How to build retail businesses customer loyalty in fashion-food
Many businesses are finding that consumers are loyal to the combination of brick-and-mortar and the pureplay digital shopping experience as a consequence of design at the point of interface.
Today’s brick-and-mortar retailers are facing an uphill battle with rising staff costs, rents, business rates and fluctuating tariffs on goods.
The pure-play digital retailers are also vulnerable to the shifting sands of the economy within the marketplace. When consumer shopping behaviour is continuously changing, and among larger retailers like mass merchants, wholesalers or grocery chains, there is fierce competition for customer loyalty.
Most leading retail stores carry the same products from the same brands, leaving consumers with multiple choices when deciding where to shop. When shoppers can find the products they want almost anywhere, how can retailers on and off-line differentiate? Many are finding that consumers are more loyal to the overall design environment of the shopping experience, not the products themselves. Which is where pure play and tradition brick-and-mortar overlap.
The term "customer experience or retailtainment" are terms that get used a lot in the retail industry and for good reason. The influencers on Youtube, like Cardi B, provide the pure-play retailer Fashion Nova with a means to execute retailtainment for the consumer audience choosing to follow the brand.
When the American pureplay fashion business "Shein" contacted us about the design of their new brick-and-mortar portfolio, the management team were wanting to open stores in the high street, a task never before undertaken and it became clear they had no experience in visual merchandising their range of products in the store environment. So we suggested it is imperative for today’s retailers to provide a positive, seamless, end-to-end shopping experience, meaning that the digital and physical realms should be integrated, with a close understanding of the customer at every touchpoint. This is easier said than done, but there are several ways to improve the customer experience and keep shoppers returning.
Through: 1. In-store efficiencies 2. Loyalty programs and 3. Personalization
In an effort to bring the convenience and in-store efficiency of online shopping into the brick-and-mortar experience, many retailers have changed the way they design and run their stores.
Loyalty programs incentivize purchasing behaviour and engagement, ultimately rewarding customers in different ways for their repeat business.
Personalization must be a core pillar across the entire shopping journey. Successful personalization requires the right data, and while many retailers are investing, challenges remain.
Online and In-store
Online shopping is easy and convenient. The major downside is the inability to see, feel, smell and try a product before purchase. In an effort to bring the convenience and efficiency of online shopping into the brick-and-mortar experience, many retailers have changed the way they design and operate their stores.
Recent research found that nearly half of shoppers believe that it is important for retailers to provide digital in-store experiences like auto-checkout, online ordering and mobile offers.
The common theme: they make shopping easier and quicker.
Perhaps most interesting is how the design of today’s physical store is evolving. This where the retail design consultant can help and it often takes the form of smaller layouts, convenient visual merchandising displays, and technology-inspired interfaces. For example, the American retailer “Target” has prioritized small concept stores, which are stocked with inventory curated to the local population. John Lewis in the United Kingdom and Nordstrom in the USA build experiences special events and dining into their physical stores for increased engagement. By changing the way they approach the in-store customer experience, retailers can attract shoppers and create more meaningful customer relationships.
Without a positive customer experience, it is nearly impossible for retailers to build a devoted customer base. In-store innovations, modern loyalty programs, and personalization are just a few of the ways in which retailers are improving the shopping experience for consumers. Retailers who prioritize convenience, simplicity and design creativity will nurture customer loyalty and keep shoppers returning time and time again.
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