Moving closer to consumers in the age of social distancing

With stores shuttered and most people working from home, retailers face tremendous challenges beyond a disrupted supply chain. But this reality does not mean they are standing still.

In many cases, disruption is the mother of innovation. With a combination of ingenuity and creative energy, businesses are reinventing and getting closer to their consumers — even when social distancing is a new social norm. From a famous innovator of household appliances designing and producing much-needed ventilators to perfume manufacturers and distilleries retooling their plants to churn out hand sanitizers at a moment’s notice, and retailers shifting production to make masks and gowns.  

Each of these stories is a testament to the resilience, despite forced store closures and softening consumer demand. In anticipation of a recovery with no timeline in sight, retailers must look ahead to explore how they can continue to connect with consumers by leveraging technology to deliver experiences that resonate.

Store closures open a new perspective on consumer engagement

Almost immediately after the wave of shelter-in-place directives, consumer preference toward online buying became more pronounced. According to universal payments business ACI Worldwide, online transactions for home products and furnishings increased by 97%. But perhaps more dramatic in the rise in garden essentials and DIY products, which is 163% and 136% higher than last year, respectively.

Part of this surge in e-commerce revenue could be attributed to higher reliance on retail mobile apps. Poq, a commerce app provider, reported downloads had hit their second-highest ever level, nearly catching up to the amount seen on Black Friday 2019.  

While these findings may signal that consumers are merely looking for ways to combat boredom, it may also indicate a significant opportunity for retailers to make their consumer experiences stickier. Fortunately, technologies, such as 3D and augmented reality (AR), are up to the challenge — affording retailers the opportunity to offer a whole new look for their hard goods on the website that is more impactful than anything consumers have experienced before.

For example, Houzz has seen a 11x increase in online conversion rates when shoppers have a better understanding of its products with 3D models on its website and AR to virtually place objects in a “real store” environment. With the weather improving, imagine consumers being able to see how their next grill or outdoor furniture would look like in their own patio. 

Consumer experience evolves in the new normal

Consumers have always demanded experience, convenience and speed in their shopping journey from purchasing to delivery and now, they also want a safe and “contactless” shopping environment.

As stay-at-home orders begin to be lifted, retailers need to consider new ways to acquire consumer attention in ways that are safe for everyone in the store. Furthermore, they must offer an experience that is still sincere and meaningful enough to reestablish connections with their shoppers, employees, and suppliers.

One option is offering a pop-up store that increases the proximity between the brand and the consumer to increase shipping convenience and speed. Stores such as Valora have used this approach to get closer to their consumers in the middle of a Zurich train station during rush-hour.    

This temporary structure, which could resemble a shipping container, can be set up anywhere — from the parking lot of a local school or church to empty parking lots. Consumers can come in, browse a limited assortment of top-selling items, and complete their purchases in a matter of minutes — all with a single fast, convenient, contactless, and socially distanced experience.

However, the success of a pop-up store requires the same operational capabilities as existing brick-and-mortar stores. Retailers will require real-time inventory visibility, accuracy and dynamic planning capabilities to create the right assortment, and replenishment based on sell-through and consumer sentiments at that pop-up location. Electronic shelf tags address these needs with self-scanning capabilities. Orders are transacted, and traffic is limited with self-service check-in and check-out — maintaining social distancing while delivering on the promise of convenience and speed.

It’s all about moving closer to consumers to maintain connection and loyalty

When stores finally reopen, consumers will gradually become more comfortable with indulging in discretionary spending again. A news site predicts home furnishing and appliance retailers will face explosive e-commerce growth during this time as consumers search for comfort products like overstuffed sofas, new appliances, and home-office upgrades.  

Fortunately, retailers have a variety of unique and innovative options to continue to maintain customer connections and loyalty. From 3D models and AR to pop-ups stores, retailers can turn today’s intense upheaval into a recovery that resonates with the new norm of social distancing.