What It Means to Run Your Store Like A Website
Posted by Stephan Schambach on Sep 3, 2020
Deliver modern, mobile-first shopping experiences that delight your customers. Drive ROI back to your business across all customer touchpoints—in-store, online, and on mobile. Book a time with our team to learn how we can help transform your business with our omnichannel solutions.
*Privacy Notice: By hitting "Submit," I acknowledge receipt of the NewStore Privacy Policy.
The leading narrative in retail in the last few years has been store closures. From major chain stores to department stores to beloved brands, there have been record-high rates of stores shuttering for reasons ranging from low traffic to bankruptcy. Now, more retail doors are in danger of closing because of the coronavirus pandemic.
Despite all these brick-and-mortar locations going dark, let’s be clear that this is not the end of stores. In fact, there is a huge opportunity for stores now more than ever. To survive and thrive through the ebbs and flows of the economy plus the inevitable cycles of retail, brands need to run their stores like a website. Let me explain.
There is no denying COVID-19 has dramatically accelerated the growth of ecommerce. However, we can’t forget online shopping’s share of total retail sales has been growing steadily for many years. Much of this growth can be attributed to Amazon. The behemoth has not only trained us on how to shop online but also has shaped our expectations for retail overall. Here are a few of the key reasons why ecommerce has exploded:
– Available any time and anywhere
– Comprehensive product information
– Smart recommendations and customer reviews
– Quick, simple, and secure checkout
– Efficient and real-time customer service
– Novel tools across payments, fit, content, gifting, and more
Stores, on the other hand, have struggled as a consequence of outdated systems and disconnected technology. There is no place today for stores running like in the ‘80s with a cash register. What you end up with is inefficient processes, lost productivity and profitability, poor inventory visibility and accuracy, and inconvenient and frustrating customer and associate experiences.
Running your store like a website does not mean reducing or eliminating human interaction in the store. The Amazon Go model works for cash and carry businesses but not for brands. You need to operate stores with the same digital principles and discipline you do online. In my mind, this is defined by three core things.
A significant portion of your store revenue needs to be ecommerce revenue. Meaning, you need to be able to sell inventory you don’t physically have on hand. Endless aisle is a great example. If you think about it, it’s a form of ecommerce. You’re fulfilling an order from another location. To make this work, of course, you need to have your enterprise-wide inventory under control. With access to precise and real-time inventory across your store network and other locations — as well as an efficient way to sell it — you’ll be able to unlock revenue that wouldn’t otherwise be there.
Your store needs to be able to support anything that comes from the web. This is why it’s so important to have real humans in the store. Experts, stylists, consultants…and now customer service agents. Store associates need to be equipped to handle online returns or exchanges in-store as well as any other number of customer inquiries. When your associates have a complete view of customers, orders, and inventory, they can do just that. They effectively become a living website and can help any customer with any need from anywhere in the store. It’s the convenience and efficiency of online shopping but in the physical world.
Be data-driven with tight integration between online and offline channels. Retail has learned so much about using data to sell more from ecommerce. Much like a website with cookies, you need to paint a picture of customers in-store. Ideally, you want your customer capture rate in-store to be 85 to 95%. One way to do this is with digital and contactless payment methods. The information tied to the mobile payment method will build the shopper’s profile. With these kinds of customer capture rates, you can apply the same formulas you would in ecommerce to calculate your most critical KPIs, including customer acquisition costs and customer lifetime value.
You can say a lot about all the recent store closures. Most importantly, physical retail needs to change. The way forward is to make the store a place where ecommerce and ecommerce-like experiences are standard. It’s a matter of applying a digital perspective to physical retail combined with the core tenants of omnichannel. This is the success model for fast-growing brands.
To sum it up, know your customers. What they want is seamless and convenient shopping so run your stores like a website.
