Sachin Dev Duggal, co-founder and CEO of Builder.ai, shares his insight on the 'new' world of retail and offers up avenues retailers can take to get closer to the customer in the wake of COVID-19.In what felt like an overnight shift, the way that small businesses traditionally interacted with their customers stopped, changed or morphed. Among those most vulnerable are the smaller retailers without an online presence that depend on their customers to walk through their doors.
While many states are beginning to reopen, a lot of uncertainty still exists around the health of the retail industry. Will capacity be capped to 20%, 50% or 75%? If stores are allowed to be open, will people feel safe walking in, trying on products and exchanging money with staff members? A recent survey found that 90% of shoppers were hesitant to shop in stores because of COVID-19 concerns. And what happens if all the stores need to close again after a matter of months if another wave of the virus occurs?
Having a thoughtful digital presence has been important to staying afloat for many smaller retailers throughout the last few months. As most brick and mortar stores selling non-essential items had to close their doors in March, people turned online. There was a 50% uptick in U.S. online sales in April from the year prior. While digital transformation will play a part in many businesses' survival, it doesn't mean that physical stores won't be around in one year. What it means is that their reliance on a singular channel of interaction will multiply. This is key.
The COVID-19 era has introduced an opportunity for smaller retailers to rethink how they do business, gain new revenue, engage with existing revenue and create efficiencies. Whether you're a business that is looking to build a digital presence from scratch, revamp an existing presence or is still unsure about going digital at all, I've provided some avenues to consider when looking to get closer to your customers.
Look inward and take stock
Retailers who are considering e-commerce should not use it as a dumping ground to showcase everything they have available to sell. First, business owners should ask: How many products do I sell? Who are my customers? How often do they use my product? How often do they buy my product? What are the top selling items? What is my product's shelf life? Does my product have wear and tear?
Just as business owners need to be strategic about how items are presented in their stores, they need to consider the answers to these questions to better understand how an online presence will make the most impact. Once you understand how customers use your product, you can fundamentally look at an approach that's different.
Consider a subscription service
Right now more than ever, people are looking for a convenient way to get what they want and need. Subscription services are a preferred option for consumers now as they can get their favorite or necessary products delivered directly to their homes without even needing to think about it.
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