Why Retailers Need a Common Message Across Channels
Massive increase in price changes
Last month the Profitero Blog revealed that Amazon.com makes more than 2.5 million price changes every day. It’s a staggering number especially because it represents a massive increase in price change activity. At the beginning of December 2012, Amazon made 269,113 price changes during the previous 12 months according to Profitero analysis.This represents a ten-fold increase in the year-on-year volume in changes.
By comparison, major bricks-and-mortar retailers BestBuy and WalMart each made just over 50,000 prices changes in a month. Clearly, traditional retailers are unable to compete with Amazon’s price change volume and it’s not much more realistic to expect most of them to keep up with BestBuy and Walmart either.
Australian shoppers expect common brand experience
Increasingly, Australian retailers are realising the importance of having an online presence even if the majority of their sales occur in a physical store. While there was initial concern that showrooming would have a negative impact for retailers, a multitude of evidence suggests shoppers prefer to purchase in a store. For this reason, it’s critical that retailers have their online and instore communications channel aligned.
In a recent study, 80% of women with mobile phones used them to help with their food shopping, either before the shopping trip or while in the store. They were more interested in referencing the store’s website than those of particular brands. This demonstrates the opportunity retailers have to assist shoppers with activities like making lists, finding coupons, and deciding what to feed their family.
Ticketing is the logical intersection where information and price can be leveraged into increased sales and profits. But this only happens when ticketing is recognised as a key strategic marketing tool. Currently, ticketing is often viewed as a downstream operating function, a necessary evil to appease consumer watchdogs. Because shoppers are looking for information online – and using your online channel as a virtual sales assistant – retail leaders will be the ones who have an integrated ticketing system that allow them to present a common face to the shopper.
What this means for retailers
Pure-play online retailers have dramatically increased the pace of price changes in the past year. While online businesses have an advantage in their ability to change prices, the exact same principles can be easily applied by traditional bricks and clicks retailers as long as they have access to a strategic ticketing system.
If you’d like to learn more about aligning your instore and online communications, contact us. We’d love to speak with you about how you can increase your sales and profits.