Retail 2012 –What can retailers learn from the survivors of the British High Street?

2012 will be a big year for retail, and whilst the Olympics and the Queens Diamond Jubilee will inject some optimism back into the sector, there’s no denying the economic climate will keep tough times rolling for retailers. In this article we take a look at the actions that the Aurora’s, the Selfridges and the John Lewis’ of the retail world have taken to survive on the British high street, and advise what all retailers should be thinking about this year.

Maximise the impact of your customer experience.

When Selfridges noticed the rise in customers from China, they adapted their approach by ensuring the customer experience met the needs of international and British customers. Selfridges staff were trained in basic Mandarin to help provide overseas customers with a more comfortable and personal in store shop-

ing experience. With sales from Chinese visitors up 62%, and the average spend being £1000 compared to £70 for the average visitor, small changes like this make a significant bottom line impact.

During 2011 we worked with retailers to focus on what the store of the future might look like and how technology can massively enhance the customer experience, and provide unique and innovative opportunities for retailers to engage with their customers. Through usability testing, we’ve also helped retailers enhance their customers’ web experience, with direct business benefit.

Retailers need to remember that the customer journey and experience carries all the way through to delivery. Fortnum and Mason recently admitted that due to IT failures, a number or customers were waiting after Christmas on the delivery of £5000 hampers ordered well before Christmas. One can only imagine ones customers were not amused!

Innovate to invigorate your customers.

Aurora fashion leads the way on the high street in terms of style and technology. Their innovative release of the in store iPad, and introduction of the 90 minute online delivery service means the fashion house is providing customers with a new and invigorating shopping experience. The iPad is the newest, and possibly coolest device on the block, and by bringing it in store, the shopping experience is changed yet again. Arming staff with the iPad enables them to help customers search for sizes, colours and stock levels; and best of all, purchase directly from the device and leave. Along with this new in store concept, the 90 minute delivery service puts the retail chain ahead of the rest by providing a delivery service that is better than any out there. It’s innovations to the customer experience like in store iPads that will revolutionise the shopping experience and bring strength back to the high street.With the growth

in multi-channel, customers need more from the store experience. Leading retailers won’t get ahead by doing what they have always done. Progression in 2012 will come by taking advantage of new technologies out there, implementing or introducing new tactics and adapting and revitalising the customer experience. Using innovation to enhance the customer experience is something that must be at the heart of every retailer’s strategy.

Make your multi-channel strategy a success.

With Amazon miles ahead in terms of m-commerce; luxury label Burberry launching fashion collections online, and the majority of retailers building a fan base on Facebook, its simple – multi-channel matters. Year on year retailers are plunging deeper into the world of social media and m-commerce, and for those who aren’t on the multi-channel band wagon, they will get left behind. Whilst it’s easy to set up a website or create an app, it’s the way you use these channels together which make a multi-channel success. Debenhams worked hard on their multi-channel strategy bringing mobile, web and in-store elements together.By developing apps for the iphone and android, and making way for in-

store ordering and store collection, sales soared in 2011. Allowing customers to use quality multiple channels to purchase their products meant that the customer experience was positive online and offline.

As well as purchasing from multiple channels, retailers can use their channels to interact with customers more readily than ever. Customer interaction is great…but a word of caution. More retailers are using Twitter as a line of direct customer communications, no doubt with the bright hope of sharing exciting updates and the latest offers and promotions. However if retailers end up publicly tweeting apologies in response to customers’ poor in store service, or failed home delivery, then you have to question the impact that this form or direct customer interaction has on your brand!

Make your brand and proposition clear and make it work for you.

Yet again John Lewis outshone many other retailers over the Christmas period. The employee owned company has created a unique and respected brand built on strong pillars of quality and service, underpinned by its ‘never knowingly undersold’ proposition. Quite simply, if you can get the same product at the same price with great customer service why would you go anywhere else? That’s what makes shopping at John Lewis a no brainer for customers.

By backing up and supporting their brand through everything they do there is heightened awareness and consistent messaging about what the brand can offer consumers. Their annual Christmas TV advert is a much anticipated event; their website replicates successfully their in store experience, and through fantastic customer service, they ensure that the majority of noise around their brand is positive.

Retailers need to focus on and ensure that their brand is strong, and their proposition is clear in the eyes of their customers. The challenge for electrical retailers is a classic example. They face strong competition from online retailers and supermarkets and increasingly tech savvy shoppers with the latest information, reviews and prices at their fingertips. Providing a compelling proposition and reason for shoppers to visit is fundamental to ensuring both their survival and opportunities for growth.

Drive efficiencies to fund investment.

The drivers of profitability are fixed, so for retailers maximising revenue and effective cost control are perennial bed fellows. Within a retailer, everything should be open to cost challenge – systems, infrastructure, people, suppliers, investment decisions and more. Getting the balance right is key. It’s interesting to note that following Tesco’s recent trading results, analysts have reflected that although increased productivity of staff in store has had good financial benefit for the group (with staff numbers per sq ft reducing), it has been at the expense of the customer experience, which may in part have driven their drop in performance.

Efficiencies that drive investments to improve the customer experience are a core focus area. In store innovation to improve stock availability, information and payment will help drive conversion and enhance the brand in the eyes of the consumer. Investing to make all your channels seamless in the eyes of the customer (which is the minimum they’d expect), is also fundamental.

So how do retailers drive efficiencies? We’ve produced our views here on how retailers can challenge their IT spend, to ensure its fit for purpose. Delivered savings could be the war chest to help you win consumers hearts and minds.

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