For most of us the holidays mean three glorious days of paid downtime, an excuse to break out the eating pants, and spending (or potentially avoiding) quality time with loved ones. For many retailers and brands though, it’s a make or break season with six weeks to earn roughly 20% of annual revenues. And we thought hunting for mall parking was stressful!
Though economic fundamentals are soft, the outlook for the 2015 holiday shopping season may not be as bleak as the technical recession suggests. Our weak loonie should keep more Canadians shopping at home. Plus, relatively low gas prices and interest rates mean a little extra cash to burn on those special holiday gifts this year.
Even so, competition will remain stiff for those vying for holiday shopping dollars. We’ll see deep discounts starting earlier, as Black Friday-mania creeps its way north of the border. This, combined with the unprecedented ability of shoppers to price compare with a simple click, may leave some brands and retailers feeling trapped in a price race, right to the bottom.
Earn jolly shopper dollars
So how can successful marketers avoid the price wars and still come out on top this holiday season? Bolster your bottom line by embracing three little words. No, not peace, love and joy – stress free shopping.
For the most part, consumers are already time-starved, balancing work and family. Now, add to that the extra demands made around the holidays and you can begin to see the importance of eliminating stress. Those who can deliver a stress free shopping experience by meeting the needs of their customers in more creative ways than ever before will hit #1 on shoppers’ “nice” lists.
Savvy marketers are now going beyond simply offering knowledgeable sales staff, free shipping and gift wrapping. They’re getting to the heart of what’s irking their customers and skillfully solving more complex pain points by leveraging technology, ingenuity and deeper shopper insights to take a big bite out of holiday stress.
The mobile store floor
Realizing that time-strapped individuals are often too busy to get to a bricks & mortar location for last minute gifts, Mattel and Walmart bring the store directly to shoppers during busy daily commutes. “Virtual toy stores” are set-up in high-traffic locations like transit hubs and airports, allowing commuters to browse merchandise on giant, interactive screens while waiting for their rides. To buy, one simply scans a QR code using a mobile device and purchases are automatically shipped directly to homes — all without having to step off the subway platform.
Cut the line
Time spent waiting in line means more time to second guess purchases and prices. If that doesn’t put the axe on a few impulse buys, surely frustration and anxiety will.
Retailers like Apple, Home Depot and Nordstrom have relieved this holiday headache by taking the transaction right to the shopper. Armed with mobile devices, staff can close the sale anywhere on the store floor without having to redirect people to a checkout. Swedish fashion giant H&M even created a “Try & Buy” POS system allowing customers to check out in change rooms, then proceed to wear their new threads right out the door.
Meal planning made merry
More holiday entertaining makes meal planning especially stressful for busy, working consumers. Amsterdam grocer Bilder & De Clercq recognized this; and that their customers were particularly annoyed with having to buy more than what they needed — a bulb of garlic versus a clove, or a full celery versus a single stalk. Not only was the practice contributing to food waste, it was wasting customers’ money.
Armed with this insight, Bilder & De Clercq challenged the traditional grocery model and designed a store where customers can buy only the ingredients they need to complete a recipe, down to an individual cranberry for a holiday feast for two. They also set-up shop in lobbies of corporate giants like Deloitte and Google, tempting office workers with delicious, easy-to-make meal ideas that are ready to prepare when they leave the office. After browsing images of appetizing dishes, anyone can simply scan a photo to make their purchase. The recipe, along with prepped and portioned ingredients, are then delivered right to offices.
What men want
Then there’s Montreal-based apparel retailer Frank & Oak, which knows (spoiler alert) that approximately 50% of men hate shopping, but still want to look stylish. As “grab and go” consumers they’ll pop-in for what they need, but stop short of browsing.
Enter Hunt Club, an online clothing subscription program. Just answer a few questions about your personal style and budget and an assigned style advisor ships you a curated outfit every month. Members pay for what they want and return what they don’t like free of charge. It’s a brilliant way of combining the tactile benefits of their bricks & mortar locations with the convenience of online shopping to create a meaningful and personalized shopping experience. In addition to building customer goodwill, Frank & Oak also gets the added bonus of loyal monthly shoppers and larger baskets than would be purchased if men were left to shop on their own.
If technology implementation isn’t in your budget for the 2015 holiday season, remember, you don’t need to break the bank to deliver a stress free shopping experience. Meeting the needs of your customers doesn’t have to be expensive, but it should be insightful. Ever been to the Victoria’s Secret flagship store in Chicago? You may have noticed what I like to call, “the boyfriend lounge.” Equipped with comfortable wingback armchairs, a big screen TV tuned-in to the game and enough enticing photos of the “Angels,” the retailer successfully keeps boyfriends occupied — but most importantly, out of the way of their browsing beaus. Smart!
So don’t join the loss leaders this holiday season, beat them by meeting the needs of your customers in creative ways. What pain points can you relieve for you holiday shoppers? A report conducted by Deloitte states, long lines, traffic and crowds as top pet peeves in 2014. Whatever stressor you decide to tackle, get it right and not only will you keep out of the pricing race, but you just might unwrap what you wish for this holiday season – more sales.
Robyn Burton, retail insights and strategy, Hunter Straker
