03 Jul
For many years, the common wisdom was that online retailers could survive perfectly well without any physical store presence. As e-commerce boomed, “digital-only” seemed to be the optimal strategy for success. However, trends have shown that even the biggest online brands are starting to complement their internet sales with brick-and-mortar shops. There are good reasons for this shift, as relying solely on websites limits growth potential in important ways. So what gives customers reasons to shop in-store?
To Provide Customer Service Face-to-Face
One challenge for online retail stores is not being able to interact with customers directly. Customers cannot see or touch products before buying them. They have questions, but cannot get immediate help from sales staff. Having store locations allows customers to come in if they want to learn more about products or get assistance. They can speak to employees and get any issues resolved quickly. This improves the shopping experience for customers compared to only communicating over email or phone calls.
For Trying On and Testing Products
Especially important for certain product types like clothing, customers want to try items on before committing to a purchase. They want to see how something looks on them or test how something fits their needs in person. While online retailers do their best with detailed descriptions, photos, and videos – nothing quite replaces interacting with real products through in-person shopping. Store locations give customers the chance to examine, handle, and test drive products as needed. This helps seal the deal on purchases.
Also Read: How do Customer Reviews Increase Retail Sales?
To Build Your Brand Recognition
When customers can only find a company online, it is harder for them to recognize and remember the brand versus others. A physical presence helps boost brand awareness through signage, merchandising, and foot traffic. As more people become familiar with seeing a retailer’s storefront and products on display, its brand is strengthened in their minds. This increased visibility can lead to more website visits and repeat purchases over time. It also helps sell potential wholesale or business-to-business customers working with the company.
For Leveraging Social Commerce
People today often shop with others and share recommendations on social media platforms. Retail shopping stores can let customers invite friends along to browse products together. Friends can photograph each other trying on clothes or holding interesting items to post on Instagram and Facebook. This sparks word-of-mouth marketing as others see these shared posts. Stores additionally can host launch parties and pickup events to further encourage social sharing around new product releases which grows sales.
To Provide Opportunistic Purchases
When near a store location, customers can make spontaneous or opportunistic purchases they may not have planned. They see a sign or window display, stop in out of curiosity, and find something they love on a whim. Maybe they did not intend to shop that day but were convinced by an in-person experience to buy. These additional unplanned buys boost total revenue for the retailer. Many purchases also happen this way when customers visit stores to return or exchange items ordered online.
For Enhanced Product Displays and Visual Merchandising
Online retailers are limited compared to physical locations in how creatively they can showcase products and themes. Location is important to retailers because they have more freedom with large beautiful displays, meticulous merchandising, mood lighting, music, and coordinated layouts. They can fully control the atmosphere through interior design. This type of immersive branded experience attracts browsers who become interested and make impulse decisions to purchase promoted items they may not have otherwise considered.
Also Read: How can retailers encourage impulse purchases and unplanned shopping?
To Facilitate Localized Inventory
E-commerce requires fulfillment from centralized warehouses which introduces shipping delays, costs, and complications. Stores let online orders be fulfilled in-store when possible for faster delivery to local customers. This improved speed and convenience keep shoppers happy. Stores also provide a place to manage overflow inventory not selling well online or allow for easy returns of web purchases rather than shipping items back and forth. Maintaining local stock simplifies operations and makes the brand more accessible.
For Recruiting and Hiring Staff
Running stores allows companies to meet and recruit high-quality local employees who can support both online and brick-and-mortar operations. Stores provide face-to-face opportunities to evaluate candidates and gauge work style and customer service skills that are difficult to assess fully online. Employees hired from store locations can then take on various in-person and back-end roles as the company expands. This helps build a talented team suited for future growth.
For Generating Extra Revenue Streams
In addition to product sales, stores open possibilities for additional revenue sources like partnerships, exclusive affiliate offerings, gift cards, and pop-ups or seasonal shops. Retail partnerships might include cafes, cell phone carriers, and related accessory sales. Gift cards attract customers who spend above the balance. Rentable space within stores produces ongoing income and enables limited-time partnerships. These programs help amplify monetary gains beyond core e-commerce activity.
To enable seamless connectivity between physical and digital operations, companies need a unified retail management platform. To learn more about how Hana Retail’s POS system can power synchronized storefronts and online sales, sign up for FREE.
