Tag Archives: sales

How Retailers Can Capitalise On Black Friday and Beyond

With Black Friday upon us, it is vital retailers now maximise the huge sales opportunities that exist. With money to spend, from savings accumulated over lockdown and no holidays, customers are getting ready to go for a bumper spending period up to Christmas.

After all, UK consumers are estimated to have saved around £200bn over the various lockdowns, while 54% of those savers are ready to spend it on Black Friday and Christmas according to a recent survey by Future plc. Furthermore, over 70% of customers suggest that they would have the same amount or more money to spend on Black Friday in 2021 as in 2020 (PPA). Combine this with store doors wide open, we look set for increased customer footfall and sales figures.

However it is important to strike a note of caution, as there are some warnings of issues that could dampen the mood this year. Further Pandemic related problems could arise of course, a fresh wave has broken out across Europe, along with truck driver shortages and global supply chain disruptions that may delay goods arriving to the UK over the next few weeks.

It is the second year in a row where such implications have been highlighted. It is becoming clear that consumers are hearing that call, a recent Ebay survey showed that 41% of shoppers will have aimed to have got their Christmas shopping done before December even begins, as opposed to just 25% last year. Therefore acting now to make the most of the opportunity on Black Friday is critical.

The traditional view of Black Friday is perhaps long queues outside shops and big price drops for retailers. While that has certainly changed during the pandemic, we must not dismiss the benefit of Black Friday’s appeal and hype to lure customers in store/online. Black Friday just needs to be treated a little differently.

Black Friday shouldn’t be simply about heavy discounting – consumers want to be satisfied with the shopping experience (online and instore) and the products they are buying. Last year we were denied physical sale shopping, and with Christmas shopping earlier than ever, retailers should be prepared to come armed with the right product information.

Training is vital for Christmas staff, as is continual reviews of ecommerce sites – to ensure a quality experience not just one based on price point. Price drops on their own will not sustain footfall – but quality, personalised experiences in store and online will.

Retailers should take note of the growth of Singles Day, the way the shopping experience has become a form of entertainment, where social media, ecommerce sites all build up excitement along with key social media influences via live streaming. In the UK, it can be tempting to slash prices on Black Friday or even in the lead up to it and let the price do the talking. But without clever marketing online or in store, relevant and engaging social media and ultimately a smooth online/in store experience – where staff know their products and stock the experience will not be as thrilling.

Customers like a bargain, it may get them over the door, but at a time when every customer matters, it’s important to build brand loyalty and get a repeat visit in the run up to Christmas. Retailers must be aware that while discounts are the foundation of Black Friday, it’s the excitement, marketing, brand experience and ultimately the store or online journey that will sway a customer from perusing to purchase. Once the customer is through the door, or on a retailer website – conversion becomes experience based.

As retailers ramp up their marketing efforts as we approach the peak of spending for the year, consumers are certainly going to have plenty of choice as to where to spend their budgets. Retailers will have to do all they can to make sure they stand out from the crowd. Engaging marketing, whether it be store representatives, training or merchandising activities, can ensure that the consumer knows who you are and why they should be choosing your products. Once that is achieved then loyalty and success will follow.

By Hannah Snoeck, Client Services Director, Gekko

Article originally published by BDaily

Photo by Karolina Grabowska from Pexels

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How retailers can maximise sales in a Golden Quarter like no other

Photo by Pixabay on Pexels.com

From a retail point of view, whether we are ready or not, September means all eyes start looking towards Black Friday and the Christmas Peak period. The importance of this period can’t be underestimated, particularly in 2021 on the back of shops being shut for such long periods during the various lockdowns. Finally we return to a more “normal” period of retail behaviour and holiday festivities with some strong indications the bounce back could be like no other. Let’s explore what some of the forecasts are predicting and how the season is expected to play out this time.

Consumer confidence has been consistently rising through this year and should be closing in on positive territory as we get to the golden quarter. GfK’s trusted Consumer Confidence Index is already up to -8 from the latest August reading, putting it ahead of pre-pandemic levels, and barring any serious economic or public health issues it should keep its momentum.

Absence makes the wallet grow stronger

Within this, there have been big jumps in major purchase indexes too, with shoppers seemingly ready to spend on the right products at any price point. UK consumers are estimated to have saved around £200bn in the various lockdowns, while 54% of those savers are ready to spend it on Black Friday and Christmas according to a recent survey by Future plc.

A big draw for spending that money for most people this year will be the fact that we all missed out in many ways last year. Whether it be seeing more loved ones, a family holiday or a trip to an atmospheric high street to do the Christmas shopping. Those returning will be expecting a positive experience from brands and retailers, and it will be important to consider both shoppers that are part of this group, along with those that remain cautious with the virus still circulating.

Whichever way people behave, it looks like certain patterns are going to come to the fore. Home improvements, fashion, health & beauty, and toys of course are all set to be categories of real growth this season. Although there could be a whole series of sectors that could benefit when it comes to potential sales growth due to pent up demand.

All of this confidence is pointing to optimism for the festive period when it comes to sales forecasts for 2021. Although a slight drop is predicted in total retail terms due to less food sales this year, Retail Week research predicts a 0.5% increase in non-food sales vs Q4 2020, and a 1.7% improvement figure in comparison with 2019. The two year increase largely comes as a result of consumers spending more time at home, and subsequently spending more on home improvements and entertainment.

Retailers primed for the discount season

So when will the spending begin? Last year marked a change for the season and its normal pattern with a much longer promotional season. Consumers were urged to shop early due to the strain on the supply chain, and significantly Amazon positioned its Prime Day in October, a month earlier than Black Friday in November.

Amazon moved Prime Day back to its regular summer slot this year, and it remains to be seen whether they will launch another promotion in October to match its 2020 position. I wouldn’t bet against the ecommerce giant pencilling in another sale for that valuable slot again, whether it is another branded Prime Day or otherwise. If it does, then other retailers will follow suit and we will get another lengthy promotional period like we did last year.

Christmas shopping starting earlier this year

There are some warnings of issues that could dampen the mood this year however. Pandemic related problems could arise of course, along with truck driver shortages and global supply chain disruptions that may delay goods arriving to the UK at all. Reporting by The Observer found that retailers are already warning consumers to get thinking about shopping for Christmas to avoid disappointment. It’s the second year in a row where such implications have been highlighted. It is becoming clear that consumers are hearing that call, a recent Ebay survey showed that 41% of shoppers are aiming to get their Christmas shopping done before December even begins, as opposed to just 25% last year.

Retail as ever will continue to rise to any challenge. 86% said they will enact the in-store safety and hygiene measures they relied on during 2020 in order to protect their customers. Meanwhile businesses are acting now to ensure they have the stock they need for a successful Christmas period. With more consumers in store this year, retailers will need to ensure they are managing any issues behind the scenes. They will also need to ensure that customers on the shop floor are getting the purchasing experience they have looked forward to.

As we approach Christmas 2021, consumers are certainly going to have plenty of choice as to where to spend their budgets, and retailers will have to do all they can to make sure they stand out from the crowd. Engaging marketing, whether it be store representatives, training or merchandising activities, can ensure that the consumer knows who you are and why they should be choosing your products. Once that is achieved then loyalty and success will follow, and not just for Christmas.

By Tom Harwood, Data and Insight Manager, Gekko Group

Article published by BDaily

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

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

The immersive luxury experience

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

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

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

The trusted voice of an expert

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

Advising the advisors

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

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

A new vision for brands

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

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

Imprinting a memory

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

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

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

To read the full article please visit Brand Chief.

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Does black Friday give consumers a real bargain?

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When Black Friday began to be embraced by marketers in 2013, initial efforts focused on instore, one-day only events. Since then, there are far fewer reports of hordes of shoppers breaking down doors and a greater effort to create multi-day, omnichannel campaigns.

This year was predicted to have a strong showing. The CBI reported that sales volume is expected to increase and the Centre for Retail Research expected UK shoppers to increase their spend by 3.4% compared to last year, up to £2.53bn. Initial data shows that those expectations are being met: at its busiest, Barclaycard reported seeing 1,184 transactions per second during Black Friday itself.

As part of our work at Gekko, we monitor how retailers approach and execute promotions like this to better understand and advise on the market. Ahead of Black Friday 2019 we saw that far from being a single day event almost everyone started their campaigns at the start of the week, and peaked with a push over the Black Friday weekend with limited additional discounts and promotions.

We closely monitored the Black Friday pricing strategies across eight different retailers in the UK and Ireland, recording the items and prices offered over the week before Black Friday. Across those retailers, we saw a big launch at the start of the week, an increasing number of items being put on offer as the week progressed, then a drop in availability as particular deals went out of stock.

Tracked Black Friday discounted products 2019

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Discounting on the day itself didn’t prove to be particularly significant. Of the 2909 items we tracked that were available to purchase on Tuesday 26th and still available at the end of the week, just 321 – 11% – were cheaper on Black Friday. 10% were cheaper than on the Wednesday, and just 6% were cheaper than on the night before. In the main, shoppers looking for a bargain could have purchased at any time during the week and would have been unlikely to see their purchases cheaper later on regardless of the store.

Of those 321 tracked discounts, TVs, laptops, and mobile phones made up almost half of the additional discounting, with scattered flash pricing on hot items like AirPods making up much of the rest.

Product categories of items cheaper on Black Friday than earlier in the week, 2019

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But don’t be fooled by the data here. Although 23% of the extra discounts were on TVs, only 16% of all TVs we tracked were cheapest on Black Friday itself. For everything else, the Black Friday price was the same price as the rest of the week. And though we saw some variation on prices for specific items from retailer to retailer throughout the week, Black Friday is so sensitive that prices were very similar if not identical as retailers ramped up their price matching.

Although we expect data released and compiled over the next week to show that online took a bigger proportion of the Black Friday and Cyber Monday spend this year, a battle on price isn’t the only option open to brands and retailers. This year we saw an increased push of AR product viewing by both Amazon and Currys PC World, and our online analysis showed brands partnering with retailers so that consumers could talk to a brand ambassador remotely. This is an attempt to mimic the experiential marketing that we have seen work so well in-store, and it’ll be fascinating to see how this develops in future.

The photo that accompanies this article is by Artem Beliaikin from Pexels

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Customers want service not sci-fi from high street retailers

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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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Identify the problem

Consumer electronics retailing lends itself like no other as a tool for retailers to be more dynamic in showcasing solutions and brands for consumers.

Retailers are experiencing growth across all categories, including a 1.5 per cent sales uplift in major domestic appliances expected through to 2021, of which 20 per cent of sales are made in the independent sector. Likewise, the UK small domestic appliance market was worth £976 million in 2016, and is expected to grow further this year.

Whether they are looking to upgrade an existing device, enter into a new product ecosystem, or make a ‘distress purchase’ to replace a product that has failed, consumers are looking for a solution to a lifestyle ‘problem’.

As a retailer, it’s within your power to provide this solution, offering consumers the right product for their needs and, in doing so, reinforcing why traditional retail is still the best platform to buy ‘technology’ products. The question is: what is the best approach to take for ‘solution selling’?

The problem

Ensure that sales staff know the products and services inside-out. Having an authoritative voice on the shopfloor to reassure consumers is the first step to completing that considered purchase.

Aside from this, a successful salesperson needs to employ a range of skills, including questioning, listening and demonstrating empathy with the customer.

Identifying the problem is the first step to finding a solution. Sales staff should be asking key questions of consumers to discover their needs, budget and motivations. Find out why the shopper is in the store. Are they looking to buy new, upgrade a device or has something broken down and needs replacing? What do they currently have? What specific features do they require? Where it will be used? How often? Is it a primary or secondary device? What is their preferred price range? Asking these questions will give your staff the necessary information to start the sales process in line with your store sales approach, using the customer’s needs to tailor their approach to products and brands that will suit them and their lifestyle.

It’s often too easy for sales staff to make assumptions about what is best for the customer, rather than asking questions. Equally, applying your own spend versus value opinion is not identifying with your customer, as value is in the eye of the spender, not the salesperson. To avert a hard sell, avoid these pitfalls and ensure your staff are fully qualifying shoppers before moving on to a demonstration.

Offer the solution

Once the customer’s needs have been established, sales staff can advise on the best product and brand specifically for the individual shopper. For retailers, selling the solution is all about the customer experience, and how the customer is introduced and immersed into the product and brand.

Your showroom environment should offer consumers the opportunity to experience a product or brand before they decide to make a purchase, allowing them to immerse themselves in the features and benefits of the product first-hand.

With the assistance of a knowledgeable staff member, your customer wants to be reassured that the product will meet their needs and solve their ‘problem’. To achieve this, have a working demo model to show customers how the device would function in their own home. Even if it’s something simply, like demonstrating the load capacity on a washing machine using a bag of T-shirts, this gives customers an extra bit of information that could make all the difference to their decision to purchase, helping to close the sale.

Above all, ensure your staff are trained on core ranges and brands so that they can explain the benefits to shoppers. Don’t make the mistake of ignoring what the shopper has told you, so that the features link naturally to the customer’s lifestyle or specific needs. Shoppers need to know how the product will solve their unique ‘problem’.

Personalise the sales approach. If your customers can see the product working, imagine it in their home, and be sure that it will fit their lifestyle, listen and tailor your responses accordingly and they’re much more likely to make a purchase.

Upgrade the solution

To upgrade from a standard sales approach to a ‘solution selling’ approach, the sales staff need to identify and enquire about the bigger picture, identifying opportunities and sweeping their customer up with a great shopping experience.

On top of offering a solution during the sales process, staff have the opportunity to ‘level up’ the sale by showing customers how much more they can achieve from their purchase by increasing their budget, in some cases marginally.

Having established the customer’s needs and advised on a product to suit their lifestyle, take them one step further by offering attachment sales that can enhance or protect the product. A good example is TV, where many shoppers will be looking for a perfect set-up to upgrade their home. Having decided on a TV, why not introduce a soundbar to the sale, demonstrating the superior sound quality offered and how that can enhance the user experience.

Gekko is expert in delivering this sort of training to retail staff, achieving an average 33 per cent soundbar attachment rate on TV sales. These sorts of high-value attachments benefit both your customers and your bottom line by increasing your average sale value. With this sales approach, Gekko was able to increase average sale value by 41 per cent over the entry-level smart TV.

When completing the sale, think about other questions you can ask the customer. For example, to get the most out of this smart TV, the customer will need an internet connection. Do they have good wi-fi in the living room? No, then how about some wi-fi range extenders? That could also include a cover plan or installation service. In this way, you’re demonstrating to the customer why they were right to come in-store and experience the product in a way they could never have done if they had simply shopped online.

This approach to solution selling is positive for both customer and retailer. The customer has a solution to their purchasing ‘problem’, having been advised and immersed in the best product and brand for their needs by a knowledgeable staff member.

Equally, the store benefits from up-selling and attachment sales as a result of this more considered approach to sales. The key focus though is the customer experience – if shoppers are given a ‘glimpse into the future’ – imagining themselves using the product and how it can fit into their lifestyle – they are much more likely to make that decision to purchase there and then.

They may also come back to expand a set-up, buy that matching MDA or simply choose your store for every future ‘technology’ purchase, because they know they will be listened to, offered solutions, given a service they appreciate and will enjoy the experience.

 

Read more at: http://ertonline.co.uk/opinion/identify-the-problem/

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High street sales are booming, say new retail figures

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Recent figures from the Office of National Statistic suggest high street retail is booming this autumn, with retail sales up 7.4% year on year in October. With an increase of 1.9% over September, this October saw the highest rate of sales growth since April 2002. Contrary to many who predicted an economic slump after the Brexit vote, and while the UK remains in Europe, retail appears to be in a good place leading up to the most important sales periods of the year: Black Friday and the Christmas Peak.

More good news for retailers is the increasing amount spent in high street stores, with consumers spending 6.6% more in October 2016 compared with last year, and up 2.1% on September. Retailers will be hoping this upward trend continues, increasing consumer spending during the peak sales period. The average weekly spend in October was £7.7 billion, an increase of £500 million year on year, clearly showing consumer confidence in the UK economy has not diminished despite warnings. Furthermore average retail prices fell 0.7% in October year on year, demonstrating how high street competition is dampening the effect of the decreased value of Sterling. Some have intimated that spending may be spiralling out of control, creating the bubble which forced the previous recession. However the lessons learned from back then may be applied.

The ONS report has even more good news for department stores and consumer electronics brands. The report found that 43% of retail sales in October 2016 were in non-food stores, encompassing department stores and household goods. Sales volume for non-retail stores was up 2.8% year on year, highlighting the growing consumer confidence in buying household goods. These figures are perhaps inflated by the weak Sterling which has increased international spending in particular on luxury goods, making that Hermes bag a steal in comparison to the price back home in its native France.

Overall, the ONS report suggests shoppers are ready to spend this Christmas. Of course, brands should not take these figures for granted, as in a highly competitive marketplace it’s still vitally important for brands to make an impact in store and be seen. Millions have been spent by retailers on this season’s Christmas adverts; they are now reliant on the products and brands they range to entice and convert shoppers into customers.

In order to successfully achieve this, all brands should be considering their retail execution at this busy time, especially focusing on education, merchandising and promotion to ‘wow’ shoppers looking for the perfect Christmas gift for themselves or another.

 

Read more at: http://www.innovativeelectricalretailing.co.uk/index.php/high-street-sales-are-booming-say-new-retail-figures/

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A Major Opportunity

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Unlike the CE category, which for many independent retailers has seen a decline in market share of 10 per cent for the first time since measurements began, the market share in major domestic appliances is positively buoyant.

The MDA market has increased by seven per cent over the past year, boosting the independent retailer’s share to around 20 per cent. This is thought to be helped by the growing built-in market, with increasing amounts of new-builds. And let’s not forget home improvement projects, which are also fuelling sales in this category.

This growing demand is beginning to make an impact on independent retailers, with MDAs now making up around 62 per cent of sales in 2015, up from 57 per cent in 2014.

Yet, there are areas in major appliances where indies are struggling compared with the market as a whole. One of these areas is American-style fridge-freezers, where they have a share of only 12 per cent compared with their share of cooling as a whole (19 per cent). This is perhaps because of space limitations when displaying larger models, but it is not to be dismissed as a source of increased revenue and important margin. However, these appliances are not necessarily to everyone’s tastes and, with our ever-decreasing new-build house sizes, are a limited market.

Irrespective of the purchase reason, distress or upgrade, key to selling premium brands and models is the ability to sell both the benefits presented by unique features. But not every purchase need be premium. Consumers may be purchasing a range to furnish a new kitchen and mix and match from the same brand across appliances to increase average sale value. Demonstrate to your customers how you have enabled them to stick to their budget or, better still, achieved perceived savings by purchasing more products than intended with the inclusion of some premium models.

The difference between a retailer selling premium goods and one selling mid-range products is the staff – how they communicate with shoppers – and also how consumers view the retailer itself. Understand customers’ perceived needs irrespective of whether it’s a distress or a considered purchase and find the right product for them. Careful questioning should enable them to identify premium product features that will appeal, and help the customer decide what is right for them. More often than not, customers will go for a premium model if sold correctly.

Consider your sales environment and its suitability to display and promote premium models. Does your showroom allow these products displayed in a manner that does them justice and creates desire to buy? With analysts predicting the total UK market for major domestic appliances to be worth £4.4 billion for 2015/16 and estimated to grow by 1.5 per cent year-on-year through to 2020-21, there is still scope for growth and opportunity.

As a business that focuses exclusively on CE and tech brands, Gekko is able to review consumer spending habits. Those in their 30s and 40s are purchasing the bulk of MDA products, decreasing significantly among those in their 50s. The lowest demographic is those in their 20s, who account for six per cent of the market.

With the MDA market squeezed, especially in crowded categories, it’s interesting to note that the average MDA spend is £328, increasing to over £400 in cooling products. This is driven higher by closing the gap on the premium market, where a Good, Better, Best strategy is applied across a brand. In such instances, we recorded that 64 per cent of purchases were from females at the top end “Best”, 55 per cent in “Better” and 57 per cent in “Good”. Interestingly males were sitting on the fence, with a highest score of 45 per cent buying mid-range “Better” and were not necessarily the influencers when selling premium MDA products.

Mid-range appliances can be the norm, but upselling to premium products should be the aim. With the right store staff, trained to sell in the right way, and the correct environment that reflects a premium proposition, high-end products are within easy reach for many of your sales.

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It’s Black Friday – I’m in love

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With nearly seven out of 10 retailers (68.9 per cent) expecting Black Friday to become more popular over the coming years in the UK and Ireland, it is likely to remain an important retail event for the foreseeable future.

Cast your mind back to the Armageddon-like scenes of 2014 where people literally fought to secure a bargain and, in some cases, bargains they didn’t want or need.

From a brand perspective, retailer or product, how can you tame Black Friday to continue driving excitement while maintaining a positive customer experience?

The fact is that Black Friday is good for all retailers, irrespective of whether you take part or not. Statistics have shown that UK retail footfall year on year for Black Friday 2014 had an increase of 9.8 per cent overall. When broken down into locations, the high street saw a 7.2 per cent rise, shopping centres an 11.3 per cent rise and retail parks a 14.4 per cent rise. This demonstrates an increase in opportunities to sell not only deals, but also stock items.

Advertise your offers in advance and consider a “by invitation only” VIP Black Friday event for your customer database.

Looking online, use social media and your website to pull customers in-store. Local advertising and banners can help your store stand out from the rest, creating an event to enhance the customer experience and drive excitement.

It’s obvious that you need to make sure you have sufficient stock, perhaps also implement a ticketing system, as people who really want an offer won’t mind waiting if it means they get it without the risk of a scuffle. Also, consider your non-bargain-hunters who may just want to shop – the hordes will only discourage your average shopper.

Place bulk-stack deals near the doors, avoiding obvious security risks, and encourage a flow through your store.

Keep the store busy with offers located in prime positions, supported by staff on hand to carry the item to the till or at least make customers aware of the offer to help shift those boxes. Link sales to other items – while a big-screen TV may be appealing, it still needs an HDMI cable and you’re more likely to make that connection sale if it’s also on offer. Better to attach than not.

Your online sales shouldn’t be excluded – 30 per cent of survey respondents plan to buy online during Black Friday 2015, up from the eight per cent who purchased online in 2014.

Still, consider delivery charges, which can negate any profit made for both you and your customer. One key thing to consider is whether your website can keep up with the pressure of increased traffic. In 2014, 12 per cent of shoppers experienced technical issues when purchasing goods online during the rush. If you are planning to run important deals online, preparing your site to handle large numbers of users will prevent lost sales and angry customers.

Big-box retailers and grocers alike court the publicity and will create PR hubs that achieve those sensationalist, headline-grabbing TV images. It’s therefore important to note that if you put on a Black Friday promotion, it isn’t necessarily going to turn into a bloodbath. However, the increase in footfall and sales is evident but, just in case, do make sure you can still sell on the stock after the event.

Finally, how can your brands help support your promotion or even your event? In crowded categories, Black Friday is an opportunity for many brands to gain distribution and market share through selling end-of-line products. For electrical products, GfK measured a value growth rate year on year of 24 per cent and, not surprisingly, 59 per cent week on week. When broken down by category, Black Friday 2014 average sales increased significantly compared with the week before, with mobile sales up 129 per cent, more notably TV was up 103 per cent and audio up 157 per cent.

This clearly identifies the opportunity for electrical retailers with careful selection of products and brands within your core lines. Working in partnership to leverage sales could work to create a more intelligent and rewarding Black Friday experience for retailers, brands and most importantly consumers.

Read more at: http://bit.ly/1NYWNuI

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Staff key to a successful peak period

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With last year’s Black Friday generating a 10 per cent increase in footfall compared to previous years, research from Gekko highlights the need to recruit and train in-store brand ambassadors to maximise in-store opportunities for the 2015 peak festive period.

A staggering 50 per cent of shoppers said that there is often not enough staff on the shop floor to help them when making a purchase decision. There is also concern over the manner of in-store staff, with over half (52%) of shoppers complaining that they are too pushy about making a sale.

Despite the growth of online sales, nearly three quarters (74.2%) of shoppers benefit from the touch, feel and physical comparison of products when making purchase decisions. A quarter (26.35%) of shoppers buy in-store when they are purchasing items they need to think about and choose carefully and over half (56.8%) head in-store for advice when making a considered purchase.

Sarah Mandeville, recruitment manager at Gekko believes that staff hold the key to converting sales during the peak-time rush:

“Whether they are full-time or temporary over the peak period, retail staff must demonstrate passion for the product and the ability to make a positive impression on shoppers. In-store is a vital touch-point for consumers, and retailers need to ensure that their staff are trained to maximise every opportunity. In a competitive landscape, which is heightened during peak, a retailer will only get one chance with the consumer.”

To manage the peak-period, here are five important action points for retailers to get the most out of their staff:

1. Allow time for training – Speed is often important when training temporary staff in the run-up to Christmas. However, staff will be more motivated and likely to convert more sales if they are immersed in the role. Take time to build your team’s knowledge and understanding of the brand, company background and product range. In an omnichannel environment, where shoppers can obtain product information using their smartphone, your brand ambassadors must know more than just the product they are selling.

2. Ongoing support – Training shouldn’t just be delivered at the beginning of the peak-period. Once the staff are in place, ongoing revision, recaps and coaching should be continued to keep the team sharp on sales messaging and promotions.

3. Create a team environment – staff may not all work on the same days or in the same locations. Using group chat or social tools such as Facebook or Google Hangouts can help to communicate simultaneously and build communities. To lead the team environment, allocate a mentor as a point of contact to motivate and be contacted at any time.

4. Don’t just motivate with money – Monetary incentives can be short-lived. To motivate the team, it’s worth creating friendly competition with leader boards and prizes. This can be a fun way to build a positive attitude among the workforce.

5. Treat everyone the same – To make employees feel part of the team, employers need to treat temporary staff as though they are full-time employees. Putting effort into training and making temporary staff feel part of a larger team can be a motivating factor for staff in itself.

Read more at: http://digitalmarketingmagazine.co.uk/digital-marketing-news/research-shows-retailers-could-suffer-over-peak-period-with-lack-of-in-store-staff/2622

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