Commentary

Operating in a customer-driven economy

Andy Tow, managing director, Retail Marketing Group, offers insight on why the race is on for brands to elevate themselves by offering personalised experiences.

Photo by iStock.com

October 29, 2018

By Andy Tow, managing director, Retail Marketing Group

Thirty-six percent of consumers will likely spend more in 2018, according to PwC data. While this presents a fantastic opportunity for retailers, the increase in customer touchpoints and growing need to stand out in a crowded marketplace creates a highly competitive environment for retailers.

We're operating in a consumer-driven economy where there is even more pressure on retailers to personalize services to give consumers exactly what they want, when they want it. In response, there is an increasing emphasis on ‘experience,' which is set to overtake price and product as the key brand differentiator by 2020.

The rewards can be huge, with PwC finding customers will pay a premium for quality customer experience; up to 16 percent more.

However, getting it wrong can cost with 17 percent of customers walking away after only one bad experience.

As consumers, we're demanding more authentic, shareable experiences, but what truly makes for a good experience? Convenience, cost and consistency all play a part, but the lead role goes to human interaction; with up to 74 percent of consumers wanting more of it.

So how do you provide a great customer experience? To begin, it's important to understand what drives consumers to a retail store in the first place. In research conducted by Retail Marketing Group, 51 percent prefer to go and look at a product, 27 percent want to check its quality and 24 percent want to feel and use the product before buying. This clearly demonstrates the value of experiencing a product before purchasing.

What is the role of a brand ambassador?

When people are buying electrical items, for example, it's all too easy to get overwhelmingly swamped with information on product features and specifications online. Shopping in-store provides a sense of confidence and reassurance that is absent from the online experience.

Product demonstrations transform a shop into a showroom, by allowing shoppers to gain a greater understanding of how a product operates, as well as a far clearer idea of how it may positively impact their own lives. A brand ambassador, with far reaching knowledge of the product can demonstrate the features first-hand, to really bring it to life. They can also offer shoppers a glimpse into their own real-life experiences with the product itself.

Here are three ways to deliver an interactive product demonstration:
1.   To demonstrate the quality of sound with items such as headphones or speakers, share the music, memories and experiences that remind the consumer of events in their life; perhaps a classical piece from their wedding or a pop song from their youth. Taking them on this journey will create a stronger emotional connection to the product.
2.   Get the product in consumers' hands, let them feel the quality, try it out for themselves and enjoy it without interruption. Give them time with the product, rather than barraging them with information from the offset.
3.   Create a real-life setting; whether that's by putting fake food in the fridge-freezer or a load of washing in the tumble drier, take the wonder of the product away and run through the basics of how it will work for the consumer in their own lives.

How can brand ambassadors be influential in customer decision-making?It all comes down to listening to the consumer and allowing them to talk about themselves. Perhaps they haven't experienced the product before and are unsure about how often they'll use it, or how it will work in their current lifestyle? By letting the consumer lead with questions and listening to their specific requirements, a brand ambassador can personalize the experience for them.

Try these three tactics to really personalize the experience for the consumer:
1.   Take them on a journey by demonstrating the product, while asking questions along the way. Avoid technical jargon and match the product features to the consumers lifestyle. Taking on board what the customer has said will make them feel they are in safe hands and will be ready to trust the recommendation.
2.   Be prepared to share first hand experiences of the product and their own thoughts. People buy from people, so creating this rapport will make the consumer feel that the brand being represented has their best interests at heart.
3.   Bring passion to the product in a genuine way. The consumer will get a sense of this energy and enthusiasm and, as a result, will be more engaged with the product.

Building a rapport with the customer by encouraging conversation, letting them do more of the talking and highlighting how product features directly address their personal requirements will make them feel listened to and understood. This creates a stronger emotional connection and will help to build that much desired brand loyalty that is achieved when a customer walks away happy.

The future of in-store retail

The modern store can no longer be a place that simply sells products. In this new consumer-driven economy, it must embody far more than that, and with this transition, experience matters more than ever.

The secret lies in giving people something that online-shopping never will, a more emotive experience that invokes a sense of excitement. This comes with having experienced brand ambassadors on the shop floor who can demonstrate a passion for the product through demonstrations, tailored information and explanations of often complicated new technology.

With so many consumers seeking an in-store experience to gain clarity and peace of mind before they purchase, the race is on for brands to elevate themselves by offering personalized experiences. The brands that decide to innovate in this area will lead the way and overcome the modern challenges of a transforming retail economy.