11 Clicks to bricks:
Following 15 plus years of high street retailers shifting to online retail, we are now seeing the opposite as online retailers see the value of the bricks and mortar store. For years we have heard about how the high street struggles to make money. Yet this year we have already seen some of the biggest online retailers investing offline. For example Google, a global brand that would seem to be defined by its online status, has already launched a mini-store inside Curry’s. Amazon, a phenomenally successful yet primarily online brand, has now gone on to announce that it will be opening a physical store. But why are online retailers suddenly interested in offline retailing? Te retail trend over the last decade
has been for retailers to start operating online to supplement their offline business, as consumer shopping habits change to digital. Despite this shift, many pure-play online retailers are starting to create hybrid experiences whereby they can offer customers the tangible and engaging experience of offline retailing and combine this with the convenience and personalisation of online shopping. One of the primary benefits of a
physical presence is the chance to touch, feel and try on merchandise that simply isn’t available online. However, increasingly this experience can be paired with a brand’s online presence where the full product line or offering is available. Te
key is combining a number of physical brand experiences on top of the online offering to allow the customer to really engage with the brand across all touch points. From this engagement brands are
able to gather a significant amount of customer data. For example, Amazon is opening a bricks and mortar store where customers can purchase items then leave with them without paying immediately. Te store would work by digitally charging customers at a later date, underlining the connection between the in-store and online experiences. It also highlights how brands can gain customer data through physical touch-points in-store. Te data gathered then allows retailers to build a picture of how customers shop within the store as well as how customers think, feel and act during the decision making process. With richer detail available, this data can be converted into actionable insight online to greater personalise the experience. For example, a customer could browse for sofas on an integrated tablet in- store. Tis tablet would then record what the customer is looking at and translate this to product suggestions on the website when they are back home. In this way, access to greater amounts of data helps to build a 360 customer experience. In a competitive business landscape
where prices are driven low by the potential to find a product cheaper online, it’s the brand or shopping experience
Why are online retailers taking to high street retailing? By Elly Woolston, Chief Client Officer at Indicia
that will encourage customers to stay and spend. For example, in its Tokyo store, Lexus store operates a kind of lifestyle hub. Te store has been a big hit with customers, showcasing products but also acting as a place to absorb car culture, drink at its chic bar and browse its library. Tis hosting space is great for engineering connections between customers and the brand – offering an experience that goes beyond just a simple place to buy an item. By having access to greater data sources
in store, there is more potential to deliver additional customer communications. For example after a store visit, the retailer can send a targeted newsletter featuring similar cars and places to drive around the UK. Te underlining point is that any communications that extend the customer experience and should be tailored to individual customers through data sourced from online and offline means. By combining online and offline
shopping experiences, retailers are able to get the best of both worlds and create a far more personalised and engaging customer experience. At the heart of this hybrid retailing, lays customer data which is fundamental to operating both a physical store and a website in modern-day retailing. By using the richer data that is available about customer preferences and shopping habits, online retailers stand a lot to gain online from launching a physical presence on the high street.
Direct Commerce |
www.directcommercemagazine.com
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