Are Brick-And-Mortar Stores Too Slow To Innovate?
Raw Text
More From Forbes
06:30am EDT
The Difference Between Evolving And Pivoting: Mindset
03:01pm EDT
What Are The Takeaways Of Neurodiversity Celebration Week
12:05pm EDT
Millennials Are Seeing Their Net Worth Go Down. Student Loans Play A Huge Role
12:18pm EDT
1 In 10 Women Worldwide Suffer From Endometriosis, So Why Does It Take So Long To Get A Diagnosis?
11:00am EDT
How To Create 3 Things That Relieve Stress And Boost Your Happiness
02:10pm EDT
How FemTech Can Explain Women's Own Data To Women
12:51pm EDT
Turns Out, Money Does Equal Happiness: Another Consequence Of The Gender Pay Gap?
07:00am EDT
Latina Founder Overcame Sexism And Ageism To Raise $8.5 M, Now She Faces VCs Spooked By The Collapse Of SVB
Edit Story
Forbes
Leadership
ForbesWomen
Jia Wertz Contributor Opinions expressed by Forbes Contributors are their own.
Entrepreneur and documentary filmmaker
Following
07:42pm EDT
|
Share to Facebook
Share to Twitter
Share to Linkedin
It seems that majority of innovation in the retail industry is taking place on the e-commerce side of the business. With more and more people becoming comfortable shopping online, it makes sense that companies would focus on that aspect of their business. People who rarely made online orders in the past were forced to adapt during the pandemic, adding to the already rapid growth of e-commerce. But there are missed opportunities with brick-and-mortar stores, as they provide marketing opportunities and are the only place potential customers can physically see, touch, and try out products.
In a report by RedIron , a technology company focused on transformative innovations in retail, it states that e-commerce is brimming with innovation because testing and deploying new solutions is easier, the e-commerce industry enjoys sustained growth, and the corporate culture is different. And, of course, there is the mere fact that no matter how innovative a retail in-store solution is, it will always be costlier and more challenging to roll out than any e-commerce innovation. Brick-and-mortar initiatives take time and cost money in order to train staff, provide physical elements to store locations, and risk opportunity cost if the idea happens to fail.
Implementing changes online also allows businesses to explore A/B testing, analyze the results of two solutions, and then implement the better performing option across the board. And rolling out these changes can be more cost effective when it doesn’t involve shipping materials and training staff at hundreds of brick-and-mortar locations.
Brick-And-Mortar Stores Have Unique Advantages
How many times have you visited a retail store only to be disappointed by the lack of sizes available, or the long lines to pay for your items? It often feels as though even the simplest of advancements are lacking in stores – such as eliminating the cash desk and long line ups by accepting payments on mobile devices from anywhere in the store, like Apple stores have rolled out.
But physical store locations have many advantages including a more personalized shopping experience with knowledgable sales people, quick and easy return processes, instant gratification of taking purchases home immediately, and of course, the ability to try on products, compare sizes, and seeing items in person.
FORBES ADVISOR
Best Travel Insurance Companies
By Amy Danise Editor
Best Covid-19 Travel Insurance Plans
By Amy Danise Editor
In order for retailers to really maximize their omnichannel business, they should optimize the in-store experience and tap into all the unique advantages that brick-and-mortar stores can provide.
Long before e-commerce was a thing, physical store locations were carefully analyzed and opened only in locations with good foot traffic, and in areas where many customers live or work. These strategically-placed stores can play a pivotal role in building sales rather than becoming liabilities. And if these locations offer a service or convenience to customers that they cannot get from shopping online, it would create a reason for shoppers to head to a physical store location rather than simply getting online.
The Omnichannel Experience
E-commerce and brick-and-mortar working in tandem with each other, rather than in competition with one another, would not only maximize sales for the company, but also provide a better customer experience. In order to be most effective, this strategy should be rolled out in all customer-facing aspects of the business and also incorporated in employee commission or bonus structures. Currently most store employees are only incentivized for sales that take place in their store, however, in order to change the culture to one with a true focus on omnichannel, employees should be incentivized on all sales they generate for the company, and not just for their single store location. This would lead to sales staff offering all-around better service to the customer and making the sale no matter where it took place.
Think about a customer heading into a store and not finding their size, but the sales staff going over and above to locate the item anywhere they can. Or shopping online, and the item being located at the nearest store location, and subsequently being delivered to the customer within 24 hours – much like the service Amazon Prime offers.
As mentioned in the RedIron report, “Geotargeting is an excellent example — one of the most profitable ways e-commerce stores implement customer personalization. Via tracking “cookies,” store websites can know where potential customers are located and offer them the appropriate products or discounts. However, physical stores can perform geotargeting as well. That’s why some of the forward-thinking brands like Whole Foods have implemented “virtual fencing” strategies. Whole Foods’ digital marketing campaigns specifically target people that live close to competing stores in the vicinity of Whole Foods; in essence, they create a virtual fence around their stores and push out any competitors with online marketing and enticing offers.”
Innovation At All Levels
While e-commerce has continued to change the way people shop, and bring all kinds of innovations to the retail sector, it seems that brick-and-mortar stores continue to run the same way they have for decades.
What customers expect from a physical store differs from their expectations of shopping online. These differences must be analyzed so each store, whether e-commerce or brick-and-mortar, can meet the needs of the consumer in the most efficient and engaging way possible.
Follow me on
Check out
website
here
Jia Wertz
Editorial Standards
Reprints & Permissions
Single Line Text
More From Forbes. 06:30am EDT. The Difference Between Evolving And Pivoting: Mindset. 03:01pm EDT. What Are The Takeaways Of Neurodiversity Celebration Week. 12:05pm EDT. Millennials Are Seeing Their Net Worth Go Down. Student Loans Play A Huge Role. 12:18pm EDT. 1 In 10 Women Worldwide Suffer From Endometriosis, So Why Does It Take So Long To Get A Diagnosis? 11:00am EDT. How To Create 3 Things That Relieve Stress And Boost Your Happiness. 02:10pm EDT. How FemTech Can Explain Women's Own Data To Women. 12:51pm EDT. Turns Out, Money Does Equal Happiness: Another Consequence Of The Gender Pay Gap? 07:00am EDT. Latina Founder Overcame Sexism And Ageism To Raise $8.5 M, Now She Faces VCs Spooked By The Collapse Of SVB. Edit Story. Forbes. Leadership. ForbesWomen. Jia Wertz Contributor Opinions expressed by Forbes Contributors are their own. Entrepreneur and documentary filmmaker. Following. 07:42pm EDT. |. Share to Facebook. Share to Twitter. Share to Linkedin. It seems that majority of innovation in the retail industry is taking place on the e-commerce side of the business. With more and more people becoming comfortable shopping online, it makes sense that companies would focus on that aspect of their business. People who rarely made online orders in the past were forced to adapt during the pandemic, adding to the already rapid growth of e-commerce. But there are missed opportunities with brick-and-mortar stores, as they provide marketing opportunities and are the only place potential customers can physically see, touch, and try out products. In a report by RedIron , a technology company focused on transformative innovations in retail, it states that e-commerce is brimming with innovation because testing and deploying new solutions is easier, the e-commerce industry enjoys sustained growth, and the corporate culture is different. And, of course, there is the mere fact that no matter how innovative a retail in-store solution is, it will always be costlier and more challenging to roll out than any e-commerce innovation. Brick-and-mortar initiatives take time and cost money in order to train staff, provide physical elements to store locations, and risk opportunity cost if the idea happens to fail. Implementing changes online also allows businesses to explore A/B testing, analyze the results of two solutions, and then implement the better performing option across the board. And rolling out these changes can be more cost effective when it doesn’t involve shipping materials and training staff at hundreds of brick-and-mortar locations. Brick-And-Mortar Stores Have Unique Advantages. How many times have you visited a retail store only to be disappointed by the lack of sizes available, or the long lines to pay for your items? It often feels as though even the simplest of advancements are lacking in stores – such as eliminating the cash desk and long line ups by accepting payments on mobile devices from anywhere in the store, like Apple stores have rolled out. But physical store locations have many advantages including a more personalized shopping experience with knowledgable sales people, quick and easy return processes, instant gratification of taking purchases home immediately, and of course, the ability to try on products, compare sizes, and seeing items in person. FORBES ADVISOR. Best Travel Insurance Companies. By Amy Danise Editor. Best Covid-19 Travel Insurance Plans. By Amy Danise Editor. In order for retailers to really maximize their omnichannel business, they should optimize the in-store experience and tap into all the unique advantages that brick-and-mortar stores can provide. Long before e-commerce was a thing, physical store locations were carefully analyzed and opened only in locations with good foot traffic, and in areas where many customers live or work. These strategically-placed stores can play a pivotal role in building sales rather than becoming liabilities. And if these locations offer a service or convenience to customers that they cannot get from shopping online, it would create a reason for shoppers to head to a physical store location rather than simply getting online. The Omnichannel Experience. E-commerce and brick-and-mortar working in tandem with each other, rather than in competition with one another, would not only maximize sales for the company, but also provide a better customer experience. In order to be most effective, this strategy should be rolled out in all customer-facing aspects of the business and also incorporated in employee commission or bonus structures. Currently most store employees are only incentivized for sales that take place in their store, however, in order to change the culture to one with a true focus on omnichannel, employees should be incentivized on all sales they generate for the company, and not just for their single store location. This would lead to sales staff offering all-around better service to the customer and making the sale no matter where it took place. Think about a customer heading into a store and not finding their size, but the sales staff going over and above to locate the item anywhere they can. Or shopping online, and the item being located at the nearest store location, and subsequently being delivered to the customer within 24 hours – much like the service Amazon Prime offers. As mentioned in the RedIron report, “Geotargeting is an excellent example — one of the most profitable ways e-commerce stores implement customer personalization. Via tracking “cookies,” store websites can know where potential customers are located and offer them the appropriate products or discounts. However, physical stores can perform geotargeting as well. That’s why some of the forward-thinking brands like Whole Foods have implemented “virtual fencing” strategies. Whole Foods’ digital marketing campaigns specifically target people that live close to competing stores in the vicinity of Whole Foods; in essence, they create a virtual fence around their stores and push out any competitors with online marketing and enticing offers.” Innovation At All Levels. While e-commerce has continued to change the way people shop, and bring all kinds of innovations to the retail sector, it seems that brick-and-mortar stores continue to run the same way they have for decades. What customers expect from a physical store differs from their expectations of shopping online. These differences must be analyzed so each store, whether e-commerce or brick-and-mortar, can meet the needs of the consumer in the most efficient and engaging way possible. Follow me on. Twitter. LinkedIn. Check out. website. here. Jia Wertz. Editorial Standards. Print. Reprints & Permissions.