Mary Portas says retail is all about Experience, Product and Service. Difficult to argue with but in today’s retail environment there is another factor that’s equally important and it’s Value.
Many Retailers have a narrow definition of value. To them value equals price. This type of thinking frequently results in lots of promotions and fast changing prices often at the expense of the three things that Mary Portas says retail is all about, Experience, Product and Service. As a result retailers can end up with reduced margins and less happy customers.
Customers see value differently
While of course price is important to customers, it’s only part of why they buy. This is where it gets more complicated because shoppers buy for a range of different reasons that vary due to different circumstances. For example a shopper might buy a more expensive bottle of wine for a special occasion or pay more to replace a broken freezer that can be delivered the same day.
Stores that understand what customers value can promote the value they offer without cutting the price. Signage in a store can tell customers about the perfect wine for that special occasion. Because it’s a special occasion, price becomes much less important. An electrical store can promote that they can deliver a limited range of freezers, TV’s, Ovens etc. the same day for customers who need them really urgently. These examples take us straight back to Experience, Product and Service which are all linked to perceived value.
Communicate the value to customers
Retailers who really understand what customers value tell shoppers about the added value of their products, services and experience. This is where smart signage in stores plays a key role. It allows retailers to test different value messages and see which ones get the best response from customers. This might take a bit more effort but the positive impact on margins and customers can be significant as well as standing out from the competition.
You may also be interested in how to create a customer journey map.