Digital-first doesn’t mean digital-only. At least not anymore. Some brands have already embraced that lesson in a bold way, and many others are taking notice.
After all, the customers have spoken, and what they want is an experience that allows them to showroom, or browse in store and buy online. In fact, according to a recent report from MIT, up to 80 percent of shoppers make purchases in this way. Forrester’s “The State of the Digital Store” report further solidifies this fact: when online retailers open physical locations, they often see a spike in web sales from local browsers.
Even Amazon—a brand so synonymous with digital retail many of us couldn’t imagine our lives without it—recently opened an outpost on Purdue’s campus run by staffers from the ecommerce giant. This first-of-its-kind shopping experience is far more convenient than traditional in-store or online purchasing could bring. In addition to its streamlined textbook-ordering process, many other items are available for next-day shipping and students are pinged when their purchases have arrived. It’s a big move that shows Amazon’s awareness of the changing retail environment, and odds are, their physical strategy is just getting started.
In the past few years, we’ve seen digital-to-physical moves by Bonobos, Warby Parker and Birchbox as more brands embrace the idea of showrooming with great success. And if this trend feels like history is repeating itself, well, there’s some truth to that feeling. Before digital ruled the day, there were mail-order catalogs, with Montgomery Ward and Sears Roebuck leading the paper charge.
Even then, brands discovered the connection between opening physical stores and a growth in sales. The more things change, the more they stay the same. But succeeding in the physical world takes more than hiring a top-notch realtor: from pop-ups to permanent locations, the truly successful digital-to-physical moves are all about innovation. Thankfully, being well-versed in the digital world is the perfect jumping-off point. Here’s how digital-first brands can use their existing expertise and succeed in the brick and mortar world.
Use Digital Data for Smarter Physical Store Decisions (and Vice Versa)
Online retailers have a wealth of shopper data at their fingertips, and that information can help make more informed brick and mortar decisions about everything from the best locations to set up shop to the ideal inventory to put on the racks. And once a retailer opens its physical doors, in-store shopper behavior will inform online decisions as well, bridging the gap between the two worlds and creating a more holistic brand experience. Retailers can also use their digital savvy to implement web-style analytics in physical locations to track shopper behavior. From here, that data can be used to optimize store operations and merchandising layouts, and even inform loss-prevention strategies. Looking at online and offline commerce as one cohesive ecosystem will allow retailers to make smart decisions that result in brand advocacy and—ultimately—more sales.
Experiment with Pop-Ups to Achieve the Perfect Experience
When Birchbox was in the early stages of opening a New York City retail store, the company experimented with pop-up locations first. With each shop, they were able to refine their approach before committing to a full-blown retail store. The result was a dynamic shopping and lifestyle experience that complimented the brand’s online identity perfectly with classes, beauty services and rows of stations for product testing. All digital-first brands can learn a valuable lesson from Birchbox: while it may be tempting, don’t jump the gun when opening a physical store. Having an existing online following creates a dedicated focus group, eager to engage with your products beyond the screen. Use that to your advantage by taking the time to test and learn before diving in. That dedication to creating the most memorable experience possible will certainly pay off.
Master the “Wow Factor”
Successful digital-first brands are already well-versed in technology. Thankfully, those skills create an advantage in the physical world, too. Putting an existing knowledge of customer behavior and preferences to work in-store creates an experience that keeps customers coming back. From interactive product displays that help customers explore products further to RFID-enabled dressing rooms that show videos of runway shows and make additional product suggestions, as technology advances, so do retailers’ options for staking their claim in the physical world. Many shoppers still expect standard interactions with merchandise when stepping into a physical store. Online-first retailers have the opportunity to bring things full-circle, combining their new brick and mortar presence with digital features that add another dimension to shoppers’ interactions with static displays. The lines are blurring, and in this new landscape, both the retailer and the shopper wins.
Making it in the Physical World: A Final Word
Make no mistake: from choosing the perfect inventory to implementing technology that informs and doesn’t overwhelm, transitioning from the digital to the physical world is as valuable to a brand as it is complex. The best strategy isn’t one pulled from brands who’ve already paved the way—it’s an experience inspired by the very things that already make your brand stand out online. Stay true to that identity while embarking in the physical world, and shoppers will take notice. The best digital-to-physical transitions create a lasting impression that’s far stronger than either medium could achieve alone.
Amanda McCreary is senior product marketing manager at Acquia.