By Trevor Sumner, PERCH
With the holidays just
around the corner, retailers face a considerable number of challenges as they
aim to catch the consumer’s eye. As shoppers enter stores in droves attempting
to find the perfect gift, retailers need to be prepared for the influx of
customers while also delivering a seamless and enjoyable shopping experience.
Unsurprisingly, holiday demand continues to surge, as in-store sales are
forecasted to rise 4.4% year-on-year, while e-Commerce sales are predicted to
grow by 16.6%, according to eMarketer. By following the three tips below, retailers
can ensure they’re equipped to manage the impending holiday season.
1. Create Enjoyable, Shareable Experiences
Shopping and products
have always been a part of self-identity. We live in a sharing economy, where
Instagram and Facebook consumers want their shopping experience to be
shareable. Thus distinctive displays are imperative for consumers this season.
There’s been a rise in popularity of experiential pop-up stores and interactive
displays catering to today’s social-media savvy shoppers, such as Nike and Foot
Locker’s House of Hoops augmented reality game “The
Hunt,”
offering exclusive content to users and experiences tied to product drops.
Another example is
Sephora’s interactive beauty event, SEPHORiA, a two-day event combining interactive physical and digital
experiences, where consumers could customize their eye shadow palettes or take
home a personalized lipstick color from their favorite brands. Something that’s
limited time and truly special will get special attention from consumers.
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Kate Spade New York has
also capitalized on in-store offerings to drive potential customers inside,
providing personal in-store services that consumers can schedule online such as
their styling sessions and handbag customization with their “Make it Mine”
collection. By
differentiating on service, they help customers overcome the anxiety of holiday
shopping.
For many, holiday shopping
can be overwhelming and even a chore. Delivering consumers personalized,
enjoyable and shareable moments allows retailers to get customers in the door
and have them experience merchandise in a unique and compelling way that
becomes viral.
2. Leverage In-Store Data
Your consumer data holds
the potential to create an effective holiday shopping strategy. Use it. This
data can help reveal patterns and insights essential for targeting consumers
and delivering unified experiences across digital and physical channels. As you
build relationships with your consumers, incorporate the data you’ve collected
year-round to capture their interest.
Investing in predictive
analytics can effectively target consumers where they shop, and make sure
you’re providing what shoppers are looking for. A great example of this are the
increasingly popular Amazon Go stores, where shoppers can pick up their desired
products and simply leave the store, as Amazon charges them for their products
via their app. Consumers are effectively trading the convenience of no checkout
lines for their data, allowing Amazon to track purchases and keep the data for
future use, then recommend products to them later. And consumers are welcoming
the trade with 44% of
Amazon Go shoppers returning to the store.
As the holidays draw
near, anticipating shopper behavior is crucial for a seamless shopping
experience, and data holds the key to unlocking consumer preferences and
personalizing experiences.
3. Manage Your Inventory Network
Just as critical as
crafting these shared experiences and leveraging your in-store data is ensuring
you’re able to meet the sheer demand this holiday season will bring. For the
first time ever, U.S. Christmas sales are expected to exceed $1 trillion, which eMarketer reports is the strongest
growth retail’s seen since 2011. Misjudging this demand can quickly lead to a
sharp decline in sales, as Walmart experienced when they failed to keep basic items
in stock for the holidays in their attempt to manage highly in-demand items like TVs and
toys.
In order for retailers
to optimize their supply chain and manage their inventory during this peak
season, consider implementing buy online/pick up in-store (BOPIS) for
consumers, and even buy online/ship-to-store (BOSS). Not only will these
strategies allow retailers to offer a wide selection of inventory without the
necessity of storing it on-site, but it also invites shoppers to make
last-minute purchases (“attachment sales”) during their pickup. Macy’s is allowing consumers to purchase online and pick up
in-store this holiday season,
and Zara is reportedly seeing success with this trend already and states that one-third of its online orders are picked up in-store.
Navigating the holiday
season can be tricky, yet offering consumers a shareable experience combined
with ample stock of personalized products can ensure that retailers are
prepared for one of the busiest times of the year.
Trevor Sumner is the CEO
of PERCH, the leader in interactive
Physical + Digital retail displays that detect when customers touch or pick up
products and then respond with digital experiences, driving 30%-80% sales lift.
Retailers and brands like Neiman Marcus, Kate Spade, Sephora and Fossil use
PERCH’s 3D sensing technology, campaign management tools and device management
to create in-store experiences that delight their customers. Sumner has been an
investor, advisor and operator for cutting-edge technology companies for 15+
years and was previously President, CTO, and Cofounder of LocalVox. He also
contributes to business/technology publications like Inc., Forbes, TechCrunch
and Mashable.
