New customers: The right ways to grow your client base in retail
Written by bego ·
The question is on every retailer marketers’ mind: “how do I attract new customers to my store”? Despite all of the technological upgrades we have witnessed in the last century, this timeless dilemma is still just as prevalent now as it was many years ago. To add to the complexity of retailing today, consumers are being constantly bombarded with thousands of marketing messages a day from different brands’ vying for their attention. And the rising trend of online shopping accelerated by internet pure players has even brought into question the relevance of physical establishments. Will high street make it through the so-called retail apocalypse?
All of these elements combined are the cause for growing uncertainty for retail marketers today. Fortunately, some brands have discovered the secret to attracting new customers and making their physical stores thrive. Let’s go over how some progressive retailers are meeting the challenges of the status quo and see what we can learn from them.
Street marketing do’s
Street marketing is a delicate art. But believe it or not, there are right ways and wrong ways to do street marketing as a means to boost foot traffic to your retail establishment. So, which retailer seems to have hit the nail on the head with their street marketing campaigns? We’re convinced you know who they are.
Ikea, strategic campaign distribution
Ikea is always full of surprises. In yet another one of their clever marketing campaigns, Ikea decided to makeover 12 bus stops in Paris. This definitely puts a new spin on the “experiential” concept. Only this time, their marketing team created cozy living experiences outside of their stores. The strategic placement of these street marketing displays around important shopping centres during Christmas time was surely no accident either. The bus stops chosen were most likely where Ikea customers live. Haven’t you ever wondered why they ask for your postcode after purchasing something at their store? This is a real-life example of why.Source: onmogul.com
Location component: Location is an important factor that can determine the outcome of any street marketing campaign. We took a look at one of the Ikea bus stop locations in Le Marais, Paris—a common shopping area for Parisians. Ikea’s main objective was to raise awareness about their presence in the French market. As you can see in the image below, the majority of the residents in Le Marais are of French nationality, so the company most certainly caught their attention in this area.
Window display do’s
When people are considering going inside a store, a window display goes a long way. The window display is similar to an invitation and convinces a customer to take the plunge or not. Visual merchandising requires equal parts creativity and strategy. Let’s take a look at one window display example that seems to have met the challenge.
Topshop, the right window on the right street
During pride week in London, Topshop decorated their shop on Oxford Street to “dress for the occasion”. Not only was this window display in sync with the social movement taking place in the country, it was also set up in a smart area. Oxford Street is situated in one of London’s busiest districts with many opportunities to engage new customers at different times during the day.
Location component: Taking a quick look at a 10-minute walking radius around the Topshop Oxford street store, we can see that the footfall traffic on the street is at a maximum level. Again, this surely was no accident as this retailer knows which of their stores receives the highest average volumes of customers—and they used this information to their advantage.
Product promotion do’s
Launching promotions that truly resonate with customers and encourage them to revisit a store are no easy feat. To do this, marketing teams need to develop campaigns that are personal but do not cross the line and become intrusive. So, how are some exceptional retail marketing teams managing to do this?
Barneys, geomarketing campaigns
Using their application, Barneys has begun to interact with the customers based on their proximity to different stores. Those using the app have exclusive access to the brand’s editorial content and receive targeted advertisements that are tailored to their location and preferences. Barneys has always been a forward-thinking luxury retailer and adopting geomarketing practices is just the next step in their digital evolution.
Location component: Following-up on the purchase behaviour of people in a given area can help marketers to target their geomarketing campaigns even more. When a retail company knows which profiles of people buy certain items, they can be sure to craft their marketing campaigns with this in mind. Take a look at the following postcode in Madrid below. The image shows how people tend to spend their money when frequenting that specific area.
Attract new customers with big data insights
While finding new customers in a turbulent retail landscape is growing more challenging, it is not impossible. As we’ve seen from the examples above, the secret to any lucrative customer growth strategy consists of a balance between technology and overall experience. But when we say technology, we are not talking about installing flashing screens or digital dressing rooms inside of a retail establishment. No, we mean operational technology that provides the necessary data insights to help brands to interact with customers on a deeper level. Location Intelligence is one of them.
Location Intelligence is a strategic marketing tool that works behind the scenes and is not directly experienced by customers themselves. However, the effects of a marketing strategy fuelled by Location Intelligence are. Data collected on a specific location is enriched through Artificial Intelligence techniques so marketers understand the unique market context occurring around each one of their stores or potential campaign locations. Location is no longer a static idea but rather a 360º concept that can be used as a competitive advantage by marketers capable of harnessing its power. When it comes to launching a street marketing campaign, designing a window display or even using geomarketing tactics on a store-by-store basis, location is the key ingredient that unifies them all. This essential—but many times overlooked—element can truly make the difference between whether a marketing team is effective at boosting sales or not.