Omnichannel

Experience key to how retailers should prepare for the holiday season

This year, a majority of Americans (92%) say they would rather receive experiences over physical gifts, setting the tone for what retailers can expect in the upcoming weeks and maybe even prompt ideas for offerings in the New Year.

Photo: Adobe Stock

December 13, 2023 by Ken Colbert — General Manager, DiveShop360

With the holidays approaching, retailers are always looking for ways to stay competitive. This year, a majority of Americans (92%) say they would rather receive experiences over physical gifts, setting the tone for what retailers can expect in the upcoming weeks — and maybe even prompt new ideas for offerings in the New Year.

Experience is vital in more ways than one, and not only includes the 'experience' gifts many consumers will be purchasing for loved ones but also the shopping 'experience' itself.

So where should retailers focus? Let's dig in.

Curating in-store experience that leads to ongoing customer loyalty

Anytime a customer steps into a store, whether shopping for physical items or investing in something hands-on like yoga classes or scuba diving trips, the experience should surpass expectations — and customer service becomes the key selling point. The interactions that store owners and employees curate not only set the tone for any customers visiting but also are the first 'selling' point when it comes to ensuring that the retailer will see repeat business.

One simple way that retailers can enhance their experiences is through personalization. When it comes to assisting customers, make sure to find the balance between being available when needed and giving the shopper independence to browse at their leisure. Depending on what item or experience they are looking at, it may be valuable to highlight anything they should know about the product that isn't readily available information.

For example, if you're selling a scuba trip in the Caribbean, you might want to emphasize the trip's popularity to help entice the customer. If you're selling a product, let's say a new wetsuit, it is valuable for sales associates to leverage insights from previous sales history, customer interactions, and expertise to offer personalized recommendations. Maybe brand A's wetsuit is a great fit for almost everyone, but brand B's wetsuit has extra tightness around the shoulders, making it uncomfortable for some customers.

Offering physical experiences tailored to your industry

If your retail business doesn't currently offer 'experience' products like the diving industry does, there are still avenues to explore. Consider options such as tutorial classes (both in-person and virtual), how-to guides, or industry-themed trips.

For instance, if you run a golf shop, you could offer all-inclusive packages that allow customers to play at various golf courses. If you run an independent grocery store, you could explore partnerships with local farms every month and offer a loyalty program rewards to customers who are purchasing from a 'farm of the month'. If you're looking for ways to make your store stand out this holiday season, look to other industries for inspiration and tailor them to fit your industry.

Leverage tech to spend more time focused on the customer

The holiday season is a bustling period for most retailers, and with today's challenges of inflation coupled with consumers' desire for bigger and better experiences than ever before, it becomes even more demanding. To stay competitive, retailers can leverage technology to optimize their business operations, giving them more time to focus on giving customers the experiences they are looking for.

Let's go back to our example of a dive shop. These retailers offer so many things — from classes and certifications to gear to full-blown trips. Using technology like a specialized POS platform allows these store owners to manage the different aspects of their store through one platform. It can also help streamline things like inventory management, employee scheduling, and sales data reporting.

E-commerce is another area where retailers need to put a strong focus. Since online sales during the holiday season are expected to rise 4.8% from last year, store owners can't afford to not curate seamless experiences in their online forum. From browsing to checkout, the customer should see up-to-date inventory, clear pricing, and have the ability to pay quickly and securely. An advantage of a POS system for stores that have an e-commerce arm is that the platform allows retailers to streamline their e-commerce sales into the same system as the store, reducing headaches when it comes time to pull financial records.

Prioritizing customers and the experiences they seek is vital this holiday season. Businesses thrive when they have a solid, loyal customer base, so building up your offerings and how you present them can go a long way. Gone are the days when small business retailers spent the majority of their time managing the back office. The customer is more front and center than ever before, and retailers need to invest in solutions that will allow them to spend their time catering to those needs.

About Ken Colbert

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Ken Colbert is the founder and general manager of Dive Shop 360. For the past 10 years he has overseen all aspects of the business from customer experience and support to product development. He brings over 20 years of business operations experience to Dive Shop 360 prior to his current role. Colbert is passionate about helping dive shop retailers streamline their operations with Dive Shop 360’s all-in-one, cloud-based POS platform.

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