M, which has started to roll out tech-enhanced shopping experiences in its COS stores. With seamless payments, personalised recommendations, and even a smart mirror that allows customers to request further items without leaving the changing room.

Offering these convenient elements will help the customer feel empowered, valued, and much more likely to make a repeat visit, while also giving you insightful data. Be forthcoming with the information that matters to them, otherwise shoppers will disengage and look elsewhere for it.

Think differently

Stores have the ability to excite and energise in real life better than any other channel, which is why we are seeing collaborations, new events, and online retailers joining in the physical experience.

Online star Bloom and Wild has been opening up a series of pop-up shops around the UK, utilising a bricks and mortar presence to give customers a real view of the plants on offer, with experts on hand to guide and advise. In terms of real engagement, the value of physically promoting your brand in a busy retail area cannot be underestimated.

The idea of the store ‘as an experience’ has grown to such an extent that it expands beyond just individual stores and into entire areas. The new Battersea power station shopping district will be just one example of the new type of retail district. A hybrid of Apple offices, event spaces, shops and hospitality. The combination of which looks to be the key to a bright outlook on high streets and shopping centres. 

The physical store has an exciting future and the possibilities are near endless for those that embrace change. Creating a multidimensional space that compliments rising ecommerce, along with shining in its own right, will create a space customers will yearn to return to. 

To read the full article by Tom Hardwood, Data and Insight manager please visit Branding Magazine

Photo by Clay Banks on Unsplash

Tagged , , , , , , , ,
Jul 06 2022
Leave a comment
Posts

Building Brand Loyalty in the Modern Age – A New Route to Success

The concept of building brand loyalty used to be relatively straightforward. Effective marketing and delivery of a positive customer experience would create a positive association for a brand. The lifetime value of that relationship could then be hugely profitable, with consumers unlikely to switch.

However, we now live in a world of choice and information overload. An increasingly digital landscape, dominated by tech giants who hold many of the cards. In this new world, run by algorithms and AI, traditional long-held attachments are being unwound. As we culturally shift in shopping habits, people are more likely to remember what they bought from Instagram or Amazon but not the actual name of the brand. Does this mean brand loyalty is dead or at the very least waning?

Brand communication – from top-down to influencer-led

In the old world, brand marketers would use above-the-line platforms to create a strong identity and desire for a product. The brand direction was determined in a very top-down fashion, often based on the instinct of the CMO. A ‘needs’ state was identified and answered and an advertising campaign was launched highlighting the brand’s unique qualities.

In today’s world, we have shifted to digital and younger generations will see campaigns on Tik Tok and Instagram where the product is being advocated by a brand ambassador or a paid-for ad placed on social. In this new era, the control of the brand’s identity has been repackaged, personalized, and filtered through the lens of influencers. Having never heard of the brand, the influencer’s recommendation can be enough to create a consumer of a brand.

In fact, large segments of audiences will have never even seen an advert on TV or in a newspaper because they don’t touch a newspaper or they don’t switch on a TV. Or the brand has not included it as part of its media planning. According to recent research by Nielson, only 10% of Gen Z rank watching TV as their most popular entertainment activity. In fact, across the 18-34 bracket, live TV viewership dropped by 23% year on year.

The changing nature of brand loyalty

So, this digitally dominant world has created an entirely different mindset when it comes to brand loyalty. For socially digital natives, brand loyalty is about what it offers to them in value. A brand like Paul Smith will have a huge amount of brand equity among Gen X or baby boomers for its quality, tailoring, or painstakingly built partnerships and marketing campaigns. However, this will mean nothing for younger generations living in the moment and wanting to know what a brand can deliver here and now.

For younger consumers, if it is a relevant brand, it will be popular for them. If it’s not, they are just not interested. Quality has given way to relevance or price consciousness. Indeed there has been a huge rise in interest among younger audiences in mobile phone brands that offer a lot of the same features as iPhones but for a fraction of the price, like Xiaomi built with an Android skin. The tease here is the freedom an Android device offers a user who doesn’t want to be part of or associated with ‘that crowd’.

For digital natives, there is a checklist of what is really important for them when they spend their money. In recent research, price promotion was rated as crucial for this audience, but ethics are also vital. How long is a product going to last and what are they going to use it for? Does it meet my needs and values?

The life cycle of brands

In this new age, the life cycle of brands is also shorter, almost sonic. Brands can spring up quickly to consciousness but equally, their success can be shorter-lived. This has been evidenced by the spate of high-street retail brands that have disappeared.

Glossier is a D2C brand that sprung up in relatively short order. They have quickly scaled up the ladder of investment based on perceived digital growth that would continue endlessly. The direct-to-consumer beauty brand has raised an astonishing $80 million in Series E funding and reversed the traditional model.

They have latterly embraced physical retail with a pop-up store in Covent Garden, London,  and the swift ascent to being a much-loved brand is highlighted by the queues of people outside. However, they recently had to lay off staff as the growth they have experienced has not been maintained. Could the bubble burst as quickly as it was created?

How do brands build loyalty today?

It is certainly difficult for brands to build loyalty in the modern world because they are having to think about a very different culturally younger generation and manage a more traditionally minded older audience.

To square up this circle, value and values are two unifying themes that can be focused on, although realized in different ways. As consumers, we are all more interested in the purpose of brands and this is a clear differentiator. Brands today, particularly consumer goods products, have to think not only about how they make a product but also how they produce it. According to a study by Cone/Porter Novelli, 77% of consumers say they have stronger emotional bonds to purpose-driven companies.

Also, what added value are brands able to offer beyond the immediate product or service? How are they innovating to remain relevant? An excellent example of this is the Google Pixel 6 device, which enables users to remove photobombers and unwanted objects so that they “disappear like magic” using a “magic eraser”. Also, Portraits on Pixel represent the nuances of different skin tones for all people beautifully and authentically, to take true, accurate portraits. It’s innovations like these that create an immediate way for brands to build loyalty in the modern era.

Canny partnerships unite different audiences

Additionally, partnerships can be a great way of uniting seemingly disparate groups around common themes. CK1 Palace was a great example of this. A new collaboration between Calvin Klein and Palace Skateboards was launched with a tongue-in-cheek film celebrating cities that came to define these two labels. For streetwear brand Palace, it was London and its lively skate scene, with grainy film textures creating some retro-cool. 

Also included are high-contrast, black-and-white style studio shots, synonymous with Calvin Klein. The combination of nostalgia and modern relevance was a canny move that other brands would do well to replicate. Calvin Klein has opened new stores and you will see members of Gen Z proudly walking around Carnaby Street in London with a Calvin Klein shopping bag. This shows an effective strategy by a heritage brand to remain relevant and build loyalty with different audiences.

Towards a new approach

Creating brand loyalty today is far more difficult in a digital, social media-dominated world of increasing fickleness. Heritage brands are in trouble with a younger generation who has no interest in timeless qualities built up over many years. But brands can succeed if they adopt a new playbook. This needs to focus on the values and value of their product and on leveraging partnerships to remain relevant.

According to author Maurice Franks, “Loyalty cannot be blueprinted. It cannot be produced on an assembly line. In fact, it cannot be manufactured at all, for its origin is the human heart.”

To read the full article by Daniel Todaro – Managing Director Gekko Group, please visit Branding Magazine

Photo by Keagan Henman on Unsplash

Tagged , , , , , , ,
Apr 11 2022
Leave a comment
Information

How to create the ‘Feel Good’ retail we all need right now

While the economy has fully opened up after the end of pandemic restrictions, we are faced with fresh challenges. Soaring inflation, ongoing supply chain disruption and the implications of a war in Europe loom large. Against this worrying backdrop many are looking for positive experiences to help us feel good and distract us from the news.

Indeed, the whole concept of well-being and self care is far more prevalent amongst consumers now given the torrid time we have all faced. It is no doubt with this in mind that Selfridge’s recently grabbed headlines by announcing it would offer customers a series of experiences including sex counselling and therapeutic sessions. 

Its ‘Super Self’ initiative is aimed at putting “inner well-being” at the heart of the shopping experience and intended to tempt shoppers back into its store. The immersive experience includes bookable confidence coaching and empowerment sessions, as well as inviting DJs to create “feel-good sounds”.

It’s a well thought through initiative, enabling Selfridges to set the agenda in creative retailing. Positioning itself at the forefront of a retail revival, this service is one of a number to get shoppers ‘back in the habit’ of visiting stores. 

After two years of restrictions, city centres have struggled with the upheaval of lockdowns, stay at home workers, minimal tourism and staffing issues. However the figures for January showed Gross domestic product (GDP) bouncing back in January 2022, increasing by 0.8%. The Wholesale and retail trade grew by 2.5% in January 2022 and was the main contributor to January’s growth in services.

Need to recognise changed behaviours

The lockdowns and restrictions have been long and painful, but a survey we recently commissioned on consumer shopping intentions indicated a strong appetite to return and shop in-store. Only 2% said they wouldn’t be returning to the High Street. But it would be naive to just act as though it was still 2020 in 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 offered an appropriate, tailored approach. This needs to be recognised and acted upon. It is certainly something Selfridge’s have recognised. We are changed and therefore retail needs to change to remain relevant in this new and uncertain world.

Connect with shoppers on a more personal, emotional level

Physical retailers need to emphasise the instore user experience to provide that differentiating factor from the online realm. A good customer experience means your customers will spend more and is something that is a key brand differentiator. The positive approach embraced by Selfridges is an opportunity to connect with shoppers on a more personal, emotional level. 

Positivity provides a welcome break and will help with loyalty and sales. Positivity is an important part of the customer experience mix but it’s more than just that. It’s about appealing to the senses. A sensory buzz of a considered purchase and the need to reconnect with the consumer in this category/space that just can’t be provided online. 

In our survey the top factor in people making a considered purchase was the ability to see and touch a product, according to 58% of respondents. This tactile ability to interact with a product and try before they buy gives people a reason to head into town. 

Stimulate the senses

Retailers should be stimulating the senses and having the right experts instore. 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. People who truly understand the product, can answer questions and can close a sale. This is something the online world again can not replicate.

To complement the expert, think about presenting those products in an appealing way. You will want to focus on products that have increased in popularity during the pandemic – those supporting lives now more centred at home. Make them visually appealing with great displays and demos. Ensure you have clearly labelled product details, features and benefits and ensure any promotions are clearly highlighted, ie. what it integrates or works well with.

Brand ambassadors are game-changers

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. In an environment where inflation is likely to start to bite, people will be more conscious of what they are spending money on and therefore raises the importance of the skill of an expert in helping to guide a sale. 

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. 

On a bumpy road to recovery and with challenging ongoing news, we all want to feel good. Brands that recognise our changed needs and create the right experience led by the right expert can succeed. 

To read the full article by Rupert Cook – Marketing Director Gekko Group, please visit  Retail Sector

Photo by Tim Douglas

Tagged , , , , , , ,
Apr 07 2022
Leave a comment
Posts

How Brands Create an Emotional Connection with Their Customers

The role of the brand in peoples’ lives has changed dramatically over the past few years. Consumers have spent two years decluttering, throwing away, updating, and changing what they need. As they’ve assessed the results, people’s attitudes towards certain brands have also changed. Brands that invented themselves decades ago are not necessarily communicating successfully or coming across in the same way anymore because people have changed and moved on. 

Consumers now want a less transactional and more emotional relationship with brands. According to a recent survey by Motista, customers who have an emotional relationship with a brand have three times higher lifetime value and will likely recommend the company at a rate of 71%, instead of the average 45%. It is this personal approach to building relationships that brands should develop. Like with any personal relationship, it should be built on key psychological principles.

1. Good listening skills

One of the key elements in any two-way relationship is the ability to listen and understand someone’s concerns. We are in a global environment where inflation has become very real and persistent for people everywhere. Therefore, from a brand perspective, you are going to have to work a lot harder to persuade somebody to buy your product. 

As consumers, we have become more considerate in our choices of what we buy and where we want to spend our money. The first question consumers are now asking when considering any product is, do they really need that thing in their lives?

As a brand, are you confident you’re listening rather than just broadcasting your messages? How are you adapting your approach and enthralling your customer over the entire sales cycle? This approach is especially crucial in the considered purchase space. 

The answer is in addressing a customer’s underlying needs state and responding to what they’ve said. Not what you think they need. For example, it’s said that, on average, it takes 12 days for somebody to buy a washing machine. So that’s 12 days from first consideration to researching online to getting to the point of purchase. During that window, consumers have plenty of opportunities to change their mind, especially in crowded categories. Brands that don’t listen and fail to address the shopper’s needs during that journey will lose out.

2. Offering connection

In any friendship group, you will want to feel like you belong – to become part of a tribe. In many ways, a timeless virtue a brand can offer. But this has been given added importance in recent years. When a brand evokes a true sensation of inclusion, we feel a connection.

When we buy into a brand, they are offering us more than products and services, we are buying into a lifestyle. We become part of their tribe. This is a particularly strong trait for technology users. People define themselves by the gadgets and brands they favor – for example, whether they are an iOS user or an Android user. Apple achieved such success by the ability to move technology from the practical to an emotional, tactile, beautifully designed and built piece of hardware product that created the real ‘love’ of users.

In a time where we have perhaps felt more isolated the ability to bond with others over shared interests is crucial. This is something all generations have been yearning for and are looking to experience. 

3. Sharing the same values

We increasingly buy into brands because of their ethics or how they contribute back or give back to society. Also how they conduct themselves behind the scenes or the manner in which they go about developing their products. This is becoming more strong with Gen Z. According to a recent study by Attest, “more than 60% of Gen Z say they’re likely to stop buying from a brand that doesn’t meet their personal values – 42% say ‘likely’ and 20% say ‘very likely’.”

Brands should connect with the values of their audience to build a stronger bond, rather than just perhaps providing them with a product or service they need. People will want to buy into a product because they appreciate they are dealing with a responsible brand that gives something back.

4. Being financially empathetic

Ethics are, of course, important but let’s not be naive. A recent study we commissioned also showed ‘price promotion’ was one of the most important factors in making a considered purchase. 

Indeed, according to an article by Psychology Today, having compatible financial values is a key predictor of relationship success and is also one of the biggest reasons relationships break down. This also applies to brands. Brands should ensure they don’t lose their customer base because they have a tin ear to their customers’ financial concerns. 

For everyone contemplating buying into a brand, it needs to be at a price point that works for them. In other words, a reasonable price. No one wants to feel like they are being overcharged so that they suffer buyer’s remorse. It needs to be the right product at the right price that does what they need. 

5. Trustworthiness

People want to trust the brands they buy from. In order to be trustworthy, it is vital to be consistent. If brands are saying one thing on their social media feeds about supporting sustainability but then a quick Google search finds they are not following this through, there is likely to be a backlash and a push back. People have more ability to find a brand and hold it to account.  

I think we are moving away from people buying things because it is just a thing to buy. I do genuinely think that people buy products and into brands because there is a genuine need. And if there’s a choice in that category, they will make a considered choice. 

It is also not necessarily about being the most ethical brand on the planet, but about being consistent and honest. There is nothing worse than that disappointing out-of-box experience. When you open a box and you feel like you’ve bought a dud or it’s just not the thing that you had anticipated having due to a brand promise that isn’t then delivered upon.

6. Fun experience

As we look at the more worthy elements of building a sustainable relationship, let’s not forget about the fun. This is the reason so many retailers are moving into ‘feel good’ retail. It is why a brand like Selfridges is offering free therapy and sex counselling alongside DJs providing ‘feel good’ sounds. By creating a climate of enjoyment, people are likely to feel more positively about the brand.

The same applies to car brands Tesla and Genesis, which have created vast immersive experiences in Westfield. The huge cost of these activations is not going to convert that many people. We’re talking about a significant amount of square footage in a serious location within one of the UK’s busiest shopping malls. But it is 100% about the experience. 

In many ways, this isn’t a place you come to transact. This is a place where you come to be immersed in the wonders of Genesis. Whether it is the luxury, the technology, the innovation, and being immersed into the brand – it’s done very, very well. It engages all the senses and creates enjoyment. The fun factor and visual experience is something so many people have missed out on these past two years and brands that proactively bring that back to life can reap the benefits.

Creating an unbreakable emotional bond

In conclusion, brands need to think very hard about a new approach to creating a genuine emotional connection with consumers who have quite a changed perspective. This needs to be beyond solely transactional. Brands need to apply the same principles they would apply to fostering any relationship. This involves focusing on good listening skills, offering connection, showing they share the same values, being financially empathetic, trustworthy, and fun.

If they can get these elements right, they can create an unbreakable emotional bond. According to author Sue Johnson, “Love is a survival imperative we experience from the cradle to the grave. Loving connection is the only safety nature ever offers us.” Brands that want to survive these tumultuous times would do well to follow that advice.

To read the full article please visit Branding Magazine

Photo by Andrea Piacquadio

Tagged , , , , , ,
Mar 30 2022
Leave a comment
Posts

I See You But I Don’t Hear You

At the time of writing, retail footfall is up 3% week on week to 80% of that in 2019 and while this is encouraging and further increases are anticipated, we must temper expectations for a full recovery simply because of changing consumer habits and their increasing propensity to head online. So the question is, what are you, as a retail business, doing to make yourself heard and adapting to the current market situation? 

In the world of Amazon, things have been going very well. Their latest figures show that its revenues grew by 20% last year in the UK, with sales leaping to £23.6 billion for 2021 from £19.6 billion in 2020, and far ahead of the £13 billion of sales taken in 2019.

While online share of sales has declined over time from its peak during lockdown, Amazon has continued to thrive regardless and it’s a clear indication that if your competitors trade online, they are seeing the value of an omnichannel approach to retail.

The core driver to any retailer’s success is making it clear, through effective marketing, as to what you sell, where you sell it and how you sell it. Doing this effectively will lend itself to drive your footfall and clicks to keep those customers and potential orders coming.

In the MDA and CE sectors, the appetite to ‘upgrade’ and ‘refresh’ remains and growth continues at a pace, so making your store the de facto supplier for the local community, if it isn’t already, is an easily achievable objective that doesn’t have to cost a fortune to realise through local marketing.

Indeed there are some fantastic examples of how ERT Award winners have used Social Media to great effect in their marketing mix. By using Instagram, Twitter or Facebook to run competitions, announce winners, promote new products or communicate promotional savings and be part of the community. Through this approach much can be achieved to target the local consumer. By putting a strategy in place and driving these communication channels as part of your marketing, social media can be a useful tool to create a community-centric voice that lends itself to serve the local community. It’s worth remembering that recent Barclaycard research has identified that nine in ten people who have shopped locally, say they will continue to do so. Don’t lose them.

With this in mind, think about the importance of Google in your marketing mix as it’s increasingly more valuable not only as a service you can utilise for free from Google but also how consumers search. Key findings have been that:

  • 46% of all Google searches are looking for local information.
  • 72% of consumers that did a local search visited a store within five miles of their local.
  • 97% of people learn more about a local company online than anywhere else.
  • 72% of computer or tablet users and 67% of smartphone users want ads that are customised to their city or postcode. (Source: Think with Google)

Springboard expects this year’s retail footfall will remain 10% below pre-Covid levels and this largely relates to pressures on household incomes through increased inflation and the general cost of living.

Retailers and brands need to bear in mind this fact, so while footfall will be impacted, the shopper returning to stores will be more discerning and as such their customer experience will need to be positive and rewarding to encourage them to spend. Using local marketing techniques to attract consumers into your store is critical in harnessing the potential of that 10% gap. So what can you do to help drive traffic to your store or website:

  1. Set up detailed radius location targeting in Google Ads
    1. This is key, as advertising to a broad audience will attract the wrong audience. Using demographics will be much more effective and efficient. It will also have a better return on investment.
  1. Run local Facebook Ads
    1. Most of the population are on Facebook, why not target on that social platform
  2.  Encourage reviews
    1. Shoppers increasingly use reviews as an essential part of their decision making and buying process. So, in addition to visiting your website to see what you have to offer,  potential customers will also use what other people say to get insight on the products you sell and the service you offer. After all, local shoppers are far more likely to be wanting a friendly personalised service from their local retailer. If your business shows up in a directory and there are no reviews, they are likely to turn to a competitor who has reviews. Optimise your local online marketing by asking customers to write good online reviews for these directories and make it easy for them to do so.
  3. Running a contest
    1. As shown by a few of these local businesses selected, competitions, especially for a local business, gets customers interested and involved. Customers like a locally run competition as there’s a higher chance to win as opposed to a big global business with millions of potential contestants etc.

Through targeted marking, it can assist to increase loyalty to your store and does not mean that price is always the deciding factor for loyalty, service and experience can negate the need to always be the lowest in price. Competing on price with competitors, as you are no doubt aware, is never sustainable in the long term as it chips away at your bottom line. With a loyal customer base, you can then concentrate on maintaining a quality service worthy of the price..

In fact, the Gartner Group found that 20% of your loyal customers generate 80% of your profits. Meanwhile, Marketing Metrics found that the chances of converting first-time customers is 5 to 20%, as compared to existing customers which is 60 to 70%. This is where effective local marketing to drive customer loyalty comes into play to increase your footfall, conversion rates and your average transaction value.

Loyal customers are more likely to check your campaigns as they already have experience with your business and are more likely to trust your product and services.

The secret to all marketing is getting the tone right and appealing to a diverse base of potential customers to visit your store, in addition to those who know or shop with you already. 

Use local marketing to talk about what makes you different, your approach, offers and more. Make sure your staff know what you are marketing to enable a seamless journey from what the customer sees and reads and translates into the experience they receive on your shop floor. Train your staff to mirror your local marketing in their approach with customers and set targets with staff to identify those who were attracted into the store through your advertising. Use this intelligence to know what is working effectively and maybe not so, to fine-tune and ensure your tone resonates with your customers.

With more consumers happy to shop locally, this trend will only continue if you offer the products and service that makes shopping local a pleasure and never a chore.

To read the full article please visit ERT

Photo by Rachel Hannah Photo on Unsplash

Tagged , , , , , ,
Jan 24 2022
Leave a comment
Posts

The Future of Video Game Retailers

Video game stores have for some years faced the dilemma of how to diversify their offering to stay afloat in a market evolving to become primarily a digital one. Since the launch of the “next generation of consoles” back in 2006, digital downloadable games have been available through the marketplaces of Microsoft, Sony & Nintendo on their respective consoles. However, initially, the list of games available to download was quite limited which benefited retailers as it would not take away business from them. 

Fast forward to 2013 and the next generation of consoles were released. The release of these new consoles brought a brand new, more reliable system in place to download full video games over the internet. The ability to download full games happened on the previous generation however, numerous factors attributed to its rather low popularity as it did not have the stability and the large selection of games as it does on the console’s successor. 

GAME’s game-changing new direction

The PS4 & Xbox One were game-changers in driving interest in digital games. This meant retailers had to diversify their offerings to provide more than just consoles and video games. For example, GAME is now selling Gaming PCs and a lot more accessories for all gaming platforms. On top of this, they provide access in-store to the Belong Arenas which are equipped with all of the latest consoles and gaming PCs with room for around 6 people to game. GAME is a prime example of a company successfully diversifying its business model to become a more experienced/service-based company. This is due to the nature of the video game market and its continuous push towards the all-digital era.

The new direction GAME is taking features a better value proposition. Martyn Gibbs, Chief Executive Officer recently described  BELONG, the Group’s esports and experience-based gaming proposition as “core to our transformation strategy and we continue to expand the business through the opening of larger BELONG gaming arenas while improving our GAME Retail offer to fully capitalise on the strong growth potential in the esports market.” (Waller-Davies, 2018)

This has proven to be successful in driving footfall to their stores with the gaming arenas as proven by the positive recent trading results.

COVID’s accelerating impact on digital transformation

Clearly, a huge impact on the video game retail industry as with all retail was the dramatic impact of COVID. Not solely due to the fact stores were closed, more so due to the change in lifestyle, most people had to adapt to. Logan Plant from IGN described COVID-19 as “not an instigator for the rise of digital media, but simply an accelerator of a trend we’ve seen take shape throughout the last console generation.” (Plant, 2021). Working from home became the norm for 1+ years and subsequently, a lot of businesses had to change how they operated to take advantage of the customers/consumers being stuck at home.

The impact of COVID was a record-breaking year for digital sales of video games. Sony also revealed that nearly 63 per cent of its “full game” sales for the 2020 calendar year came via digital downloads rather than games sold on discs at retail. 

As a result of COVID’s accelerating impact, it is important to reevaluate the current proposition and business direction of video games retailers. The current moves console developers are making into the all-digital era are having a dramatic impact on the performance of bricks and mortar retailers. A significant development happened in 2020 when the latest consoles were released (PS5 & Xbox Series X). These new consoles were released with a cheaper variant; a disk tray-free model with a cheaper price tag available from launch. This highlights the increasing dominance of the digital era and the ongoing decline of physical sales.

Owen Good from Polygon described it in stark terms: “The implication is clear: Video game fans, stuck at home, with the ability to make one-click purchases for entertainment to pass time, will do so in amounts up to the price of a full game.” (Good, 2020)

As an avid Gamer myself who has been a loyal customer of GAME since I could remember my weekends used to involve regular trips to pick up a new game or the latest console at the time. Interacting and talking with knowledgeable staff members was a huge part of the experience.

Embracing an experience-centric playbook

Despite knowledgeable in-store staff that can assist and support the customer journey, the gaming industry has changed to be a primarily digital one. However, despite this reality, there’s still a significant percentage of customers purchasing physical copies of video games. Yet the online giants such as Amazon have further eroded this market, offering next day delivery on the same selection of physical video games that high street retailers offer at a discounted price. 

The same situation is happening with Gamestop, in an article covering which companies would Amazon effect, it stated Gamestop “historically has made its money by serving as the middleman, but the game publishing industry’s move toward downloads and away from discs and cartridges is increasingly making the venue less of a destination for gamers.” (Brumley, 2019).

This of course reduces the need to pop into town and purchase a game. Additionally, on top of the physical video game competitors, each of the gaming platforms also have their own store integrated into the console where you can purchase digital copies of any game on that platform. Digital games usually have a higher RRP, however, they are usually heavily discounted during sales.

In conclusion, it’s clear to see that for retail stores to drive more footfall they need to reposition themselves and expand what they offer as a business. GAME have taken this in their stride and expanded their traditional offering of physical Video Games and Consoles to offer an immersive customer experience including VR, the opportunity to play video games with your friends in the Belong arenas, purchase fully built gaming PC’s along with the necessary accessories and gaming merchandise such as POP Vinyls or plushies. It has been proven that GAME’s new direction has driven footfall and has been profitable for them too. In order to win in the future and remain relevant, it’s time for video games retailers to embrace an ‘experience-centric’ playbook.

References

Tagged , , , , , , , , , , ,
Jan 14 2022
Leave a comment
Posts

Why consumer electronics retailers must develop a new ‘experience-centric’ playbook

The phrase ‘absence makes the heart grow fonder’ has certainly proved the case with in-store electronics retailing. The category has faced some unprecedented challenges over the past two years. However reports of the demise of bricks and mortar retailing have proved greatly exaggerated. Experience-starved customers have voted with their feet and returned to stores in droves after the various lockdowns.

In the ‘considered purchase’ space – purchases made with significant financial or emotional thought – there is simply no match for the timeless ability of an in-store experience to engage all the senses and generate sales. This is particularly the case for consumer electronics – a category with such a high spend on key items and technical questions that need to be answered.

Mind the knowledge gap

We recently investigated the pandemic’s impact on ‘considered purchases’ in a research project called ‘Mind the Knowledge Gap’. Gekko surveyed experiences across several key retail categories in a study of 2,000 consumers, conducted by OnePoll. The categories studied included: Consumer electronics, homeware, baby & child, gaming, home improvement, clothing & apparel. 48% of respondents revealed they had made a considered purchase during the pandemic in the CE category. It was second only to DIY with 50%. However the research also revealed there is no time for complacency. The study showed that electronics retailers had lost out on some significant revenue due to poor advice during this period. 1 in 4 (24%) were put off making a purchase they had gone in-store to make, with 11% actually walking out of the store. This equates to £3.3bn in lost revenue for the category over the past 12 months alone. In fact of all the categories surveyed, shoppers in this category reported having some of the worst advice. This of course isn’t to say a poor experience was universal or even the norm. Indeed 60% said they had received ‘excellent or good advice in store’ overall, highlighting the benefit of human interaction and face-to-face sales. But the point is small improvements in advice can lead to big gains financially. With lost sales during the period and rising commodity and transport costs impacting the bottom line, this is an area that is relatively easy to fix.

Golden opportunity

The truth is £3.3bn could be a drop in the ocean compared to what could be achieved. 37% of shoppers in the CE category revealed they would be prepared to spend more if they received excellent and knowledgeable in-store advice, indicating a golden opportunity is there to be grabbed. This compared with 30% of shoppers in the home improvement category and 27% in homeware/ home furnishings and 21% in clothing and apparel. The study also unearthed something of a blueprint for success for electronic retailers. Consumers revealed the top factors driving a considered purchase. Number one was the ‘ability to see and touch a product’, according to 58% of respondents. Price promotion was second, rated important by 56% of respondents. This was followed by ‘great advice’ rated important by 37% of respondents and then an effective product demonstration (28%).

Gen Z

Additionally the research highlights another area for optimism for electronic retailers. That is in the behaviour of the younger generations. 18-24 year olds – known as Gen Z – are more interested in consumer electronics than any other category. 52% revealed they would be prepared to spend more if given better advice. Encouragingly for the future of physical retail, Gen Z are most likely to seek out great advice in store (45%) versus an average of 38% and are more likely to find staff knowledgeable across categories. They are also the most likely out of all ages to appreciate product demos (39%) against a 29% average across all ages. Finally 1 in 2 Gen Z’ers (52%) and 38% of Millennials will spend more for a good experience in store across all categories – crucial for the development of experiential retail. So how to respond? I think there are three key actionable take outs for consumer electronics retailers.

1) Invest in experts

Our research highlights the timeless appeal of a positive engagement with an in-store expert in CE. While we have spent so much of the past year and a half shopping online – it is clear online alone is no replacement for the experience and interaction of trained advisors. This is particularly the case in a category where more of us are prepared to spend more. They are consistently the best way to influence and convert a sale of a considered purchase item. Ensure they are on hand and fully trained to answer any question your curious customers may have. While some are struggling, the retailers with a real customer first mentality are succeeding. Every person that walks through the door should be viewed as a potential customer, an influencer, someone who will talk about you positively through their experience and tell others in person, online or on social media. Not viewed as just another body to ‘deal’ with. The benefits to the business can be significant.

2) Engage the senses and think price

An expert’s role is important but they can’t operate in isolation. As our study showed, the number one factor driving a considered purchase is the ability to see and touch a product. Price promotion and a great demo were also high on the list. So when it comes to physical retail and considered purchases, it is vital to engage all the senses and create a joined up experience leading the customer to the checkout. After all this desire to engage all the senses has only been heightened during the long lockdowns we have all endured with so much mind numbing time spent in front of screens. So creating a real retail theatre is vital. Good lighting, a price promotion clearly on display, ensuring customers can interact with the product when they want and of course having the expert on hand to answer questions. It may seem simple but it is worth revisiting your customer experience strategy. Start with a genuine audit of your brands or retail estate to ensure all the senses are being fully engaged.

3) Joined up brand experience

While the thirst for the physical store experience endures, it is not about going back to 2019. The genie is now completely out of the bottle for ecommerce with even the most hardened luddites now comfortable with online search and discovery. The smart strategy is now ensuring the experience is joined up and that we better understand the drivers of the online/offline experience. In our research a conclusive 85% of shoppers said they are now doing online research before making a considered purchase in-store. Belying any remaining stereotypes, the older age groups were more likely to go online first. 89% of 55-64 would research online first. Interestingly, 69% said a well synchronised online and offline experience would make them more likely to make a considered purchase. Brands need to therefore ensure they have consistency across the full spectrum of online touchpoints, including search, social and display advertising and in-store. How does the experience feel to a customer and how is this then prompting a likely sale? Reports of the demise of in-store retail have thankfully proved premature. But while we have emerged blinking into the sunlight and luckily still standing after this period, the world we now observe is changed. Indeed survival going forward is never guaranteed and really never was in the fast paced consumer electronics category. To succeed we need to develop a new ‘experience-centric playbook’ utilising the best that a joined up in-store experience can offer; the right experts on hand to complement an experience that engages all the senses. One that is seamless and joined up with the online world of discovery that led us to the store. As we look forward to a better year, there’s all to play for. Let’s go for it.

To read the full article please visit PCR

Photo by Michal Matlon on Unsplash

Tagged , , , , , ,
Jun 09 2021
Leave a comment
Posts

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

Tagged , , , , , , , , ,
← Older posts
Newer posts →