PERSPECTIVES

From The Co-Founders

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Tips, Tactics & Strategic Insights and Commentary
from The ROI Co-Founders, Pat Johnson and Dick Outcalt
Outcalt & Johnson: Retail Strategists LLC; Retail Turnaround Experts

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Okay, we're ready. So...where are the customers?!

So, say you have re-opened your stores. Then what? Did the customers come back? 

Or, were many of those who did show up just there to say "Hello!" And "We missed you!", but not to buy? Sigh.

We are not surprised. And here's why.
 

Any customer must satisfy three key elements in order for a transaction to occur. Two out of three will not do; all three must be met. 

No matter what you are selling, for a transaction to occur, every customer MUST have 

  • the NEED to buy what you are selling; 
  • AND, the ABILITY to buy (e.g., able to pay);
  • AND, the WILLINGNESS to buy.

Again, just two out of three of these won't do.

And unfortunately, only two of the three are within your ability to control.

  • No matter how effective you might have been at the two elements you can control – eg, selecting the merchandise that your customers have loved, or attracting customers to your shop – there is very little you can do about that third crucial factor: the ability to buy.

That is driven by the source of income for your best customers, the degree of confidence and certainty they have in their own financial situation. "The economy."

Yep. Another one of those "uncontrollable variables." The sooner you recognize that, the sooner you can re-focus your energy and resources on those things you can manage. 


What CAN You Do?

How might you sharpen the focus on the merchandise you are selling, to better match how today's customers perceive their NEED to buy?

  • Perhaps it's editing your assortments more deeply.
  • Arming yourself with an analysis of GMROI by vendor to prepare for those upcoming sessions with your reps (who are under great pressure to meet sales goals.)
  • Considering new vendors, new sources of merchandise, such as those online marketplaces featuring small (and hungry!) producers.

 

There are even more opportunities to adapt and adjust regarding the WILLINGNESS to buy.

  • How safe and welcoming does your store feel?
  • Does it radiate resentment about the current situation, or reflect an upbeat approach to making the best of it?
  • Have you made it easier, faster, more certain for your customers to buy from you? "Concierge services," such as appointments, or curbside pickup, or delivery?
  • How well have you embraced technology? Do you have a better web presence? More visibility into merchandise availability?

 

You know all too well how it feels to deal with uncontrollable variables. Your customers are feeling the same way. Whatever you can do to give your shoppers a greater sense of control is likely to be very welcomed! 

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    Enough already with the "Covid Fatigue"

    Have you noticed? "Covid fatigue" has been spreading lately. It seems to be almost as contagious as the virus itself. Ugh!

    And small wonder. Even as parts of the economy strive to re-open, they only remind us of how different everything is.
    • Major League Baseball played in stadiums of cardboard cutouts of fans. The U.S. Open Golf Tournament with no spectators. Professional basketball teams in "the bubble" at Disney World. 
    • And some colleges preparing to resume fall classes have been described as "a cross between a seminary and a minimum-security prison."
    Meanwhile, the U.S. Congress cannot agree on what should be done next. A nasty election campaign season looms. Protests are still happening in many locations. 

    Remember this: all these things that contribute to our Covid fatigue, what we have called the "Pandemic Trifecta of 2020" – the virus, the economic meltdown, the national protests – all of these are uncontrollables. We all are victims of all three pandemics. 

    But, you CAN control what you choose to do with your business going forward. Will you choose Door A, Door B or Door C? 
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    Ready or Not, New Retail Clock Is Here

    As the global efforts to "flatten the curve" of the coronavirus pandemic continue, there is another curve that is being flattened. That would be the seasonality of retail sales. 

    And this may prove to be what really defines the New Normal for retailers. 

    The customary peaks of retail spending have been flattened.

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    Ready for the Post-COVID Customers?

    Believe it! A second chance to make a good first impression!


    Yes, the shoppers WILL be returning. But boy, have they learned a lot during these pandemic times. 

    They are far more comfortable with online shopping, and in many cases, eager to continue that. And the convenience of "contactless" features like curbside pickup and BOPIS (Buy Online, Pickup In Store) are welcomed.

    In fact, an extensive survey from McKinsey & Company* provides considerable detail about the newly-learned online shopping behaviors of customers, and their expectations of continuing to use these new-found skills. 

    Particular changes with presumed staying power: 

    • More online shopping
    • Less brand loyalty
    • Need for "hygiene transparency"
    • Back to basics & value
    • Rise of the homebody economy

    But hold it. Wait just a minute. Our countervailing view is that the "homebody economy" will wear thin. And while customers do care even more about basics and value, especially when it comes to Holiday shopping, they will want "special." 

  • waves.jpg

    Big Waves Incoming! Ready to Take Advantage?

    This Holiday season is bringing three big waves for retailers, in rapid succession. And each one requires a strikingly different management response. 

    Wave #1 - the High Margin Wave - has begun in earnest, and will continue through Christmas Eve.

    Faced with the shipping delays (and surcharges), customers have turned to brick-and-mortar stores. The savvy retailers are ready for them.

  • COVID-19 thumbs/AboutNewNorm.png

    Ready to Seize This Opportunity?

    Like every natural disaster, whether a massive storm, earthquake, wildfire, we all are victims of COVID-19. 

    Not all of us have suffered being infected by the virus. But, essentially everybody has suffered losses. 

    • The loss of milestone celebrations of weddings, graduations, reunions, birthdays; anniversaries;
    • Lost access to theaters, museums, libraries, sporting events;
    • Loss of the sense of community that comes from going to work, or worship services, book clubs, or the local coffee shop; 
    • Loss of income, job losses;
    •  Or, sadly, the loss of loved ones. 

    Few have been spared. 

  • COVID-19 thumbs/Fenton-cptn.png

    Get Your Tents and Sidewalks Ready!

    As more stores are able to reopen, and more shoppers are willing to emerge, what will they encounter?

    • "A glut of pent-up inventory is waiting to be dumped on consumers this summer as retail stores reopen in the U.S., and shoppers for everything from shoes to sofas should be able to find major bargains," reported the Wall Street Journal* on June 2.


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