Retailers are creating shopping experiences in which digital and the store intersect. TANYA SHINN demonstrates how this powerful strategy grows sales and increases profit using a multi-channel marketing approach.
Consumers still love department stores. Three out of five consumers (10.8 million) have visited a store in the last month, increasing to four in five (14.7m) over a three-month period.
It’s a different story online where, despite 47 per cent growth in the past year, 17 per cent of consumers (2.2m) shopped online with a department store in the past year.
Digital news media is a powerful ally to help retailers build their online channels. Consumers who read online news are 14 per cent more likely to be regular online shoppers than others, according to emma research
A lingering belief that online can cannibalise in-store sales is unwarranted, according to the data. Some 91 percent of consumers who bought from a department store online in the past 12 months also visited a store. Those who shopped online are 6 per cent more likely to visit a physical department store than the average shopper.
For retailers, this means that it is important to recognise that their online and offline presence is heavily intertwined.
Some 46 per cent of those shopping for furniture, and 54 per cent wanting tech products, conduct research online before buying in-store.
Regardless of how they shop, buyers say they want their shopping experience to be fun. One in three say they love to shop, which represents a pool of 5 million eager customers. Most women love to shop (54%) and there is a substantial minority of men (46%) who don’t mind a dash of retail therapy.
Overseas department stores, such as Selfridges, Nordstrom and Bloomingdales, are personalising the shopping experience by merging online and physical shopping to make the shopping more enjoyable.
‘Smart changing rooms’ and ‘magic mirrors’ are fitted with technology which can identify items, suggest complementary items, link with customer online shopping accounts and even provide personalised compliments.1
According to DigitasLBi’s Connected Commerce survey, 62 percent of consumers purchase more items more often when provided with a personalised service.2 Many shoppers now expect omni-channel experiences from brands and retailers that suit their lifestyle.2
With department stores appealing to most of the population, they need mass reach media to communicate their offers, shopping innovations and promotional events.
News media performs this role effectively, reaching 93 per cent (16.9m) of the population every month.
Digital news media features a significant crossover in readers’ usage of platforms, demonstrating why both should play a key role for marketers.
Some 60 per cent of consumers (10.1m) who engage with digital news media on their smartphone, tablet, laptop or PC also read newspapers.
Higher income levels translate into stronger spending power for news media readers across a range of department store categories.
Shoppers who read newspapers spent 5 per cent more on department store clothing than non-newspaper readers during their last visit. For heavy newspaper readers, those who read seven or more copies a week, the figure increases to 9 per cent.
Digital news media readers spent an average of 53 per cent more on white goods and appliances than non-readers during their last shopping trip and 9 per cent more on footwear.
- Tech.co, The Smart Fitting Room Is the Future of Retail, December 2015 – http://tech.co/smart-fitting-room-future-retail-2015-12.
- DigitasLBi, Connected Commerce Report 2015, April 2015.
All other figures from emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending July 2016; Nielsen DRM July 2016, People 14+ only.