As school days wind down, and beach trips and vacations ramp up, enticing consumers into stores gets a bit more challenging, especially once the shopping mania of Father’s Day in late June comes and goes.
June 19, 2015
As school days wind down, and beach trips and vacations ramp up, enticing consumers into stores gets a bit more challenging, especially once the shopping mania of Father’s Day in late June comes and goes.
Engaging the shopper in the warm months requires some specific strategies given all the compelling seasonal activities competing for attention—from boating to biking to beach combing. Retailers in those summer recreational segments will obviously have a more robust sales time but those not selling kayaks or pool toys may experience a dip and drop in sales traffic.
“The summer months can definitely be a quieter time of year for retailers,” David Ciancio, senior customer strategist at dunnhumby, a customer data analysis firm, told Retail Customer Experience (RCE) in an email interview.
One good strategy, shared Ciancio, is to use that increasing pile of consumer and customer data to ensure marketing and merchandising approaches are appealing to the summer shopper in such a seasonal climate.
“Using big data, retailers can better understand their customer’s wants, needs and shopping habits, which will in turn, drive shoppers to the store. Retailers can also create a sense of urgency with flash sales and in-store events, and special promotions that reward loyal customers,” advised Ciancio.
DirectBuy VP of Merchandising Jim O’Keefe told RCE the trick is to stay relevant and on target.
“It’s summertime, and retailers are fighting even harder for shopper’s attention. To win the battle, retail marketers need to focus on being relevant, and reaching consumers at the opportune moment. It’s time to spruce up your email marketing by including purchasing opportunities that have will have the higher success rate during the hot season,” he said.
For example it’s not a bad time to start promoting products and inventory tied to fall activities and fall season renovations on homes.
“By providing shoppers with they want during this season via the right vehicle, it can make your company’s return on investment stronger,” said O’Keefe.
Another good tip comes from Rodney Mason, CMO at Blackhawk Engagement Solutions, who said the ‘buy online, pick up in store,’ is a great approach when customers’ attention is pulled in various directions during such seasonal times.
“This promotional phenomenon is a win-win for shoppers and retailers. Consumers get to shop online (which is a growing preference), but then pick up their merchandise same day, versus waiting for it to ship. Retailers, on the other hand, get the shoppers into the store where they are likely to purchase more, and they save on shipping costs,” he told RCE in an email interview.
While it may be a bit late for some retailers to initiate a ‘summer’ customer experience strategy with July 4 just around the corner, it’s not too early to begin planning for next year, advised Channie Mize, general manager for Periscope, which offers commercial performance optimization solutions.
“It’s really best to fish while the fish are biting, so understanding that sales may be slower in the summer requires proper planning with a view to the whole year. One tactic that retailers, specifically in the fashion industry, can take is to ensure their planning includes promotions during the summer that highlight what’s new in the stores to entice people to visit, as well as what’s coming to get ahead of the curve. The fashion-conscious consumer is excited to learn about and see what’s new and what’s forthcoming in fashion,” said Mize.
Seasonal merchandise marketing is complex, said Mize, and demands a robust understanding of customers, trends and product lifecycle.
“As important as buying the right product is having an effective exit strategy with an understanding of markdown cadences including markdown discounts and timing,” Mize said, adding, “Promoting the right products meaningfully are also key to ensure that customers know availability of seasonal products and appropriate traffic is generated.
“There are many solutions on the market to help retailers understand product elasticity, cannibalization, offer effectiveness, etc. However, the true power of any solution is driven from a holistic process which encompasses strategy, business process, change management and capability building."