How specialty retailers can evolve to remain relevant to today’s consumer

by jason_cramp | April 16, 2018 11:38 am

By Ted Lawrence

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In reminiscing about his childhood, this author recalls going to the automobile association with his dad to get customized direction maps prior to going on a family vacation. For those who do not know or remember what these are, they are essentially a map put together into a flipbook in preparation for a trip. It not only includes a map, but also highlights road closures and construction, as well as offers tips on where to eat and stay along the way. Fast forward to today and the technology that is now available, it is a wonder why, when renting a car at the airport, they still ask, “Do you need a map?” Do people still use maps? The answer is not really.

Times are changing

The point is technology is changing the way people have always done things. Just like consumers who visit their local pool and hot tub retail store, they are shopping differently. Most consumers are now doing all of their research online so when they enter the store, they are armed with more knowledge about pool and/or hot tub products than some retailers are expecting. As part of this online research, consumers read reviews on businesses, products, and services. The main difference now, versus the way consumers shopped in the past, is they find the product they want first and then choose where they are going to buy it. This used to be the other way around; however, technology is the driving force behind this behavioural change in shopping habits.

What about the instore experience? How has this changed? The first difference is consumers prefer to do business with those that make it easy to do so. This means today’s consumer wants the experience with a brand to be seamless. They want to be able to do business with retailers on all levels, including phone, text, social media, and online.

Retailers need to understand it no longer suffices simply having a brick-and-mortar store. Today, consumers have the power and they want to do business on their time, 24-7. This is why it is more important than ever to have great website content, social posts, and e-commerce capabilities. Consumers also want to see reviews—good or bad—so they can gauge whether they should do business with a particular retailer. Examine this from a consumer perspective taking into account one of their favourite stores, and how long they spend time there. They likely follow this store on social media to get product updates, specials, or to learn about events.

Consumers using websites or apps (e.g. Yelp, Google, etc.), which comprise crowd-sourced critiques on local businesses, are often influenced by these reviews and comments. In fact, more than 65 per cent of all consumers can be swayed by what they read[2]; therefore, it is important retailers pay attention to what people are saying about their business online. By not monitoring this properly, it could be the difference maker for a retailer, as the public’s analysis can draw consumers in, or deflect them to a competitor.

Give customers an ‘experience’

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When a customer finally decides to visit a retail store, they want an experience. The in-store experience needs to be memorable. In this case, retailers need to think about what they are doing to create the ‘wow’ factor for their customers. For instance, what products are being offered to engage them to stay, shop, and make a purchase? More importantly, the experience should make the consumer want to return.

Most consumers who identify with this industry’s retailers want them to cater to the entire backyard, not just start and stop at the pool and/or hot tub. Consumers stay and shop at those stores that ‘cater’ to all of their needs, as opposed to those that simply offer a ‘service.’ Today, consumers are looking for a one-stop shop for their entire backyard—an outdoor living retailer per se—not just a pool store.

Being an outdoor living retailer increases the selling opportunity to a larger client base. These are products that complement pools and hot tubs such as outdoor kitchens, smokers, firepits, casual furniture, pergolas, fountains, lighting, and outdoor audio, to name a few. The best part is a consumer does not necessarily have to own a pool or hot tub to do business with this type of business. Many outdoor retail customers are affluent and do not have a pool, but want an outdoor ‘room’ in their backyard.

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In fact, one of the more popular outdoor trends as of late is to take all the conveniences of inside the home and putting them in the backyard. This is why some of the hottest products are outdoor kitchens, firepits, fireplaces, furniture sets, and sound systems. Even outdoor televisions are starting to become extremely popular. These consumers even realize summer is only a few short months in most areas, and the outdoor room sits idle most of the time and can cost more than a pool, yet they still want it. The social aspect of an outdoor room is what they are after and these consumers are prepared to spend tens of thousands of dollars to get it.

Even patios are something outdoor living retailers can do for consumers who are looking to incorporate stone or a stone-like product in their backyard. Natural stone and manufactured products such as pavers, retaining walls, ledger stone, and porcelain are what these customers are looking to have installed. Poured and stamped concrete options, which are trending lower, are being replaced with these alternatives.

How can retailers make this change?

The question this author often gets is, “How can I start changing my business from a pool store into and outdoor living centre?” The answer is quite simple. Retailers can make this change by adding complementary items into their product offerings. Many manufacturers of outdoor living products understand the majority of items sold in specialty outdoor living retailers are custom installs so they have a variety of displays to help in this regard. However, this author recommends starting with an outdoor vignette in the store to show what the retailer is capable of offering. A nice paver patio with an outdoor kitchen, firepit, or fireplace is a great start. When looking to complete an outdoor project that is not necessarily a pool or hot tub, most consumers gravitate in this direction.

Another advantage of this set-up is the way these products show in a retail store. People are dreamers; therefore, retailers need to constantly give consumers more to dream about. After their pool or hot tub is installed, what else can they dream of buying—chemicals and filters? Not really, so retailers need to offer more.

Most successful outdoor retailers will find some of their first customers in this new category are, in fact, current clients. Yes, they will likely be the first to buy these new products. Some retailers will also find consumers who come in for routine water tests, or to get replacement parts, will start to stay, browse, and buy.

Retailers should look at their store and begin to transition their business in this direction. Having the ability to sell more to the current customer base is the golden standard of retail. Doing more with the group of consumers who love a particular store and its brand is priceless. Do not stop here, as there are even more ways a retailer can sell additional products to its current clientele.

Pool tools are crucial

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Having a detailed selection of what the industry calls ‘maintenance products,’ or what this author likes to call ‘pool tools,’ is crucial. Most consumers flock to mass merchandisers or online retail because specialty stores fail to offer them the selection of products they are seeking. Essentially, it almost becomes the opposite issue for a retailer—they are successful at getting all of the major product sales, but they fall short on providing the necessities for the pool and hot tub. When considering what to carry in the ‘pool tool’ category, retailers should bring in a good, better, and best strategy and price them accordingly.

Items in this category can be as simple as leaf nets, rakes, hose testing, etc., as well as hi-tech items that make the consumer’s life easier. Robotic pool cleaners, automated water testing products, and electronic chemical systems also show the consumer how easy it is to own a pool with little effort if they are willing to spend a little more money.

Most people use a more hands-on approach to pool maintenance before looking for items that simplify these tasks. Therefore, retailers should make sure they show customers all of the options available at the time of sale, while they are in the store. Retailers should add these products in all of their marketing and advertising media, too. Some of the most searched items online are products that help simplify tasks. Everyone is short on time these days so anything that reduces maintenance and enables one more time to relax and entertain with friends and family is hot commodity.

Lastly, retailers can give their customers an experience they will not forget by appealing to all five of their senses (i.e. sight, sound, scent, touch, and taste). This strategy should be incorporated everywhere—from in-store and sales presentations to the customer’s backyard.

The key is evolving from a pool and hot tub specialty store to a complete outdoor living retailer—one that is capable of not only building its customers the backyard of their dreams and servicing them better than anyone else, but also being relevant to their future needs. It is important not to be stuck in the past, the business, its employees, and especially its customers will be better for it.

[6]Ted Lawrence is a global retail specialist with Pool Corp., a wholesale distributor of swimming pool supplies, equipment, and related leisure products in Cleveland, Ohio. He has served the swimming pool industry for more than 20 years and is an authority on retail, sales, and management. Lawrence is a regular seminar presenter at national and international industry events, and participates on several professional retail boards and councils. He is also a member of Pool & Spa Marketing’s Editorial Advisory Committee. He can be reached via e-mail at ted.lawrence@poolcorp.com[7].

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