In today’s rapidly evolving retail landscape, the distinction between online and offline shopping experiences continues to blur. Retailers with an online presence are facing increasing pressure to adapt and innovate to stay competitive and meet the changing expectations of modern consumers. As traditional brick-and-mortar sales face challenges with softer earnings reported in the first half of the year, coupled with increased input costs, the struggle to showcase profitable growth is real. It has become imperative for retailers to focus on improving their sales and operations through strategic investments in key areas. Large retailers are managing the dual forces of digitization and bringing people back into malls, stores, and restaurants post-pandemic by enhancing their digital offerings, creating seamless omnichannel experiences, and revamping physical spaces to attract foot traffic. By implementing these strategies, retailers can boost their sales, foster stronger customer relationships, and build a more resilient business model in the face of ongoing digital transformation.
With over two decades of experience advising C-suite leaders in the retail and e-commerce sectors, Charisma Glassman has helped top brands achieve significant growth and innovation by leveraging technology as a key driver for business success. She shares her insights on navigating the evolving landscape of technology-driven value creation, identifying three crucial areas where effective technological integration can enhance corporate value across industries. To address the challenges faced by brick-and-mortar retail, Glassman emphasizes the importance of an omnichannel approach in planning and execution. Investing in technology that ensures seamless integration of online and offline channels, unified inventory management, and comprehensive customer profiles can significantly improve sales and customer satisfaction. She also highlights the value of creating a personalized shopping experience by utilizing data analytics for tailored recommendations and promotions and equipping in-store associates with digital tools to enhance customer interaction. Additionally, Glassman underscores the need for refining experiential marketing strategies to drive in-store traffic and strengthen brand connections. These strategies aim to create a more dynamic and interconnected shopping experience that meets modern consumer expectations.
Seamless Integration of Online and Offline Channels
Retailers should make substantial investments in technology and create partnerships to facilitate the seamless integration of online and offline channels. This technological integration should allow customers to transition effortlessly between digital browsing and physical shopping, thereby enhancing the overall consumer experience. Systems that synchronize inventory, customer data, and purchase histories across all platforms should play a critical role in this strategy. The goal should be to maintain consistency and efficiency, which are key to securing customer loyalty in a market where convenience is highly valued. For example, some big-box retailers have successfully implemented unified inventory management systems, allowing customers to check product availability online before visiting a store. This reduces the risk of customer disappointment due to out-of-stock items. Additionally, creating omni-channel customer profiles with centralized data hubs, like comprehensive purchase history and preferences, enables a more personalized shopping experience. These profiles gather data on purchase history, preferences, and wish lists, facilitating consistent and customized interaction across different platforms. Retailers should also adopt flexible fulfillment options to meet diverse consumer needs and enhance convenience. For instance, a large retailer’s buy online, pick up in-store (BOPIS) service allows customers to purchase products online and collect them from a nearby store. Similarly, a fashion retailer headquartered in Seattle’s “ship-from-store” service uses physical store locations to fulfill online orders, speeding up delivery times and improving customer satisfaction. By integrating these technologies and strategies, retailers can create a more dynamic and interconnected shopping experience that aligns with modern consumer expectations.
Enhancing Personalized Shopping Experiences with Advanced Data Analytics
Retailers should further enhance the personalized shopping experience by utilizing advanced data analytics to provide tailored recommendations and promotions. Leveraging AI algorithms, they meticulously analyze customer behavior and preferences to deliver highly personalized product suggestions. For example, a global fast fashion retailer uses data analytics to offer product recommendations both online and in-store via digital kiosks and mobile apps. This ensures that whether a customer is shopping from home or navigating the aisles of a store, they receive consistent and customized suggestions, increasing the likelihood of purchase and boosting overall customer satisfaction. Moreover, retailers are focusing on delivering tailored promotions directly to customers through various communication channels such as email, SMS, and app notifications. These promotions are customized based on individual shopping habits and historical purchase data, ensuring each offer is relevant and appealing. For instance, a US based retailer sends personalized offers to its customers via its mobile app and email, based on their shopping history and preferences. Additionally, in-store personal shoppers at big-box retailers are equipped with tablets or mobile devices that access customer profiles. This technology enables sales associates to offer a more personalized service, making recommendations based on detailed insights into the customer’s preferences and past interactions. This strategy not only enriches the shopping experience but also fosters a stronger connection between the brand and its customers, encouraging loyalty and repeat business.
Hosting Interactive In-Store Events and Experiential Marketing
Another effective strategy for retailers to enhance foot traffic and increase revenue is hosting interactive in-store events and experiences through experiential marketing. By creating unique, engaging, and memorable activities, retailers can attract more customers to their physical locations and encourage them to spend more time and money in-store. For example, a cosmetics retailer could hostexclusive product launches or demonstrations, offering live demonstrations, free samples, and the opportunity to meet brand ambassadors or makeup artists along with virtual try-ons instore and share on social media to create an immersive experience. Home improvement stores can conduct DIY workshops where customers learn to use tools and materials for home projects, increasing the likelihood of related purchases. Seasonal or holiday-themed events can capitalize on the festive spirit, such as a fashion retailer hosting a holiday styling event with personalized fashion advice and special discounts.
Experiential marketing can also involve collaborations with other brands or local businesses to host pop- up shops or collaborative events, creating buzz and attracting new customers. For example, partneringwith local artisans for a weekend pop-up market inside the store can offer unique products and drive additional foot traffic. Integrating interactive technology such as virtual reality (VR) and augmented reality (AR) can further enhance the customer experience. A furniture retailer might use VR to allow customers to visualize furniture in their homes before purchasing, while an apparel store could implement AR fitting rooms where customers can virtually try on clothes. Creating immersive brand experiences can make a lasting impression. For instance, an outdoor gear retailer could set up an indoor climbing wall or host adventure-themed events, giving customers a taste of the activities their products support. Offering exclusive perks and experiences to loyalty program members, such as early access to sales, private shopping events, or behind-the-scenes store tours, can also drive foot traffic and strengthen customer relationships. By focusing on experiential marketing, retailers can differentiate themselves from competitors, build stronger connections with their customers, and create a more dynamic and engaging shopping environment that ultimately boosts foot traffic and revenue.
As we conclude the discussion, the retail landscape is undergoing a profound transformation, and businesses must adapt to stay competitive. These strategies can help retailers rejuvenate their sales and build stronger customer relationships and collectively create a more dynamic, interconnected, and personalized shopping experience that meets the evolving expectations of modern consumers. As the line between online and offline shopping continues to blur, retailers who invest in these areas and prioritize innovation will be well-positioned to thrive amidst ongoing digital disruption. By embracing these strategies and continuously adapting to the changing retail environment, businesses can boost their sales in the short term and build a more resilient and future-proof retail model for the years to come.
Charisma Glassman is an American business executive and thought leader in business and technology transformation with over two decades of experience as a C-suite advisor based in New York where she has been recognized for her industry impact. Currently, she is the Portfolio Head of Consumer Products, Luxury, and Retail at a global management consulting firm based in the US, renowned for crafting groundbreaking revenue generation and value creation strategies. Glassman is an alum of Harvard Business School, holds a Master’s in Technology Management from NYU, with a specialization in Luxury Marketing from NYU Stern, and is a candidate at Columbia Business School specializing in Finance & Strategy. Learn more about her at charismaglassman.com.
