Tag Archives: retail

Customers want service not sci-fi from high street retailers

Blog

We all know the 2019 outlook for brick and mortar retail looks troubled and indeed it’s barely a month into the year and we’ve already seen Patisserie Valerie collapse into administration. Are we surprised? You only need to look at the makeup of the high street to see the extraordinary amount of competition facing a business like this coupled with the fact that the business hadn’t changed much since its launch. It needed to adapt and if brick and mortar retailers focus on aligning their strategies to current market conditions and take on board what customers say, a one size fits all decline isn’t inevitable.

We recently conducted a survey ‘Service, not Sci-Fi’ that looked at the reasons people were turning away from retailers but also how they might turn back. While cost cutting and staff consolidation might be the first response to disappointing figures, our survey showed this could have an immediate detrimental impact on sales. Our study found that 81% of UK shoppers felt that personal touch had disappeared from retail customer service in modern Britain. Almost a third (32%) blamed an over-reliance on technology for this decline. And half of those polled thought that companies in the UK use technology to save money, rather than improve customer experience.

Despite living in a world driven by technology, most people don’t want technology to sacrifice human opinion and experience. Only 30% said they would like to see ‘smart pricing’ initiatives adopted by retailers, where prices change in real time depending on demand, 22% would like to see smart mirrors that show a 360 view of themselves, 16% desire a VR changing room, while 14% want AR for visualise products at home and 9% seek a talking robotic assistant.

When asked what makes a great brick and mortar shopping experience, half of those polled said it was down to having good staff on the shop floor; staff that know the products (49%) and staff that go the extra mile (47%). Coupled with this, 61% of the nation would prefer to deal with someone face-to-face when complaining, while 59% liked a human interaction when enquiring or trying to find out more about a product and 73% wanted to see someone when being issued with a refund.

And back to the impact on the bottom line – a third of Brits say that the personal touch is more likely to encourage them make a repeat purchase, and more than a fifth (22%) claim they always spend more money in a shop if they are served by a good assistant, incrementally adding to sales. Over a third (34%) of shoppers stated that a poor experience has driven them to buy from another retailer.

The research also highlights the impact of the decline of local retailers, with a quarter of Brits saying they miss shopping somewhere where people recognise them and 16% confessing to preferring talking through a purchase with someone in-store, while a quarter reveal that online shopping is less fun than buying something in a real shop. The convenience of a store’s location is also important according to 43% of respondents which means that retailers should consolidate their estates. Many will notice immediate effects. This only emphasises the need to carefully consider the experience provided in-store and whether their staff can deliver the expected experience.

With traditional retail under more pressure than ever and an astonishing 81% of people feeling that the personal touch has disappeared from shopping, businesses need to focus on their customer experience strategies to keep people coming back for more.

To read the article please visit The Drum.

To read more about our Service not Sci-fi research please visit the Gekko website.

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Let’s give retail its pride back

rs blog

Whilst technology can provide speed, convenience and even a wow factor, people are still the key to successful retailing and good sales people give shoppers a reason to visit

Looking at all the analysis and commentary relating to the ‘golden’ quarter trading figures, published in January by the UK’s major retailers, it’s clear that after a dismal November, retailers had to play a game of catch up in the closing stages of 2018. Whilst there were some positive stories such as the ‘very strong’ Christmas eve sales at John Lewis, it was less rosy for many other retailers and in 2019 it will continue to be a tricky path to success.
As we are constantly hearing, UK high street retail is taking quite a bashing but are we really surprised? How long could retail sustain so much online competition?

Everywhere you look another coffee shop or restaurant is opening to fill the empty nests left by retailers of old. We’ve seen changing retail patterns before for example during recessionary times, but this feels very different, almost like self-harm. We’re seeing a complete transition in retail in the UK. Brexit uncertainty is damaging consumer confidence and the media isn’t helping the plight of retail when all you hear is doom and gloom. The notion, right or wrong, sinks into the public psyche. Businesses are going bust, estates are shrinking, and consumers are opting to head online. It’s not a pretty picture and there needs to be a considerable amount of effort into halting the slide.

Whilst some retailers are taking an innovative approach to how they engage with their customers on the high street, many appear to need additional inspiration. I’ve read many articles lately that talk about how technology and innovation will transform the in-store shopping experience and save the high street; self-service checkouts; robot assistants; augmented and virtual reality.
However, a recent study we conducted, titled ‘Service not Sci-fi’ revealed that despite living in a world driven by technology, most people don’t want technology at the sacrifice of humans’ opinions and experience. Only 30% said they would like to see ‘smart pricing’ initiatives adopted by retailers, where prices change in real time depending on demand, 22% smart mirrors that show a 360 view of themselves, 16% a virtual reality changing room, 14% augmented reality to help visualise products in the home and 9% a talking robot assistant.

An astonishing 81% of UK shoppers claim the personal touch has disappeared from retail customer service in modern Britain, with almost a third (32%) blaming an over reliance on technology for this decline. And when asked what makes a great bricks and mortar shopping experience, 49% of those polled said it was down to having good staff on the shop floor, staff that know the products (49%) and staff that go the extra mile (47%).

Consumers want to do business with real people and have real conversations. And businesses take heed – a third of Brits say that the personal touch is more likely to make a repeat purchase, and more than a fifth (22%) claim they always spend more money in a shop if they are served by a good assistant, imagine converting that to sales? Over a third (34%) of shoppers stated that a poor experience has driven them to buy from another retailer, not great in the current climate.

So perhaps retailers have got their strategy wrong? Whilst technology can provide speed, convenience and even a wow factor, people are still the key to successful retailing and good sales people give shoppers a reason to visit. If bricks-and-mortar retailing is to thrive it needs to recognise that there is a changing role for stores. There needs to be a shift from transactional retailing to experiential. There needs to shift from till operator to sales consultant. This requires good teams on the shop floor and with all the negative commentary surrounding the high street it is difficult to attract talent but perhaps this is where retailers should focus their efforts?

Retail remains a rewarding career where those involved take pride in the service they provide. This culture should be representative of all retailers, however that’s about culture not proposition. With a change in mindset for both the retailers and their store teams, then it’s possible to bring back the pride in delivering the optimum customer journey and in doing so enhance the experience for all.

To read the full article visit Retail Sector.

For more information on Gekko’s recent ‘Service not Sci-Fi’ study please visit our Research Page.

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Consumers want ‘real people not robots’ from retailers

ert blog

A study launched this week by Gekko, a marketing agency, titled – ‘Service not Sci-fi’ reveals that UK shoppers would rather deal with real people not robots or artificial intelligence when it comes to shopping.

The study found that 81 per cent of UK shoppers claim the personal touch has disappeared from retail customer service in modern Britain, with almost a third (32 per cent) blaming an over reliance on technology for this decline. And half of those polled think that companies in the UK are using technology to save money, rather than improve customer experience.

Despite living in a world driven by technology, most people don’t want technology at the sacrifice of humans’ opinions and experience. Only 30 per cent said they would like to see ‘smart pricing’ initiatives adopted by retailers, where prices change in real time depending on demand, 22 per cent smart mirrors that show a 360 view of themselves, 16 per cent a virtual reality changing room, 14 per cent augmented reality to help visualise products in the home and nine per cent a talking robot assistant.

When it comes to buying online, 43 per cent of UK shoppers have had their screen freeze while trying to make a purchase, so when asked what makes a great bricks and mortar shopping experience, 49 per cent of those polled said it was down to having good staff on the shop floor, staff that know the products (49 per cent) and staff that go the extra mile (47 per cent). Coupled with this, 61 per cent of the nation would prefer to deal face-to-face when complaining, 59 per cent when enquiring or trying to find out more about a product and 73 per cent when getting a refund.

And businesses take heed – a third of Brits say that the personal touch is more likely to make a repeat purchase, and more than a fifth (22 per cent) claim they always spend more money in a shop if they are served by a good assistant, incrementally adding to sales. Over a third (34 per cent) of shoppers stated that a poor experience has driven them to buy from another retailer.

The research also highlights the impact of the decline of the local shop, with a quarter of Brits saying they miss shopping somewhere where people recognise them, 16 per cent confessing they preferred the days when they could talk through a purchase with a someone in-store, and a quarter saying online shopping is less fun than buying something in a real shop. The convenience of a store’s location is also stated as important by 43 per cent of respondents, which means that as retailers consolidate their estates, many will notice the effects, further emphasising the need to carefully consider the experience being provided in-store and the staff needed to deliver the experience.

According to the research we waste almost an hour and a half a month interacting with automated technology, only for a human to have to step in and help. In addition, 47 per cent of shoppers have experienced self-service checkout failure that’s had to be rectified by a shop assistant.

In fact, more than three quarters (77 per cent) of UK shoppers admit they’d much rather use a checkout with a person on it, rather than taking the self-service option.

Daniel Todaro, MD of Gekko, said: “Everyone is talking about technology and innovation within retail, but our research clearly shows that what consumers really want is the human touch. With traditional retail under more pressure than ever and an astonishing 81 per cent of people feeling that the personal touch has disappeared from shopping, businesses need to focus on the customer experience in these tough trading times to help keep the high street alive.”

To read the full article visit ERTonline.

To find out more about our ‘Service not Sci-fi’ research please visit our Research page.

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Brits want ‘service over sci-fi’ from retailers: Gekko study

A study published by marketing agency Gekko – ‘Service not Sci-fi’ – reveals that UK shoppers would rather deal with real people over robots or artificial intelligence when it comes to shopping.

The study finds that 81% of UK shoppers claim the personal touch has disappeared from retail customer service in modern Britain, with almost a third (32%) blaming an over reliance on technology for this decline. Half of those polled believe that companies in the UK are using technology to save money, rather than improve customer experience.

Only 30% said they would like to see ‘smart pricing’ initiatives adopted by retailers, where prices change in real time depending on demand, 22% smart mirrors that show a 360 view of themselves, 16% a virtual reality changing room, 14% augmented reality to help visualise products in the home and only 9% in favour of a talking robot assistant.

When it comes to buying online, 43% of UK shoppers have had their screen freeze while trying to make a purchase. When asked what makes a great bricks-and-mortar shopping experience, 49% of those polled said it was down to having good staff on the shop floor, staff that know the products and staff that go the extra mile (47%). Coupled with this, 61% of the nation would prefer to deal face-to-face when complaining, 59% when enquiring or trying to find out more about a product and 73% when getting a refund.

A third of Brits say that the personal touch is more likely to make a repeat purchase, and more than a fifth (22%) claim they always spend more money in a shop if they are served by a good assistant, incrementally adding to sales. Over a third (34%) of shoppers stated that a poor experience has driven them to buy from another retailer.

The research also highlights the impact of the decline of the local shop, with a quarter of Brits saying they miss shopping somewhere where people recognise them, 16% confessing they preferred the days when they could talk through a purchase with a someone in-store, and a quarter saying online shopping is less fun than buying something in a real shop. The convenience of a store’s location is also stated as important by 43% of respondents which means that as retailers consolidate their estates, many will notice the effects, further emphasising the need to carefully consider the experience being provided in-store and the staff needed to deliver the experience.

According to the research we waste almost an hour and a half a month – which is 17 hours a year, the equivalent of more than two days at work – interacting with automated technology, only for a human to have to step in and help. Bug bears include getting someone to rectify a problem with the self-service checkout, and ringing customer services and dealing with a recorded voice, only to repeat the details to the person you end up talking to.

Little wonder, then, that 51% of Brits have slammed the phone down during an automated call, as the system didn’t recognise what they were saying. And 47% of shoppers have experienced self-service checkout failure that’s had to be rectified by a shop assistant.

In fact, more than three quarters (77%) of UK shoppers admit they’d much rather use a checkout with a person on it, rather than taking the self-service option. More than 4 in ten (43%) British shoppers would rather speak to a person than an automated system when making a phone enquiry, with almost a quarter (23%) ending up having to complain on social media when their query hasn’t been responded to via the automated service.

Daniel Todaro, managing director of Gekko said: “Everyone is talking about technology and innovation within retail, but our research clearly shows that what consumers really want is the human touch. With traditional retail under more pressure than ever and an astonishing 81% of people feeling that the personal touch has disappeared from shopping, businesses need to focus on the customer experience in these tough trading times to help keep the high street alive.”

The survey was conducted by Ginger Comms in December 2018, speaking to a sample of 1,500 shoppers aged 18+ and representative of the UK population.

Article published on Marketing Industry News

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The Drum – ‘Regrexit’ or not, smart targeting never been more important for retailers

Regrexit blog

As much as I might want to avoid the subject, it is impossible to look at retail predictions for 2019 without looking through the lens of Brexit. As the uncertainty continues over a possible deal, I want to try and think about the effect it will have on retailers in 2019, what is probably concerning them and what if anything we can do to brace ourselves.

I watched the fascinating Channel 4 live debate show, Brexit: What the Nation Really Thinks, which aired in November. Polling and market research agency, Survation interviewed 20,000 people online across the UK from 20 October to 2 November 2018 in the biggest ever independent Brexit opinion poll. If you didn’t see it, according to the poll if the referendum was re-run, there would be a swing toward remain at 53% to 47% – but that’s neither here nor there right now!

What was interesting, with my retail hat on, was how attitudes to the overall economic outlook of the country and people’s personal finances by age group would impact retail strategy planning their 2019. Overall, the study found that 44% think Brexit will be bad for the economy, versus 31% thinking it will be good. This deteriorating consumer confidence is already being played out on the high street where we are seeing a continuing stream of store closures – not just because of Brexit, but certainly not helped by it.

When you start to delve deeper into the demographics there is a clear picture emerging among the different age groups – as the age group increases attitude to Brexit, economic outlook and effect on personal finances get more positive. While 45 year olds and younger now overwhelmingly have a negative view of the economy post-Brexit, for 55-64 year olds it is much tighter (34% think it will be good, versus 40% bad) and for 65-74 year olds it swings to positive (42% think it will be good, versus 35% bad).

A clear majority of consumers aged 54+ also think Brexit will either be good or make no impact to their personal finances. There are two factors behind this. Firstly, they are after all ‘Generation Wealth’, with more assets and financial independence so therefore less likely to feel they will be adversely impacted. Additionally, as a majority wanted to vote leave anyway, they were clearly unimpressed by what they see as ‘project fear’ from the remain side about some of the reported negative financial impacts.

However, for worried millennials a far different picture emerges. Just 24% think Brexit will be good for the economy versus 50% bad. Meanwhile 44% think it will be bad for their finances, against 18% good. Not surprising when you consider their careers started after the financial crash and they are less secure in their jobs.

So, what does this mean for retailers in developing marketing strategy? Insulated from any of the more negative personal financial impact of Brexit and with more confidence in the country’s future could we see the baby boomers create a mini retail boom?

However, for millennials, worried about their personal financial security as well as the economy, retailers will need to entice them to shop. Millennials seek out experiences which also applies to the way they shop. Retailers need to engage with this audience through the customer journey making any purchase a positive experience. What is the USP versus Amazon for this digital, increasingly disenfranchised demographic?

Having a distinct strategy for the different demographics and understanding their mindset, spending power and intention will be key. Also, being agile and flexible and able to react quickly to the market and buying signals. Just as the outcome of the negotiation won’t satisfy all political parties or a now fractured population, neither will a one size fits all retail strategy. Start planning now to remain relevant to your customer base as we move into unpredictable 2019.

To read the full article visit The Drum.

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Brits want ‘service over sci-fi’ from retailers

The Drum Blog

A study published today by marketing agency Gekko – ‘Service not Sci-fi’ – reveals that UK shoppers would rather deal with real people over robots or artificial intelligence when it comes to shopping.

The study finds that 81% of UK shoppers claim the personal touch has disappeared from retail customer service in modern Britain, with almost a third (32%) blaming an over reliance on technology for this decline. Half of those polled believe that companies in the UK are using technology to save money, rather than improve customer experience.

Only 30% said they would like to see ‘smart pricing’ initiatives adopted by retailers, where prices change in real time depending on demand, 22% smart mirrors that show a 360 view of themselves, 16% a virtual reality changing room, 14% augmented reality to help visualise products in the home and only 9% in favour of a talking robot assistant.

When it comes to buying online, 43% of UK shoppers have had their screen freeze while trying to make a purchase. When asked what makes a great bricks-and-mortar shopping experience, 49% of those polled said it was down to having good staff on the shop floor, staff that know the products and staff that go the extra mile (47%). Coupled with this, 61% of the nation would prefer to deal face-to-face when complaining, 59% when enquiring or trying to find out more about a product and 73% when getting a refund.

A third of Brits say that the personal touch is more likely to make a repeat purchase, and more than a fifth (22%) claim they always spend more money in a shop if they are served by a good assistant, incrementally adding to sales. Over a third (34%) of shoppers stated that a poor experience has driven them to buy from another retailer.

The research also highlights the impact of the decline of the local shop, with a quarter of Brits saying they miss shopping somewhere where people recognise them, 16% confessing they preferred the days when they could talk through a purchase with a someone in-store, and a quarter saying online shopping is less fun than buying something in a real shop. The convenience of a store’s location is also stated as important by 43% of respondents which means that as retailers consolidate their estates, many will notice the effects, further emphasising the need to carefully consider the experience being provided in-store and the staff needed to deliver the experience.

According to the research we waste almost an hour and a half a month – which is 17 hours a year, the equivalent of more than two days at work – interacting with automated technology, only for a human to have to step in and help. Bug bears include getting someone to rectify a problem with the self-service checkout, and ringing customer services and dealing with a recorded voice, only to repeat the details to the person you end up talking to.

Little wonder, then, that 51% of Brits have slammed the phone down during an automated call, as the system didn’t recognise what they were saying. And 47% of shoppers have experienced self-service checkout failure that’s had to be rectified by a shop assistant.

In fact, more than three quarters (77%) of UK shoppers admit they’d much rather use a checkout with a person on it, rather than taking the self-service option. More than 4 in ten (43%) British shoppers would rather speak to a person than an automated system when making a phone enquiry, with almost a quarter (23%) ending up having to complain on social media when their query hasn’t been responded to via the automated service.

Daniel Todaro, managing director of Gekko said: “Everyone is talking about technology and innovation within retail, but our research clearly shows that what consumers really want is the human touch. With traditional retail under more pressure than ever and an astonishing 81% of people feeling that the personal touch has disappeared from shopping, businesses need to focus on the customer experience in these tough trading times to help keep the high street alive.”

The survey was conducted by Ginger Comms in December 2018, speaking to a sample of 1,500 shoppers aged 18+ and representative of the UK population.

To read the full article visit The Drum.

To find out more about our ‘Service not Sci-fi’ research please visit our Research page.

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Real people not robots is what consumers want from retailers

Robot Shop

The study found that 81% of UK shoppers claim the personal touch has disappeared from retail customer service in modern Britain, with almost a third (32 percent) blaming an over reliance on technology for this decline. And half of those polled think that companies in the UK are using technology to save money, rather than improve customer experience.

Despite living in a world driven by technology, most people don’t want technology at the sacrifice of humans’ opinions and experience.  Only 30 percent said they would like to see ‘smart pricing’ initiatives adopted by retailers, where prices change in real time depending on demand, 22 percent smart mirrors that show a 360 view of themselves, 16 percent a virtual reality changing room, 14 percent augmented reality to help visualise products in the home and 9 percent a talking robot assistant.

When it comes to buying online, 43 percent of UK shoppers have had their screen freeze while trying to make a purchase, so when asked what makes a great bricks and mortar shopping experience, 49 percent of those polled said it was down to having good staff on the shop floor, staff that know the products (49 percent) and staff that go the extra mile (47 percent). Coupled with this, 61 percent of the nation would prefer to deal face to face when complaining, 59 percent when enquiring or trying to find out more about a product and 73 percent when getting a refund.

And businesses take heed – a third of Brits say that the personal touch is more likely to make a repeat purchase, and more than a fifth (22 percent) claim they always spend more money in a shop if they are served by a good assistant, incrementally adding to sales. Over a third (34 percent) of shoppers stated that a poor experience has driven them to buy from another retailer.

The research also highlights the impact of the decline of the local shop, with a quarter of Brits saying they miss shopping somewhere where people recognise them, 16 per cent confessing they preferred the days when they could talk through a purchase with a someone in-store, and a quarter saying online shopping is less fun than buying something in a real shop.  The convenience of a store’s location is also stated as important by 43 per cent of respondents which means that as retailers consolidate their estates, many will notice the effects, further emphasising the need to carefully consider the experience being provided in-store and the staff needed to deliver the experience.

According to the research we waste almost an hour and a half a month – which is 17 hours a year, the equivalent of more than two days at work – interacting with automated technology, only for a human to have to step in and help.

Bug bears include getting someone to rectify a problem with the self-service checkout, and ringing customer services and dealing with a recorded voice, only to repeat the details to the person you end up talking to.

Little wonder, then, that 51 percent of Brits have slammed the phone down during an automated call, as the system didn’t recognise what they were saying.  And 47 percent of shoppers have experienced self-service checkout failure that’s had to be rectified by a shop assistant.

In fact, more than three quarters (77 percent) of UK shoppers admit they’d much rather use a checkout with a person on it, rather than taking the self-service option.  More than 4 in ten (43 percent) British shoppers would rather speak to a person than an automated system when making a phone enquiry, with almost a quarter (23 percent) ending up having to complain on social media when their query hasn’t been responded to via the automated service.

Daniel Todaro, MD of Gekko said: “Everyone is talking about technology and innovation within retail, but our research clearly shows that what consumers really want is the human touch.  With traditional retail under more pressure than ever and an astonishing 81% of people feeling that the personal touch has disappeared from shopping, businesses need to focus on the customer experience in these tough trading times to help keep the high street alive.”

To find out more about our ‘Service not Sci-fi’ research please visit our Research page.

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How new businesses and small businesses can fire up their retail sales and list listing

Fourth Source BlogThe innovation of technology products is developing at a ferocious pace and there’s a gadget for everything and everyone these days.  This has resulted in a very competitive retail environment both on and offline with a continuous flow of new products being launched to market.

However, it is important to note that much of the new tech coming on to the market is originating from innovative start-up brands who may or may not have the marketing muscle or budgets to compete at the same level as established brands.  For example, brands like Tile who have a limited portfolio of products but are bringing innovative tracking technology to the smart home category. Innovation from these types of company is fueling this exciting technological transformation, but we must make sure that these products get to see the rabbit so to speak.  Without brand recall in retail, many brands get lost in the noise those with ‘bigger’ budgets are able to shout about. Your route to market should not merely rely on the big online retailers to show consumers.

Businesses spend time, money and energy pitching to buyers but many fail to prepare properly for when the listing finally gets the green light which in most instances can take months rather than weeks as many brands hope. It may also only be a sample of a retailers estate in which the brand gets the opportunity to prove the viability of their product.  Once a retailer presses the button a brand must fit with the retailers’ timelines and expectations and retailers are savvy operators, not to be underestimated when understanding what their shoppers like. So when the listing begins is when businesses really need to move product, especially in traditional brick and mortar stores.

Some brands are astute enough to have created a strong online presence and awareness already via their own platforms or investment in an advertising campaign but for many building brand awareness and driving conversation really starts with retail.  So, what’s the best retail strategy for a start-up technology brand?

Firstly, don’t just focus online, according to the ONS online sales still only account for 18% of overall retail spend.  And especially for electrical / technology products, which are often a considered purchase our own research shows that people like to go in-store, touch and feel the products, see them working in situ and get advice from store staff on what they should be purchasing.

And despite what many brands may think, you cannot rely on purely the store to sell your products as you will be just one of many established brands in a crowded category or a category of one which no one has heard of or understands fully. Your carefully crafted marketing messages and USPs can easily get lost in translation.  It’s not like an own brand store where everything is within your control but you can take collaborative steps to help how your brand is marketed in third party retail.

Depending on the store and deal being negotiated pick your store strategy carefully.  For example, you may or may not have the option to be in an entire estate and you may have more success and sell through picking off specific stores that attract more of your audience profile. However, which stores you end up is not necessarily your choice but possibly being in fewer stores can make things easier to manage in the short term to establish store presence as sales increase.

This is one of the most crucial times for a start-up brand and getting momentum can make or break a business. Invest in working with a partner, an agency or individual consultant that strategically works as an extension of your sales and marketing strategy and enables your limited resources to focus on the ‘bigger picture’, making the right connections in store – connecting your brand with both the sales staff and consumers alike. Don’t leave it to chance or risk being ignored.

Work with the store to create an experience and we’re not talking here a large scale costly production.  Merchandise well and manage the retail space so consumers can learn, look, touch and interact with the product effortlessly. But most importantly, develop a relationship with management and shop floor staff.  Show them that you’re a brand that means business and is going to invest in them as a partner. Seeding product with selected store staff is common practice and enables them to talk sincerely about your product based on actual usage and therefore encouraging them to become an evangelist of your brand.   You ideally want to create a store full of influencers who are willing you to succeed so charm them, train them and reward them.

Innovation is fueling this exciting technological transformation, must make sure that these products get into the hands of retail store advisors who are capable of selling it and ultimately into the consumers’ basket. Considered purchases take time and an approach that resonates with a consumer’s lifestyle and need. Brands should not just be reliant on the big online retailers who are not the panacea many brands perceive them to be. Marketing online is another Pandora’s box we can discuss next time.

For the full article please visit Fourth Source

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How do small tech businesses fire up their retail sales?

The Drum Article Blog Picture

Innovation of technology is happening at a ferocious pace and it seems that there’s a gadget for everything and everyone these days. This has resulted in a very competitive retail environment both on and offline with a continuous flow of new products being launched to market.

However, it’s important to note that much of the new tech coming on to the market is originating from innovative start-up brands who may, or may not, have the marketing muscle or budgets to compete at the same level as established brands. For example, brands like Tile, who have a limited portfolio of products are bringing innovative tracking technology to the smart home category. Innovation from these types of company is exciting, but we must make sure that these products get to see the rabbit so to speak. Without brand recall in retail, many brands get lost in the noise when competing against those with bigger marketing budgets to woo the attention and support of major retailers.

Businesses spend time, money and energy pitching to buyers but many fail to prepare properly for when their online listing finally gets the green light, which can often take far longer than expected – i.e. months rather than weeks. It may also only be a sample of a retailer’s estate in which the brand gets the opportunity to prove the viability of their product. Once a retailer presses the button, a brand must fit with the retailers’ timelines and expectations and retailers are savvy operators, not to be underestimated when understanding what their shoppers like. The moment the listing begins is when businesses really need to move product, especially in traditional brick-and-mortar stores.

Some brands are astute enough to have created a strong online presence and awareness already via their own platforms or investment in an advertising campaign but for many, building brand awareness and driving conversation really starts with retail. So, what’s the best retail strategy for a start-up technology brand?

Get real

Firstly, don’t just focus online. According to the ONS online sales still only account for 18% of overall retail spend. This is especially true for electrical/technology products, which are often a considered purchase. Our own research shows that people like to go in-store, touch and feel the products, see them working in situ and get advice from store staff on what they should be purchasing.

Despite what many brands may think, you cannot rely on purely the store to sell your products as you will be just one of many established brands in a crowded category, or a category of one which no one has heard of or understands fully. Your carefully crafted marketing messages and USPs can easily get lost in translation. It’s not like an own brand store where everything is within your control. You can, however, take collaborative steps to help how your brand is marketed in third party retail.

Depending on the store and deal being negotiated pick your store strategy carefully. For example, you may or may not have the option to be in an entire estate and you may have more success and sell through picking off specific stores that attract more of your audience profile. However, which stores you end up in is not necessarily your choice; possibly being in fewer stores can make things easier to manage in the short term to establish store presence as sales increase.

Hearts and minds

This is one of the most crucial times for a start-up brand and getting momentum can make or break a business. Invest in working with a partner, an agency or individual consultant that strategically works as an extension of your sales and marketing strategy and enables your limited resources to focus on the ‘bigger picture’, making the right connections in store – connecting your brand with both the sales staff and consumers alike. Don’t leave it to chance or risk being ignored.

Work with the store to create an experience. This doesn’t have to be a large scale costly production. Merchandise well and manage the retail space so consumers can learn, look, touch and interact with the product effortlessly. But most importantly, develop a relationship with management and shop floor staff.

Show them you’re a brand that means business and is going to invest in them as a partner. Seeding product with selected store staff is common practice and enables them to talk sincerely about your product based on actual usage and therefore encouraging them to become an evangelist of your brand. You ideally want to create a store full of influences who are willing you to succeed so charm them, train them and reward them.

Innovation is fueling this exciting technological transformation, must make sure that these products get into the hands of retail store advisors who are capable of selling it and ultimately into the consumers’ basket. Considered purchases take time and an approach that resonates with a consumer’s lifestyle and need. Brands should not just be reliant on the big online retailers who are not the panacea many brands perceive them to be. Marketing online is another Pandora’s box we can discuss next time.

For the full article visit The Drum.

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MOP UP THOSE SMART SALES

Many people are afraid of smart tech, don’t understand it or how it can make life easier. This is where independent retailers have a golden opportunity, says Daniel Todaro, MD of field marketing agency Gekko

Gekko has once again proudly collaborated with ERT on this year’s Turning Point survey as part of the ERT Awards. It will be interesting to see what the findings are this year in relation to the smart home.

Last year’s survey revealed that 38 per cent of independent retailers that responded didn’t believe that selling the smart home was for them.

Now, I may not have a crystal ball, but I do have a clear view of the category’s growth since then and would be shocked if the figure remained this low in 2018.

I have commented a great deal over the past couple of years that the smart home is something to be embraced and is a category where physical retailers have an opportunity to outsmart their online competitors. It is early days for the category and there is the potential for a lack of understanding on the part of the consumer, made worse by scepticism about the real-world benefits.

Concerns about security are also a factor and so an assisted sales approach, where shoppers can properly experience products and talk to an expert, can make all the difference. In providing a superior customer experience, sales and your customer base can be developed to achieve smart profits.

Popularity
What is for certain, the smart home’s popularity isn’t going to fade – it’s no fad. This is evident from the fact that three-quarters of people have heard of the term smart home compared with just over half (57 per cent) in 2015. And with a current average of 10 connected devices per UK household, we aren’t scaling back on our connected addiction.

BBC’s Panorama recently predicted that by 2020 there would be 420 million connected devices across the UK. The smart home now even has its own ‘week’ – May 21-27 this year. This was a showcase for the very best in smart, connected and integrated home technology.

Its purpose was to inform, educate and reassure UK consumers about the benefits and opportunities of living in a smart, connected way.

Research conducted by Smart Home Week forecast that 42 per cent of consumers see the majority of UK homes being smart within the next 10 years.But I think it will be higher and sooner.

From my point of view, running an agency that loves both tech and retail, we’re passionate about understanding how the smart home is being marketed and identifying what the appeal is for the consumer, so we can support our brands in retail as best we can. Key to achieving this is identifying consumer purchasing habits and the sales opportunities the category presents.

One area to consider is what to range and sell. A lot has been said about smart speakers and voice-enabled AI devices integrating with home entertainment and that these are perhaps an easy, and relatively affordable, route into the world of smart technology. This is true, but we shouldn’t ignore some of the other product areas.

I think that smart home appliances is a category the general public is becoming increasingly aware of. While smart fridges and washing machines have been around for a while, high prices and doubts about their true benefits have meant they haven’t see adoption by the masses.

Active
Hoover Candy has been active recently with above-the-line campaigns talking about their app-enabled products.

While some may see a remotely accessible camera in an oven as unnecessary, many will warm to their Vision oven, where an integrated touch-screen provides recipes, instruction and a live view of what’s cooking. As lifestyles change, so do our opinions and habits. What we may have considered a ‘novelty’ may now be relevant to the lifestyle of the generation that these products are aimed at.

Smart tech is also extending to SDAs and outside into the garden space. Smart robotic vacuum cleaners are increasingly popular and a new device to me is the iRobot Braava mopping robot. In the garden, robotic lawnmowers are a desirable piece of tech and the market is expected to grow 20 per cent by 2022.
Apart from what type of smart products to consider selling, I think the approach taken in-store by sales staff should also be factored in – and I don’t mean reviewing sales skills, but rather appreciating how the end-user uses smart tech.

To better understand the consumer, we wanted to take a slightly different tack from previous studies and look at those who have bought into the smart home, how they use their products and what their concerns are.

Gekko’s Smart Home Shopper poll delivered some useful insights that can help brands and retailers increase their profits.

The study found that 56 per cent of adults had bought the latest must-have smart-home tech, including wi-fi controlled security cameras, heating systems and speakers, but had been left scratching their heads when they got them home as they had little idea what to do with the stuff they’ve bought. More than 30 per cent of the consumers we asked said they regretted buying at least one or more items of smart-home technology because it proved so difficult to get up and running, while many said they couldn’t get all their devices to connect – which is surely the whole point of having a ‘smart home’.

Coupled with this, nearly a third of them said they never read instructions or manuals when they buy a new piece of kit and 21 per cent admitted that, although they had a love of tech, they were intimidated by the complexities of it.

Forty-five per cent of people said the trickiest bit of kit to install was security equipment, including app-controlled doorbells, motion sensors and CCTV, while 28 per cent couldn’t get their smart lighting to work. And more than a third (35 per cent) came unstuck when installing their smart heating systems. Yet, these are the most popular items to purchase within the smart-home tech product portfolio.

And despite its current popularity, 30 per cent of adults that had purchased a smart speaker, such as the Amazon Echo or Google Home, didn’t understand all its functionality and smart features.

There’s clearly a customer need here that’s not being fulfilled by retailers. Smart-home tech is popular, but people don’t know how to fully utilise it to meet their lifestyle needs – whether that’s convenience, money saving, leisure time or learning.

Significant 
One significant barrier for shoppers is concern over how secure smart home devices are. Our study highlighted this, as did the findings from Smart Home Week, which found that 62 per cent of people were worried about the threat of smart homes being hacked. So be prepared to overcome this potential barrier and offer up some security advice as part of the sales process, or at least be able to point customers in the right direction.

All this is a great opportunity, especially for bricks-and-mortar retailers, to enhance the customer experience within the smart-home category by developing an environment where consumers can ‘play’, and a retail team that can articulate the features of each product in detail and match consumer needs to product performance.

The customer journey in retail needs enhancing to increase profitability and as the smart home establishes itself deeper across multiple categories, the approach in store must evolve to meet trends and the popularity of smart products.

Through an increased effort, what you do at the point of purchase will keep people coming back to traditional bricks-and-mortar stores for experiences they’ll never get online.

Top tips to sell smart tech

  • Show products in a proper context by displaying them in the way that consumers will use them, emphasising real-world use and benefits.
  • Demonstrate usability by linking the smart gadgets to one another as some clever retailers have done in selected stores, emphasising that they don’t have to be standalone products.
  • Seed or loan products to your sales staff so that they can become users and advocates and bring their real-life into the sales conversation.
  • Ask your suppliers and brands for support. Product training for your sales staff or brand ambassadors to engage with shoppers at peak times will all help drive business and a positive in-store experience. Whether directly, or using an agency such as Gekko, encourage brands to provide support on a campaign or ongoing basis to assist in maintaining continuity of customer experience in line with the advertising messaging.

Read the full article at ERTOnline

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