Khaleej Times: In retail, it’s all about the customer

Retail sales continue to grow globally. In the US retail market, one of the worlds largest, the annual turnover today is greater than $4.5 trillion. Ecommerce sales accounted for approximately six per cent of the total annual retail turnover.

Surprisingly the growth rate of ecommerce has slowed. Retail analysts Robin Report states that the growth of ecommerce has slowed from 30 per cent in 2004, to 16 per cent growth in 2014 and growth is expected to continue to slow into the future. Why?

In 2015, 80 per cent of the annual sales turnover in the US were conducted in bricks and mortar shops. Interestingly greater than half (over 50 per cent) of the e-commerce sales, also occurred in the brick and mortar shops through e-mails which were communicating inducements to the shoppers which were then acted upon in the physical stores.

Brick and mortar shop sales continue to grow thanks to unique shopping experiences now offered to customers. Successful retailers operating from bricks and mortar have upped their game.

Creating an in-store experience that is uniquely their own and an experience which sets the retail environment apart from the competition is vital.

The following are key components to integrate into your brick and mortar stores when next reviewing your checklist to up your game:

• Even if you do not have ecommerce functionality, online accessibility and imagery are indispensable. Your website must reflect who you are and what you represent.
• Ensure you have a very active social media programme and highlight the launch of any promotion in your store.
• Link e-mail marketing with a rewards programme. More than 65 per cent of purchasers in bricks and mortar shops visit the online shop before deciding to visit your store in person.
• Build solid relationships with every customer both online and in the shop.
• In your store the audio architecture speaks volumes about what your shop is all about. Be sure to link the sounds in your store to your customer.
• When possible add food to your shop. Flavours and a place to sit in the shop increase dwell time translate to greater sales. A small café is a great way to increase the time your customers spend in your retail environment.
• Aromatherapy in your shop is vital. Knowing that the aroma from your store has a positive effect on shopping behaviour. The science of scents has an effect on our minds and moods. Study the aromacology preferences of your customers.
• Allow your customers to handle the merchandise. Studies have shown that customers who feel comfortable being able to handle the product end up buying.
• Visual merchandising is a science unto itself. Study or hire a professional who understands the skills and practice of making the shop work harder for you. Presentation of the product is everything.
• Find the hot spot in your store. Be sure to highlight the product you want to sell first and display that product in the hot spot. In some stores the hot spot is near the cash. In other shops the hot spot is within the first two metres of entering the shop. Find the hot spot in your shop and be sure to use it.

Whether your retail offering is online or in bricks and mortar shops, the retailer is now more than ever fully responsible to ensure that the customers enjoy the experience of purchasing your goods and services.

By David Macadam – Khaleej Times

Link to Article: http://www.khaleejtimes.com/in-retail-its-all-about-the-customer