Tag: shopping

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How Retailers are Using Video to Increase Sales

Videos, and the immediate distribution of them through the internet has profoundly changed the way we live…and shop. We’re relying more and more on using video to help us discover and compare products we are looking to buy and retailers know it.

Traditionally, the merits of video were merely practical: it helps boost your Search Engine Optimization (SEO), helps your brand establish trust, and increases discovery to your site if you have a video people love to share. But there is so much more to video. Video still does all of that, very well, but it can be worth much more to your brand.

Retailers who adopt video are finding amazing ways to connect with customers or potential customers, and seeing existing customers’ average order value rise. In a recent survey, 57% of retailers said video is responsible for increased spend from the average customer.

So, how are winning retailers using video? Here are some great examples:

They’re engaging fans of their brand regularly

A clever campaign by JCrew on Instagram Stories

Retailers who are hesitant to deploy video should understand that more video means higher order values. A study found a startling 69.49% increase in order value the more videos a retailer deployed.

J Crew is a company that is using video very effectively. On their Instagram, they regularly post videos. Some videos are explanatory (like “How to Wear Denim on Denim”) while others are aspirational, but all of them serve a purpose: to draw Instagram followers in and entice them to make a purchase. Instagram Stories, a collection of pictures and video can help set the mood for customers looking to buy a new jacket and get them to purchase after seeing a 30-second clip. What’s more, Instagram stories expire in 24 hours, so J Crew has deployed them for sale announcements to drive excitement.

J Crew can also post a video of a new product and get immediate customer feedback. This can help them tailor future product lines based on verbatim criticism or praise.

They’re demonstrating products to bring the in-store experience home

A playable electric guitar shirt is much more interesting with video, no?

Photographs of products offer a limited amount of information about an item because there is little context. A video is an excellent way to show how large an ottoman is in relation to a child, a dog, or an average sized couch. Video can show you how a dress pattern moves or how long the hem REALLY is on a dress, where a photo simply cannot provide this kind of detail. Video can also show how easy it is to use a product (think Apple’s demo videos for everything from iPhones to their Airport Wireless Routers) or how a product can be useful. This is important for items that can’t be experienced in real time online. It helps bridge the experience of trying on an item to the immediacy of looking up a product online.

They’re showing customers how to use their products better

Instant Pot is the home appliance equivalent to a viral video thanks to their creative recipes

How do you explain how to use a brand new product with a learning curve over the internet? Video. That’s how holiday 2017 sensation Instant Pot was able to quickly ramp up their business, by simply showing how to use their category-busting product. Since there are some safety procedures and an interface to learn, Instant Pot knew that by making videos about how to make the most popular and easy to cook dishes, they could lower the barrier of entry.

They also have more advanced videos on their site to explain to intermediate and advanced users how to get the most out of their Instant Pot. It’s working. The Instant Pot is not only wildly popular, it has inspired dozens of knockoffs from major kitchen appliance companies.

They’re creating shareable experiences

This is a fun execution of video and experience!

Can you convert your fandom into walk-in traffic to your store? Give them something to talk (or snap) about. Recently, Eddie Bauer launched Cold Rooms in some of its retail locations to allow consumers to test out the efficacy of their cold weather gear. The Cold Rooms are designed to look like Ski Chalets and even have ice sculptures inside. Why? So visitors will share their video #Experience on their own social media, thus encouraging others to do the same, and raise awareness of this new way to shop.

They’re making themselves indispensable with advice

The Home Depot has a how-to for everything…including the kitchen sink!

Can you get someone to buy something they didn’t even think they needed? Ask The Home Depot. They have hundreds of videos showing how easy it is to change the hardware on a bathtub, or install a baseboard, for example. Home Depot understands that people don’t just need to be walked through the steps, they might actually need to know what products they’ll need to complete a project.  Seeing objects in context and in use is crucial to convert shoppers who are unclear about a product’s worth or how to use it.  Showing customers the complete project allows them to get fully equipped and retailers to sell more items, increasing cart size per visit.

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Video might seem like a big undertaking for your company, but there are so many advantages that it’s worth your investment. There are so many ways it can be applied to draw in shoppers, and so many advantages to trying out a video campaign, you might want to try to start out small. Even a few videos highlighting a sale, your staff, or a special event can help you connect with and build an audience.

Once you build out a video plan and commit to creating regular videos, you could see boosts that retailers who have mastered video are already enjoying. Are there other examples you can think of? Please let us know in the comments below.

 

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ABOUT SALESFLOOR

Salesfloor is on a mission to unlock the power of today’s omnichannel sales associate by connecting them with shoppers online and in-store. We believe that associates are product experts, trusted advisors and social influencers for customers in their local communities. In today’s omnichannel world, retail chains have a unique opportunity to leverage their biggest competitive asset: their people.

 

Learn all about how this works here.

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Ways to Motivate Your Customers to Buy (beyond price)

Customers are motivated by vastly different things. Don’t make yours motivated by price.

If you had to describe recent decades as macro shopping patterns, it would have to be that the 1980s were about status, the 1990s were about price and the rise of the all-in box store, the 2000s were all about conspicuous spending, but where does that leave the 2010s?

It’s interesting that in an era where things we need are costing more than ever before, the main motivator for shoppers does not always seem to be price. In a world where you can spend 30 minutes in your pajamas to find the lowest price on an iPad, people still spend hours in the Apple store, just browsing and trying out the shiny new things. What exactly is going on there?

The 2000s saw the rise of ecommerce and its effects on bricks and mortar- it had a polarizing effect. Some businesses thrived. Others were the victims of showrooming. Some people still prefer to do all their shopping in person. A quick check of any mall parking lot in December confirms this. People are shopping in store, and sometimes paying a premium to do so.

What seems to set retailers apart in this new paradigm are retailers who understand their role in customer care, and that customer care starts the moment the door opens. According to an Oxford study in 2013, what customers really care about isn’t decoration or cheerily delivered sales scripts, it’s a salesperson’s ability to read a customer’s mood and deliver what’s needed to them in the moment. Understanding when a customer is in a hurry or buying a gift for someone who is unwell is a key part of sales success, according to the study’s findings. The same study found that women are actually distrustful of red “sale” signs, and often second guess whether they are being manipulated.

What customers really care about isn’t decoration or cheerily delivered sales scripts, it’s a salesperson’s ability to read a customer’s mood and deliver what’s needed to them in the moment.

Psychology today looked at the psychographic profiles of different types of shoppers and found they are motivated by sometimes wildly different reasons to shop: adventure, social outings, indulgence, trends, relationship to a recipient were all cited as strong motivating factors toward driving purchases.

[In other words, focus on the other shopping types!]
Bargain shopping was not only a lower motivator, if you look at it versus all the other reasons, It’s only 1/6th of the reasons to complete a purchase, and has no emotion tied to it. Competing on price doesn’t make the most sense from a numbers perspective as a strategy. Catering to more of these identified motivations seems to be a way forward for retailers in a changing environment.

What’s Working in Retail Right Now

Who’s winning the retail game? Think small. Small as in brands, and small as in square feet. Many large retail operations are moving into smaller, more urban focused spaces and catering to the needs of urban dwellers. This is partly due to the cost of operating in these markets versus the amount of foot traffic moving to e-commerce solutions. Stores simply don’t need to be as big anymore. How do stores win in that case?

Studies show that customers will walk around and browse more in a smaller location. The more you browse, the more opportunities for you to find something you’re going to purchase, and the larger your bill might be. Smaller stores also bring you in contact with sales staff more, enabling more touches and more opportunities to get questions answered.

The think small ethos has also worked to bring big attention and a healthy bottom line to retailers like Warby Parker. They’ve managed to successfully bridge the offline-online gap in a vertical that most would agree requires in-store shopping: eyewear. It turns out, that they’ve managed to do what traditional retail wisdom tells us is impossible: Take a primarily online business and segue it into retail success. They boast nearly 50 stores in the United States and Canada. (Up from 0 in 2010.) Their “try at home” program still exists, but foot traffic at their stores is healthy.

[Warby Parker photo from Flickr: https://flic.kr/p/b9Hitz]

What’s Working in E-commerce Right Now

Customization was a theme about 7 years ago we were promised would win big in the future. While it has had some moderate success for some retailers, it’s largely not been a real vertical killer for brands who have tried. More options means more overhead in the form of inventory you may never move and can’t repurpose. It turns out, customers don’t want custom products, they want custom curation.

It turns out, customers don’t want custom products, they want custom curation.

What’s been working for many retailers is an old fashioned idea: Newsletters. 2016 was, for retailers and media companies alike the Year of the Newsletter.

Email is still king when it comes to driving sales. Search barely beats it out, but that’s for consumers who already know what they want. For those who are “just browsing” or undecided, Email is the best bang for a marketing buck.

The ability to tailor content to a specific customer based on shopping preferences, time of year, and purchase history has changed the game for many retailers. Our own partners have seen real foot traffic and conversions from implementing Salesfloor to personalize the shopping experience for individuals.

Associates using the Salesfloor platform can create personalized email marketing campaigns in which they can offer special promotions or recommendations. Presenting the right goods to the right customer at the right time leads to sales lift, much like hand selling in store by judging a customer’s mood and style works.

The Road Ahead

No one has a crystal ball to know what’s next for retail, but what works- Observing, Listening to and Responding to customers is not a purely offline or online play. These are cornerstones for selling and increasing cart sizes. We predict that a mixture of human interactions, data, and real customer feedback will further refine the way products are sold in 2017 and tech will be a key part of lowering friction to purchase, increasing purchase frequency, and increasing purchase sizes for retailers.

Observing, Listening to and Responding to customers is not a purely offline or online play.

We’re thrilled to work with our partners to watch this transformation of retail happen in real time and are excited for what’s next.