The World of Retail Expands beyond the Store Shelves
Digital shopping expands its reach, penetrating the business of nearly all retailers. You can get anything and everything in the blink of an eye and the click of the mouse. This leaves retailers clamoring to meet changing demands and target more customers. Digital shopping has a notable impact but it has not completely overtaken the world of retail – rather it has made the whole ecosystem increasingly dynamic and complex.
Below are 5 keys areas of focus when evaluating today’s retail landscape:
1. The path to purchase can follow multiple routes.
Shopping used to be simple, you need something so you go to the store to buy it. Those days are long gone. The path to purchase can involve a number of steps from online research to in-store reviews and then back to purchasing online. And when additional product, price and features come into play it becomes even more complex.
2. What’s in it for me? The impact of personalization.
Thanks to data mining and advanced technology, consumers come to expect a personalized online experience. In retail that means that customers are receiving the right promotions at the right time to truly help resonate. The retailers that have mastered this approach will find the greatest success in maintaining repeat customers.
3. Convenience is the name of the game.
Sometimes shopping is about the experience and variety, and other times it is about efficiency. For customers who are looking for something quick, easy and simple, a convenient alternative helps to address their needs. Considering that online grocery delivery start-ups raised $429 million in funding so far in 2016[i], this trend is not expected to slow down anytime soon.
4. Private labels deliver perks.
When retailers contend with pricing pressures, digital alternatives and unique product features it becomes more difficult to really carve a niche for offerings. This is where private labels can come in to support positioning of the retail brand while also providing a low-cost alternative for customers. Ultimately this presents a win-win for both consumers and retailers.
5. Loyalty expands to all touchpoints.
Customers base their loyalty toward a brand based on the whole offering – in-store, online and through ad campaigns. Retailers have the responsibility to cultivate each touch point into an experience to build the customer relationship. Loyalty programs that are fully integrated from in-store and online purchases resonate with consumers and keep them coming back, no matter which channel they use to shop.
Want to learn more? Download our infographic “Examining the New Retail Ecosystem” to understand more about these current trends and potential impacts to your business.
[i] “Grocery Delivery Startups Lead Financing In Food Sector for First Time.” Forbes. May 31, 2016.