November 06, 2018
The convenience of shopping from home and getting a guaranteed lowest price are powerful incentives for consumers to skip the store visit. Very few retailers can operate more efficiently on price and convenience than Amazon. This is the macro-level challenge facing traditional retailers today. How can brick and mortar stores beat the experience of endless aisles of product options, predictable delivery, no traffic, no waiting in line, all while offering the least expensive option?
We believe that the answer lies in evolving the role of the store in the customer journey. Traditionally, stores have been points of conversion. Advertising drove traffic, specialty stores and department stores allowed for feature and price comparison, and sales folks helped in the conversion which allowed consumers to leave that very day with the item of their choice. Today, social media relationships drive the most influential product awareness, purchases convert on smartphones, and customer’s behavior online helps companies predict what a customer needs before they know they need it. The fully controlled retail funnel has sprung leaks.
That’s what retailers are up against today. The comfort zone of the store as the sole point of conversion has left most retailers exposed. And it begs the question, how has the store evolved in the eyes of the customer? And what does that mean for retailing in the future?
Before retail’s digital revolution, the physical store was where the “first moment of truth” happened. Crest over Colgate. Tide over Cheer. People were made aware of the products through marketer’s pushed communications which drove store traffic and in-store conversion. Because that linear path to purchase no longer exists, it changes how the store could be utilized as a marketing tactic. A couple examples: