Convenience is an important aspect in our always connected, fast-paced lives and let’s face it, Christmas shopping is time-consuming. Debating whether to brave the cold and hit the high street or simply shopping with one click is a decision many of us face. I know what I prefer, do you?
Retailers will tell you that Christmas is a huge time to shop and they are right - holiday shopping was in full swing towards the end of the year. But with the festive season now over, the results are in: online vs in-store, which channel triumphed in the Christmas shopping battle?
The winner was online. Online shopping was the key driver of December sales growth over the festive period. Smartphones and tablets accounted for 51% of UK online retail sales in Q4. Strong deals and promotions encouraged more consumers to shop online, which resulted in a 15% rise in all retail spending.
Christmas Day shopping is fast becoming the norm too, with department stores such as Selfridges, starting their sales from midnight on Christmas Day. Overall, 2016 saw a trend of shoppers deserting in-store and purchasing online.
Overall in-store sales were lower than in December 2015, leaving retailers wondering what more they could do to improve the customer experience and drive footfall. There is no doubt that consumers still enjoy a ‘hands on’ experience, as it gives them the opportunity to look at and physically discover products before purchasing. But is that enough to give them a memorable experience and keep them coming to the high street?
Here are my four ways retailers can improve their in-store experience to drive more sales throughout 2017:
Click & Collect: online shoppers use Click & Collect for convenience and to easily allow for web price comparisons on offer. It saves on unwanted delivery charges and enables shoppers to select a suitable date for picking up their goods.
Half (51%) of online shoppers have used a Click & Collect service and it is a rapidly growing trend. The option of collecting items rather than waiting for delivery draws consumers into stores and gives them a different customer experience, even perhaps purchasing an impulse item.
Real-time data: Retailers can and should utilise real-time stock data in emails to push in-store sales. Consumers can receive emails showcasing items they have browsed online with real-time stock updates. If the email states ‘only 2 left in stock’ while the customer is in-store, the adrenaline kicks in and can drive a customer to purchase. Using locational data when opened, an email can also recommend the location of the nearest store to encourage the immediacy of a physical shopping trip.
Leisure experience: Let’s not forget that customer experience is important in keeping stores attractive for shoppers. Retailers can profit by making their stores into a leisure or lifestyle hub, drawing in hungry consumers. An example of a brand already leading that trend and profiting as a result is Waterstones - as well as improving the overall in-store experience, they rolled out in-store coffee shops to make shoppers feel at home with their cup of coffee and a good book to read - transforming a book shop into a leisure experience. By offering free wifi, they also allow consumers to interact and share their experience - by doing this, retailers can capture consumer behaviors and keep them coming back.
In-store only: It is now common for shoppers to use a multitude of channels for researching and purchasing. In fact, a massive 84% of consumers report using digital for shopping-related activities before or during their most recent trip to a store. We all sign up to numerous retailer newsletters and often receive special online one-day only sales. Retailers can shift their offer focus on providing in-store only offers, providing unique voucher codes on selected items via email. This helps bring back the customer into stores, and by tracking unique voucher codes you can enhance the amount of data and insights you have on the individual and their reactions to offers.
I am a prime example of a shopper, who ticks two of the above suggestions. Receiving a word of mouth promotion, I decided to go last minute shopping on Christmas Eve to Selfridges. The cashier kindly suggested I should save my purchases for their big Christmas Day sales – which had free in-store collection before New Year. You can guess what I did? In the days leading up to my chosen pick-up date I was emailed with a countdown timer of the amount of days I had left to pick up my purchases, leaving me with a sense of excitement and anticipation over my purchases. I really looked forward to finding out how my items were going to feel in my hands, safe in the knowledge I could return any unwanted purchases then and there.
The online retail revolution is taking everyone by storm, and retailers need to embrace the changes it is bringing. By focusing on continually improving the customer service experience whatever channel they may use - bringing in new innovative ideas and investing in the right digital marketing technology - can help this.
Consumers will always be on the hunt for a bargain or an excellent shopping experience, but interaction between the different channels they use is sizeable and will only grow. Retailers who embrace this proposition will win, and I know the high street is here to stay. Oh, and we only have 300 or so days left until Christmas 2017!
To hear how The Message Cloud smashes marketing ROI online and in-store, contact us today.