5 Strategies for Physical Stores to Stay Competitive in an Online Retail World
It’s no secret that most consumers are gradually shifting their purchases to favor online retail stores, rather than physical storefronts. The increased availability of mobile technology, website builders, and e-commerce platforms means it’s easier than ever to buy and sell things online, making it difficult for physical stores to remain competitive.
But the future for physical stores is not as bleak as it may seem. It’s true that online stores have many large—seemingly unsurmountable advantages—including convenient shipping, a wider selection of items, lower prices, and faster means of finding the products you need.
Fortunately, physical stores have their own set of advantages that online stores may never be able to match, including instant gratification and in-person assistance, not to mention the ability to feel, touch, and try on items. Physical stores can have an edge over online stores by focusing on these key advantages, instead of trying to beat online stores on price.
Tactics for Gaining an Edge
Here are some strategies that physical stores can use to stay competitive in an online retail world:
1. Track mobile customer data
Your first secret weapon is to start actively tracking your customers’ data. One of the biggest advantages of online storefronts is their ability to gather more customer data, and more easily. But now, thanks to mobile devices, you can track your physical customers’ data as well.
A perfect example is SAP’s Digital Consumer Insight, which allows you to gather anonymized information about consumers who walk through your store. It’s a perfect way to get to know your audience better, and therefore better cater to them with offers and services.
2. Integrate digital and physical stores
Instead of forcing your customers to choose between a digital experience and a physical one, why not tie the two together? By integrating digital features in your physical storefront, you can present the best of both worlds to your customers.
For example, you could use online stores and apps to make the in-store experience easier—like how Target and Walmart released in-store maps for their Black Friday sales, or how most online retailers allow for in-store pickup if they have a physical location. Enabling in-store customers to order things online is also advantageous, since it allows customers to experience both ends of your store experience.
3. Focus on staff development
Your greatest advantage in having a physical retail location is the presence of in-person staff. Some customers will never be fully comfortable with online ordering, since they prefer to engage with other human beings. Make the most of that advantage by training your staff to be the best they can possibly be.
Hire only the most positive, outgoing, and helpful people you can find, and take the time to train them properly so they can better serve your customers. When your staff consistently gives positive and memorable experiences, physical store customers can’t help but come back for more.
4. Offer more services
You can also earn a greater share of customers by offering them additional services. This has a couple of benefits: first, it gives customers more of a reason to visit your physical location, and second, it provides a more unique customer experience, which increases loyalty and customer retention. A good example of this is how Ikea offers a full in-store restaurant with Swedish cuisine, which makes the experience of shopping at Ikea even more unique.
5. Work on local crowds and word-of-mouth marketing
Your key customers will be ones who prefer physical shopping to digital shopping, so digital marketing methods like SEO and PPC ads aren’t going to be as effective for this crowd. Consider starting a word-of-mouth campaign, even if it’s an informal one. Work on giving the best customer service you can, learn people’s names, and inject yourself into your community. The more visible you are to the public, and the more unforgettable you are to your customers, the more they’ll talk about you and support you in future shopping experiences.
Looking to the Future
Online retail isn't going away, but physical retail stores still have a long future ahead of them. If you're a brick-and-mortar retailer, you will need to constantly adapt to new technologies, capitalizing on unique strategies that your online counterparts can’t match and integrating technologies that allow you to remain competitive.
As long as you commit to improvement and focus on the needs of your customers, you’ll be able to thrive in this market.
