With more traditional stores closing, retailers continue to be
challenged by navigating the intersection of brick-and-mortar
locations and eCommerce. Fullmoon Digital's Nik Stepheny shares how brands can best manage
this evolution, as well as the crucial role experiential
experiences will play in shaping consumer engagement moving
forward.
WINDERMERE, Fla., May 7, 2024
/PRNewswire-PRWeb/ -- As retail giants grapple with closures, the
landscape of commerce is undergoing a seismic shift. Last year,
more than 4,600 stores closed due to bankruptcy, underperformance,
or rising issues with theft. (1)
Dollar Tree, which includes Family Dollar, is slated to
close approximately 1,000 stores in 2024. Starting in 2023 and
extending into 2024, Best Buy is closing between 30 and 40 stores.
Walgreens announced the closure of about 150 stores before the end
of 2024. (2) Yet, amidst this transition, a vital narrative
emerges: the fusion of physical and digital experiences. "Retailers
are at the mercy of changes in people's shopping behavior, as well
as culture relevancy," explains Nik
Stephney, Associate Director of Strategy & Content at
Fullmoon Digital. "The conversation moves so fast today that brands
must provide an experience to people or they will not be
remembered, which is why brand storytelling is essential."
"Retailers are at the mercy of changes in
people's shopping behavior, as well as culture relevancy. The
conversation moves so fast today that brands must provide an
experience to people or they will not be remembered, which is why
brand storytelling is essential."
Impact of Physical Store Closures and Rise of E-commerce
The closure of physical stores has significantly influenced the
retail landscape, with e-commerce experiencing a surge in
popularity. This shift has prompted retailers to adapt their
strategies to cater to the growing online consumer base.
Additionally, the preferences and behaviors of Gen Z consumers are
shaping the e-commerce landscape, influencing how brands engage
with this demographic. "Gen Z does not go to the mall," Stephney
says. "They do online shopping—a boutique they saw on Instagram or
Amazon, leaving many more traditional brick-and-mortar stores at
the mercy of a change in behavior shopping behavior."
Despite this, brick-and-mortar stores shouldn't be discounted
entirely. The Economist Intelligence Unit is predicting that
brick-and-mortar sales will make up an astounding 85% of total
retail sales in 2024. (3) The reason for this is the urge,
post-pandemic, consumers have for shopping in person, which is
leading to the rise of "phygital" stores, which encompasses
integrating physical and digital channels in creating integrated
experiences. (4) The reality is that physical locations seem to
offer a boost to online shopping, with research revealing that
introducing a new brick-and-mortar store can lead to a 29% increase
in online sales within the same area. (4)
Importance of Experiential Marketing
Enter the era of experiential retail, where consumer engagement
transcends transactional encounters. From immersive pop-ups to
interactive displays, brands redefine the shopping journey.
Fostering memorable experiences becomes paramount to driving
customer loyalty and brand affinity. "For e-commerce, every single
touch point with the consumer is an opportunity to offer an
experience," Stepheny explains. "For everything sent out, there's
an opportunity to make that more beautiful. There's an opportunity
to add more conversation to it instead of just making it a
transactional email." This type of brand storytelling can also
include pop-ups and other brand activations.
From browsing to checkout, every interaction with the
customer is an opportunity to offer a unique experience and build
brand loyalty. This includes brand storytelling, physical brand
activations, and enhancing every touchpoint with the consumer to
create a meaningful connection.
For instance, Nordstrom's New York
flagship store recently collaborated with Disney to celebrate the
Wonder of Disney's 100th Anniversary. Multiple immersive,
interactive experiences were offered to shoppers, including a
five-segment LED wall with elements inspired by Disney princesses
and touchscreen coloring books. (5) Creating memorable experiences
like these is crucial for both brick-and-mortar and online
stores.
Digital Platform Risks and Challenges
Relying solely on digital platforms for business comes with
inherent risks, including vulnerability to algorithm changes,
market saturation, and evolving consumer behavior. "If Instagram or
Facebook decides to change their algorithm and that tanks your
sales, you have to invest more money to get back up to where you
were," Stepheny explains. If companies can't, it becomes a pay to
play game where the social media companies are simply trying to
extract more and more money from the retailer.-
Moreover, the cybersecurity risks associated with online shopping,
such as fraudulent activities and data breaches, pose significant
challenges for online companies. Businesses must stay vigilant and
proactive in addressing these risks to maintain consumer trust and
safeguard their operations.
- Algorithm Changes: Digital platforms like social media and
search engines frequently update their algorithms, impacting
businesses' visibility and reach. Changes in algorithms can
suddenly decrease organic reach or change how content is
prioritized, affecting marketing strategies and sales.
- Market Saturation: The online marketplace is highly
competitive, with numerous businesses vying for consumers'
attention. Market saturation can make it challenging for companies
to differentiate themselves and attract customers, leading to
increased marketing costs and reduced profitability.
- Evolving Consumer Behavior: Consumer preferences and behaviors
constantly evolve, influenced by technology, societal trends, and
economic conditions. Businesses must continually adapt their
strategies to meet changing consumer needs and expectations, which
requires flexibility and agility.
- Cybersecurity Risks: Online businesses are vulnerable to
cybersecurity threats like data breaches, phishing attacks, and
payment fraud. Cyberattacks can result in financial
losses, damage to reputation, and loss of customer trust.
Protecting sensitive customer data and maintaining robust
cybersecurity measures are essential for safeguarding operations
and preserving consumer trust.
To mitigate these risks and challenges, businesses should
diversify their marketing channels, build a strong brand presence,
stay adaptable, and prioritize cybersecurity.
Enhancing Customer Experience for E-commerce Success
Creating a memorable and unique customer experience is essential
for e-commerce businesses to stand out in a competitive market.
From browsing to checkout, every interaction with a customer
presents an opportunity to deliver a personalized and satisfying
experience. The checkout process plays a crucial role in building
trust and loyalty with customers. By prioritizing customer reviews
and promptly addressing any issues or concerns, businesses can
differentiate themselves and foster long-term customer
relationships.
In response to this shifting landscape, Fullmoon Digital's overall
marketing and eCommerce solution for brick-and-mortar and online
stores provides a comprehensive suite of services to empowers
brands to thrive in the digital age while preserving the essence of
traditional retail. "By seamlessly integrating online platforms
with experiential initiatives, we redefine the retail narrative,"
Stepheny adds.
To succeed in the current retail landscape, businesses need to
adapt to the shift toward e-commerce by prioritizing the creation
of memorable experiences. Additionally, they must address
cybersecurity concerns and optimize the checkout process to build
customer trust and loyalty.
"Offering a way to show people that they're more than just a
credit card, more than just a transaction is essential," Stepheny
says. "Retailers need to let consumers know that they see them as
humans."
About Fullmoon Digital
Fullmoon Digital Media, founded by Derek
Chew, a former early Yahoo! employee, is one of the few 100%
independent digital marketing agencies in the United States. The firm is
cross-functional, with deep experience in media planning and
buying, digital consultancy, SEO, digital strategy, programmatic,
analytics, performance marketing, paid media, social advertising,
and creative. They push the envelope of what is possible in terms
of marketing and technology, all the while providing best-in-class
digital marketing service to their "pack" of clients. Picky? Yes.
And proud of it. They partner with clients passionate about working
together to deliver and facilitate strategies that win. For more
information, please visit http://www.fullmoondigital.com.
References:
1. Gibson, Kate; "Retailers shuttered 4,600
stores this year. Here are the stores that disappeared."; CBS News;
29 December 2023;
http://www.cbsnews.com/news/retailers-closed-4600-stores-chains-with-the-most-closures/.
2. Kissell, Chris
and Karla Bowsher; "7 Retailers That Are Closing a Bunch of
Stores in 2024"; MoneyTalksNews; 19 March
2024;
http://www.moneytalksnews.com/slideshows/retailers-that-are-closing-stores/.
3. "Consumer goods and retail outlook 2024";
Accessed 18 April 2024;
http://www.eiu.com/n/campaigns/consumer-in-2024.
4. "The Rise of Phygital Stores: 7 Ways
Brick-and-Mortar is Changing"; MJV; 7
February 2024;
http://www.mjvinnovation.com/blog/the-rise-of-phygital-stores-7-ways-brick-and-mortar-is-changing/.
5. "Nordstrom Celebrates the Wonder of
Disney's 100th Anniversary"; Nordstrom; Accessed 18 April 2024;
nordstrom.gcs-web.com/news-releases/news-release-details/nordstrom-celebrates-wonder-disneys-100th-anniversary.
Media Inquiries:
Karla Jo Helms
JoTo PR™
727-777-4621
jotopr.com
khelms@jotopr.com
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SOURCE Fullmoon Digital