For any of us that have worked extensively over the years on packaging design, planograms, POP messaging and other in-store tactics, the dramatic shift toward online sales is a crystal-clear call for omni-channel thinking. It’s evident that we must present products in the best light for sales conversions “everywhere” while certainly not forgetting a continued strong focus on brick and mortar stores. To make the most of this new shopping landscape, there are some emerging best practices worth noting.
As 2018 gets underway, the US finds itself entering the third year of a “retail apocalypse”. Coined in 2016, the term Retail Apocalypse of course refers to the rapidly changing face of retail business today. The struggles of giants such Sears and JC Penney are well-documented. But there is hardly a retailer that hasn’t felt the effects of this growing meltdown.
Even Wal-Mart Stores, Inc. is changing its name to simply Walmart, dropping the word “stores”, even though there are nearly 6,500 physical Wal-Mart locations worldwide. In 2017 alone, nearly 7,000 different locations of various major retailers have closed and of the 1,200 remaining US malls, 25% could close by 2022. While there are many reasons for these closures, the continued shift towards online sales is the primary factor.
While the current trend is a huge disruption for traditional retailers, it does not necessarily mean doom and gloom for manufacturers. People are not buying less stuff. They are simply changing their buying habits and, in fact, are enjoying “more” of everything. More brand choices, more channels to buy things, more information, more advertising and more social influence. So how does a consumer products brand stay relevant in this changing landscape.
In an omni-channel approach, the marketing focus is upon serving customers in a way that creates an integrated and consistent experience no matter how or where they may have contact with your brand. In that quest to maximize impact with every touch, we certainly do not wish to ignore traditional retail outlets and the important role they still play. A 2016 survey of more than 5000 consumers conducted by analytics firm comScore and UPSclaims that while some shoppers are doing a majority of their purchasing online (51%), most consumer products categories are still primarily purchased in stores.
A 2017 Total Retail Survey provided by PwC supports that premise, noting that 60% of shoppers for books, music, movies and video games prefer to shop online, but only 30% of shoppers for DIY and home improvement products prefer to shop online. However, the same study reports that in almost every consumer products category the vast majority of shoppers prefer to research their purchases online, whether or not they complete the purchase on the internet. Conversely, many consumers research products in-store, where they can touch and feel the product, before buying online.
Source: PwC
Source: PwC
It is clear, then, that a solid in-store merchandising strategy is at least as relevant today as it has been in years past. Traditional rules still apply:
When merchandising your products online, some of the same things are needed, but there are also unique aspects of selling your products on the internet that need to be addressed. First, the basics: Visual merchandising is just as important online as it is in stores. Strengthen your online presention with:
If an online retailer uses their own photography, make sure it shows your products in a good light, and work with them if it doesn’t.
Keep in mind that one of the reasons internet shopping is so popular is because of the unique features of web-based commerce. Many of these identifying characteristics are not directly controlled by your marketing department. For example, user reviews have become one of the biggest merchandising tools going. Amazon knows this and is planning its own brands around the concept. Bloomberg recently reported that Amazon is working with designer Jackie Wilson to provide Amazon-branded clothing that focuses almost solely on customer satisfaction. Wilson reported, “They want 5-star reviews. They are not concerned at all about how many units they sell, and they’re not focused on margins”. While most brands can’t afford to ignore margins, the article illustrates the point that when people talk about your brand in the form of user reviews online, other people listen and sales can follow on the merits of these reviews.
Incorporating this basic philosophy of social, and sometimes viral, customer satisfaction reporting into your online presence and merchandising becomes key. Encourage customer reviews on your own website, highlighting the good ones, while also honestly addressing the bad ones. Encourage your end-consumers to write about their experiences with your brand. Do this by following up on product registrations, website inquiries, customer support phone calls, etc. with invitations for the customer to write a review. Perhaps providing a special offer in exchange for leaving feedback at the point-of-purchase will encourage comments.
Once feedback starts coming in for your products, whether it be through user reviews or social media postings, it is important to engage these important potential ambassadors. If the reviews are not all positive, do not ignore negative comments. Own up to your shortcomings and use it as an opportunity to show that your brand listens and cares what customers think. Making an ambassador out of a previously dissatisfied customer is the power of the new world of merchandising.
Online merchandising may not exactly be a revolution, but it certainly provides the perfect platform for enhancing what you are already doing. By giving your brand more opportunities to sell themselves, while also inviting customers to sell for you, it can help you navigate this “apocalypse” and emerge even stronger than ever.
If you want to learn more about how your brand can grow with improved merchandising, both in-store and online, call Heinzeroth Marketing Group today for a free consultation. Or, check out case studies and eBooks online at heinzeroth.com. Our library of content covers topics ranging from successful merchandising strategies to marketing to millennials.
Do you have a product line review (PLR) coming up with one or more of your retailers? Access our free guide, "How to Prepare for a Product Line Review," for tips to improve your readiness for a successful meeting.