These four practical tips can help retailers rediscover their brands, and stand out from the competition.
March 29, 2010
Retail sameness and retail overexpansion are inextricably tied together. The overexpansion caused the sameness, which can be tied to the housing boom of the early 2000s. As suburban (and urban) residential neighborhoods were popping faster than acne on a teenager, commercial real estate developers rushed to fill the need for retail to support the neighborhoods. Before we knew it, suburbanites were living in a world of strip centers, power centers and lifestyle centers. And urbanites were finding the same thing on streets throughout the city.
With so much commercial space available, national retailers rushed to fill the space, creating an expansion that was a once-in-a-lifetime event.
And so it began, the same mix of tenants existing in the same types of shopping districts in the same types of suburbs and urban areas. We might as well have been in Stepford Wife City, USA.
Suddenly, every experience was the same. I could grab a Hot Dog On A Stick from the food court, head over to Ann Taylor for some apparel, hit a GameStop and pick up the newest shoot-em-up for my PS3 and hit the Banana Republic and Gap franchises (or Williams-Sonoma and Pottery Barn Franchises or Limited Company franchises, etc.) at any retail development, anywhere.
That sameness, coupled with an economic meltdown that like the expansion, was a once in a lifetime event, led to a backlash. A backlash against spending. A backlash against corporate retailing. A backlash against the demise of Main Street.
Organizations like the 3/50 Project sprung to life in communities across America to preserve and resurrect Main Street. Carrotmobs showed up at local retailers to help them go green. Communities and neighborhood associations began shutting out corporations from shopping streets, preferring to preserve the integrity of a locally owned and operated shopping district. And consumers rose up to support the efforts.
So how are retailers going to compete in this new retail landscape? It's always said that small business is the backbone of America. And if the big guys really want to know how to compete, just visit any small business, study what they're doing, then emulate it.
Refine and "refind" your brand
Many big retail brands have lost their way. I was shopping with my sister for Christmas presents for my mom, and we visited seven different women's apparel stores. Upon walking in, it was tough to tell one store from the other based on the overall store experience. There simply wasn't a "feeling" inside the store and so you couldn't really tell which store you were in. The signing, fixtures and merchandise did little to differentiate the stores from each other.
Retailers need to refine and "refind" their brands. A brand is a customer's perception of it. But if there is no perception, then how can there be a brand? Retailers need to ensure that their brand is clear to consumers in everything from the store design to the merchandise, from the fixtures to the lighting, and from the uniforms to the employees themselves. Every piece of the retail experience should feel cohesive, and more importantly like it stands for something.
Become a master storyteller
Most big specialty retailers miss the opportunity to tell stories. I do believe there are some out there that do a great job, Williams-Sonoma for instance with its seasonal and holiday feature areas. But the retailers that do it, and do it well are few and far between. Retailers need to help their customers feel something, to connect with them on a more emotional level. And that can be accomplished through storytelling. Most retailers just prefer to sell stuff instead.
I was in a candle store where the candles were piled high on a table. Row after row, box after box, literally hundreds. It was a sea of sameness. A simple sign for each candle fragrance that contains a visual image or a small paragraph to take me away to a place where I can imagine myself, in my space, with my candle would tell a fantastic story. Tell me about the North Woods candle with its cedar and pine scents filling my living room with its aroma, taking me away to a mountain cabin, a pot of chili on the stove, a fire burning after a day of skiing. That's telling a story. And that's connecting emotionally with a customer. It's those interactions with customers that begin to create a connection which leads to greater loyalty.
Curate it to make it feel unique
I don’t want to wear what everyone else is wearing. I don’t want to rifle through piles of the same thing, looking for a size. I want to feel like what I bought was made for me. It looks great on me, or it fits with my travel lifestyle, or fits in my contemporary home style. It connects with me because of what it is, where it was made, how it was made, or whom it was made by. It feels curated, like a great exhibit at a museum: Each item hand-picked because of what they are, who they were created by, how they all work together.
That's a little difficult to do today in a world of goods manufactured in China. But it goes beyond where it's made. I think I'm cool when I buy a Hugo Boss shirt made in Turkey — I know, who knew? Or buy an end table because it's made of bamboo — it's beautiful and sustainable — aren't I green? Or a silver bowl that reminds me of another silver piece I picked up in Mexico. Each of those pieces appeals to me because they feel like they're one-of-a-kind, made for me. And instead of having 50 of each on display, in each situation where I purchased the item, there were only a few, or only one. And that's even more important, because I feel like I'm the only one who owns it. Now imagine if there was a story behind each piece that I could recount.
The win for retailers is to make every customer feel special. And perhaps stocking the store in a way that's a little more manageable for customers to navigate could actually increase sales. I think it would be a great experiment for retailers. I for one love my shopping experiences at stores that have less versus more.
Focus on customer service
Please just say "hi" to me when I walk in. Make me feel like you care. Make me feel like you want me to buy something.
This whole customer service model needs to be refined for big retailers. The words are being said, but so often they aren't being felt. How are you going to make me feel like you want me to spend my money? Now imagine if you actually engaged me and helped me through the buying process. Chances are the average transaction would shoot through the moon.
This issue comes down to great store managers, as most people go to work for a person, not a company. And great managers ensure a customer-centric environment is at the core of their store experience.
How are you going to create a store experience that truly differentiates you from your competition in a retail world where the value of connection and loyalty is more important than ever?
Mike Kraus is founder and principal of retail consultancy StoreTouch.