Stores Becoming Retail Consultants Because of the Cost Sensitive Customer
With large stores continuously slashing prices, it’s pretty difficult to lower the costs any more. Using the ease of access of those affordable prices to everybody the issue arises how important is providing value-added promotions towards the client? Clare Rayner, author from the *Retail Acumen blog made a fascinating observation in the Multi-Funnel Retail Summit he attended in England. The keynote speaker was Doug Gurr from Walmart. In the speech Mr. Gurr noted that in Japan, mobile technology enables shoppers to scan barcodes of products in shops which an application supplied by Amazon . com enables shoppers to check the in-store cost with Amazons’ cost. This sort of prices transparency is really a reality and can become open to everybody transporting a good mobile phone.
On the other hand from the Atlantic, the nation’s Retail Conference was happening and Winston Weber, a speaker, reported research that demonstrated 50%-60% of shopping decisions are created in the store. Therefore, the shop remains vital that you retailers. Also, he feels that although value-added promotions might not be effective, retailers must start to promote what he calls solutions. That’s, retailers must become their very own ‘retail consultants’ and start to build up a consumer centric retailing model. This involves creating a shopper solution strategy so the shopper feels the visit to the shop continues to be productive. The secret is this fact needs a new creative method of the merchandising process.
Retailers as well as their category managers should refocus their efforts from acquiring the best offer low cost to developing retail solutions for purchasers that could transcend groups. To achieve this, Mr. Weber states category managers can’t have to focus exclusively by themselves key performance indicators, but concentrate on the overall profit from the store. They could create product bundling that will increase overall sales and improve satisfaction for that customer. To get ‘retail consultants’ some cooperation is needed to fulfill the client and get results that are perfect for the organization.
This can be hard to accomplish thinking about the longstanding culture in retailers where category management are operating in silos. That’s the reason it’s imperative for retailers to get ‘retail consultants’. If your shopper centric model is implemented, category managers could work together to pay attention to what’s most significant to all of their customers making their lives simpler. The number of occasions have parents purchased a basketball for his or her kids, but didn’t remember to purchase them a jersey that might be inside a different aisle. Now existence is going to be easy because they are bundled together for any marketing cost. The best way to convince the store that this is an excellent idea would be to introduce analytics towards the process.
Inside a research report printed by IDC, they cite a situation study in which a manufacturer of high-tech electronics and components were able to reform the R&D allocation process your clients’ needs cooperation between competing R&D labs in allocating sources once the data demonstrated it had become within the welfare of the organization to do this. Retailers can follow this situation and link analytics, merchandising allocation and promotions systems to give the customer timely and compelling solution-based choices across multiple channels that can make the shopping experience satisfying to consumers. If this can be done, then retailers truly become retail consultants for his or her customers.