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The bigger picture essays

Roastbrief by Roastbrief
July 28, 2022
in Marketing
Reading Time: 4 mins read
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The bigger picture essays
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As an industry we’ve often viewed the rise of ecommerce as a zero-sum game. An ongoing conflict between bricks and mortar retail and ecommerce where one must die. And as we’ve predicted ourselves and research from a number of sources has shown us the covid enforced genie of couch commerce isn’t going back in the bottle. In some respects, this mandatory and rapid adoption of online channels has actually been the kick up the backside the retail industry probably needed. It forced it to erase many of the inefficiencies in the system and enabled customers to search and spend in a much more objective manner.

This is actually good news for marketers, as it means we are getting a better understanding of more of our customers so that we can dare to dream of a day when we don’t have to shout at them anymore, we can just listen.

Obviously, there’s an enormous number of diverse opportunities within this new and rapidly evolving commercial environment and I couldn’t unpack all of them here, but I believe there are imperatives to be followed if we are to navigate this transitional phase successfully.

1. Reimagine bricks and mortar

I’ve got a network of stores but how to keep them profitable when footfall and physical transactions are declining . This is the question all legacy bricks and mortar retailers are struggling with. Without trying to be brutal, some of those four wall shops will need to close but use a data driven approach in coming to conclusions. Retailers will also need to understand if specific store performance is a result of Covid or were there underlying issues? How has the growth in online sales impacted a specific shop and understanding what is being sold in the physical vs the virtual world will help retailers to optimise their inventory accordingly by channel. 

They also need to reimagine the role of the physical shop. Before the pandemic, their role was primarily to provide in-store customer engagement with a few brands looking to evolve more immersive customer experiences. That evolution will probably need to accelerate across more retailers, with in-store experiences that inform customers about new products or help with existing ones lining up alongside click and collect models. Alternatively, retailers could look to the restaurant market for inspiration, where the shop front is online and physical locations are used as fulfilment centres to enable faster delivery using last mile courier services.

2. Increase your digital investment

As someone who makes a living off brands digital investment, I suppose you’d expect me to say this but It’s a bit of no brainer. Retailers of all shapes and sizes need to up their digital game. As footfall has decreased in the offline world so retailers need to boost acquisition activities online where footfall has increased. It’s also important to improve their ‘shop-ability’ of social channels where people are spending increasing amounts of time and seriously consider an influencer strategy as part of your retail efforts.

Brands also need to increase their visibility on the digital high street and create more opportunities to engage with passers-by through possibly a mobile app or a point-of-sale experience. And whilst building an online ‘tribe’ is not a new idea, creating valuable content that can be shared is an effective way to drive engagement. 

3. Look to innovate your omnichannel approach

If you haven’t re-examined the shopping experience in the last 12 months you need to now. Customer expectations have rapidly shifted with new preferences and behaviours, so retailers need to evaluate their current offering and find opportunities to innovate, meet customers’ new needs and ensure developments are integrated across all channels to deliver a consistent experience.

When people can’t or don’t want to go to a physical store there is also the opportunity to bring elements of the physical store to them. Namely, more personalised customer service via virtual sales assistants or live customer support streaming services where you can train staff not only to help with enquiries but also promote current products or new launches. The use of AI is also something to consider, particularly with items that people often need to see, such as clothing. There are now quite a few solutions that allow customers to try on clothes virtually thus lessening the risk of losing a digital purchase.

And as pressure grows on retailers over maintaining their physical store presence it might be time to think about partnering up with a larger complimentary retailer. This type of approach gives retailers access to potentially new customers who wouldn’t have crossed their paths before. After all there’s no reason why a shoe shop can’t sell clothes as well.

4. Use safety as a marketing pillar

Covid hasn’t gone away and its impact on our collective psyche will be with us for some years to come. A recent study by Facebook highlighted that not only are we personally taking more precautions but that we expect retailers to do the same with 71% of shoppers saying safety is very important and a key factor in deciding whether to shop in-store or not. So, in addition to providing protective and sanitising equipment retailers need to explore more contactless ways of purchase to deliver a reduced risk environment and consider how marketing might be used to deliver that message.

The new rules of commerce means that the battle for customers is increasingly democratised. Brands are now faced with meeting the increasing expectations of customers, and new complexities in marketing and ecommerce whilst needing to transform their supply chain and operations.

As succinctly as I can put it, the retailers that will thrive in this shifting world of commerce will be the ones that are designed to meet their customers where they are not where they wish them to be.

Simon Kennett is Chief Client Officerat MediaCom Ireland you can contact him via email on Simon.Kennett@mediacom.com

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