It’s challenging for bricks-and-mortar retailers to stand out from the crowd. The key to driving customers in-store (and getting them to keep coming back) is differentiation. Using a differentiation strategy allows retailers to create a unique in-store shopping experience – that can’t be replicated online, and will set you apart from the competition. Implementing a differentiation strategy requires a variety of tactics. Some of them are tried and true, such as store layout and design,
gn, customer service and convenience. Others are more novel, such as experiential retailing, retail greening, and collaborative marketing. Using these techniques, retailers can create a positive and engaging shopping experience for their customers, build strong relationships, and drive sales growth over time.
Store layout and design
Store layout and design are basic, yet essential factors in creating the initial impression and introduction to the store. Don’t be complacent in this area. Regularly conduct audits of the store to see what is working and what requires improvement. Store exteriors should be clean, contemporary and welcoming. Don’t forget the basics: clearly displayed opening hours; sparkling clean exterior elements and enticing window displays updated regularly. Use exterior lighting if possible and clearly signal when the store is open and ready for customers.
Inside, a well-designed store will help customers find what they need quickly and easily.
Consider the following when designing the store layout:
The decompression zone is the area immediately inside the front entrance, where customers get their bearings before moving through the store. Don’t waste this opportunity. Even if you have a very small area, use it to provide shopping baskets. You can also use this area for sanitiser, welcome signage and information, and product displays.
Research shows providing baskets or trolleys results in higher volume sales. Don’t make customers feel they can’t pick up more items because they have run out of carrying capacity. Train staff to offer every customer a basket.
Customers should be able to find what they are looking for quickly and easily with clear and concise signage. Make it as easy as possible for them. Even in a small store, use signage and information to help customers find and select products.
Aisles should be wide enough to accommodate customer traffic and shopping carts. Remember to include space for different types of customers including those with a pram, wheelchair or walking frame.
Well-lit stores create a welcoming atmosphere. Investing in warm, strategically located light can make a huge difference to the atmosphere and mood of the store. It can also be the difference between customers leaving and choosing to stay longer and spend more time, as nobody likes being in an environment with cold, harsh light. In addition to fixed lighting, consider portable table and floor lamps, and using fairy or café lights in window displays and other areas of the store.
The psychology of colour in retailing shouldn’t be underestimated. Colours used in the store design should be inviting and complementary to the products being sold. At the same time, they should align with the retail brand. If you stock brightly coloured items, make them pop using crisp white walls, shelves and display fixtures and fittings. If your products could do with a boost, use accent colours throughout the store tied to your brand or a theme and keep things consistent.
Customer service
Customer service is the most critical element for a great in-store experience – it’s the difference between a one-off visit and a loyal customer. Ensure you always train staff to be knowledgeable, friendly and helpful. Customers who feel welcome as they enter the store are more likely to engage in conversation and subsequently make a purchase. Consider the following for all staff:
Staff should be trained and knowledgeable about the products they are selling, and be able to answer questions easily or know where to access information. Providing substitutes for out of stock items and helping customers solve problems with alternative suggestions are also key.
Train staff to communicate effectively with customers (think friendly and professional). For example, staff should acknowledge every customer as they enter and move through the store. You’ll be surprised what a difference this can make. Remember, you can train staff in operational matters, but you can’t train in attitude.
Empower staff to resolve customer issues or problems quickly and effectively. Even junior staff should be equipped to assist as efficiently as possible.
Make the effort to offer personalised recommendations for customers, particularly those who return regularly to the store. Customers love feeling special, especially in a retail setting.
A look at July’s interiors. Image supplied
Convenience
Make the shopping experience as convenient as possible. This seems like a no-brainer, but everyone is time-poor, so those retailers combining superior customer service and a convenient shopping experience will come out on top. Product selection and availability are obviously critical components of the in-store customer experience. If customers can’t find what they are looking for, they are unlikely to return to the store.
Also consider:
Equipping staff with mobile devices to quickly and easily look up product information and assist customers. Depending on the size of the store, incorporating features such as augmented reality, beacon technology and terminals or customer kiosks can be valuable.
Whatever the size of your store, implement a click-and-collect service. Research shows customers coming into the store to collect online orders are 50 per cent more likely to make an additional unplanned purchase while there.
Getting creative with displays (including windows) and drawing customers to strategically placed items. This is vital when so many stores look similar – make yours pop. Also, make accessing products as easy as possible.
Get experiential
Many customers now want to spend money on experiences rather than ‘things’ and this is where experiential retailing can help you stand out.
Experiential retailing is where customers do something in your store rather than just buying something. Depending on the type of store, consider running workshops, hands-on product demonstrations, or hosting a live performance. Allow customers to co-create a product or even run a pop-up or interactive product launch. Try to encourage groups of friends to participate and then you can leverage word of mouth and social media.
While events and promotions can help drive foot traffic and increase sales, they do take a lot of time and effort so it’s important to get the planning and execution right.
Consider the following:
Be very clear about the purpose and objectives of holding the event. How will you know if it has been successful? Set realistic and measurable targets and outcomes for every event and promotion so you can build on successes and learn from mistakes.
Get the timing right so your marketing calendar includes time for promoting events. There is no point holding an event if your customers either don’t know about it or find out too late.
Consider the target audience when planning events and promotions. Is the event to encourage new customers, reward existing customers, promote new products and services, or celebrate a milestone? What will most appeal to the market you are pursuing?
Use social media, email and in-store signage and flyers to advise customers of upcoming events. If the event is newsworthy, contact local media, who might cover the story and get you some air time and invaluable coverage for your store.
Retail greenery
The use of greenery can greatly enhance the in-store customer experience. Studies have shown incorporating plants and greenery into retail spaces can reduce stress levels and increase positive feelings for customers and staff. Using greenery outside the store and at the entrance will also attract customers. Consider pots and planter boxes, even vertical gardens.
Retailers should consider in-store greenery. Image supplied
Collaborative marketing
Finally, if you haven’t engaged in collaborative marketing yet, give it a try. Collaborative (or horizontal) marketing is a purposeful effort among retailers and other local businesses to attract customers to a specific area.
By partnering with local businesses, retailers can create a more comprehensive and engaging shopping experience for customers, and give them a reason to visit a specific shopping area, as opposed to a single store. The longer customers stay in an area, the more they are likely to spend, so this type of marketing is a win/win for everyone. Think about:
Partnering with local businesses: Work with local restaurants, bars, and other businesses to create marketing materials, special promotions and events that attract customers to the general area.
Cross-promotion: Promote one another’s products and services to respective customer bases and expand your marketing reach.
Joint advertising: Collaborate with other local businesses on advertising campaigns to promote the general area. Work with the local council to explore branding your area. If it isn’t already part of a ‘precinct’, create your own.
Community involvement: Get involved in local events and charities to build relationships with the community and attract more customers to the store. This can help you build a strong customer base and drive sales growth over time.
This story first appeared in the May 2023 issue of Inside Retail Magazine Australia.