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What is the definition of "value" for customers? Pretty straightforward, actually.
Wait. What? "Benefits received?" "Burdens endured?"
Turns out, the only single answer to "What is value?" is, "It depends."
Don't just roll your eyes. What constitutes value for your customers increasingly is a make-or-break part of retailing.
Like beauty, value in retail operations is in the eye of the beholder. And frankly, that is subject to change from time to time. Or day to day. Or...
You might list your merchandise selection.
But, is it better to have carefully edited selections, or extensive choices?
What about the qualitative factors of your merchandise, from where and how it is sourced, to labor practices of the manufacturers?
How long will it last? Do your customers want an enduring "classic", or do they prefer to replace items regularly?
See? That depends on your customers. And they can be fickle.
Or, how about the benefits of a "knowledgeable sales staff?"
In these days of online reviews, internet influencers, price comparisons, etc, is that even relevant to your shoppers? Again, depends on your customers.
Your staff's knowledge, and the personal connection that offers, may be more important today than ever before.
But, their knowledge may have to be raised a notch; your customers likely already know the basics.
For some customers, the hours your store is open – or not open – could be an issue.
Yes, once again, "It depends." It depends not only your customers age, but their Lifestage: if they have young children, their time demands are different from empty nesters, or single 20-somethings.
Or, what about the speed of shopping for the customer (or lack of speed.)
How efficient are your processes?
What about your employees??
Of course, price can always viewed as a burden.
But remember, true price hounds, who always chase the lowest price, are only about 20% of all shoppers. The other 80% of shoppers are looking for other measures of value.
There are many ways for you to overcome price objections. It all has to do with better understanding the "value" the customer perceives.
But before you choose which ones to feature – gift wrapping, evening hours, special events, valet parking, prices, merchandise selection – you need to have done a thoughtful analysis of who your customers really are today.
True, the challenge of that may be greater now than in recent years. Changing demographics and psychographics. Changing tastes. New brands emerging. A volatile economy.
The burdens you might endure can be more than offset by the benefits you receive. In other words, there can be great value for you in this analysis.
It has begun; the 4th quarter of the year. But sadly, Covid-19, the Delta variant, and now the Alpha variant will have huge influence. Meanwhile, there is no shortage of opinions and predictions about the economy, whether from Wall Street, the Fed, Capitol Hill, or your buying group or retail trade association. Amidst all this, we were intrigued by a report that could be of far more value to retailers: results of a monthly survey of consumer concerns.* After all, for retailers, the shopper matters much more than the pundits on the business pages.
"They say there’s nothing quite like retail therapy, but what happens when online shopping just feels like it’s lost its spark?” asks Jeena Sharma in Retail Brew.
“Well, more than 3 in 4 consumers say that while e-commerce is ‘functional,’ it’s just not fun anymore, a new study by Criteo found."
According to "The Spark Of Discovery" report by global marketing and media company Criteo, who surveyed 6,000 consumers in six different countries, shoppers describe online shopping...
as a chore, 29%
as lonely, 79%
as overwhelming, 78%.
Ouch!
When do shoppers prefer ecommerce? No surprises there either:
Save time, 48%
Easier price comparison, 45%
Avoid crowds, 38%
Better discounts, 38%
Broader range of products, 34%
The report went on at some length to propose how ecommerce businesses could imitate the best practices of specialty retailers.
Throughout the pandemics, many independent retailers successfully shed their "technology laggards" label, as they pivoted to embrace an array of digital tools. Yet going forward, it is well to keep in mind what really matters to the customers. And it may not be more technology. A recent survey* of more than 2,000 customers provides some interesting insights as to who shops where, why, when and how. It especially highlighted the differences between "large stores" and "smaller stores" (or as we view them, "specialty stores.")
Hmm. This suggests to us that shoppers essentially are treating large stores the same way they treat the internet:
Retailers are notable for their optimism and their resilience. And the last couple of years have provided ample opportunities to showcase their ability to bounce back. But now, it's 2022. Time for those customers to pick up the slack. And here's an idea for helping them get started. Without costing a penny in advertising! Print up some "bag stuffers" (you know, conspicuous notes) inviting them to come back in November.
"Halloween is around the corner, and shoppers aren’t ghosting it," writes Stephanie Carls on The Real Deal. “According to new data from 1,000 adult shoppers, 82% of consumers plan to make Halloween-related purchases this year."
Indeed. Halloween spending is expected to reach a record $13.1 billion this year, according to the National Retail Federation's consumer survey.
“Even with concerns about price increases due to tariffs, Halloween continues to resonate with consumers of all ages,” NRF vice president of industry and consumer insights Katherine Cullen said.
This is no time to be left on the sidelines.
The COVID-19 pandemic has certainly gained the respect of the general public.
Surveys continue to show that, while folks are eager to be able to resume moving about, they do not expect to resume their pre-pandemic discretionary shopping and dining activities anytime soon. They are awaiting effective treatments or, even better, a vaccine. Main Street restauranteurs and retailers understand that, according to survey results reported April 27.* In fact, these owners anticipate it could take another eight months – that is, most of the year – for consumer demand to reach the so-called "New Normal."
Incredible value! 👀
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