E-commerce changes browsing shoppers to
"surgical" or "mission" retail shoppers
A central rule of retail business is: Get the shoppers to come in to the store, then sell them stuff they didn’t plan on buying. These are impulse purchases from buyers browsing the aisles.
Browsers are less and less common at retailers today. The "surgical" or "mission" shopper has arrived. The mission shopper only visits three stores on a shopping trip, not the five stores the typical shopper visited on each trip before the recession. Foot traffic in retail stores is falling. This represents a distinct shift in buying behavior.
Electronics shoppers are particularly shrewd and likely to research gadgets online before shopping for them. Apparel stores have some breathing room because shoppers have to try on the garments.
The National Retail Federation estimates that holiday shopping sales will increase 2.8 percent this year, but the sales could be higher if mission shoppers browsed.
"Most retailers are geared for people to come buy," said Maddocks, a former chief marketing officer at Nike Inc. (NKE)’s Converse. "Retail has to start gearing itself to sell, to get more out of every person that walks through the door."
The NRF numbers show that shopping traffic and sales used to rise and fall together. But last year, retail sales grew 3.5 percent although traffic declined by half a percent. The trend has continued in 2011 as "surgical" shopping continues. Men, who adapted to electronic commerce earliest, were the first mission shoppers. Now women are drawn in, and this is critical since women outspend men in retail shopping. Many women go to a store and zoom right in on what they need, as a man would do. So the art of retail shopping has changed, though most retailers have not adopted procedures to deal with this situation.
Retails are always concerned with the "conversion rates," which is the percentage of people that actually buy something after walking in the door. Americans are making fewer trips to the store, so each shopper is more valuable. Persuading them to buy more than before is vital to retailers.
The recession caused many retailers to stop refurbishing stores and to cut the sales staff. The effect was to make the web even more appealing! Now retailers are refurbishing their stores and using new technology, services and merchandizing to engage these mission shoppers. The retailer has let the consumer get ahead of the store. Now retailers are playing catch-up.
Retailers are
Teaching employees to read body language to assess browsers/mission shoppers
Bringing back greeters to improve the shopper’s mood
Changing "How may I help you" to "What kind of shoe are you looking for?"
Placing shoes and apparel together hoping shoppers will buy outfits
Using in-store entertainment
Using scents and aroma to create an atmosphere conducive to buying
Some are adding wi-fi, I-pads and portable checkout devices to add convenience
to shoppers used to buying on-line.
Catching up may prove difficult, since e-commerce itself is changing rapidly.
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Summarized from an article by Matt Townsend of Bloomberg at:
http://www.businessweek.com/news/2011-10-17/best-buy-sales-at-risk-as-surgical-shoppers-lose-impulse-retail.html
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Footnote: The blog author has been a "surgical" shopper for several years.
"surgical" or "mission" retail shoppers
A central rule of retail business is: Get the shoppers to come in to the store, then sell them stuff they didn’t plan on buying. These are impulse purchases from buyers browsing the aisles.
Browsers are less and less common at retailers today. The "surgical" or "mission" shopper has arrived. The mission shopper only visits three stores on a shopping trip, not the five stores the typical shopper visited on each trip before the recession. Foot traffic in retail stores is falling. This represents a distinct shift in buying behavior.
Electronics shoppers are particularly shrewd and likely to research gadgets online before shopping for them. Apparel stores have some breathing room because shoppers have to try on the garments.
The National Retail Federation estimates that holiday shopping sales will increase 2.8 percent this year, but the sales could be higher if mission shoppers browsed.
"Most retailers are geared for people to come buy," said Maddocks, a former chief marketing officer at Nike Inc. (NKE)’s Converse. "Retail has to start gearing itself to sell, to get more out of every person that walks through the door."
The NRF numbers show that shopping traffic and sales used to rise and fall together. But last year, retail sales grew 3.5 percent although traffic declined by half a percent. The trend has continued in 2011 as "surgical" shopping continues. Men, who adapted to electronic commerce earliest, were the first mission shoppers. Now women are drawn in, and this is critical since women outspend men in retail shopping. Many women go to a store and zoom right in on what they need, as a man would do. So the art of retail shopping has changed, though most retailers have not adopted procedures to deal with this situation.
Retails are always concerned with the "conversion rates," which is the percentage of people that actually buy something after walking in the door. Americans are making fewer trips to the store, so each shopper is more valuable. Persuading them to buy more than before is vital to retailers.
The recession caused many retailers to stop refurbishing stores and to cut the sales staff. The effect was to make the web even more appealing! Now retailers are refurbishing their stores and using new technology, services and merchandizing to engage these mission shoppers. The retailer has let the consumer get ahead of the store. Now retailers are playing catch-up.
Retailers are
Teaching employees to read body language to assess browsers/mission shoppers
Bringing back greeters to improve the shopper’s mood
Changing "How may I help you" to "What kind of shoe are you looking for?"
Placing shoes and apparel together hoping shoppers will buy outfits
Using in-store entertainment
Using scents and aroma to create an atmosphere conducive to buying
Some are adding wi-fi, I-pads and portable checkout devices to add convenience
to shoppers used to buying on-line.
Catching up may prove difficult, since e-commerce itself is changing rapidly.
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
Summarized from an article by Matt Townsend of Bloomberg at:
http://www.businessweek.com/news/2011-10-17/best-buy-sales-at-risk-as-surgical-shoppers-lose-impulse-retail.html
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
Footnote: The blog author has been a "surgical" shopper for several years.
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