Whether you manage a retail shopping center or a single retail store, or are responsible for retail marketing, you’re keenly aware of how online purchases have been eating away at in-person shopping for years. Giants like Amazon give shoppers the means to view what’s available from many stores at once and what might be a reasonable price to pay. That said, competing against the Amazons of the world doesn’t have to be a losing battle for retail centers and stores.
The Holiday Battleground
Holidays are traditionally make-or-break months for retailers, and trending numbers don’t look great. Deloitte’s annual Holiday Survey shows the tide has turned with 51 percent of holiday shopping budgets being spent online versus 42 percent in store. The numbers are worse for high-income shoppers who expect to spend 57 percent of their gift budget shopping on the internet.
Generationally, seniors are still spending more time browsing in stores. But the trend is clear. Retail merchants need a retail marketing plan to compete against online sales.
It’s About Branding
People want to know, like and trust you before doing business with you. The shopping experience starts with awareness. Your brand builds that awareness in the local marketplace among a target audience of likely shoppers. Once your brand reputation is known, people can then consider you as a choice when they have wants and needs for your products. Until then, you’re not on the radar.
Trust is that critical element that keeps people from making a purchase online. Shady websites you’ve never heard of before are great for window shopping, but they’re less likely to earn a credit card transaction.
Customers of all ages do online research before they buy. It’s easy. The shopping experience is conveniently located on the cell phones tethered to our hands. Look closer at the research and you’ll notice the encouraging stats. As many as 60 percent are looking for physical store locations. Fifty-four percent are looking for product availability in-store before they make the trip. And 57 percent are doing research via customer reviews before they make a decision.
You don’t necessarily need to have an e-commerce site (a section of your website where you allow secure shopping, payment and shipping of goods) to compete in this world. But making sure your latest merchandise, sales and special events can easily be found and reviewed over a mobile device is critical to being chosen. If your site isn’t checking those boxes, that’s the first place to start.
Focus on Proactive Digital Communication
The fundamentals of digital retail marketing are important.
- Today, you’ve got to think about the mobile experience first. Beyond that, is your website performing the way you need it to? Is it capturing email leads? Are people able to easily see the merchandise you offer? And is that merchandise as up to date as the wares in the window? Entrepreneur reminds us that a high performing website is like having a well-trained, 24/7 salesman.
- Local Search Engine Optimization (SEO). Google is working on your behalf as a local merchant, as long as your location listings are up to date. Managing your online reviews plays a role here, but even the basics like store hours and location(s) go missing. Need a quick check of your online presence? Here’s our quick scan.
- Email Lists. Your email list is your built-in fan base of customers who want to know what’s new and exciting. Keep adding to that list and find an appropriate means of communicating with them that entices people back to the store.
- Social Media. In the chart above, 67 percent of people are browsing your content online, basically window shopping until they decide to come in. The right social channels, along with the right messaging and paid advertising strategy on those platforms can bring traffic in the door, not just to your page.
One of the most important things many retailers miss is making the commitment to track everything. With a little setup work, you can actually connect the people who looked at your Facebook ad to your in-store purchase on point of sale systems like Square, loyalty programs like Ecrebo or your customer relationship management system. That kind of data lets you know what works to bring people into the store and what is only giving you more likes and page views. Invest in things that actually drive in-store sales.
Now that the digital fundamentals are in order, it’s important to find a winning message.
Fight the Battle Amazon Can’t (Yet) Win
There are many reasons people visit a store in person to make a purchase instead of going online. We’ve already talked about trust. But others include:
- We buy things, but we remember experiences. Find ways to build a memorable experience around your product or service. Special VIP events, tastings and parties attract people to stores. And they’re memorable for everyone.
- Customer Service & Expertise. Where Amazon hasn’t won the battle yet is with in-store customer service. You’re the expert. You know what looks good on people or tastes good on people’s tongues. Random reviews from strangers can’t replace the expertise of a kind, considerate customer service expert.
- Find a Niche. Amazon sells everything, but their selection isn’t limitless. Having the largest in-store selection of (INSERT NAME OF PRODUCT HERE) brings people who want to really understand their options. Local convenience saves on shipping.
- Sure, the drones are on the way. But if a person wants something on the way home from work, brick and mortar retail is the way to go. Emphasize speed, convenience and in-store selection to win that battle.
Amazon is a tough competitor. They’re in every industry. They have more IT staff than you do. And they’re trusted by many. But leveraging the advantages they don’t yet have will pay off now and in the future.
Your Center’s Retail Marketing Matters
Our retail shopping center clients understand the power of retail marketing on their merchants’ business success. Promoting the center as a whole needs to blend seamlessly with promoting individual merchants, creating a tide that lifts all boats. Merchant/tenant communications that inform and provide a feedback system are important to a healthy ecosystem.
A strong center is more than just gorgeous signage in high-traffic areas. Collaborative merchant campaigns bring buying power to individual retail stores they couldn’t get on their own. Radio, TV, digital and print campaign options that also lighten the workload on merchants who are already stretched thin bring higher occupancy and foot traffic.
A strong center doesn’t protect weaker retail concepts from losing business. But one thing is for certain; weak center-wide retail marketing isn’t helping anyone.
If you’re a retail store in search of a retail center home, take a close look at the merchant marketing support plan and co-op opportunities they provide. The strongest centers leverage the power of their merchants right alongside center-wide branding efforts. They do it in digital marketing, and they do it in traditional marketing like radio, television and billboards. The mix may change depending on the target customer and location, but each should take a comprehensive approach to increasing awareness.
Since our inception, EAG Advertising & Marketing has worked with some of the premier shopping destinations in Kansas City including Brookside, Hawthorne Plaza in Overland Park and others. Want to know what’s new in retail shopping center marketing? Let’s Talk.