feature: sirius buying group Joining the digital revolution
The team at Sirius Buying Group explore how electrical appliance specialists and independent retailers can use digital tools to boost their profi tability and sustainability.
B
ack in 2000, UK e-commerce was in its infancy with online purchases
accounting for just 1% of total UK retail, according to IPC. Since then, the digital transformation infl uenced the consumer landscape with Statista confi rming Amazon leading the UK market [2023 net sales - $16.1 billion], above
Sainsburys.co.uk [$6.59 billion] and
Tesco.com [$6.4 billion]. Given the ongoing change in shopping habits and consumer expectations, its imperative electrical retailers use the latest technology to its best advantage. Joe Howes, Data and Digital Marketing
Manager at Sirius says, “We know digital transformation has been advancing rapidly and there’s a strong argument the pandemic accelerated its growth by several years. Research from GfK Newron, indicates 52% of all MDA sales are now being made online so we need to support our retailers in becoming multi-channel entities rather than ‘bricks and clicks’. The idea of a bricks and mortar store, which is supported by a website has expanded to now encompass all sorts of touchpoints for consumers so they can buy seamlessly, sustainably, and securely online, hence, retailers need to get onboard with this.” Clarity and confi dence are key to not
overwhelm and confuse both customers and retailers alike. This will mean making some important decisions about what is realistic on a current framework and where investment is required. Given the pace of change, retailers are naturally going to be cautious about going all-in on new systems. but given how we’ve seen payment options develop from chip and pin to digital wallets and one touch payments, adopting a digital mindset is crucial.
Knowing your customers Rest assured there are plenty of back-offi ce and front-of-house solutions which will save time, and free-up more hours to deliver a bespoke service that converts into sales. Hyper- personalisation is big news right now in terms of the consumer experience and tailored discounts, which are off ered through member programmes like Sirius, so curating the right product mix for your audience has never been easier. Getting to know your customers online is hugely important to maintain their attention
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www.ierdaily.co.uk
Left: Joe Howes, D & DMM, Sirius
Right: Steve Jones, MD, Sirius
and convert browsers into buyers using AI- driven product or shop recommendations based on shopping preferences. Given how time-poor and price-aware online consumers are, it makes sense to leverage all the data you have so you can extend dwell time and establish what your customers viewed just before they made a purchase. Fortunately, Sirius has partnered with the experts at Salesfi re and the latest solutions such as ‘Recommendations and Visually Similar Search’ are already helping Sirius members to leverage AI to transform visitor data into sales. Other options could include timely blog
posts, case studies or seasonal promotions, which nod towards lifestyle trends like greener solutions. With interest growing in Air Pumps as a sustainable alternative to the traditional boiler, Sirius is leading by example by using its company website as a platform to promote the sustainability message. For instance, it’s easy to tap into consumer
desires for energy effi ciency and money saving as online customers are keen to learn more when they have the right tools. In fact, Sirius members can benefi t from access to an energy saving widget called Youreko, helping customers make choices to save money as it demonstrates energy effi ciency in fi nancial terms. This tool is used by industry-leading manufacturers and retailers so end users can make informed decisions based on their income.
Aftersales accessibility 24/7 Fundamental of the electrical sector is aftersales – especially when it comes to replacement parts for premium built-in appliances. Exploring this area of operations could potentially be digitised. Having the back-up of paperwork on your server, accessible 24/7, can ensure you can always help a customer, assist on a project, or enable your staff to keep on top of the latest product specs. Given the need to integrate logistics, support and knowledge,
PEOPLE MAKE THE DIFFERENCE
leading aftersales providers are developing increasingly sophisticated and planet-friendly services to boost retail revenue streams. Sirius is investigating the best provider for its members. Adopting a digital mindset may at fi rst sight
feel like a challenge, but once considered how a 24/7 online space will boost your bottom line, it’s worth being curious about what’s available. Most importantly, there are a wealth of experts to assist help you and by working with an established group, Sirius can easily weigh up the best path for you.
Versatility with Product Information Management Joe adds, “One of the most resource-heavy jobs for independents is managing the product information on their websites. In 2021, we launched our new innovative PIM (Product Information Management) System to help take this pain away from Members. Our extremely cost- eff ective PIM System enables our membership to access the product catalogue of over 6,000 products complete with specifi cations, images and documents, adding their desired SKUs to their own site within a few clicks.” Sirius MD, Steve Jones, explains, “One of our main online strategies is to replicate our buying power within the appliance and kitchen sector into the digital sector so we can benefi t both our retailers and their customers. This means, our members can choose a range of digital add-ons at heavily discounted prices with wraparound support from our experts. Feefo reveals, 96% of UK consumers use reviews as their main source of research through the purchase journey, so we decided to partner with them, assisting our members in educating their customers, boost SEO [Search Engine Optimisation], conversion, ultimately, increase sales. Benefi ting our members with pooled product reviews, they no longer have to source their own which can also be hard to accumulate if online is not the primary source of their sales.” Although the electrical sector has come late to
digital in comparison with online retailers, forward- thinking business owners are already benefi ting from the latest customisable solutions that give them an edge on the competition. Now, electrical retailers can consistently demonstrate their ability to serve their target audience online and instore.
Summer 2024
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