Ben Chesser, CEO of Coniq gives his thoughts on how the role of a store or shopping mall needs to evolve in 2020, and how loyalty will play a key part in that transformation:
“Retailers have, on the whole got sufficient distribution, a large part of which can be satisfied by their online store. Online delivers convenience and therefore, I believe two specific physical store formats will emerge: Flagship stores will be immersive, experiential emporiums where consumers can touch and feel the brand. Halo effect research has confirmed that a consumer who spends both online and in a physical store spends more than someone who only uses one channel, so Hub stores will complement the Flagships by ensuring the brand can be experienced both online and physically within a specific catchment.
What excites me is how the role of a shopping centre will evolve in parallel. Flagship stores will act as places to acquire new customers and to build stronger brand loyalty with all consumers. Hub stores will also be vital to ensure ongoing engagement with a brand.
Insight into the optimum relationship between online and offline will become vital: If a particular customer shops 4 times online – for some brands that may be the key time to encourage the customer to visit a store for physical engagement with the brand. A good example of this may be someone who has bought a series of wireless household devices online being invited to the showroom to understand the best way to install them and a chance to be upsold the new products at the same time.
In this new role for stores, shopping centres will be tasked with how many new customers they attract for a brand, versus the number of returning visitors and their frequency. The power for centres in the role of acquisition will lie in the size and strength of their CRM databases and their ability to harness smart-tech, such as using AI to analyse patterns of existing customer behaviour to identify potential new customers with similar behaviours in the database.
Mall-based stores seem the ideal location for either format, dependent on the size of centre and their catchment, but importantly, loyalty will play a key role and the data we provide will inform the new business objectives.”
For more information on how Coniq can ensure your store or mall is ready for the challenges of 2020, contact us.
