Retailers’ customer relationships have changed, permanently. The price, the offer, the goody-bag, so to speak, all matter. They open the relationship and might cinch a sale but don’t close the deal, suggesting the long-term customer today is not just demanding more, but requiring it. In its latest quarterly analysts call, J. Crew’s CEO, Mickey Drexler, said it even more bluntly:
“It ain’t inventory that drives profit: it is the right inventory that drives profit. You can buy all day long today, and if you aren’t buying the right stock, the right inventory, the right fashion, it ain’t getting you the sales except at second and third markdowns and on promotions.”
In the heart of the recession crunch, blogs were full of damning words suggesting that brand relationships would wither and price would trump all. Battling for sales now and in the future, we know this is untrue. Always was. Paid and natural search, down to the keyword level, shows that brand connection drives the consumer’s engagement level, leading to increased downstream demand. But, that connection should be explicit and evocative. It should be perfectly clear and intimately tied to what stirs a customer’s emotions.
Catalogs and emails prod interest and are the perfect place to initiate brand authenticity and create that emotional attachment. Email has become spam for many, not because of the volume of inappropriately targeted mail or the way off-target products being promoted, but because retailers have used them exclusively for selling. They’re the gift that keeps on giving.
Or, are they? Is too much promotion impacting that relationship? With social media, a content/promotion ratio of 4 or 5 to 1 looks to be the right balance to engage customers and drive up their retention without overstepping the boundaries of promotion. For women’s fashion apparel buyers, especially those spending over $100, we’re seeing elongated click-to-buy cycles as further evidence of what we’re beginning to see in our research: time, and the lack of it, is emerging as, potentially, one of the most important elements in a purchase decision.
The chart below shows the data. Following a four-week campaign, an additional 24.6% of orders were placed by the 90-day mark versus 20.4% in 2008, which was already higher than in 2007.
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Through this lens, then, shopping online needs to be radically easier. Site navigation has to be more obvious and clear. Next-day delivery should be a convenience for the shopper, not a profit center for the retailer. Return policies should become benefits. Sizing should become an experience.
Last week’s retail sales data shows that buyers are not only buying necessities and making sure the price is right, but they’re seeking value beyond the purchase. We can also read it in their Facebook and Twitter comments.
Making buying a brand experience is where we’ll find profits. The deal is simply expected.
Chris Paradysz is CEO of PM Digital.
