Four Tactics for Delivering Great Holiday Retail Experiences
The holidays always present both opportunities and challenges for retailers, and this year's will be no different. As a result of rampant inflation, consumers are shopping more mindfully, and many are tightening their belts across the board — so discretionary spending on holiday gifts is likely to be somewhat diminished versus years previous.
In light of this, what can retailers do to make the holidays a success? Can they still deliver exceptional customer experiences and capture maximum wallet share, even though shoppers are less free with their spending? They can — if they start early and consider these tips.
Make convenience a top priority
Buy online, pick-up in store (BOPIS) and buy online, pick-up at curbside (BOPAC) saw a massive uptick during the height of the pandemic. But just because COVID-19 appears to be on the wane, don't expect shoppers to forgo the ease of convenience these options offer. In fact, eMarketer expects use of BOPIS and BOPAC to grow steadily through 2024, with sales increasing between 15-20% each year.
So while there may not be any more sudden, meteoric growth in the near future, adoption of BOPIS/BOPAC is growing steadily, and retailers should expect to get their omnichannel operations put to the test this holiday season. That includes everything from inventory accuracy to on-floor availability to order fulfillment and more.
Consider the following:
- Are you confident that your inventory management system is accurate about what's in the stock room, on shelves, or out-of-stock?
- Do your inventory, point-of-sale, and e-commerce systems communicate in real time and seamlessly? Can shoppers buy online with confidence, or are they liable to discover items that they were told are in stock actually aren't?
- Is it quick and convenient for consumers to pick up their items in the store or at curbside? Are fulfillment areas clearly marked and easy to access?
- Is the path from the stock room to purchase area quick and easy for shoppers to navigate?
If the answer to any of the above questions is "no," expect holiday BOPIS/BOPAC orders to be partially filled — or not filled at all. That will inevitably lead to poor customer experiences, and in some cases, it may cost you a customer altogether.
Do you really know who's walking into and out of your stores each and every day?
Make staffing decisions based on data
Since more consumers are shopping with specific items in mind, rather than casually browsing, delivering great customer service will be a must. After all, they may need assistance finding a particular product, size, or colorway, or have questions about a product or service. They're there to purchase, but if they can't find an associate or if all associates are busy with tasks like replenishment, that's a sale you're going to lose.
That's why it pays to schedule your shifts based on actual traffic data, rather than making every holiday shift an all-hands-on-deck affair. To do so, you'll need a traffic counting technology that's highly accurate, reliable, readily available, and easily implemented. These solutions will give you real-world data about your stores' actual traffic, which means you'll have concrete knowledge of when your busiest days — and times of the day — are. Armed with this information, you can allocate labor more effectively and ensure the busiest shifts are fully staffed, while guiding non-customer focused activities to the most appropriate times of each day.
Not only does this ensure that there will always be associates on hand to assist customers, it'll also save you money by not staffing slower shifts unnecessarily.
Of course, you can consult our annual report, North America's Busiest Shopping Days of 2022. Based on historical data, weather patterns, shopper trends and preferences, important events, and more, it's a great resource for helping you anticipate traffic and plan your shifts smartly.
Since consumers are shopping with specific items in mind, rather than casually browsing, delivering great customer service will be a must.
Understand what your customers want before and after they leave your stores
You've got shopper personas. You've probably done focus groups and audience testing. But do you really know who's walking into and out of your stores each and every day? Do you have concrete demography on age, gender, shopping preferences and more? If the answer is "no," you're not marketing, selling, or merchandising as effectively as possible — and that means you won't be able to fully capitalize on the upcoming holidays' revenue potential.
So how do you learn all of that very specific info? The simplest and most cost-effective way is by leveraging Computer Vision technology. Computer Vision Analytics are available that collect data on demographics and in-store behaviors, meaning you'll know who's visiting your stores when, how long they stay, how long they linger before displays and endcaps, and what paths they take to purchase.
Another valuable source of consumer insight comes from advanced shopper mobility data. This data can show you where your customers go before and after visiting your stores, along with the other retailers they're visiting, and how your stores are performing against them.
Put together, these two solutions paint a powerful and thorough picture of who your shoppers are, what they want, how they engage with displays and promotions, and the other retailers that are competing for your share of wallet. As a result, you'll be able to market, sell, and merchandise to your actual customers, not vague personas.
In the context of the holidays, that means you can fully capitalize on the holiday opportunity — and that'll be a major win for your bottom line.
Takeaways
Consumers may be tightening their belts this holiday season, but that doesn't mean they won't shop. They will — but they'll do so purposefully and with specific products in mind. A sizable portion will also prioritize speed and convenience. With these factors in mind, retailers may wish to consider:
- Optimizing their BOPIS/BOPAC fulfillment operations
- Ensuring their inventory is as accurate as possible, both in stores and online
- Staff shifts based on real-world traffic data
- Leveraging Computer Vision Analytics and mobility data to get the full picture of who their shoppers are, what they want, and how they engage with products and displays
If you can make these four tactics a reality, you're sure to deliver a great holiday retail shopping experience. But don't stop there: Get your copy of our latest white paper, The 2022 Holiday Retail Shopper Insights Wish List, today. It's full of insights you can use to deliver great experiences that lead to happy customers — and a healthy bottom line — this holiday season.