Thanks to the internet and e-commerce, consumers no longer have to go to the store to research or buy many of the products they need or want. They can simply do it from their smartphone or while sitting in their living room, which is dramatically changing the consumers’ shopping behavior and turning the entire retail landscape on its head.
The hot buzzword right now in marketing is “omni-channel.” Meaning, retailers need to engage the consumer with a seamless experience across all types of digital channels as well as in a physical store. Omni-channel marketing takes multi-channel marketing to a whole new level to allow the consumer to choose how, where and when they want to interact and buy on their terms.
In October 2015, a study done by Temando surveyed 1,000 consumers about their online shopping preferences and found that 80 percent of shoppers surveyed want same-day shipping, while 61 percent want their packages even faster. Temando also found that 82 percent of shoppers surveyed want the option to buy online or pick up in store.
With today’s digital savvy consumers wanting the option to buy online or in the physical store adds new challenges for retailers. How do you support brick-and-mortar sales while offering items online that ship products direct to the end-users? For example, a study of the “Top Ten U.S. E-commerce Retail Sites” done by Trellis in October 2015 listed Walmart, Staples, Sears, Macy’s, Office Depot and Home Depot in the top 10. These brands also have a major investment in brick-and-mortar storefronts and we know what is happening to the big shopping mall anchor stores.
It wasn’t long ago that shopping malls were the rage. Now, we see shopping malls with retailers like Sears, Macy’s and other big brand names struggling to survive. Many blame it on the shift to e-commerce, competition from the big box stores and the “Amazon-effect.” In the book “Shops that POP!” Pamela Danziger said, “The reality, however, is a product differentiation strategy is getting less and less effective, because shoppers today can find almost any product or a perfectly acceptable substitute almost anywhere.”
We’re also seeing companies like Amazon opening physical stores and it was recently announced that Amazon is acquiring Whole Foods, which adds 431 physical locations to Amazon. This will undoubtedly force local grocery stores to step up their game. Amazon is now eyeing the apparel market as well with “Prime Wardrobe,” which is still in beta mode.
The battle for the consumer is on and all of this is having a profound effect on retailers. Many marketing experts feel in order for brick-and-mortar retailers to survive, they have to offer a higher level of personalized shopping experience. Otherwise, it’s too easy today for consumers to fulfill their needs online and never step foot in a physical store.
Sitting on your hands and doing nothing is no longer an option.
John Simonson of Webstream Dynamics & GetFiveStarReviews.pro has been helping flooring companies with their online marketing for more than 19 years. He can be reached at john@webstreamdynamics.com.