In the intensifying competition between brick-and-mortar retailers and e-commerce heavyweights, who will win? With e-commerce giants devouring a major portion of the retail pie, can offline retailers catch up? The answer is yes – And here’s how:
Strike while the iron is hot
It often happens that even while inside a store, shoppers turn to their cell phones to make a purchase decision. Offline retailers can convert this into a fitting opportunity to create fruitful in-store experiences by delivering relevant information to customers when the purchase intent is fresh. iBeacon technology is one such avenue through which offline retailers can furnish product information, videos, social reviews, etc. via mobile to help shoppers make informed, data-backed decisions while in the store.
Take Best Buy’s showrooming approach ‘Your Ultimate Holiday Showroom’ – This innovative campaign put forth the brand’s ‘Low Price Guarantee’ promise through an entertaining YouTube video, using an online approach to invite customers into the offline store.
Be socially intelligent
In-depth analysis of online activity and social media reviews can help offline retailers gain insights into customer sentiments, then leverage this ‘social intelligence’ to optimize in-store customer experiences. Social media platforms also facilitate better retailer-customer interaction, quicker information and feedback exchange, improving brand perception and sometimes reversing negative impressions too.
British multinational fashion retailer TopShop gave customers freestyling and make-up sessions, then invited them to create a ‘Wish You Were at Topshop’ digital postcard using Instagram. After being captured via iPads, the images were set with an Instagram filter and shoppers were encouraged to share them on social media.
Redefine customer service
Trained, well-informed in-store personnel must also have access to social media activity, online reviews, searches, etc. to assist customers better. This enhances the shopping experience and brings a compelling personal touch that may not be achievable by online stores – For instance, remembering regulars and personalizing the approach according to each shopper.
Here too, beacons can help offline retailers design personalized, targeted offers by syncing shoppers’ wish lists and favourites with their mobile apps.
Waitrose, a UK grocery retailer, lets shoppers use their mobile phones as a ‘Quick Check’ handset to scan products for information, ratings, reviews and discounts/offers; to cherry-pick their own offers (For instance, myWaitrose loyalty cardholders can select 10 exclusive Waitrose products at a 20% discount; and even request in-store assistance which store staff get notified about on their iPads. With iBeacon technology, store staff receive customers’ locations as well.
Says Sara Weinreb, founder of apparel store IMBY, “When people frequent my store, I’m able to enable them to define their personal style, find products that match their budget and requirements, and give them things to look for. Options such as this just aren’t on Amazon, where it’s your work to examine a large number of relevant products for every search.”
Anything traceable to an SKU or ISBN number is mass produced, marketed, and discounted.
Offline retailers can create their own unique merchandise by stocking locally produced items, offering differentiated features that cannot be duplicated or found online, and offer all this at competitive prices.
Australian fashion boutique Covet’s owner herself designs her store jewellery, giving shoppers inimitable items that are hard to find elsewhere.
Price matching, a common tactic used by brick-and-mortar stores to convert online shoppers, doesn’t always work, making it essential to be innovative while promoting and pricing products. One way is to ditch blanket discounts and instead segment buyers to tailor promotions based on individual shopping behaviour. Where possible, payment conveniences and flexibility (partial/split payments, layaways, etc.) can also help compete with e-commerce players.
Work on the balancing act
Inherent advantages of offline retail like click-and-collect, reserve-in-store, and in-store product stock availability indications can turn into unique advantages to draw more customers into physical stores.
Along with traditional marketing practices, offline retailers must build a powerful online presence too. In the booming online shopping world, not having a digital presence means missing out on a sea of potential customers. It is also essential to integrate brick-and-mortar locations with online stores by using solutions that sync inventory and data across multiple channels/locations to enable management of online and offline stores without duplications, redundancies and discrepancies. This balancing of offline and online presence makes the omni-channel retail experience a reality.
Digitize shopping experiences
Introducing new technology to physical stores can help offline retailers create digitized shopping experiences that online retailers may find hard to compete with.
Big Bazaar Gen Next stores in Noida and Mumbai are equipped with virtual mirrors, interactive digital screens, digital signages on retail shelves, paperless checkouts, and more.
The Van Heusen Style Studio in Bengaluru has an in-built recommendation software ‘style bar’, a Fit Suite to suggest individualized sizes/fits, and virtual trials, among other digital conveniences.
Raymond’s flagship store Ready to Wear in Bengaluru has iPads for invoicing and also to let customers experience virtual trials of chosen apparel in their specific sizes.
Several new age retail stores are catching up with their online contemporaries by embracing advanced technology to design digitized and exciting in-store experiences. Assistive robots, online advertising platforms like Taglr, interactive mirrors, sensor-embedded shelves, real time inventory tracking, and more, these are just some of the real-world features that can lure online shoppers back into good old offline stores. ')}