Shell-shocked retailers need to get personal with customers, not cut prices.
2009 has been very much about retail at Mohive. That’s not to say we’ve all been out chasing bargains in London or late night shopping in Oslo. Instead, we’ve been spending a lot of time talking to retailers who, as we all know, have been through a problematic year of change and turmoil.
Post-January shell-shock
We tracked the thoughts and opinions of 100 retail experts during 2009, analysing their reactions to the current trading conditions. The best term I can think of to describe the retail sector’s collective state of mind immediately after this year’s January sales is 'shell-shocked'. On top of that, 80 percent of the people we spoke to reported that their products and promotions were going through “dramatic”, even “unprecedented”, changes to cope with the new economy of recession.
"80% reported that their products and promotions were going through unprecedented changes."
Unprecedented conditions demand unprecedented action, yet most retailers stayed in the realm of the predictable until well into the summer. With shop visits down nearly 20 percent in the UK, deep discounting was the standard response. But, in a trading environment where discounts of up to 70 or even 80 percent were increasingly commonplace, a real concern emerged that price-based promotions just couldn't go any further. Even more alarming were the signs that shoppers were becoming desensitised to the big-number price reductions that had kept many stores trading as the recession bit.
"A real concern emerged that price-based promotions just couldn't go any further."
Beyond price promotions
The retailers we spoke with acknowledged the primary importance of converting browsers into buyers. But, having reached rock bottom on price, how can you encourage customers to base their decisions to buy on more sophisticated criteria?
"One of the most effective ways to motivate a purchase is through authentic personal interaction with the customer."
One of the most effective ways to motivate a purchase is through authentic personal interaction with the customer. Great shopping experiences are usually built on the human touch, and getting this aspect of your offering right delivers value that is independent of the price tag. The abilities of store managers, sales assistants, customer advisors and counter staff are ‘make or break’ here. Every person who works in-store should be able to interact effectively with customers, be willing to recommend products, and know how to cross-sell to maximise the value of each shopper interaction.
Training to the rescue
Retailers must move quickly to ensure that employees have the knowledge, skills and confidence to deliver a great customer experience and to sell more. Fortunately this training challenge has arrived just at a time when learning technology is genuinely able to deliver. Mohive retail customers have discovered just how efficient e-learning is at bringing a dispersed workforce up to speed. In addition, ‘rapid e-learning’ makes it possible for trainers and subject matter experts to collaborate and get e-learning courses out of the door and into stores in a matter of weeks.
"‘Rapid e-learning’ makes it possible for trainers and subject matter experts to collaborate and get e-learning courses out of the door and into stores in a matter of weeks."
Rapid e-learning gives the Learning & Development professional a practical way to step up and help drive sales in the short term. Even in these challenging times, L&D departments have been able to make a measurable impact on the bottom line.
There are some great examples among Mohive’s case studies from the Nordic region: the fashion retailer that created more cross-selling opportunities by giving sales people the confidence to ‘create looks’ using its new season’s collection; the DIY chain that successfully encouraged employees to think and act as customer advisers instead of simple order takers; and the skincare brand that achieved a substantial up-lift in total sales by helping its sales channel to identify and recommend skincare ‘regimes’ based on multiple products.
"Once employees have had a taste of how a well-targeted piece of e-learning can boost their confidence and ability to interact with customers, they will want more."
But be prepared: success breeds demand. Once employees have had a taste of how a well-targeted piece of e-learning can boost their confidence and ability to interact with customers, they will want more. It’s a phenomenon that is consistently reported by organisations once they have embarked on the e-learning journey. So, if you’re an L&D professional starting to deploy your own rapid e-learning strategy, be ready to respond to a growing demand for courses from your in-store colleagues. It’s one of those good problems!