Public Relations & Social Marketing Insight

There’s a tsunami of change coming toward the retail business environment and interaction with the customer that may turn today’s approaches and strategies in completely new directions, impacting everything from store design to communication with consumers.

It’s termed “living services,” and according to a new Accenture report it will let retailers deploy less intrusive customer experiences while boosting customer engagement and fostering stronger and faster sales.

The report provides information on how some brands are already putting ‘living services’ to work within the retail spectrum. One is example cited is how fashion retailer Nordstrom is determining store merchandising now on a weekly basis through tracking and gauging consumer product interest using the social network tool Pinterest.

“Living services will allow retailers to move away from the industry’s standard scenario of bombarding shoppers with offers on arrival at a location. By working with Pinterest Nordstrom is also providing staff with an iPad app to make it easy to show customers trending products and merchandise live,” stated the report.

The technology enabling “living services” is now mature enough for brands to create and deliver them at scale, the report said....

A few years ago, two marketing professors conducted a study involving jams. It’s since become a landmark. The researchers set up a tasting booth in a supermarket and offered jams to customers. On one Saturday, they offered 24 flavors. On the next Saturday, they offered 6 flavors.

What happened? The results are nuanced, so pay attention.

When 24 jams were available, 60% of the customers stopped for a taste. When 6 jams were available, 40% of the customers stopped for a taste. So it’s better to offer more options, right?

Not really. Of the 60% who tasted one of 24 jams, 3% made a purchase; of the 40% who tasted one of 6 jams, 30% made a purchase. Here’s the key takeaway: 31 people purchased jams when they had 6 options, and 4 people purchased jams when they had 24 options. That’s nearly an 8X difference.

In other words, when you offer more products for sale, more people will visit your store, but fewer people will make a purchase. And as great as it is to get lots of visitors, your sales are what matters.The researchers suggest that when there are too many options, customers get into a state of “choice overload,” or “analysis paralysis.” Sometimes when choices are too great, people choose nothing at all....

Mobile, social, and the cacophony of modern interruption marketing has transformed the retail path to purchase, and forced retail marketers to focus on building lasting relationships that benefit customers.

...“Now, because of smartphones and tablets, marketers need to fundamentally rethink things. Shopping is becoming an iterative rather than a serial process. Consumers no longer go shopping, they always are shopping.”

Among the less frequently discussed casualties of modern marketing is the path to purchase.The path to purchase is not a sidewalk leading from the shopper’s front door to a store; it is a cycle repeated over and over, and it requires marketers to take a different tack....

Gone are the days when a mobile strategy was far down on the priority list—a “nice-to-have” bonus for retailers. With a mobile audience of 874 million potential customers, leaders in the ecommerce space are making serious investments to maximize the new opportunities created by the technology we carry with us everywhere we go. In fact, 53% of retail marketers position mobile as their number one strategic priority, according to a Shop.org report.

eMarketer recently interviewed top marketing executives from Williams-Sonoma, Sephora, Gilt.com, and Macy’s to dig into the trends, challenges, and opportunities they’re seeing in the increasingly digital world of retail. Mobile is still a rapidly evolving channel, but here are four key takeaways on what these top retail executives had to say about the exciting digital possibilities that lie ahead....