guide to brand shops - BDS Connected Solutions

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GUIDE TO BRAND SHOPS MARKETER’S THE CHANNEL Insider Tips On Opening, Running & Maintaining A Successful Brand Shop

Transcript of guide to brand shops - BDS Connected Solutions

GUIDE TO BRAND SHOPSMARKETER’S THE CHANNEL

Insider Tips On Opening, Running & Maintaining A Successful Brand Shop

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TABLE OF CONTENTS

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

The Full Retail Picture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

Brand Shops Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

How To Successfully Launch A Brand Shop . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Brand Shops In Action: Sales Optimized Through Branded Staff (Case Study #1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Brand Shops In Action: Driving Brand Awareness & Growth Through Product Demo (Case Study #2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

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This retail model changes the situation by allowing you to completely control how your brand is presented to your customer . Showcase the products you want in the way you want . Increase your speed-to-shelf by managing your own inventory . Deliver a shopping experience customized for your brand . Staff shops with sales experts who are your biggest brand fans . Launch new products immediately on your own terms . Directly interact with customers and gain real-time feedback . Increase the value of each transaction . Sound too good to be true? Yes . Can it be your reality? Yes .

Over the past five years, BDSmktg has partnered with a number of clients in a variety of industries, to implement Brand Shop programs, including the following:

• BDS executed a Brand Shop program for Dell Inc . The program, titled Dell Showcase, saw significant success with revenue per unit increasing on average by 25%, when its industry as a whole saw a 7% loss during that same time period—outperforming all other Dell sales channels .

• BDS launched a direct-to-consumer mall Brand Shop pilot program for fitness equipment manufacturer Nautilus . The three-month program resulted in thousands of demo experiences, as well as a substantial number of impressions .

Brand Shops present a substantial growth opportunity for brands at retail, where multiple factors affect consumers’ decision to purchase:

Location: Is your customer a mall shopper, or do they prefer to visit big box retail stores? With a Brand Shop, you have the ability to target your customer based on the locations they visit and capture the sale in a way that works best for your brand .

Associate Interaction: Consumers who are able to talk face-to-face with a trained and knowledgeable associate at a custom-branded Brand Shop were 90% more likely to be satisfied with their experience .

Live Experience: A fitness equipment manufacturer generated over $100,000 in incremental revenue after they decided to demonstrate their product live at a mall Brand Shop over a three-month period .

Have you done everything in your power to create a seamless brand experience for consumers, but still find that traditional retail causes inconsistencies for your brand? If so, it’s time to take control with Brand Shops.

SUMMARY

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Over the past few years, retail has evolved from just the point of sale to an entire consumer experience . From the overall store environment, to the way products are displayed, to how sales associates close the sale, it’s all about creating a memorable experience for the consumer the minute they walk through the door . Brand Shops, also known as brand stores, store-within-a-store (SWAS), kiosks or experience centers, capitalize on where the future of retail is heading . This type of small-scale retail format allows brands to directly connect with consumers in a controlled and immersive environment, and offer the best service and product experience possible . The overall experience is enhanced even further when Brand Shops are staffed with knowledgeable and passionate product experts, who in turn build a successful connection and leave a lasting impression with consumers .

Implementing a Brand Shop program has proven to substantially increase sales of products and services, ultimately resulting in overall revenue growth . These programs are extremely beneficial to manufacturers as they directly impact the consumer’s buying experience with every element of shopping integrated into one seamless initiative that educates consumers, builds brand awareness and increases brand loyalty and sales .INTRODUCTION

Best Buy’s Store-Within-a-Store Bet Is Paying OffTop Brands Like Apple, Windows to Get More Shelf Space Before Holiday

By Ashley Rodriguez. Published on August 25, 2015.

BUSINESS

Best Buy to open mini-shops inside of 10 Macy’s stores

Best Buy, known for adding store-within-a-store to its outlets, is becoming one starting in early November. The retailer will primarily offer Samsung products.

By Kavita Kumar Star Tribune | SEPTEMBER 8, 2015 — 8:54PM

E-tailers bet on pop-up stores to boost consumer confidence, brand visibilityBy ET Bureau | Sep 03, 2015, 04.00 AM IST

RETAIL hhgregg Trying Room Vignettes, Samsung Sections In Florida StoresSamsung dominating more big-box stores

By Alan Wolf | 9/21/2015 11:30:00 AM Eastern

INTRODUCTION

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Let’s travel back to 2011, when distribution channels were largely independent from one another, and words like “showrooming”, “cross-shopping”, and “mobile” buzzed around the retail industry.

THE FULL RETAIL PICTUREof total retail sales are still generated in brick and mortar stores.1 94%

of online shoppers would prefer to buy from a merchant with a physical store presence over an online-only retailer.55%

believe that retailers should be doing more to integrate their online and offline channels.84%

only 8% of companies said they currently provide a ‘very integrated’ customer experience. 8%

of consumers began doing business with a competitor following a poor customer experience. 89%

of people think that customer experience is more important than price in their choice of a brand.64%

billion dollars are lost by U.S. brands each year due to poor customer service. 41

There was a fear that consumers were only visiting retail stores to demo products, but not purchase them there . To find out what was really going on, BDSmktg conducted a survey of 900 online consumers to determine exactly how their online shopping habits impacted them purchasing in-store . The survey results showed:

• 85% of consumers shop in stores, versus 15% who shop exclusively online

• Of the 85% who shop in stores, 75% interact with retail sales associates

• The majority of those shoppers asked retail sales associates for recommendations, and up to 32% changed their selections based on their interaction with the retail sales associate

We’ve seen a variety of micro-trends come and go, but there is one trend that remains the same: consumers expect more from their purchase experience . With more informed shoppers than ever before, as well as easy access to products in an omni-channel world, it’s more important than ever before for brands to differentiate on “experience” rather than price . Check out the stats to the right which support the notion that consumers are still visiting brick-and-mortar despite the ability to purchase online . However, if the purchase experience is not positive, they will leave the store and take the sale with them . This is a prime time for brands to challenge the way it’s always been done by connecting with consumers in their own controlled environment, where people can interact with products, gain relevant product information, and engage with trained, savvy product experts .

1 https://www .nchannel .com/blog/retail-data-ecommerce-statistics/

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We’ve identified five key areas where Brand Shops can be implemented and tailored to your brand’s needs:

• Store-Within-A-Store: A retail space within a large retailer that is dedicated to your brand, staffed by knowledgeable sales professionals and a place where customers can learn, demo, and buy products on the spot .

• Pop-up Stores: Small stores that are designed to be short-term or seasonal, taking advantage of available real estate that is not yet leased .

• Branded Small In-Line Stores: A longer-term option, these shops are designed for spaces 2,500 sq . ft . and under .

• Retail Mobile Units: These mobile stores on wheels are able to address the needs of consumers on the go at malls, airports, transit centers and outdoor shopping plazas .

• Retail Booths: Designed for small spaces and stores within a store, these shops are typically 10' x 12' units that are branded and fixed to the floor .

With this variety of custom options, Brand Shops give you back the control by complimenting your traditional retail distribution, allowing you to showcase the products you want and deliver a specific shopping experience to your customers .

Brand Shops are gaining traction as an outlet for creating value for your brand through engaging and educating consumers, and increasing sales for single or complementary products.

BRAND SHOPS OVERVIEWPOP-UPSTORES RETAIL

BOOTHS

RETAILMOBILE

UNITS

IN-LINESTORES

STORE-WITHIN-A-STORE

BRAND SHOPS

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As you plan for how to best engage consumers, staff for holiday sales, launch new products, and/or create new buying experiences for consumers, there are a few things to keep in mind to ensure you have a successful Brand Shop program:

1. Own the experience. Brand Shops allow for a seamless buying experience according to the your brand’s specifications, including introduction to the products, understanding of the benefits, on-site trial, and ultimately product purchase . Sales representatives that staff the Brand Shop own the brand and convey its message in every interaction with consumers .

2. Showcase a full portfolio. Brand Shop teams guide consumers to the products that best fit their lifestyle; a large array of primary and add-on products will give the sales representatives the tools they need to address a wide array of consumer lifestyles and ensure the customer walks away with a ready-to-use solution .

3. Connect directly with consumers through people. A highly trained and skilled sales staff will engage and earn the trust of consumers, while ensuring products are properly represented .

4. Increase speed to shelf. Owning the selling space means brands can place products in stores and in front of consumers immediately, without waiting for store resets or store approval .

5. Book space early. Booking spaces early is imperative to having a great location for consumer engagement and meeting initiative goals .

6. Generate awareness. Market outside of Brand Shop locations to drive additional awareness and demand for products .

HOW TO SUCESSFULLYLAUNCH A BRAND SHOP

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As with all marketing efforts, planning is paramount to success. Here are five things you need to consider when planning for a Brand Shop.

1. Talent: Sales professionals must be recruited, hired and trained on your brand’s products, culture and offerings .

2. Markets: Initiatives need to be placed in the right markets to be successful .

3. Operations: Understanding operational costs is crucial to success . There are various components that fall in this vertical, including point of sale systems, scheduling, inventory management, property management and more .

4. Performance: Incentivizing sales professionals can lead to improved performance at the point of sale . Highlighting achievements, recognizing exemplary work and awarding exceeded goals, drives sales professionals to invest in your brand and ultimately care more about the consumers’ buying experience .

5. Promotions and Campaigns: Various promotions and campaigns help generate more awareness and drive additional foot-traffic and sell-through .

When considering a Brand Shop program, it is important to partner with an experienced agency that has created success for their clients through comprehensive programs that allow for ownership from start to finish, with a focus on results for your brand .

With over three decades of retail experience, successful

implementation of sales and consumer engagement

programs, and insight driven campaigns, BDSmktg

is poised to provide your brand with a custom Brand Shop solution.

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Dell Inc . began an initiative called “Dell Showcase” in retail booth format a few years ago . Primarily a business-to-business brand, Dell launched this initiative to expand its business into the consumer sector . Dell’s goals were to generate brand awareness and allow consumers an opportunity to touch and experience the benefits of Dell’s products . The Dell Showcase, initially launched by Dell, underperformed . Midway through the initiative, Dell turned to BDS to reinvigorate the Dell Showcase program .

BDS took complete ownership of the retail booth model, the buying experience, and the recruiting, hiring, and team management from Dell . Leveraging its network of more than 50,000 highly skilled and vetted sales professionals, BDS recruited and hired sales teams and store managers, who were immediately integrated into Dell’s culture and trained on Dell products and services . Once trained, these sales professionals were able to demonstrate the various offerings, effectively educating, engaging and building consumer awareness about the brand’s various products . This included: all-in-one touch computers, business machines, business-to-consumer products, flip screen laptops and tablets, docking stations, monitors, printers, and other add-ons such as operating systems, software, and high-end gaming machines .

Through this customer-focused marketing and sales effort, the Dell-branded BDS sales staff helped consumers identify their needs and build tailored computing solutions, creating a

personalized buying experience . Dell Showcase staff encouraged orders to be placed at the point of purchase and provided build sheets, which allowed consumers to order direct from the manufacturer from their home or office . With Dell Showcase specific incentives, such as two-day fast shipping, retailer gift cards, and discounts available only through the Brand Shop, the need for consumers to shop around on other websites or at other retailers was mitigated . Additionally, Dell Showcase provided consumers an introductory and educational experience that resulted in increased sales for items with higher price points . The Dell Showcase team knew key selling points and could make appropriate recommendations to customers .

BDS’ support included internal marketing and communication efforts, planning and executing promotions, and creating marketing materials to better facilitate point of sale transactions . BDS’ initiative also incorporated weekly performance reports and short-term action plan goals, which provided Dell direct insight from the sales professionals interacting with consumers . These reports and detailed insights allowed for changes and product enhancements to be made as needed, furthering the opportunities for Dell’s sales success .

Sales Optimized Through Branded Staff (Case Study #1)

BRAND SHOPS IN ACTION:

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The Dell Showcase initiative saw significant success which included:

68% of quotes turned into sales

75% of the initiative’s customers were first-time purchasers of Dell products

Dell Showcase average sale per unit far exceed the industry average by more than 50%

Revenue per-unit increased an average of 25%

The outperformance of all other Dell sales channels

RESULTS

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During the holiday selling season, BDS partnered with Nautilus, a fitness equipment manufacturer, to create a three-month mall Brand Shop pilot program that achieved impressive results . In the past, Nautilus had only been a direct-to-consumer brand, selling Bowflex and other Nautilus products without any sort of retail front . This pilot program pushed them out of their comfort zone; it drove brand awareness through impressions, gained customer trust through engagement and acquired sales through demo conversion .

With two physical Brand Shops at the Westfield Valley Fair Mall in Santa Clara, CA and the North East Mall in Hurst, TX, the program was launched at the beginning of the holiday shopping season in November of 2015 and lasted through January of 2016 . Site selection was based on a variety of factors, including geographic sales performance, headquarters proximity and demographic considerations .

After the design and build of the physical infrastructure, BDS knew that for this program to work, customer trust must be won through a live, world-class demonstration experience given by sales representatives who not only had knowledge of the health and fitness industry, but practiced physical fitness and healthy eating habits on a daily basis . Ten of these sales reps were chosen – five were placed in Santa Clara and five were placed in Hurst .

The average cost of an in-person impression through the mall Brand Shop pilot program was only $0 .63 . To put this in perspective, the average cost of reaching 1,000 customers on broadcast TV is $24 .76, and $42 .50 per 1,000 on primetime TV . On Google, $1 .44 is the average cost per click . Not only were brand awareness and revenue increased for Nautilus during the length of this program, but BDS gained some very valuable consumer insights throughout the process:

• 47% of surveyed customers said that price was an inhibitor to purchasing

• 9% of surveyed customers said that the retail associate recommendation drove them to make a purchase

• 27% of surveyed customers said the brand name influenced them to purchase

Through this pilot program, BDS was able to determine that there is a certain price threshold at which consumers are willing to make a purchase without financing . BDS was then able to give financing recommendations to Nautilus that would ease the purchasing process for future customers . In conclusion, BDS found that Brand Shops are an ideal way to promote your brand, drive awareness and allow customers to demo products .

Driving Brand Awareness & Growth Through Product Demo (Case Study #2)

BRAND SHOPS IN ACTION:

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The results of this program matched the goals of driving brand awareness and growing revenue!

Some of the key findings included:

4,782demonstrations given

costing only $32 per demonstration

242,418 impressions earned

costing only $0.63 per impression

6,165 qualified customers reached

$100,000+ in incremental revenue generated

RESULTS

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A Brand Shop program creates an opportunity for brands to directly interact with consumers in a way that is highly visible to industry leaders, preempts the competition, and increases sales by bringing in highly skilled, knowledgeable sales professionals focused on guiding consumers to the right products .

Brand Shops are ideal for brands that:

• Want to increase market share within their market segment

• Want to own the consumer buying experience

• Want to own their product portfolio

• Want to stand out in crowded retail environments

• Have products which are unique or complex and require consumer interaction to facilitate a sale

BDS provides brands with creative customized solutions that address their specific needs to engage and guide consumers to products that fit their lifestyles . BDS develops programs from concept to completion, with services that include the design, build, installation, recruiting, staffing, and management of the entire Brand Shop program for consumer brands .

Contact us for more information about BDS, Brand Shop programs, or to discuss your needs.

BDSmktg.com | [email protected] | 1.800.234.4237 |

ABOUT BDSmktg: BDSmktg is your trusted retail marketing partner . With over 30 years of experience guiding customers through the buying journey, we are experts at powering sales for the world’s top brands . BDS offers our clients three fully integrated core solutions that drive brand demand and sell-through: Brand Advocacy, Retail Readiness, and Retail Environments . We craft custom solutions from our suite of 18 services, and our specialized teams ensure your brand is ready for each new selling season . Founded in 1984, BDS Marketing, LLC . is headquartered in Irvine, California . with a regional office in Heath, Ohio . BDSmktg is a subsidiary of BDS Solutions Group, LLC . For more information, visit BDSmktg .com .

CONCLUSION