02 May
In the age of Amazon, retail stores are facing steep competition as more and more customers transition their shopping habits online. However, despite the increasing dominance of e-commerce, brick-and-mortar stores still have advantages that Amazon cannot easily replicate. They offer an immediate shopping experience with the ability to see, touch, try on, and even test products on the spot. They also act as a hub for local communities, providing meeting spaces and events in addition to a place to shop.
To continue driving traffic and sales against the mighty Amazon, stores need to bring their A-game. This article provides seven tips for retailers to station themselves as a strong alternative to Amazon and regain ground against the online retail giant and even compete with other online retailers. With consistent application of these recommendations, any store can boost traffic, increase loyalty and win the battle even in the age of other great online retail businesses.
Enhance the In-Store Experience
For brick-and-mortar stores to thrive, they need to create an engaging environment that encourages longer stays and repeat visits. Integrate compelling content like product demonstrations, classes, and creative spaces for interacting with products.
Put on an educational show– Host product experts to teach customers how to get the most out of their purchases. This builds customer rapport and keeps people in your store longer.
Design destination spaces– Go beyond just aisles of products and craft pop-up studios, cafes, barber shops, or whatever component turns shopping into an event.
Also Read: Creative Retail Display Ideas to Improve Your Stores Appearance
Provide Personalized Service
Amazon tapping into sophisticated algorithms and AI to personalize recommendations for each customer. Local stores need to personalize service and build real relationships.
Greet customers by name– Use customer data to greet regular shoppers by name and with their favorite products. Customers appreciate the personal touch.
Give tailored recommendations- Pay attention to individual customers’ shopping histories and needs to provide helpful recommendations and suggestions, just like Amazon does.
Enable 1:1 consultations- For larger purchases, offer private consultations with product experts to find the right solution for that customer’s unique needs. Personal guidance makes an impact.
Offer Additional Services
Amazon has expanded well beyond just product sales with offerings like Amazon Prime shipping, cloud services, streaming media, and more. Stores must start thinking like Amazon to tap into additional revenue streams.
Provide product services- Services like repairs, installations, personal training, and more. Service revenue is very high margin and loyal customer-generating.
Curate creative member programs- Design programs similar to Amazon Prime that provide membership benefits and exclusive perks, discounts, and events to give customers additional incentives to shop frequently.
Build an e-commerce presence- Even with a physical store, an online store, and a mobile-friendly website are essential to reach all customers and generate more ongoing interaction and sales. Stores need an Amazon-level e-commerce game if they really want to know how to compete with Amazon.
Optimize the Supply Chain
Amazon has patented many supply chain innovations, like predictive analytics for product selection and reliable two-day shipping through optimized warehousing and logistics. Stores need to engineer their supply chains to compete.
Apply data insights– Use data on customer shopping habits, product searches, and best sellers to determine which products to stock based on optimized supply chain management.
Improve logistics- Reduce waste and speed up delivery times by optimizing everything from back-end inventory management to the layout of selling floor space. Try using a point-of-sale inventory system for more efficiency and better management- it will reduce costs and improve customer experiences.
Price match and beat Amazon– Provide at least comparable, if not better prices than Amazon to discourage customers from ordering additional products online. Fluid pricing strategies can match or beat Amazon on price.
Build a Strong Digital Marketing Presence
Local stores need to match or exceed Amazon’s search engine optimization, social media marketing, and more to gain awareness and drive in-store traffic.
Optimize search results– Improve search engine rankings for location, store hours, services, and products to ensure customers can easily find the store and all it offers.
Activate social media- Post engaging content on platforms where customers are active like Facebook, Instagram, and Pinterest to build an audience, promote new products and services, highlight special events, and encourage social sharing.
Run a digital ad campaign- Budget for search engine ads, social media ads, display ads, or other digital ads to reach new potential customers and compete for mindshare against Amazon’s marketing muscle.
Provide amazing online reviews- Encourage customers to leave positive reviews on sites like Yelp, Google Reviews, or the store’s social media profiles and websites. Positive reviews sway purchase decisions.
Provide a Seamless Omnichannel Experience
Large retail chains like Amazon have pioneered an easy omnichannel experience where customers can seamlessly transition between online and in-store. Physical retailers need to simplify the ability to shop any way the customer prefers.
Execute a click-and-collect strategy– Allow customers to shop on websites or mobile apps and pick up items at the local store. This provides the convenience of e-commerce with an in-person experience.
Offer online ordering and shipping- Expand the online store to ship products to any customer, wherever they live. This can open up a new customer base and provide more reasons for existing local customers to shop.
Incorporate reserve online pick up in-store- Let customers reserve products online and either pick them up at the store or have them shipped to a store for free in-store pickup. This appeals to those wanting to see items in person before purchasing.
Apply price matching policies- Provide the same competitive prices whether a customer shops online, in-person, or through any combination of channels to encourage seamless omnichannel experiences without channel conflict.
Offer an Engaging Loyalty Program
Amazon Prime is an ultra-popular loyalty program that provides free shipping and other benefits. Stores need a strong, compelling customer loyalty program for their small businesses to generate customer advocacy and retention.
Give valuable benefits- Provide meaningful benefits beyond just discounts and special offers such as free shipping, early access to sales, product bundles, exclusive member events, and VIP treatment. The more valuable the benefits, the more enthusiastic the member base.
Enable tiered programs- Level up benefits as customers achieve different spending thresholds to keep rewarding loyal shoppers with additional perks. Termed-based tiers motivate customers to keep spending to reach the next tier.
Provide unique member experiences- Host private sales, special events, product launches, member feedback sessions, or other exclusive experiences for super-loyal customers to strengthen relationships.
Enable earning and redemption- Allow customers to earn points or other in-store credits whenever they shop and then redeem them on future purchases. This cycles more money back to the store and gives customers further incentive to shop through the loyalty program.
Optimize the redemption experience- Make redeeming earned value as simple and seamless as possible to maximize redemption and ensure customers continue participating actively in the loyalty program on future visits and spending.
Build a passionate member community- Create member forums, Facebook groups, newsletters, or other community touchpoints to foster interaction and engagement among the most loyal members of the program. An active community strengthens member loyalty.
To thrive in today’s retail landscape, stores must embrace innovation and implement strategies that enhance their unique differentiators while also improving basics like supply chain management and digital marketing to compete with Amazon’s capabilities.
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