Gekko
Why consumer electronics retailers must develop a new ‘experience-centric’ playbook
GEKKO’s managing director, Daniel Todaro explores why delivering on customer experience is vital to converting consumer enquiries into actual in store spend.
T
he phrase ‘absence makes the heart grow fonder’ has certainly proved the case with in-store electronics retailing.
Te category has faced some unprecedented challenges over the past two years. However reports of the demise of bricks and mortar retailing have proved greatly exaggerated. Experience-starved customers have voted with their feet and returned to stores in droves aſter the various lockdowns. In the ‘considered purchase’ space -
purchases made with significant financial or emotional thought - there is simply no match for the timeless ability of an in-store experience to engage all the senses and generate sales. Tis is particularly the case for consumer electronics - a category with such a high spend on key items and technical questions that need to be answered.
Mind the knowledge gap We recently investigated the pandemic’s impact on ‘considered purchases’ in a research project called ‘Mind the Knowledge Gap’. Gekko surveyed experiences across several key retail categories in a study of 2,000 consumers, conducted by OnePoll. Te categories studied included: Consumer electronics, homeware, baby & child, gaming, home improvement, clothing & apparel. 48% of respondents revealed they had made a considered purchase during the pandemic in the CE category. It was second only to DIY with 50%. However the research also revealed there is no time for complacency. Te study showed that electronics retailers had lost out on some
significant revenue due to poor advice during this period. 1 in 4 (24%) were put off making a purchase they had gone in-store to
40 | December/January 2022
make, with 11% actually walking out of the store. Tis equates to £3.3bn in lost revenue for the category over the past 12 months alone. In fact of all the categories surveyed, shoppers in this category reported having some of the worst advice. Tis of course isn’t to say a poor
experience was universal or even the norm. Indeed 60% said they had received ‘excellent or good advice in store’ overall, highlighting the benefit of human interaction and face-to-face sales. But the point is small improvements in advice can lead to big gains financially. With lost sales during the period and rising commodity and transport costs impacting the bottom line, this is an area that is relatively easy to fix.
Golden opportunity The truth is £3.3bn could be a drop in the ocean compared to what could be achieved. 37% of shoppers in the CE category revealed they would be prepared to spend more if they received excellent and knowledgeable in-store advice, indicating a golden opportunity is there to be grabbed. This compared with 30% of shoppers in the home improvement category and 27% in homeware/ home furnishings and 21% in clothing and apparel. The study also unearthed something of a blueprint for
success for electronic retailers. Consumers revealed the top factors driving a considered purchase. Number one was the ‘ability to see and touch a product’, according to 58% of respondents. Price promotion was second, rated important by 56% of respondents. This was followed by ‘great advice’ rated important by 37% of respondents and then an effective product demonstration (28%).
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