Meet Shoppers Where They Want to be Met
Much has been made about the American consumer’s great leap into online retail during the COVID-19 pandemic. But why did it happen? Was it because millions of people sequestered in their houses and finally took the time to learn how to buy things online? Unlikely. COVID-19 exposed retailers and landlords to the critical need to create more meaningful connections with customers. To survive and thrive post-pandemic, we must meet shoppers where they want to be met.
Several years ago, I spoke with the president of Chase Bank’s retail division. I asked him why Chase was opening so many new branches when every other banks seemed to be moving business online. “We have customers who want to conduct transactions with a banker inside a branch, we have customers who want to access our drive-thru and we have customers that choose to bank online, therefore we need to options to meet them all where they want to be met to retain and grow our business,” he told me.
With our projects unexpectedly closed in March, I was reminded of this conversation. Centennial immediately instituted a curbside delivery program called Retail To Go and began to focus on the successful recovery of our portfolio. We were committed to supporting our retailers and consumers by sourcing all solutions, both offensive and defensive, to get through this unprecedented time. We needed to meet them where they wanted to be met. One of the solutions our task force developed was designed to do just that and has proven to have great potential to revolutionize our business. It’s called Shop Now!
Shop Now! is an intelligent, e-commerce platform that allows consumers to shop our centers the same way they shop Amazon. They can go to any of our malls’ website, search for a product, and be offered a vast selection from nearly every retailer at the property. The customer can then choose to have the product shipped, picked up curbside, or visit the store for same day or future pick-up.
Today’s consumer has proven an omnichannel experience is not only desired but required. It’s no longer a question of e-commerce versus brick-and-mortar retailing, it is about creating a seamless experience for consumers that embodies the most attractive elements of both realms of retail. Many often ask about the future of the department store. Shop Now! transforms every Centennial property into one “big store” and allows customers to shop the center online, if they choose. It also serves as an intuitive digital directory; a planning resource that shoppers can use in advance of or during their visit proving to make their visit more productive: they are spending more, in less time.
Even while shopping in a retail store, no one shops alone today; every consumer shops with a smartphone in their pocket and access to e-commerce and online research in an instant. If someone is looking for a pink V-neck blouse, they will first go online to see which stores stock that item. If someone is looking for a new Asian restaurant, they will start by researching reviews and viewing menus online. Going forward, every landlord and retailer must operate their businesses acknowledging the customer journey now starts online and physical retail must be present from the start.
For several years I have said “we are not in the property management business, we are in the hospitality management business,” and that proves more important than ever right now. Providing best-in-class service to our customers, tenants, clients and partners has never been more important. Just this week our annual Kingsley survey results were received. The goal of the assessment is to gauge tenant satisfaction throughout the portfolio as a means of improving performance, increasing retention, maximizing portfolio value, and achieving operational excellence. To be honest, I wasn’t sure what to expect given how difficult 2020 has been. I was elated to see we received our portfolio’s highest scores on record, also soaring above the Kingsley benchmark. Additionally, we had more tenant participation than any year prior. This accomplishment is proof that service and attention matters!
Similarly, another important evolution resulting from COVID-19 is the landlord-tenant partnership. Now more than ever, landlords and tenants need to work together to ensure mutual success. Over the past 30 years, the pendulum has always favored one of these players as “the winner,” the group with a leg up. As we all know, if there is a winner there is a loser and nobody wins. COVID-19 has created an opportunity to reset the ways of the past and reimagine this important partnership. The landlords and tenants that do this will benefit the most.
Armed with new tools and an even stronger commitment to service and strengthening key partnerships, we look ahead to 2021 with optimism.