It’s a year since HMV, Blockbuster and Jessops entered
administration. This January started with a high level departure at Debenhams
and the news that sales are down at the biggest UK‘s food and clothing
retailers (Tesco and Marks & Spencer) are struggling to stay in touch with
the modern British shopper (Daily
Telegraph 6th January 2014). If you’re also thinking that Christmas didn’t
go as well as you’d hoped, then we’d like to help you on the way to a
successful 2014.
If there’s one big theme, it’s that the Customer Journey is more
important than ever
Mobile internet and the 'always on' consumer mean the
way shoppers think about and act on their purchasing decisions has changed
dramatically. Shopping is anywhere and everywhere. The Customer
Journey is no longer linear. It’s now more like a game of snakes and ladders.
Now we can buy in a shop, via an app or even a games console. The dynamics of the customer journey are
increasingly multifaceted and translating a brand into a compelling consumer
experience requires an increasingly diverse skill set. Getting the balance
right between on and offline is critical. So here are six ideas to inspire you
this New Year.
1.
Deliver a harmonious Clicks
and Bricks experience
Shoppers no longer see physical, technological and
geographical boundaries. Good online experiences are carried forward as
expectations of seamless service from High Street retailers. John Lewis has
responded to the challenge of closing the on/offline loop, benefiting from significant
sales growth driven by their Click & Collect service. Their new 2-year guarantee on all electrical & home technology
products closes the circle and allows them to leverage their offline logistical
infrastructure to benefit their online sales.
2.
It’s time to embrace
Mobile
Mobile is
increasingly finding its role at point of sale and, as a result, has blurred
the lines between on and offline. Amazon are wise to this and also the fact that
the vast majority of sales still take place in a physical store, so their app
now includes a barcode scanner for quick price comparison. However, Mobile
needn’t be a threat and can be used to bring customers into store and enhance
their shopping experience. Pizza
Express, for example, allow customers to pay for their meal via PayPal, rather
than have to wait for a busy waiter. French retailer Carrefour recently
introduced a mobile app designed to enhance the in-store experience for the
Chinese market. The app uses location sensing technology, a social shopping
list and an ad system that enables retailers to engage with their customers. Customers
can even use the app to navigate to the product they want while in store.
3. The same customer is worth more offline
We all know how important impulse buying is in-store. The
reality is that 40% of consumers report making impulse buys while shopping in-store
compared with 25% online. One of our clients has found that customers will happily
spend more on a higher spec electrical appliance if they can see a physical
demonstration and fully understand the difference in features. Price
credibility online drives customers to store offline. In addition, John Lewis
have found that customers who combine online and in-store shopping spend 4x
more than those who use only one channel. So monitor competitor pricing and partner
with comparison sites, if appropriate, but also use promotions to drive
customers into store. To this end, B&Q’s Club app offers exclusive in-store
discounts on various products, rather than rewarding purchases with loyalty
points.
4.
Consider the daily
conversation, as well as the big campaign
The reliance of many retailers on Christmas has lead
to an obsession with share of voice at the most cluttered and expensive times
of the year. But many brands overlook the opportunity to tap
into topical events to achieve a more cost-effective and memorable outcome for
your audience. For example, Marmite’s tactical
press campaign after the death of Margaret Thatcher and Nando’s 5 minutes extra
‘Fergie time’ following the announcement of Sir Alex Ferguson’s retirement. Be
topical, as well as seasonal. Consider messaging
across Owned, Earned and Paid channels.
5.
Act in Real-time
“The internet requires every brand, business and
individual to become a publisher” (Rachel Tipograph, Gap’s Director of Global
Digital and Social Media). Today’s increasingly demanding consumer means that
retailers need to be responsive in real-time and behave in a way that is
relevant to customers at every point in their journey. This is easy in-store
where you can see who requires assistance. Online it means serving the content
customers need as they need it. Reacting to the weather enabled Bravissimo to increase
swimwear sales by 600%. Create a sense of urgency in the face of limited stock
with ‘only 3 left in your size’ type messaging and understand when and where
‘customer chat’ support might be needed.
6.
Future proof your loyalty
programmes
We’ve become a nation of deal hunters. We expect them and
know where to seek them out. So we’ll happily switch brand and stock up to take
full advantage. As such, loyalty schemes are evolving away from a transactional
focus through developments such as ‘social couponing’ and ‘co-creation’.
However, some innovative retailers have realised people are loyal to
communities around common interests and centred on common products. For
example, target amateur photographers or baking enthusiasts and become part of
their conversation.
