How to remain competitive in the age of online shopping

by jason_cramp | September 4, 2016 2:40 pm

By Ted Lawrence

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Online retailers know they only have a few seconds to convert a page view into a sale; however, the same can be said for brick-and-mortar stores, too. Instead of page views, it comes down to the appearance of the store and how the consumer perceives and connects with it. In this case, it becomes more about their overall experience and how they relate with the store’s brand.

A solid retail store layout, coupled with a first-rate merchandising plan that offers the convenience and immediate availability to purchase, makes a huge difference and gives brick-and-mortar stores a competitive advantage. However, some of the best retailers nationwide know they need to appeal to the consumer with a multi-sensory approach and understand just one competitive advantage is no longer enough.

Available now

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The ability to offer consumers immediate availability of merchandise is a huge advantage. When consumers can leave the store with a product (or products) in-hand, without the hassle of shipping, it is quite profound. In fact, a recent study found 23 per cent of consumers do not want to wait for shipping of the product they want, while 47 per cent refuse to pay for shipping. Therefore, immediacy is another big opportunity for retail stores.

This is why major retail brands like Best Buy, Macy’s, Canadian Tire, and even Starbucks’s are leading the way with online options such as buy now and pickup in-store. It is the reverse phenomenon of showrooming (the process of consumers visiting a retail store then buying it online at a cheaper price). In this case, it is called ‘web rooming’ (the process of researching products online and then purchasing them at a brick-and-mortar store).

Further, recent studies have shown ‘web rooming’ is more prevalent than showrooming. In fact, only six out of 10 ‘web roomers’ have used showrooming versus nine out of 10 showroomers using ‘web rooming.’ This is an impressive statistic that gives brick-and-mortar stores an edge over online retailers.

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Of course, this also needs to be coupled with a proper merchandised display with competitively priced items positioned lower on a wall or shelf, and higher-margin products placed at eye level. This is one way to increase sales and profitability when the consumer is deciding which product to buy. In fact, more than 50 per cent of consumers base their purchasing decisions on product positioning versus any other factor. Grocery stores know this best, which is why they position products in a methodical manner.

Offering deluxe or high-end products is another way to get the consumer into a retail store. That said, consumers are now expecting brick-and-mortar stores to carry higher quality products than those found online. By offering these types of products it gets them in the door, as they have the ability to see, feel, and touch the products they may be interested in, which in turn helps the consumer determine what product is right for them. Using this type of plan or strategy can help display products in a way that encourages people to make purchases based on three things most consumers are looking for: convenience, availability, and quality. For example, how excited would a child be if their parents took them to a toy store which only had a handful of toys? How many people would shop at a wine store that only offers one type of wine? The answer to these questions is obvious; therefore, it is imperative for a retail store to offer a variety of products and to keep them in stock.

The general rule is to stick to a good, better, best strategy when it comes to product selection. Once this has been perfected, add an ultra-premium brand or product to the mix to increase average sales.

Product exclusivity

Some of the most successful retailers always tend to work with their suppliers to offer products that have a protected Internet price or, in some cases, offer products that are exclusive to the retailer. This is a great way to get consumers into the store, as it sends a message that the retailer is competitively priced if products cost the same in-store as they do online.

Some of the best brands in the world understand this (e.g. Apple, Bose, Thule, Patagonia, and Aveda), to name a few. This contributes to the total consumer experience and allows them to come in, see, feel, and touch the merchandise, and ultimately leave the store with one or more in hand, feeling comfortable and confident with their purchase.

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Today, many manufacturers offer products that are sold in retail stores only, or products with an increased warranty if purchased from the store. Employees should make sure consumers are aware of these benefits (e.g. “A free warranty upgrade if purchased at the store.”)

Other merchandising tactics might include a special colour, feature, or bundled package if purchased at the store. Some retailers might even display the product price and the installed price on all of their in-store merchandise. This takes the mystique and guesswork out of pricing for the consumer. Think about some of the products advertised on TV as installed: carpet, windows, car tires, etc. Therefore, it naturally makes sense for pool and hot tub products to be advertised in a similar manner.

To put these types of programs in place, it is important to discuss these options with suppliers to see what products they offer that are exclusive and support brick-and-mortar retailers.

Product demonstration

For a consumer, actions speak louder than words and nothing creates more excitement than seeing a demonstration of the product they are interested in purchasing. Product demonstrations give customers the ability to assess the quality or performance of the merchandise before they buy it. However, this means the display has to look organized, have a good selection, and have knowledgeable staff available that can answer questions and show the product effectively.

Countless numbers of people buy items from home and garden shows, for example, because they saw them in action. The same can be said about late night infomercials. This type of selling is all about the old adage “seeing is believing.” Never doubt the power of showing the product in action—it works.

Another way of doing this is to use digital picture frames that play video throughout the store to demonstrate how products work. Whether it is an outdoor game product, robotic pool cleaner, light emitting diode (LED) lighting, or even how an above-ground or inground pool is installed, people are drawn to video screens, which help to blur the line between digital and physical reality. Further, they act as a silent sales person entertaining the customer while they shop or wait for a water test.

The sales team

It is a major advantage if a pool and hot tub retailer’s staff is trained correctly. To put this in perspective, consider how a local grocery store operates—there is no one there to sell or entice customers on what to buy. Essentially, the customer is making the decision on their own based on price, availability, promotion, and position. That said, some of the best grocery stores do have a sales staff, but most consumers do not realize it. For instance, the people handing out product samples, the butcher cutting meat, and the clerk ringing sales are there to sell products while the customer is shopping, or the next time they visit, by giving them a reason to come back.

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A retail store with poorly trained staff, or not trained at all, can be a major disadvantage. This is further elevated when employees are unaware of products, services, or cannot provide any assistance for simple problems. Having a well-trained staff to answer customer questions, overcome objections, carry items to the car, and cater to each individual customer’s needs are benefits online retailers cannot provide. In fact, one recent study found 54 per cent of consumers are compelled to make a purchase from a store that has knowledgeable and friendly staff.

That said, a pool and hot tub retail store owner or manager should make sure every member of the sales team is up-to-date on the latest offerings and specials and is abreast with what the competition is doing. One way to do this is to hold weekly meetings to discuss what is going on in the store, as well as to set staff goals and expectations. Get them involved in the business by allowing them to propose weekly suggestions for new initiatives.

In the end, people ultimately want to buy from people they like, trust, and can count on. This author’s mentor always said, “A person’s first thought when they look at someone is if they can trust them; therefore, make sure we build a good customer rapport so they can trust us.”

Service

A full-service brick-and-mortar store has to have the ability to repair, install, and replace any product the consumer needs—or at least have the contacts to get it done. This is critical for a retailer to be considered by the consumer as a one-stop shop.

For instance, having an in-store repair centre, where a consumer can bring in an automatic pool cleaner for a tune-up, or a pump for a new seal, opens the door for the chance to sell additional products. This works especially well if the store is ‘shoppable,’ allowing consumers to browse other products while their item is being serviced.

Further, there are many suppliers that can help promote equipment tune-up days, pool schools, and/or customer appreciation (VIP) events that cross promote products, service, and the store.

These are just a few of the advantages brick-and-mortar stores have. Ultimately, pool and hot tub retailers are part of a community; those which are active members will often find support. Remember, the customer is in the store for a reason, it is up to the sales team, the layout of the store, and the overall customer experience to stimulate them to buy something rather than go somewhere else (e.g. a competitor, catalogue, TV, or the Internet) to make their purchase.

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

Source URL: https://www.poolspamarketing.com/trade/how-to-remain-competitive-in-the-age-of-online-shopping/

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