Smaller, More Agile Retailers are Winning Big and Here’s Why
By Gary Ambrosino, President and CEO of TimeTrade
Hidden in the onslaught of negative headlines about former retail heavyweights, like JC Penney and Sears, is a slew of less-publicized, good news from smaller—many formerly online-only—retailers that are not only weathering the storm but are thriving.
These retailers, including Bonobos, Michael Kors and Clarks Shoes, are designing stores and retail experiences based on what consumers want today--not what worked 20 or even 10 years ago. Smaller retailers have a tremendous advantage in comparison to their larger competitors. Smaller, newer retailers can seamlessly respond to changes in consumer demand or customer feedback, eliminating barriers that impact immediate and longer-term customer loyalty and sales, without the corporate red tape that often makes larger retailers slow to change or implement new technology,
Consumers now walk into a store expecting to save time by talking to the right sales associate who understands what the shopper is looking for, what the product options are and what the best product is based on the customer’s needs. However, most traditional retailers still structured and organized the buying experience around the seller’s business processes and systems. Too often, finding the right sales associate is left up to trial and error.
Studies have shown that 88% of in-store shoppers who fail to get the help they need, leave and make their purchase elsewhere, often online. Yet, when shoppers do get the attention and help they need, 93% are more likely to buy; 86% will buy more than they expected and nearly 90% would return again. A personalized customer experience from a knowledgeable person who understands shoppers’ needs and provides support and validation for the purchase decision is a game-changer.
Bonobos is experiencing the power of one-on-one attention with their customers, who can try on clothing and purchase the right fittings online with a rep’s help. Their physical stores are taking the guess work out of size charts, and helping their shoppers make educated choices on tailored clothing. According to a recent report, Bonobos sells twice as many suits in their physical “Guideshops” and 50% more dress shirts compared to their website. The company’s success led to their July announcement of an additional 30 store locations by the end of 2016.
Bonobos and other smaller retailers are creating selling structures that tune each customer interaction to the best time and place for the shopper, and make sure that the right person is available to help. To keep customers happy and coming back, retail brands are measuring each customer interaction, seeing what worked, what didn’t and to determine the next best action for that customer. These insights also allow retailers to tailor programs, sales processes and marketing promotions at local, regional and national levels to create competitive advantage, long-lasting customer loyalty and sales growth.
Today’s most successful retailers are refocusing on the customer. With the holiday shopping season and 2015 right around the corner, retailers have tremendous opportunities to make immediate changes that will positively impact sales and customer retention in the long run.
Gary Ambrosino is CEO of TimeTrade Systems, whose responsive customer engagement platform allows consumers to connect with a brand, anywhere, anytime—and then gives companies deeper insight than about what consumers want next. He can be reached at [email protected].
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