As quickly as Coronavirus has come into our lexicon and disrupted our lives and national economies, it now seems likely that retail destinations will reopen sooner than most people expect, to the delight of many of us cooped up indoors.
Recently, after two months of country lockdown, Chinese citizens have returned to shops as the outbreak eases – and in great numbers. The Hermes flagship store in Guangzhou reopened this past weekend, reportedly taking in $2.7 million in sales in just a single day, an all-time high for a single boutique in China. There is clearly a significant amount of delayed or pent-up demand waiting to be released as soon as lockdown restrictions are removed.
Governments in the UK, Europe, and the Middle East are taking a pragmatic approach to restarting struggling economies without spreading the disease. One of the first sectors to reopen will be shopping centers in a bid to carefully promote more social interaction. In fact, Germany announced an easing of restrictions over the weekend, meaning that some centers could open this week.
So what can we learn from the lessons of the first movers here, and how should marketers plan to reopen their retail destinations?
Here are five tips based on our experience and conversations we have had with clients over the past few weeks, which you may want to consider in your plans:
1. Engage with local shoppers:
Now that you have moved beyond crisis communications mode, it’s time to activate your membership database, using engagement channels such as creative emails to build connections and affinity with those who will help you get out of the lockdown financially stronger – your local community. The best operators are sending weekly messages focused around local charity support, tips for lockdown, and a gentle sprinkle of retail branding – this is not the time for a hard sell. Still, it’s the time to support your community. When the time is right, as travel restrictions are lifted, you should adapt your communications to attract national and international shoppers.
2. Know the new customer:
Let’s face it, consumer psychology has changed dramatically in the past months, and this recognition needs to be reflected in how you view and engage with your customers. They will likely want a different retail experience in your center – potentially preferring to buy from domestic manufacturers and buying other things. As a marketer, you will need to know and anticipate the needs and wants of your customers like never before, using data and sentiment analysis and analyzing in real-time the response to different offers or marketing messages. Support of smaller and more local brands will resonate well as consumers want to support their national economic recovery.
3. Gain first mover status:
When governments decide that you can physically reopen your centers, you’d better be ready because the competition will be fierce. As the COVID crisis has shaken up the way we shop, there will be a one-off opportunity to re-position yourselves in the minds of shoppers as new habits are formed.
Hundreds of shops will open instantly, all seeking to grab the attention and credit cards of consumers waiting to spend money. Kick-start your customer loyalty program now, without delay, so you gain a share of mind today and market share tomorrow; Think how you can increase the frequency of visits to your mall from monthly to weekly.
Most importantly, be bold and creative, so you differentiate your brand. What does this really mean? Think like a media company and produce relevant content that will interest your customers, such as “how to” videos, and recognize good behavior, such as local residents donating time and money to charities. When customers receive your reopen email, your brand should already be top of mind.
4. Safety first:
After the spread of a deadly disease, many people will be fearful, so it’s not surprising that customers may not be confident about visiting your centers. Working in partnership with colleagues in operations and facilities management, and your tenants, it will be critical that you clearly communicate how you plan to protect both customers and staff at reopening.
This will ensure that shoppers feel comfortable with what many experts expect to be newly established guidelines (initially, at least during the reopening of the retail industry), including the continuation of social distancing and a restriction on the number of shoppers in your destination. Shoppers will need to know what to expect when they visit your center, and staff will need to know how to treat shoppers.
5. Play the long game:
Many people will not want to return to physical stores, so your marketing strategy should be designed to nurture shoppers over time. Instead of focusing on the reopening, nurture your customers so they are rewarded for waiting until they are ready by creating your customer loyalty program mechanics, so they earn more points for each subsequent visit – second, third, and fourth.
You should view the reopening of your center as a campaign, probably the most important campaign of the year, that lasts several months. Consumers will be redefining how and where they shop, and this is your chance to position your centers at the center. Your integrated marketing program should deliver quick outcomes while setting the stage for future growth by improving the efficiency of your marketing operations.
This may all sound like a daunting challenge, especially at a time when your budget has likely been frozen or reduced and you may have colleagues on furlough. Still, it’s also a unique opportunity to revitalize how you re-engage customers following one of the most defining moments in the past 100 years.
