It’s noisier than ever with every brand competing for the attention of consumers. The only way to truly stand out in the aisle is to break through the noise and engage with consumers differently than your competitors.
Leigh Hamer: Alright, good afternoon everyone, my name is Leigh Hamer and I am going to be your presenter today. And just as a matter of housekeeping for anyone attending who wants to ask questions, please use our Q & A section of the Zoom. I will take pauses throughout to see if anyone has any questions that myself or my co host Michelle can answer. Alright, so today we're going to talk about break through the noise and stand out in the aisle, so all about retail marketing both online and in store.
Let's get started. So Like I said, my name is Leigh Hamer I have more than 17 years of experience in marketing with a concentration in communication, today I have the pleasure of working with our customers both enterprise at the largest levels to our nonprofit and mid sized companies. And here at Lumavate we have a philosophy of working with our customers to really drive true results, so we focus on measurable outcomes with them and myself and my team like I said, have a pleasure working with our customers to deliver those amazing results. All right let's dive into what you came here for.
Let's talk about the industry, so it is truly booming and I'm going to show you this progression. Over the next four years it's forecasted to grow by about 50%, so we should hit about $7.4 trillion just in the global retail E-commerce space. That is phenomenal. And what I want to talk to you about today is what's driving that consumer behavior, what's driving that growth and, as we think back to the last two years, obviously, a lot has changed, people have started to work from home offices are you know changing their work policies, so people have a little bit more availability in their day to be on their devices.
And with that obviously buying habits have really changed but, in general, what we are talking about is a single goal that we all know, really well. We want our customers to add things to their cart whether that's online and I click the option right and I select my size or the product that I want, and I put it in my cart or I'm at a physical store and I actually added into my cart and continue walking around the space.
Then you need to actually get them to buy it right, so those abandoned carts whether it is in store and I changed my mind I find a different deal as i'm walking around or I just step away from my computer and forget about my cart that is a two step process, both in the real world in the digital space. And what we're going to talk about is what's driving those decision points to add it to my cart or seek out that product, and then the decision to purchase it.
But there's a third step that all of us know well, that repeat buyer obviously, we want to create loyalty we're also going to touch on that here today, and why the steps that you need to take are so critical, okay so let's get into it.
What are the online drivers? What is motivating your customers to get online and make a purchasing decision? So the first one is transparency. Then consumers are looking for convenience, and simplicity. So let's talk about what that really means.
Transparency: about 72% of consumers will abandon purchases if there's a lack of shipping details, think about your own purchasing behavior in the last couple of months, even. We are in a supply chain crisis right now getting any kind of furniture, you know couches and housewares have notoriously been delayed for months, if not completely canceled. Getting bikes has been hard, getting housewares, things of that nature, because people are home and people wanted to spruce up their house, do renovations, they have the time and the capacity to do those things so it's driving the supply chain crisis.
So people are looking for transparency in shipping. I want some level of confidence, the world is insecure right now. So they're looking to you as an online brand and an online retailer to reassure them about when they can receive those orders and make their own plans. I need a couch or I need a mattress. When can I expect it and then make the decision from there. Okay.
When we talk about convenience. What we mean here is that 95% or so of consumers are seeking delivery options as a major factor, what they mean by that is, is it convenient? Can I have it shipped to the store rather than my house? When can I have it shipped to my house? What shipping options do I have? One day, can I pay for the express option or, should I wait? So they're looking for those convenient different delivery options, as well as shipping details.
You also want simplicity, again, think about yourself, you want things that are just seamless right. The payment options, make it a lot faster so for online retailers that offer a profile, for example, those are the stores that are excelling here. Because, if I can store my credit card history, my address, or a selection of addresses, then I can have a much simpler checkout process and you're less likely to see those abandoned carts occur that we saw earlier. All right.
Now let's switch gears and talk about who's doing it right, who are the top online stores. I'm sure none of these are going to totally shock you but let's talk through them. Obviously Amazon, everyone has Amazon come to their house probably weekly if not daily. Walmart is killing it, as is Apple, Best Buy and then Home Depot, so that's the order of the top five with Amazon outpacing all of them. Home Depot is surging like we said because of home renovations. Best Buy, obviously with housewares and all the electronics and the goodies and then Apple excelling with remote workers suddenly needing to set up their home office.
Here let's talk about why are they winning? Keeping in mind some of those drivers that we just talked about, and what our consumer base is asking for. They are winning because they do have transparent shipping information, they do offer easy payment options, including payment terms, so paying over six months, rather than all in one lump sum, that has become very popular, Especially when you start talking about larger purchases and then that seamless or effortless shopping experience.
Now here's a Stat that I found just so impressive: 84% of consumers purchase larger ticket items when offered an effortless and flexible payment option. I'll say that again 84% so the vast majority of consumers will spend more when you give them flexible payment or effortless payment options. So if I don't have to think about it and you're going to make it easy for me to give you money, I will give you more money is what they're telling us. And if you think about the experience, if you go to any one of these websites right now and you look at how easy they make it to search their products compare different options add them to your cart and then pay for them and quickly check out knowing exactly when it's going to arrive and you're in control as to where it arrives How you pick it up, whatever those terms, might be that fit your lifestyle that's why they're winning right now and that's why they're standing out in the digital aisle.
OK let's continue on and talk about our in store drivers again if anyone has any questions, please drop them in the Q and A section of the zoom and I will happy to pause and answer anything all right in store drivers, somewhat similar but they want hands on okay, they also are seeking urgency, they have an urgent need for whatever it is and they want to assess it so let's drill into what each one of these means.
So 62% of consumers prefer to see it touch it feel it try it whatever that might be. I want to see this dress I want to put it on and make sure it fits before I go to a wedding, for example, or I want to go see a you know 70 inch TV and make sure that it is going to have all the all the trimmings that I expect same thing with a car right I want that hands on experience. They're also more likely to go in store when they have a sense of urgency and actually men are much more likely to do this than women when they want to buy it now and buy it fast so. I need a mattress I don't want to wait for an online retailer, I want to walk into a store and see if I can get something that day delivered or put it in my truck and head home. Right, especially as we've seen shipping be delayed that can drive people in a sense of urgency, I wanted to see what they have in stock right now and I'll buy whatever is in stock.
Consumers also go in store when they want to assess it so think about this, it makes perfect sense right you're evaluating a new product you've never bought something before you want to go see it in person. Maybe that is a bike maybe it's a lawn mower maybe it is you know, a pogo stick, it could be anything that you've never experienced before, but you want to go, evaluate and assess it, and that is the largest driver for why people head in right, I think that also meshes with that desire to have hands on but keeping in mind if you have a product that is a rare purchase it's a high value purchase it's not something that somebody is buying time and again this isn't cheerios i'm trying something new they're more likely to come in a store so knowing that and knowing that you can then drive them in the store is going to be key to you, knowing where and when to engage with them and what they're looking for in that aisle experience.
Okay let's keep going and talk about our channel partners so channel partners are, they are lifeblood right, especially if you are not a brand that typically has a brick and mortar store. Think about anyone have consumer products out there, they have to rely on local chains to carry their goods and display them in a branded setting OK, so the ones that are doing it well, are the ones that do I think two key things. And we can advance there we go. For brands that are partnering with any of these retailers, these physical chains, make their goals your goals, this comes down to your sales team really building a strong relationship with those channel partners and making sure they understand, are they interested in engaging in in store experiences like you see here a digital cosmetics here's my face. What skin tone, am I, how do I find the right product that's very engaging that is not a quick drive by purchase. That is, we want to create like an apple experience, right, where people linger and they, this is a Community gathering space understanding that versus somebody who is really motivated in their retail setting. To increase ACV right, the average cart value I want more dollars per cart as people check out.
Or perhaps they want lifestyle or solution displays a very simple one to me that I love every fall that our local grocery store does is they do a s’more end cap. And it's so simple but it's brilliant right, I can grab my hershey's I can grab My marshmallows and my Graham crackers and i'm off. and I it's just something that they know is seasonally appropriate and it makes my life easier, it also gets me through faster And it's likely increasing my cart value unbeknownst to me because did I really go into that store wanting s'mores or did I just see it, and that would be fun.
So those kinds of things will drive your decisions as to what tactics you deploy in a store. But your channel partners are going to be receptive to it, because you can sell it to them as their goal here's how we're going to help you win, we win together so really looking at that partnership as a partnership.
Okay, the second one that I think folks are doing well, is when you do exclusive or co branded right. Whether that could be limited edition products, Target is notorious for this or exclusive offers and promotions. In store coupon redemptions at certain retailers things like that, obviously, is a very value driven decision. Exclusivity of where to get it, then you have to drum up that marketing messaging with your channel partner to make sure your audience knows When they can get it where they can get it and how right so, is it both online and in store, and I would think about that partnership with your channel partners, not just in the physical retail but also online.
So what is their online presence, how do they display their offerings you know be it a grocery store, a convenience store. Any of those places they have websites that people do go to, especially as online shopping and instacart and others take off can you co brand things with them in the digital space, not just the physical.
All right, I don't see any questions so i'm going to keep going so now we're going to go through a few solutions here.
So the first one is a retail event so driving that in person experience thinking back to what those drivers were, where people want to feel stuff they want to touch it or they want to check out a new product, those are the biggest drivers, they need to assess it. Or perhaps they do have a sense of urgency around that specific purchase, but more likely if you're doing a retail event it's come experience something right. Try out our mattresses, sit on our couches, try this different food that we have prepared and what we have found is that about Over half of consumers are interested in attending a retail event, so you might be surprised by that they will come out. And then they're more likely to attend after participating i'm sorry they're more likely to buy the product after participating in an event. You can create this groundswell and this excitement and people will get swept up in that, and then it creates in their mind a really happy memory associated with your brand. So, creating that kind of retail event, I think, is something that can be creative. It doesn't necessarily even have to be at a physical store like inside of it, as the weather gets better in different areas, you can certainly take that outdoors into a parking lot. I have personally been to one where they hosted it at the local zoo. It was really cool and it was co branded with a grocery store and a dairy producer and so they had ice cream for the kids and chocolate milk and other treats that were from their brand and made sure that we knew that their brand was available at the local grocery chain. My kids loved it and it turned into a really happy memory and I associate that with that brand and I know it's available at the retailer. So you can get creative and find your audience, where they are. You don't have to make them come to you so keep that in mind when thinking about. The retail event and that's another way that you can subtly stand out in the aisle right now that dairy brand doesn't have to do anything special I just see their brand and I associate it, I know what they're about.
Okay, the next one, invest in beacons, this is an option so beacon technology is really interesting. It allows for you to have beacons around a physical store that can ping a phone and provide things like a coupon or discounts or product information, for example. A vast majority of customers so about three quarters of them said that beacon triggered content offers a boost in their likelihood to buy items during a physical store visit. The only blocker I'd say to this is people have to allow for that beacon to Ping their phone so they have to enable permissions. For any consumers that are very privacy conscious that can be a barrier, but people are willing to engage with it so just keep that in mind, as you assess the likelihood of deploying that in a retail setting. Okay.
The next one, give back, so we all know, the shift that has happened in the consumer mindset, where they seek out brands that really reflect their values give to the organizations and the causes that they care about they have a culture that is something that the consumer wants to emulate Chobani, is a great example of that and there's a lot of stats out there, but roughly half are likely to buy from a local store that supports the Community. So with small and local businesses dominating the retail space it's important to keep in mind that you can keep it local; you don't have to be as big as Chobani to draw in your audience.
I support a local bakery here that works with the autism community and employs them and so anytime I want muffins or donuts that's where I go. So consider how you can build your loyal following and your evangelicals around a cause in your community, and then I would say, make sure that that give back message is made available to your customers and to the broader community.
So is it as much as just social media campaigns, making sure it's on your product packaging in a store window right so as anyone is passing high traffic areas they know what you're about and why patroning you is going to give back to the causes and the community that they care about.
Okay, and then lastly, Lumavate so about 58% almost 60% of consumers use their smartphones in store to research, products or to look up product information. You have likely done this, you walk around the store and you pick up your phone and you might even do price comparisons about the same percentage, just under 50% of consumers actually do a price comparison live in store it is much more likely when you're comparing high ticket dollar or high value products like a TV, for example, can I get this cheaper online, how much is Best Buy selling it for versus a local retailer, whatever that price comparison could happen. So why not leverage that device that everyone has in their hands at all times. And we also know that digital interactions do influence a large portion of the spend so about 56 cents of every dollar spent in store is attributed to a digital interaction. So just because you're not seeing conversions digitally doesn't mean that that doesn't translate into foot traffic and people purchasing.
And Lumavate offers a platform where you and anyone can build apps In a scalable and repeatable way that target consumers, where they are with the information that they need, so you don't need An all encompassing native app rather we deploy ours is a progressive web app so it's hosted on a URL meaning users don't have to go to the app store to download it. And it's a frictionless experience so as you talk about that seamless experience that consumers are seeking, both from a retailer and any product information that's what Lumavate offers, so what I want to show you is some stats from a real customer that we worked with.
So we worked with a global skincare brand and they partnered with one of their channel partners to run a summer campaign that would drive in store engagements. Lumavate was selected to create an app with a quiz that helped the shoppers find the right skincare products for them and their unique needs, so over the three month campaign the quiz drove 33,000 interactions, the quiz which took less than 30 seconds to complete, by the way. It showed that the average time in the app was two minutes, because what happened at the end was we showed them three product recommendations with a product description and a link to purchase that product. So it was really interesting to see that we knew consumers were completing this quiz in under 30 seconds, yet they were spending time learning about the products. We also saw a lot of reengagement where people took the quiz a second time likely changing their answers to see, you know, maybe for a friend or another family member, what would be recommended to them, so it was highly adopted and they are planning on they're actually in the works right now expanding that for their summer campaign in 2022. So certainly helps them stand out in the aisle, helps them partner with their channel partner and show demonstrable goals being achieved by pushing foot traffic, as well as online sales of the skincare line that their partner carries so with that if anyone has any questions, please feel free to drop them in the Q and A, I appreciate everyone joining, and I hope you have a wonderful afternoon.