Tuesday, 21 August 2012

✔ Why Successful Retail Is Sticky Retail?

In a recent European shopper study we found 65% of shoppers in specialty high street stores in Italy left the store prematurely (summer 2012). In other words they engaged only once with either a product, some merchandising or marketing collateral and then left the store... does that surprise you? This statistic tells us that there is real opportunity for retail marketers to engage with shoppers more deeply.

Introducing a multi-platform experience is one way of improving that depth of the customer relationship. The more effort we spend changing how people interact with the environment the better. In the same study 75% of shoppers who made four or more interactions spent money. Positive proof that dwell times and stickiness drive are a consequence of buying behavior; the decision our clients face is what pieces of the retail-marketing puzzle go where.

Brand Perspectives
Brands own the retail relationship; they have the trust of the retail customer. Measures such as recognition, visibility, share of shelf, share of basket, dwell time, pick and take rate and sales densities help to define good and bad retailing.

Many brands are reliant on the retailer as an ambassador to raise awareness and sales. In highly competitive generalist retail environments brands that have two or more locations and more marketing collateral tend to score better for recognition and saliency. Brands with little or no support get lost very quickly. Smart brands use different channel touch point to get their message across.

Many brand owners use retail to change how people think about them. By approaching consumers out of context they can change they way we view them. Louis Vuitton in New York celebrated its collaboration with the Japanese artist Yajo Kusama, famous for red polka dots, will a life size mannequin of the artist to project their windows and capture the zeitgeist.

Retailer Perspectives
Retailers want to improve shopper numbers, frequency of visit and basket size. The different tactics used to drive performance influence placement, message and opportunity for brands. Future-facing retail is multi sensorial, respects the consumer and uses messaging to support brand storytelling by providing intimate moments at retail.

Size isn't everything - consider West Edmonton Mall reportedly the fifth largest shopping mall in the world (the largest in North America) and still with the largest waterpark in the world. It is relevant to future retail as long as it keeps offering what shoppers want in a memorable and competitive way. Contrast this retail giant with The Little Mule coffee house in Melbourne; a distinctive, individual, relevant proposition that shows real empathy in delivery. The shopper experience is enhanced every time by great staff getting it right.

The giants of retail experiences create solutions either through display or messaging. Category zoning is a useful device to pull and push shoppers through the retail space using dialogue effectively. Simple examples range from the hologram display at London Luton Airport that educates passengers about carry on luggage requirements to more impactful window displays like adidas in South Korea showcasing giant 3D holograms featuring exploded diagrams of the latest running shoes.

Nike's termini store in Rome, Italy, captures the spirit of Nike brand with a coherent on the go retail proposition. Its role is clearly to gain attention and interest; this often gets delivered through digital screens, interactive displays and three-dimensional collateral.

Shopper Perspectives
There are three drivers of shopper behavior: motivation, entertainment and ease. Individual shoppers are complicated, they are driven by sets of motivations, and are also looking to satisfy a need or fulfill a wish. They are influenced by promotion, by format and packaging and they are habitual and often  inconsistent in what they do. 

At retail we can compare similarities and identify patterns amongst groups of shoppers, and then predict future behaviors to maximize the opportunity the retail channel presents.

The shop is where people are engaged, interested and welcomed. The most efficient and effective retail experiences are about scripting, not just about proposition and product display. Demonstrations, evidence and experiences cut across all touch points, and shoppers are open to influence. Our studies prove that 60% of bar counter customers intent on buying the next round of drinks will up trade if an alternative is recommended by the bar staff, that's a whopping commercial opportunity resulting from observing retail behavior.

[ Reprinted from
Contagious - Author Jonathan Webb is co-founder of shopper consultancy Retail in Action












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