Scents, sights and sounds draw customers into retail stores

Offering great products and services is sometimes not enough for retailers to keep consumers coming into their brick-and-mortar locations. Some merchants are turning to elements that appeal to shoppers' senses in the form of special scents, displays and music to increase satisfaction and boost store revenues.

According to Retail Customer Experience, a recent study by Washington State University revealed that businesses saw success when they played music that matched their customer bases and paired the sounds with smells and displays that appealed to ideal shoppers. However, for retailers considering this strategy, they may want to avoid incorporating elements that are not relevant with each other. In addition, faster, more uptmepo tunes may not always work best in stores, as slower music can encourage consumers to spend more time browsing, the source notes.

The Register-Guard reports that several merchants in the Durham, North Carolina, region used holiday-themed scents and songs to draw more customers in throughout the gift-buying season. One example is Morgan Imports, which decorated fir trees throughout its store and played a variety of tunes to get shoppers in the holiday spirit.

Reasons for in-store versus online shopping are somewhat similar

Retailers know that consumer preferences vary, whether it pertains to certain products, service interactions or which brands they like better. When it comes to shoppers who would rather visit brick-and-mortar locations or those who like to browse online, these two types of consumers have many of the same reasons for why they prefer one experience over the other. To accommodate these patrons, merchants may want to consider some of the latest trends and technologies aimed at drawing in customers to stores or websites. By offering what shoppers are looking for, companies can boost consumer satisfaction, loyalty and retention.

Convenience top reason for in-store, web shoppers
A recent study by Continuum set out to reveal the reasons why customers like shopping in retail stores or on websites, and the research found that both sets of customers stated that convenience was the main reason they do business with retail brands through their preferred methods. Forty percent of brick-and-mortar location patrons like convenience that stores offer, while 43 percent of ecommerce shoppers gave the same reason.

When it comes to in-store retail experiences, 22 percent of respondents said they don't trust the quality of online shopping, and 17 percent stated they don't like paying for shipping or return charges. For those that prefer online retail websites, 29 percent said it was their favorite shopping method because it's easier to find the products they are looking for. One-quarter of respondents stated they go to the internet for the better retail prices, the study revealed.

Improving both in-store and online experiences
Retailers will want to focus this year on accommodating both types of consumers by continuing to offer the aspects they prefer. There are also other things businesses can do to draw these shoppers into stores and websites. RTO HQ reports that recent research from Washington State University found that appealing to customers' senses through music, smells and displays can entice them to enter brick-and-mortar locations. For companies that use this method, they will want to ensure that all of the elements are relevant and consistent to have the best results.

As for online shopping experiences, Practical Ecommerce writes that merchants will want to consider implementing easier return policies and free shipping, as well as providing sufficient support and service options for shoppers who have questions. In addition, retailers need to effectively manage customer information, such as past purchases and preferred products to offer great experiences, the source notes.

Retailers can drive customer engagement with social media

The importance of social media is not lost on retailers – many businesses are on the sites to promote their products and help consumers resolve their service issues. Another component that these online platforms can provide for merchants is increasing customer engagement, which leads to more retention and loyalty for brands. However, implementing a successful social media strategy requires work and determination. If done right, companies can see boosts in shopper satisfaction, both in-store and online, as well as higher revenues.

Top Twitter exec gives his opinion
The National Retail Federation decided to go straight to a social media expert to explain how retailers can use the networks to better connect with shoppers and increase engagement. The source spoke with Richard Alfonsi, the global vice president of Small Business Sales for Twitter, and he stated that social platforms can bring retailers closer to their customers. Additionally, businesses can also use social media to drive more traffic at their brick-and-mortar locations. Alfonsi says this can be accomplished by posting updates to social sites about special deals and promotions taking place in stores, then create a hashtag that shoppers can use to receive discounts.

When retailers first take to social platforms, Alfonsi advises they will want to create pages and accounts in their own voice. This can help them stand out from competition and create more personal interactions with customers. Also, brands will want to be authentic by having natural and engaging conversations with shoppers. Merchants can promote their presence on social media by word-of-mouth, fliers in stores and emails sent out to consumer lists. This can drive more traffic to social accounts and ultimately retail stores.

Big brands using social media
Retailers of all sizes can effectively use social media sites for customer engagement, from local merchants to big-name brands. One example is retail giant Wal-Mart, which took to Facebook to allow customers to vote on toy products that could receive a discount, and then be purchased in stores for the reduced price.

Macy's is another brand that has been using Facebook to interact with consumers and then implement shoppers' preferences in their stores. The department store chain used the social site to ask consumers which line of jeans they would like to see in Macy's locations. Once the voting was over, the company began carrying the brand.

By asking customers what their preferences are and then promising to sell their favorite products, retailers can easily bring in additional traffic in their storefronts.

Video reviews preferred by many potential retail shoppers

There are many ways that customers can review businesses they have visited in the past – whether through written feedback or online surveys. Video is fast becoming a preferred channel for shoppers to share their thoughts and experiences with retailers.

Research by EXPO has revealed that many consumers are now preferring to view videos made by customers testing out products and analyzing them. Of the shoppers surveyed, 98 percent stated that user-generated video reviews have been helpful for them during the holiday season and their gift purchasing decisions.

"Shoppers are increasingly engaging with their favorite brands digitally, and we're finding that video can have a very powerful effect on how others perceive the brand or product," stated Jessica Thorpe, vice president of marketing at EXPO. "This research confirms that consumers are more receptive to the opinions of people who appear to be just like them than to more traditional marketing strategies, therefore it's a growing imperative for brands and manufacturers to leverage their customers' stories to tell their messages effectively."

Retailers should also make an effort to gather shopper reviews on their own so that they can improve their operations and offerings. National Clothesline writes that obtaining feedback effectively can be done by providing incentives and making surveys easy for customers, perhaps through email.

Brick-and-mortar retail locations still popular

The internet has given consumers a way to perform a variety of daily tasks, and this include shopping. More customers are taking to the web to purchase products and services from businesses, leaving many experts to believe that brick-and-mortar retail locations could be dwindling in popularity. However, it seems as though this may not be the case.

The New York Times reports that among the abundance of internet-only retailers, there are many that are considering venturing into the physical world and opening up brick-and-mortar stores. These merchants are seeing a large amount of business on the web, but they believe that having a storefront will help them better serve their customers and establish more credibility. The news source spoke with the owner of web-only merchant Bonobos, Andy Dunn. Dunn stated that after he realized that many of his online shoppers preferred to feel and try on the clothes he offered, he decided to open a brick-and-mortar location.

Big name internet retailers are even getting in on the trend, as both EBay and Etsy are currently testing storefronts in several cities. The source writes that many businesses are doing this as their customers look at shopping as a social event and want to look at and try out products firsthand.

Consumers looking for great in-store retail experiences

Retailers know that if they provide engaging and interesting experiences within their stores, customers are more likely to return and continue doing business with them. This is why improving interactions and service in brick-and-mortar locations is becoming the focus for many merchants.

According to recent research from SapientNitro, 70 percent of consumers surveyed stated they believe that retailers can put more effort into enhancing shoppers' experiences in their stores. There were several strategies that respondents listed that could improve store visits, and the top rated – with 79 percent – was the ability to purchase items at brick-and-mortar locations and then have them shipped for free to customers' homes. This was followed by free internet access (63 percent), interactive displays and other elements (57 percent) and mobile offers that can be redeemed in stores (56 percent).

When it comes to interacting with retailers, research from Verint revealed that excellent customer service is more important than product price for many shoppers. Less than one-quarter of survey respondents said they prefer better prices over great experiences from businesses.

Consumer holiday shopping trends being revealed

With the official start of the holiday shopping season last month, retailers have begun to analyze the purchasing habits of consumers that are hitting both brick-and-mortar locations and websites to stock up on items and gifts. This information is valuable for businesses, as merchants can tailor their offerings and incentives to fit the needs and wants of these customers. Whether it's in stores or online, companies can boost their revenues by effectively providing deals, discounts and items for the holiday season.

Online shopping becoming more prevalent

A recent study by iProspect compared both in store and web shopping patterns for the holidays from this year and last year, and perhaps one of the more evident findings was the significant increase in the number of consumers going online to purchase items. In 2011, the total sales amount was $46.7 billion through ecommerce during the holiday season. This year, that figure is forecasted to reach $54.5 billion, representing a 17 percent increase. The source states that 84 percent of holiday shoppers will go online to buy products and gifts this season.

When it comes to in-store sales, amounts have not jumped significantly over the last year, but a large number of consumers are still going to brick-and-mortar locations to purchase their gifts. The research found that in 2011, approximately $563 billion was spent during the holiday season in retail stores. This year, it is expected that shoppers will buy $586.1 billion worth of items from brick-and-mortar merchants. This is a 4 percent increase year-over-year.

Consumer confidence seems to be increasing

There are other habits that are emerging from the ongoing holiday shopping, according to Advertising Age. The source states that retailers across the country seem to be nervous about the economy, despite the steady improvements being made. For this reason, many businesses are doing their best to keep up incentives and discounts throughout the entire season, and not just on the busiest days.

On the other hand, the source writes that consumers do not seem to be impacted by the economy or are concerned about the impending fiscal cliff. Shoppers are more confident in their own financial conditions, which has led to them hitting retail stores and websites in large numbers this season. A further piece of good news is analysts' expectations that this spending will continue into the new year.

Retailers taking a multichannel approach to boosting holiday sales

As new purchasing channels, like online and mobile, have begun to become more popular among consumers, retailers are taking note and have started to offer these options for their shoppers in the hope of boosting retention and revenue. Businesses have especially stepped up their multichannel efforts this holiday season to accommodate consumers who prefer to buy items using a variety of methods.

Internet Retailer highlighted several companies that are offering multichannel options for their customers during this year's holiday season. However, these initiatives seem to be quite subtle and are not going over the top when it comes to promoting their many purchasing channels. One retailer the source noted was taking the multichannel approach is J. Crew, which is providing a 30 percent discount and free shipping for consumers who purchase products both in their stores and online.

When it comes to mobile strategies, many retailers are putting more effort into the method to encourage shoppers. The source writes that Macy's now has a mobile application that can be downloaded from its website, which allows users to browse and purchase items. Other companies, like Costco and Staples, are offering deals for customers that buy online and pick up in stores. 

Retailers implementing new strategies, experiences

Retailers are constantly looking for new ways to improve upon their current practices so they can bring in more customers and increase their revenues. This is especially true with the coming new year, as many merchants are using the end of the year as a time to reflect on their progress in 2012 and apply the lessons they learned to their plans for 2013. Additionally, businesses are testing out their new strategies on consumers now during the holiday season to pinpoint areas for improvement so that operations will run smoothly over the coming year.

Drawing in consumers of all ages

The Baltimore Sun highlights several companies that are implementing new strategies aimed at increasing customer retention. These merchants have decided to test out their new methods now, during the holiday shopping rush, to see how shoppers respond and to determine what tweaks need to be made before the strategies are rolled out permanently. One example is Game Stop Kids, which is trying to attract both younger gamers and those that are interested in more serious products. Company executives stated that the business wants to present itself as a place for both types of customers and serve as a store where these shoppers can find the games they want.

The news source writes that larger retailers such as Target, Best Buy and Toys R Us are opening up smaller locations in malls and plazas, which is allowing them to reach out to more areas and customers, as the companies are no longer limited to their big facilities that are normally located outside of urban regions. Retail industry specialists state that trends such as these are expected to continue, as merchants look for ways to expand their operations and increase their revenues.

Focus being placed on customer experiences

Changes are also being made to retail customer experiences in stores, according to the Lexington Herald-Leader. Brick-and-mortar merchants are having to increasingly compete with online businesses, so these companies are implementing strategies to keep shoppers coming in their doors. Many are now offering deals, discounts and incentives that can only be redeemed in stores, giving consumers more reason to head to the locations instead of using the web for purchases.

"They are trying to add a different element so it is not just about the product," said Wendy Liebmann, chief executive officer of WSL/Strategic Retail. "They are giving people a reason to play … making it worth it to go into the store. A sense of place and a place to stay."

Retailers need to focus on satisfactory customer experiences

Retailers constantly strive to provide great experiences for customers who visit their brick-and-mortar locations. With the strong emergence of internet shopping, these satisfactory experiences are becoming even more vital for merchants with physical storefronts. Recent research has revealed that consumers are highly likely to stop frequenting businesses that offer poor experiences, which could lead to sharp decreases in retention and loyalty for retailers. To prevent this, there are several strategies that companies can use to effectively bring shoppers into their stores.

Long lines, ineffective service frustrate customers

According to a recent study by Verint, which analyzed the responses of more than 7,000 consumers, less than half (49 percent) of customers were satisfied with the experiences they received from retailers. Retail Times reports that just over a quarter of shoppers (26 percent) are indifferent to these types of experiences, with the rest of respondents stating they get angry when faced with poor customer service, long wait times and rude associates.

The research also found merchants are failing to effectively gather feedback from their customers through the multiple channels offered, including social media, web chat and phone. By analyzing the opinions of shoppers, Verint stated that businesses could significantly improve their consumer experiences.

"If they are not doing so already, organizations must invest in listening to the voices of their customers, in particular the new, social-savvy," said David Parcell, managing director at Verint. "They also must face up to the challenge of unlocking the feedback from those that aren't talking or remain indifferent about the service received, as well as the invisible. Until then, it will remain challenging for brands to distinguish themselves."

Retailers faced with competition from ecommerce

Perhaps one of the best benefits that are offered by brick-and-mortar retailers when it comes to customer experiences are the face-to-face interactions. However, this method is not always enough when it comes to providing great consumer service. Lippincott, a brand design and strategy firm, gives some suggestions for retailers looking to improve their experiences. One element that merchants can offer is mobile apps, which makes shopping easier for customers through faster payments and comparison options. Additionally, brand experiences need to unique, which helps companies stand out among competitors. This can be accomplished through flash sales, tailored events and other aspects that fit the needs of consumers, writes the source.