What businesses are going through is something they have never experienced before and the post crisis landscape is going to look vastly different. Consumer expectations and behaviors have changed in response to the need to stay safe and conserve money. Buying via digital means is growing and a portion is unlikely to return to physical once normalcy returns.
This will impact physical retail once stores open. Consider a scenario where 10% of your customers shift online. How will this impact your operating margins and free cash flows. Your cost structures are likely to be different too with increased expenses on safety and sanitisation requirements. Here are a few tips to make the most of the situation.
1.     Go Omni-channel: This is the number one retail imperative. Physical and digital need to go seamless. Upgrade yourself so the customer journey that starts online can end in your store or vice versa as the customer chooses. This will help you keep loyal customer and attract new ones. In addition you will be creating a new, highly valuable asset, data. More on that some other time.
2.     Automate and Digitise: Customer are looking at minimising contact, help them achieve that. Empower associates with tools so they can advise customer via virtual means, if needed. Create product product videos and hook with up to on shelf displays. Revisit in-store signing and VM. Think digital v/s static. They are your silent sales staff, make them count. Provide self-check outs. Look at internal process that can be automated using simple existing tools. Some stores are reporting same efficiencies with lesser staff with small process improvements and automation.
3.     Enable out-of-store shopping: Enable customers to shop online and pick in-store. Earlier this was for customers who were short on time or for specific on-demand items not usually stocked. Now this is becoming a need as customers wish to minimise time inside stores. Extend this to kerb side pick-up or delivery at the parking lot. Prepaid orders avoid crowding and help save costs as you serve even more customers.
4.     Visual Proof of Safety: This is a big one. Customers will return if they feel safe inside your store. More visual evidence you can provide of actions being taken to ensure customer safety, more trust you will build as a responsible retailer.
Start with the customer journey as it beings at your door. Ensure every customer is wearing a mask, you can also make them available on charge at the door for those not donning one. Serve hand sanitiser at the door, mandatorily. Next step, shopping cart. Ensure a wipe down in front of the customer or stack the sanitized ones separately and call them out as such.
Mark the floor so it’s easy for customers to follow the distance rule. Make sure your staff strictly follow safety and hygiene practices. There is nothing worse than associates not following the guidelines themselves. Breaks trust instantly.
Put up posters on what steps you are taking to ensure customer safety. Shopping process has slowed down, and customers have more time to observe and experience your store. The rule of the game is to get caught doing the right thing, repeatedly.
5.     Drive footfalls: Getting footfalls will be difficult. Create compelling reasons to get customers in. Focus on experiences. Pre-booked events, live-shows, in-store launches will continue to work if done keeping in mind the new realities. Work with brands for store-first release of new products. Create reasons for customers to come in.
6.     Reduce Costs: Review assortments. Increase focus on value and margin drivers. Be responsive to emerging customer needs. Pack size and brand preferences may have changed. Down trading will be normal under the current circumstances. Offer new price points, brands that your customers may be seeking. Private labels are a great alternative and retailers are reporting increase in sales.
Push resource consuming activities upstream to warehouses, distributions centres and even to suppliers to keep your costs down. You are the most expensive end of the supply chain.
In these times of crisis, cost control and customer centricity hold the key to survival.
Recovery will be slow, but you will be positioned strongly in the new world.
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