I think that one has to remain open-minded to the fact that there are 6 billion people around the world who are not European or North American, and they buy an awful lot of stuff.
Perhaps it would be a good idea to start asking some questions about these consumers, for example:
- Why do they buy it?
- How do they buy it?
- What are they using to buy it?
- Who’s serving them?
- How do they serve?
New technologies are also vastly transforming consumers' shopping experience. Today's smart consumers are a lot savvier than earlier generations, after being exposed to a multitude of options offline and online and are empowered to make informed decisions via "word-of-mouth" recommendations and online reviews. Traditional models of cultivating customer relationship via physical stores are being disrupted. Retailers must understand that the line between e-commerce and in-store shopping is non-existent in the consumer's mind. Therefore, merging the e-commerce experience with the in-store shopping and vice versa will allow the brand to get to know their customers' behaviour better, whilst also delivering an elevated experience that is not currently offered by your competitors.
Too many consumers still want to touch, feel and try-on before they buy, so in my opinion bricks and mortar stores are not going to disappear. And, besides, there is nothing like shopping and building friendships, passing time and simply indulging in the atmosphere of "what if, even if I can't!" Today's consumers are seeking personalised, data-driven services, as entertaining, memorable buying experiences can never be replaced with online shopping.
Going forward stores will need to build a "community", take more risks, look at their relationships with employees and stakeholders, reinvent training and embrace unexpected partnerships. With the establishment of e-tailing, physical retailers now must realise that they are competing with leisure experience (e.g. trips to the cinema or live sporting events), for a share of the consumer's valuable time. Eventually, stores will change from being a distribution channel to a media channel.
Retailers must aim to create an environment in which customers who come into their stores leave feeling a greater connection to the brand, and these connections will be built via the creation of experiences. Retailers should use technology, education and entertainment as the tools that serve as the foundation for the brand. This will enable them to connect with their customers and create lasting impressions that will keep them coming back. The hard work of managing this implementation along with your staff may require some external help.
Omni-channel marketing refers to a significant shift where marketers now need to create a consistent, unified, seamless approach across all communication channels, e.g. direct mail, advertising, events, web, mobile, call centre services, etc. These channels need to be fused into a single approach and each piece of the consumer's experience should be consistent and complementary.
Today, too many sales staff see e-commerce as competition rather than an ally. Perhaps it should be a looked upon as a halfway house, a mix between digital and physical models. Both Amazon and Warby Parker (eyewear) started as online ventures, but now have e-commerce and physical stores where consumers can try merchandise out before going on to place their order online rather than carrying their purchases home with them.
Privacy issues are a major concern now, but it is not slowing down the Personal Information Economy (PIE). If a customer thinks that it will benefit them financially or in service terms, they will surrender personal data to credit card companies, Google and their favoured brands and stores. Plus, more and more retailers are offering digital e-receipts – "Can we e-mail you your receipt?" – allowing them to track trending products, buying history and even customer moments.
A future scenario will see a consumers' who are connected to their retailer account when entering a store, beacon technology will be able to provide the sales assistant with their purchasing history, preferred brands and the option to send personalised discounts and promotions to the customer's smartphone. Such technology will also track where shoppers move quickly and where they linger, enabling retailers to make informed decisions about store layout. Staging experiences, embracing omnichannel and mining data are the new credos for physical retailers who want to lead the game.
