Showrooming is not a fait accompli … or the death of bricks and mortar
The term "showrooming" is the new buzzword in the dictionary of retail. It refers to the act of consumers literally shopping on their smartphones while in the aisle of a retailer. Consumers using mobile devices to shop in aisle has been noted as particularly impacting consumer electronics retailers like Best Buy. In fact, it has been portrayed that bricks and mortar retailers have become "helpless has beens". But, Best Buy and others are fighting back. There are 5 ways that retailers can beat showrooming by changing the consumer experience.
When you are in charge … it's all about personalization for "me"
It's the "Age of the Consumer". That's not new news. The lead articles on retail are chocked full stories about how consumers are now empowered through their mobile devices and online shopping. Consumers have indeed changed their behaviors, and more importantly their expectations. With the ability to shop any time anywhere, consumers have come to expect new levels of personalized service. This age of retail has truly become all about what you can do for me. What does this new level of personalization mean for retailers?
Amazon is a classic case study of how to excel at both simultaneously
The term "consumer-centric" has been bandied about in retail a lot recently. What does it really mean to be a consumer centric retailer? Obviously, it means to be focused on a consumer's point of view and their interests. Yet, retail has historically focused on merchandising and selling products when consumers come to the store or website. To survive, retailers must profitably sell products. But today, omni-channel is the new retail normal. It’s not a question of either or. To be successful long term retailers must essentially become schizophrenic and master the art and science of both consumer and product centricity.
Are traditional retail stores dead … or being invented in the lab?
You only need to peruse the headlines to see the stats on the phenomenal growth of online retailers, while retail stores are flat lined or declining. Indeed, some are predicting the traditional retail store will be dead in 20 years as consumers go ecommerce.
To paraphrase Mark Twain: "predictions of death of the retail store might be premature". Some of the largest and well known retail brands have purchased or created innovation labs. What are retailers cooking up in those labs that will get us, as consumers, back in store?
Maybe the newest member of the C Suite needs to be a Theater Director
One only needs to peruse the retail headlines to see the wide ranging discussion on the importance of customer experience in retail. In IMS Retail University we make the case very bluntly: "Differentiate or Die". If it only comes down to selling at lowest price, game over. Online and the largest retailers win the price battle, and Amazon wows consumers with both service and price. So, how do you create and sustain experience consumers will value? Retailers would do well to borrow from the playbook of Disney who understands a high quality experience is all about "theater" … and requires a blend of Stage + Actors + Script.
Online knows everything about you … stores are not sure you were there
The old saying is "build it and they will come". One of the greatest challenges for retailers today is they are not exactly sure if you will come, or in fact track if you did. Traffic X Conversion = Sales. While much of the current focus on "consumer experience" has been to improve conversion performance, comparatively little has been done to track and improve store traffic. In contrast, online retailers know an amazing amount about you as a consumer, how you shop, where you went on their web site, shopping cart traffic, closed sales and how you left their online store. Most retail stores are barely able to count if someone came in.
Social media is changing the face of retail … and how retailers market
On a personal note, this is my 300th blog post for Results Count. People often ask me how I find topics to write about in retail. The simple answer is that retail is changing faster than ever before. One of the most significant changes in retail is the changing behavior of consumers, especially in how they shop and connect via social media. Two of the questions I get asked most often are: "should retailers worry about social media" and "which retailers are most engaged in social media"? Some of the retailers most engaged in social media, and most followed, may in fact surprise you as much as did me. Definitely worthy of the 300th blog post.
Tomorrow's consumers will expect a seamless omni-channel experience
In gearing up for retailing in 2013, it is interesting to read the headlines and predictions. While much has been written on the future of specific retailers or the success of ecommerce over stores, relatively little has been written about consumers. At the end of the day, the results that count are the ability to attract consumers and engage them in ways they find valuable. Indeed, fundamental changes in consumer expectations and behaviors will be the drivers that change the face of retailing. Those retailers that both adapt and innovate based on changing the consumer experience will be in the best position to thrive.
Still an amazing place if you stop talking … look, listen and appreciate
Its year end, so do you write a blog in the last week, or not? It is extremely tempting to skip writing a blog, since everyone will be offline, or at least taking a mental break the last week of the year. Pardon me for being nostalgic, but I just don't have another measurement or retail blog in me at this year's end. Life's spice is to experience our world through the eyes and customs of others.
This amazing Black Friday collaboration is a harbinger of retail to come
Even if you don't live in the US, you've probably seen headlines on the biggest retail days in retailing. But there's a behind-the-scenes story of collaboration that unfolded on this year's Black Friday that you may have missed. Indeed, it is a harbinger of the future of retailers collaborating with new technology to differentiate, and be competitive in a real time online world. There is an old saying about "When pigs fly" referring to things perceived to be impossible. This one seems so unimaginable that it warrants the moniker "When whales fly".
