Tag: brick and mortar

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Bringing the Online Experience Offline in Retail

When Amazon announced it was going to build brick and mortar concept grocery stores – Amazon Go – it made huge waves in the media.

What was particularly interesting about it was how they incorporated a feature usually only seen online: Amazon’s ‘Buy with 1-Click’ button.  This feature would create a seamless experience for the shopper: just select the items you want and then simply walk out of the store.

What Amazon knew about this move is what smart retailers are looking to do in brick and mortar properties: design stores replicate the best features of online stores. If that sounds like something out of a Black Mirror episode, it’s not. It’s going to be a hot trend in the future.

We’re far enough into the online retail revolution where we know there are some teens and adults who have grown up digital-first, even in retail. This fundamentally changes the purchase expectations and flow of a growing number of customers.

The ease of which regular shoppers online can navigate from consideration to purchase, to owning the item is a key part of the next generation of retail design.

In November of 2017, Target unveiled a redesign centred around the changing ways people shop.  The store has a dedicated entrance for “express” shoppers: through this entrance, wine, beer, and package pick up are the first things you see. The store also has curbside pick up where a store employee will deliver an order you placed directly to your car.

If none of these options applies to you, you can use Target’s second entrance, for shoppers to “discover” new items or brands.

This twofold strategy emulates two distinct shopper patterns that exist both offline and on: The on-demand shopper, and the discovery shopper.  By redesigning the space, Target hopes to capture both styles in a way that directly addresses their needs.

Apple got rid of the purchase queue years ago by making on-demand checkouts a reality in their stores. Customers can either walk up to any sales associate with a handheld device check themselves out with the Apple Store application. Just pick up the product you want, scan the barcode, enter your AppleID, and voila! You can walk out of the store with your new purchase without interacting with anyone.

The trend for retail seems to be moving toward operating the way we have become accustomed to shopping online all in an effort to bring people back into brick and mortar stores. The seamless process marries the best of both worlds: the ability to touch and feel the product in real-time and to ask crucial questions about the product while avoiding waiting in checkout lineups.

How can retail stores without hundreds of millions of dollars in renovation budgets and armies of sales associates effectively leverage this trend?

Set up a fast lane in-store

Set up an area somewhat close to your entrance for customers to pick up, return, reserve, or gift wrap items easily. If you’re unsure whether this will work, try setting it up during a busy time for shopping or returns for your store. It’s important to look at adoption rates, and solicit verbal feedback from those who choose to use this option.

Consider having grab and go stations in your store for the most commonly purchased items. Make these stations close enough to a cash or a mobile cashier to make the experience quick and easy for the customer

Work with your regular customers to make in-store shopping smarter

Using Salesfloor, you can set up predictive newsletters with items in them you know your customers will love, and let them know you can prep these items for them to pick up on demand in-store.

Look for purchase cadence for regular customers and be predictive about what you think they might need. This helps your associates become indispensable to these customers, who will likely return for the same simple, efficient service,

Increase discoverability

Merchandising isn’t just about showing off new lines or items that are on trend right now. Merchandising is also successful when it helps fulfil a need.

Online stores often bubble up “bought together” items in an effort to anticipate a customer’s needs. Grocery stores in vacation spots have long known the value of placing disposable barbecue kits in near the barbecue sauce, and solo cups and ping pong balls in with the mixer or near the beer.

Anticipating common uses or combinations of items in your store and either packaging them as kits or displaying how someone could package them/buy them together is a great way to increase total spend, and a great way to establish your store as a place that solves problems, thus increasing purchase frequency and word of mouth.

 

We live in an increasingly on-demand economy, but that does not mean that in-store retail is obsolete. Without resorting to wildly expensive redesigns, you, too, can leverage what the larger stores know about the change in how e-commerce trained customers shop and use that to gain strategic advantage by tweaking how your store and associates deliver the shopping experience from outside the store to the cash.

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Creating an Endless Aisle for Your Brick and Mortar Store

My veterinarian has a tiny showroom area with barely enough room for more than a couple of patients to wait for their appointments, let alone hold shelves filled with products. I, like many pet owners, rely on specialty food for our furry friends that we can only buy at the vet clinic, so it was becoming a real hassle to arrive for our appointment and be told they are out of the product we need. Even calling ahead didn’t always guarantee they would have the items I needed in stock, which would lead to me having to drive halfway around the city to find that special brand that my (fussy) pup loves.

Busy waiting rooms are common at small clinics. There is just no room for excess merchandise.

But in the past year, my vet came up with a great solution to extend their physical space and make it even more convenient for me to spend money on high-end pet food: they found a virtual pet food supplier to create an endless aisle. From the comfort of my home, I can order my dog’s food, treats and accessories easily through a storefront branded for my vet clinic, and if I happen to be at my vet’s and they are out of the products, they just enter my order into their system and it arrives on my doorstep a day later.

Even better, my vet has the record of what I’ve ordered on my file, so if my dog runs into problems, they know what they’ve tried and can suggest something new.

Lots of retailers, even beyond vets, are now transitioning to having zero inventory and putting excess inventory in an online shop to create an endless aisle for their customers. With an endless aisle, the customer can make individual purchases or set up regular deliveries for food and personal care items on a cadence that works for their lifestyle. Knowing you can get what you want without having to consciously remember every month to make a purchase is a convenience that most shoppers crave and in some cases are happy to pay a premium for.

For retailers, the gains from offering an Endless aisle are obvious and immediate: for every customer you sign on for a subscription to products, the more passive income you can count on every month when looking at your sales targets. The more customers who receive their goods regularly and frictionlessly will feed into your intake funnel through referrals, organically adding to your bottom line.

There’s another reason to offer an endless aisle, which is the same reason grocers have gum near the point of sale: impulse items. In setting up your subscription service, you’ll look at a wide selection of items and might decide to add a few smaller things. Your cart might be nearing the magical number to receive free shipping, so you add some items you know you will need in future just to escape the shipping charge.

Just because consumers have set up a frictionless delivery schedule doesn’t mean you can’t expect an increase in these impulse purchases. Every time someone greets the delivery person at the door or sees the box on their doorstep, your brand has made a touch with them. They will momentarily think about your brand. If your brand hasn’t considered creating an endless aisle, now might be the time to, as the benefits are numerous.

The Endless Aisle can also help you capture shoppers who forgot to complete a transaction in store, but still have a need. Often, these customers are lost to competing companies closer to where that customer lives, works, or is already running errands. Knowing they can visit your store in a convenient way on their own schedule keeps them loyal to you, and physically out of competitors’ stores.

Online shopping isn’t your competition, it’s your store extension

You may not know this, but Salesfloor can help your company set up an Endless Aisle easily. Customers can log on, shop, even receive shopping advice, customized offers and receive the kind of care they would be used to in store, all from within the site. Once they’ve completed their purchase or set up their delivery schedule, you can gain insights into what they’re looking at and how regularly they are using your services.

Understanding how often customers purchase is as important as understanding what they are most likely to purchase. Customers will often walk away if they are feeling upsold in a store, but if you are walking them through their purchases and helping them at the exact time they have a need, they are less likely to shop elsewhere and more likely to recommend you to friends and family.

People like to recommend brands that solve a problem for them without them having to invest a lot of time and energy on research or comparison. Your integrated sales team, combines with analytics and purchase cadence knowledge is an unbeatable combination that could help you acquire customers, keep customers, and develop customer evangelists, the holy grail for retailers.

The advantages of the Endless Aisle are too numerous for retailers to ignore, just like the siren call of a store that customers trust, with excellent sales help, available at their convenience is nearly impossible to ignore. Even people who love to shop have items they simply hate or resent having to shop for, not to mention how busy everyone seems these days.

If you’re continuously solving problems for customers, leaving them with positive experiences, you’ve set up one of the most powerful marketing systems in the world: word of mouth referral. The combination of word of mouth referral with subscription based deliveries could transform your bottom line.