Inside Outdoor Spring 2017

The largest shopping center

in the world exists mere inches

away from your customers’ fin-

gertips. Even so, while online

purchases account for a growing

percentage of retail sales, “about

80 percent of consumers still

want to browse and shop in-

store” according to recent piece

The Wall Street Journal

And while the number of folks

who have “never” purchased

anything online has dwindled

during the past five years, Kantar

Retail ShopperScape reports that

“roughly 22 million households

didn’t use [Amazon] in

2016.” Research also

has found that online

purchases have a return

rate of nearly triple the

in-store purchase return

rate. All that said, the up-

side potential for brick-

and-mortar shopping is

pretty bright, so long as

you keep in mind what

you are dealing with.

My Italian friends

often say, “Keep your

friends close and your

enemies closer.” That

advice couldn’t be more

appropriate when dealing with

large online retailers. Let’s ex-

plore some of the many things

that can be done to compete

effectively with online sellers.

Perhaps two of the more

compelling reasons to shop

in-store vs. online are 1) the in-

store experience and 2) the per-

sonal interaction. Let’s deal with

the in-store experience first.

Gone are the days of simply

putting goods on display, unlock-

ing the front door and ringing up

annual increases. If this is your

current merchandising and mar-

keting strategy you are undoubt-

edly going to have a difficult time

thriving – and perhaps not even

surviving – in today’s fast-paced

retail world. Customers today

demand an experience. This can

be everything from tastings for a

wine shop or trunk shows for an

apparel or shoe retailer to prod-

uct demonstrations and clinics

for an outdoor or sporting goods

operation. Authors can speak at

book stores; artisans might dis-

cuss their work at gift shops. The

point is that whatever you are

selling, it is imperative to create

excitement for your product and

a connection with your customers

through the in-store shopping ex-

perience. Remember, the “sizzle”

is just as important as the steak

because everyone has the steak.

Next, let’s review what the

personal interaction with an-

other human does. It doesn’t

– and can’t – happen online.

People buy from people they

like. Keep that in mind when

you are interviewing sales as-

sociates. Do you like them? Are

they friendly and outgoing?

Are they effective communica-

tors? Do not put someone on

the selling floor simply to have

a warm body there. It’s simply

too expensive these days.

The more sensory the experi-

ence, the more spontaneous the

buying. Don’t believe me? Walk

through a Costco store on a Sat-

urday and see how many product

samplings are being offered.

Even the most disciplined shop-

per among us has fallen prey

to this marketing tactic.

Some gift and home stores

burn scented candles in

the store. This hands-on

approach of seeing, touch-

ing, tasting, smelling, even

trying a product gives the

brick-and-mortar retailer a

huge advantage over the

online competitor.

Car dealers are mas-

ters at promoting not only

through the senses but

also by using emotional

appeals. The experience

begins with your visual at-

traction to the sleek lines,

then on to the new-car smell.

The next level is how you feel

sitting in the driver’s seat. Then

finally the test drive with the

salesperson’s appeal that “you

deserve this car” or “this baby

could be sitting in your garage

tonight.” Once you have suc-

cumbed to the power of this sen-

sory and emotional maneuver-

ing, you’re an owner. All that’s

left to do is the paperwork.

That example, translated

from car buying, suggests that

“Keep your

friends close

and your

enemies

closer.”

Ritchie

Sayner

Staying Centered

Sharing the pie with online retailers

BACK

OFFICE

Inside

Outdoor

Spring

2017