April 2017 archive

Successful ways retailers are using digital marketing to pull customers into their store and enhance their in-store experience

There have been copious amounts of research and worrying news articles recently arguing the new digital age might mean the end of our high street shops. (Rigby, 2011; Weltevereden, 2007; Rimer, 2013) However, this is not necessarily the case, in some circumstances, retailers have actually been using digital marketing strategies to entice customers into their stores and enhance the consumer’s shopping experience. This blog is going to explore successful ways retailers have been doing exactly that.

Using digital to pull shoppers into stores – Readily available information

Digital is a great way for local retailers and retail giants alike to encourage store visits. A study by Google revealed that 3 in 4 shoppers who find local information in search results are more likely to visit stores, and the top two places shoppers head to search include search engines (64%) and the retailer’s website or app (46%). The types of information shoppers would find most helpful in search results include:

  • 75% – A: Price of item at a nearby store
  • 74% – B: Item is in stock at nearby store
  • 66% – C: Location of closest store with item in stock
  • 63% – D: Details about local stores (hours, phone number)
  • 59% – E: Map showing which stores carry the item searched for
  • 56% – F: What else is available at the store that carries the items searched for

    Google study results

Therefore by having this information readily available for your customers online (either through a mobile friendly website, an app, or/and search engine optimization), digital can greatly improve your ability to draw customers to your stores.

One retailer that has successfully taken this approach a step further is Macy’s. Macy’s use a program that works with Google’s proximity marketing platform so shoppers can search for an item on their phone and see what’s stocked at their nearest Macy’s location. Alongside the images are product details like price, size and color, directions to the store, and a link to the item on the retailer’s website. According to Macy’s Group Vice President of Marketing Strategy Serena Potter, the idea is that “A shopper can then take immediate action if she sees that there are three pairs of shoes right now, in the size and color she wants, at a Macy’s that’s five blocks away.” By creating this synergy between online and their physical store Macy’s have seen some “encouraging results” with every dollar invested in search driving $6 in store purchases. (Rodrigues, 2014)

Enhancing the in-store experience – Smartphone sales assistant

Digital is not only transforming the way consumers act outside of stores but also inside stores. A study by Google shows that 42% of in-store shoppers search for further information online while in-store. This presents a powerful opportunity for retailers to impress and engage with consumers in new ways—and prevent them from turning to the competition. For example, within the store’s app or mobile friendly website, retailers could offer deals that shoppers can use only at their current location or provided shoppers with promotions for related items that are also in stock at that store, or alternative fulfillment options, such as free home delivery, should the product they’re interested in not be in stock.

Savvy retailers such as Sephora are already using mobile to deliver a better in-store experience to consumers. Sephora found that its customers rely on their smartphones while shopping in-store to help them find the perfect products. It designed its Sephora App to assist shoppers, giving them direct access to product ratings and reviews. Bridget Dolan, vice president of digital media at Sephora, says, “We think one of the biggest opportunities that we have in retail is for our customers to leverage their phones as a shopping assistant when they’re standing in the store. Having access to this information is that perfect new moment for customers to find everything they’re looking for and get advice from Sephora.” An interesting article that further analysis how Sephora integrates retail & digital marketing can be found here.

Taking this even further Amazon Go have been developing ‘just walk out’ technology where customers can purchase items through an app making the need for sales assistants redundant altogether, making the whole in-store process digitalized.

Enhancing the in-store experience – Digital displays

Modern consumers have learned to ignore traditional signage and banners so retailers are switching to using digital displays and interactive in-store marketing to encourage shopper engagement, increase the length of stay, and capture data. This, in turn, grabs the customer attention and enhances their in-store experience. (Wayin 2017)

There are several ways digital displays can be used, for example:

  • Engage visitors with touchscreen walls, photo uploads, polls, quizzes, and surveys
  • Showcasing top trending products based on up to date social media trends or online reviews
  • Digital catalogs to enable easy browsing and selecting, then adding items to virtual baskets.
  • Up to date advertisements which can be changed with ease

One company in particular that have adopted this strategy rather innovatively is Burberry. Burberry’s flagship London store aims to bring some of the web experience to the high street, featuring mirrors that double as video screens and staff armed with iPads. As well as other clever digital tricks such as the use of radio-frequency identification technology (RFID), which triggers related catwalk footage when some products are taken into a fitting room, or near a video screen. An interesting article that explores the digital aspects of their London store with comments from Christopher Bailey, the firm’s chief creative officer can be found here.

A final thought

Digital and online shopping will either replace the need for physical stores or enhance the whole shopping process by creating an omnichannel experience, such that the companies mentioned in this blog have been striving for or that Rigby (2011) states in a necessity for future survival.

Savvy brands will look at how the retail experience can marry the best of online – its scale and convenience – with the tangible experience shoppers know, love and be wowed by. (Rigby, 2011) If retailers are investing in digital only with the mindset of supporting their eCommerce business (or channel-specific sales goals), they are missing out on the opportunity and benefits a truly omnichannel experience can bring to both consumer and retailer. Although no retailer has completely nailed this omnichannel existence yet, many are beginning to experiment with a variety of creative ways, creating success through the synergy of digital and physical and the potential rewards are enormous. However, brands need to look beyond just digitalisation and ensure that the overall experience encompasses both online and offline. The store itself will then become another digital marketing channel, and appealing to customers digitally through unique store experiences may become more important than ever over the next century. (Gil, 2015)

If you’re after more information on how to best apply digital strategies to a physical store this article by The Boston Consulting Group is very informative. Four Digital Enablers: Bringing Technology into the Retail Store


References

Gill, K (2015) The Retail Experiences of the Future. Link

Rigby, D. (2011) The future of shopping. Harvard Business Review, 89(12), pp.65-76.

Rimer, D (2013) The end of retail as we know it. Link

Rodriguez, A (2014) Macy’s Links With Google To Show Mobile Users What’s In Stock Nearby. AdvertisingAge Link

Wayin (2017) Drive in-store revenue in the digital age. Link

Weltevreden, J.W., 2007. Substitution or complementarity? How the Internet changes city centre shopping. Journal of Retailing and consumer Services, 14(3), pp.192-207.