As supply chain issues continue to derail hopes of a smooth 2022 for retailers, the year is already off to a shaky start.
However, it’s not all doom and gloom. Experts believe there’s a silver lining in the current retail climate, with many opportunities that savvy retailers and CPG brands can tap into this year.
Continued growth for super-speed deliveries:
With more delivery services launching in various cities, retailers’ adoption of these platforms is becoming increasingly widespread. Speed of delivery is the name of the game, with consumers tending to compromise the availability of specific products in favor of the speed they can be delivered straight to their door.
The shift towards premium products:
One market segment that gained popularity during the pandemic was the premium food and beverage category, including alcohol, frozen meals, DIY meal kits, and coffee. This growth is expected to continue post-pandemic due to changes in consumer behavior. While inflation has increased in recent months, there doesn’t yet seem to be any impact on consumer demand.
Overcoming labor shortages:
Many companies are feeling the labor shortage pinch, which is why many retailers and CPG brands are turning to process automation to reduce the workload of tasks that have been human-operated in both warehouses and customer-facing areas of the business. For example, many retailers are introducing self-checkout kiosks to replace checkout staff.
Expansion into food service:
The eCommerce boom in recent years has leveled the playing field and given retailers access to a new pool of potential corporate customers. Before now, winning contracts to supply fresh produce and meals to schools, businesses, and other institutions relied on bidding wars and relationship building. Now businesses want a user-friendly online portal with transparent pricing to order autonomously.
Increased focus on customer experience:
Experts predict that in 2022, there’ll be a consumer shift towards brands that alleviate their stress and provide products and experiences which spark joy. This could correlate to the purchase experience the customer goes through when completing a transaction or the physical products offered by the retailer. For example, many on-demand delivery companies have been offering “quarantine ready” packages, including things like a big fluffy bathrobe, Playstation games, a box of donuts, and some tissues, which can be on their doorstep within 30 minutes.
Eating at home is likely to continue:
Over the past two years, consumers have opted to dine at home, either by choice or as a requirement. This trend is expected to continue. This choice has been attributed to a greater focus on health, wellness, and self-care. However, this is not limited to meals being prepared at home but also food take-out and delivery from restaurants and fast food places. As a result, there will likely be an increase in ghost kitchens, robot chefs, and limited menus to help reduce wait times and costs.
Online grocery shopping is the new norm:
Unsurprisingly, there’s been a boom in the number of consumers who regularly do their grocery shopping online. According to research, the number of US consumers who do their supermarket shopping online has doubled in the past two years. It’sIt’s expected that this behavior will persist in the long term. The pandemic forced many businesses to make their online shopping experience smoother, which automatically removed some obstacles faced by consumers previously.
As with most things in business, perspective and creativity give you a winning edge. For businesses willing to adapt to a changing market, plenty of opportunities abound.
Mobeo is committed to improving brand loyalty and sales by helping retailers and CPG brands target, convert and retain local shoppers. So whether you’re attracting new customers or working on keeping the ones you have, Mobeo has a complete, customizable, and measurable solution to fit your needs.
Talk to us today about how we can help boost your digital footprint.
ACCORDING TO EXPERTS, the COVID19 pandemic has led to a massive disruption in the global supply chain, which shows no signs of easing anytime soon.
This supply chain crisis results from factors such as changes in consumer demand, shifts to online shopping due to lockdowns, factory closures, shipping delays, raw material shortages, to name a few.
With economists predicting that the current conditions won’t improve until 2023, here are a few ways that businesses can navigate supply chain issues in the new year.
Moving Excess Stock:
Geotargeted Ads: Having the ability to target potential customers according to their proximity to local stores could be a powerful way to let nearby patrons know that their favorite products are in stock.
Mobile Wallet Coupons: This allows businesses to create various promotions or coupons and send them directly to a customer’s mobile wallet in return, giving them a nudge or encouraging them to purchase from your store next time they’re looking to make a purchase. Once the coupon has been added to the customer’s wallet, the business can share updates about it through notifications.
Dealing With Limited Stock:
Take control of stock levels: Research shows that 43% of retailers believe better stock level visibility would help serve customers and increase the overall customer experience. You can implement an effective stocktake system to keep track of stock accurately.
Digital transformation: As many countries begin to move away from lockdowns and restrictions, bricks and mortar retailers are starting to recover; however, foot traffic is still not where it used to be pre-pandemic. Many businesses are benefiting from moving online to supplement income lost due to lower than average levels of in-store shopping.
Source locally: It could be a valuable exercise to source alternative products or components and materials locally instead of relying on existing shipping routes. This will vary for different businesses and depend on where they currently hold inventory and are presently sourced or manufactured. This will help companies determine their options and perhaps uncover even better solutions.
Network: Speak to other retailers who might be experiencing similar things to your business. Not only is it essential to have a strong support network around during challenging times but keeping your finger on the pulse and staying informed will help with decision making and forecasting. These networks may also be beneficial for sourcing new products or stock.
As supply-chain disruptions persist, volatility and uncertainty remain for the foreseeable future. However, retailers can grab the opportunity by the horns and address disruptions head-on. This will help in the short term and, if executed properly, could also help build resilience against future disruptions.
Mobeo’s suite of solutions can be customized to fit your individual business needs while driving traffic locally to your product or store. In addition, we offer the ability for businesses to create scalable, personalized digital offerings that are seamlessly added to shoppers’ mobile wallets, allowing for online-to-offline conversions in-store.
Talk to us today about how we can help boost your digital footprint.
The past two years have pushed retailers to their limits, with many unfortunately not surviving. This has also created a push towards switching to online shopping in an increasingly crowded marketplace. Reading and adapting to quick market conditions have often been the key to retailers surviving the crunch.
There’s a myriad of other elements impacting retails, such as the following:
Staffing issues due to COVID-19: With new variants emerging and rules constantly changing, it’s difficult for businesses to stay ahead of the curve. As infection rates continue to fluctuate, staff often need to be furloughed, creating problems for rostering and shift scheduling.
Expensive deep cleaning: The cost of cleaning is likely to have increased for most retailers, and they fight to keep their stores safe and hygienic to prevent the spread of COVID-19 and protect both staff and customers.
Less foot traffic: Due to lockdowns, stay-at-home orders, and general caution, people are choosing to spend less time in crowded retail locations like shopping malls or busy high streets. Instead, they’re opening for shopping online or limiting shopping to their necessities.
eCommerce: The pandemic and various lockdowns have pushed many businesses to migrate online to survive, creating an environment of intense competition as companies fight for their share of voice. This has also driven up the cost of marketing and ads in a crowded digital marketplace.
Marketing on a budget: Marketing has become a more significant challenge for retailers because of increased online competition and tighter budgets due to lower revenues. Many retailers rely on foot traffic, but there are fewer entry barriers when that’s removed. It puts everyone from independent retailers to major chains and franchises on an even keel.
Privacy changes: Facebook, Apple, and Google are making widespread changes to privacy policies that give consumers greater control over what information is shared with advertisers. This, of course, is a good thing for consumers but makes digital marketing more challenging and less accurate. This leads to increased ad spending with lower revenues.
Supply chain issues: Keeping an accurate gauge on sales and demand is crucial for planning stock orders and maintaining stock levels. This balancing act can be challenging because retailers have enough stock and don’t miss significant trends without over-purchasing too much inventory. Additionally, the timing of orders is essential as delivery times are constantly changing due to disruptions caused by the COVID-19 pandemic.
With so many new and emerging challenges being faced by retailers going into 2022, it’s hard to see an end in sight. However, business owners should focus on customer loyalty, providing a delightful customer experience, and get creative with ways to connect with their audience.
It’s predicted that the next big thing in marketing for 2022 will be a focus on social selling, which is a great place for retailers to start targeting.
Social selling has many benefits for brick and mortar businesses, including helping you reach new audiences, boost your search rankings and online traffic, and help establish your business in your local community.
To support your local marketing efforts, Mobeo drives online traffic in-store with our suite of solutions, which can be customized to fit your individual business needs.
Talk to us today about how we can help boost your digital footprint.
The art of increasing the number of people who visit your store, whether physically or online, into paying customers is called “conversion rate optimization.”
Your conversion rate is calculated as the percentage of purchases compared to the total number of people who came into your store on a specific day.
There’s a few different tips and tricks for how to improve the conversion rate for your store:
Upselling and add-ons: Selling products in a package or complete solution rather than a single SKU. The profit margin generally comes from the second product sold because marketing expenses and fixed costs eat away the margin from the first product. Also, at the point of checkout, either the counter or at the website checkout, provide a range of commonly purchased items as impulse purchases. Another principle of retail merchandising is to place one main product with two companion products next to it, making it easier to upsell.
Staff Scheduling: The best way to schedule staff shifts is around the peaks in shopping behavior throughout the day. This helps ensure that customers receive the proper attention during these busier periods. Additionally, staff deployment to serve customers instead of tending to routines like stocking shelves or pricing is equally important. Finally, staff must be available to shoppers to encourage sales and improve conversion rates.
Staff Development & Training: Helpful sales associates who listen to customers and make recommendations can significantly boost conversions. Effectively training employees to help a shopper explore product options, ask about concerns and make helpful recommendations pays dividends. It’s always a great idea to create a collaborative environment by holding regular staff meetings to get everyone involved and on the same page. Incorporating weekly or monthly sales targets with incentives is a great way to boost morale and get staff excited. Employees are the most effective at upselling because they are on the ground, talking to customers, building trust, and making recommendations to the customer based on their needs.
Keep it moving: Reducing lengthy queues is vital because sometimes customers will avoid stores with long lines because they perceive the wait time will be too long. Unfortunately, long wait times often harm the customer experience. You can overcome this hurdle by placing registers at the back of the store or having multiple checkout counters so that there are numerous shorter lines instead of one long line. An alternative to this is ditching POS all together by going mobile.
Plan the layout: There’s proven consumer psychology at play when a customer steps into a store. These insights can be bolstered by clever retail merchandising to improve conversion rates. For example, your store’s first 5-15 feet is the “decompression zone,” whereby the customer soaks in the store environment and decides whether to continue their journey. Additionally, studies have shown that people tend to turn to whichever side they tend to drive on when they walk into a store. For example, people in the US, you’re more than 90% likely to turn right when you enter a store, whereas people in Australia, the UK, or New Zealand turn left. This means the direction that customers turn towards is your “power wall,” where you should display high-margin goods and ensure it’s well-stocked, clean, comprehensive, and easily navigated. You should also aim to remove excess merchandise from the store by having just one size of each product on the floor to keep it from looking cluttered.
As a note, if you’re starting conversion rate is truly abysmal (think 15% or lower), you should check your marketing. You may be mis-marketing your store, bringing in shoppers expecting something completely different than what you offer.
With these tips and tricks in mind, you should rethink your marketing and communications if your starting conversion rate is 15% or lower.
Mobeo provides a powerful way to utilize hyper-local ads to drive traffic in-store and pick your products off the shelves; talk to us today.
With a global shift away from paper cash, physical loyalty cards, and checks towards digital payments and contactless transactions, more than 68% of consumers now use mobile payment apps for their everyday purchases.
Mobile wallets have digitized payments, loyalty cards, coupons, public transport, tickets, airline passes, and car keys.
The University of Illinois published a study in 2020, which found that there had been a 54% increase in the number of consumers using mobile wallets while shopping in brick-and-mortar stores compared to 2019. Interestingly, transaction size increased by 2.4% and purchase frequency by more than 23%.
But you may be asking what’s contributed to this supersonic growth and adoption?
Here are a few contributing factors that have played a role:
Hygiene: With the advent of COVID-19, consumers are more conscious of cleanliness than ever before. Contactless payments provide an easy way to avoid having hundreds (if not thousands) of people touching the same surfaces, like the touchpad of a credit card terminal.
Security: Mobile wallets offer better protection against fraud because customers must unlock their smartphones before wirelessly connecting to a POS reader. They also use biometric authentication to secure fingerprint or facial recognition payments. Biometric technology is more secure because it checks something that cannot be changed or passed on, like a pin code or password. Additionally, the wallet cannot be accessed without getting past lock screens and biometric checks if the phone is stolen. Mobile wallets don’t store credit card numbers on the device. Instead, each transaction is “tokenized” using cryptography which verifies payments without sharing sensitive information.
Speed: Transaction processing times are up to ten times faster on mobile devices than with credit cards. The mobile wallet and POS terminal are connected to the internet, which means data can be transmitted much faster than the traditional one-way data transfer.
Convenience: It’s easy to leave home without your wallet accidentally, but it’s much harder to leave your mobile phone at home since we’ve come to rely on them more and more. Also, mobile wallets remove the need to remember different pin codes or how many points are stored on each loyalty card, as all of this information is retained within the mobile wallet.
Mobile wallets have snowballed in popularity, with most shoppers carrying a smartphone with them at all times, making it a more accessible form of payment rather than cash or credit cards. Looking further into the future and at countries that already have widespread adoption of mobile wallets, it’s possible to conceive that almost all transactions will be digital within a few years.
Mobeo’s mobile wallet platform seamlessly supports both Apple Wallet and Google Pay. If you’re ready to explore how mobile wallets could boost sales for your business, speak to us today.
