Price Points by Omnia Retail

In Omnia's Pricing Blog, our pricing experts cover all the latest trends, Omnia pricing events, customer insights and pricing strategies.

Why UK Retail Sales Slumped in H1 2019 (and How to Fix It)

New research from the latest IMRG Capgemini eRetail Sales Index shows that British online retail sales in the first half of 2019 have slowed down...and a lack of focus on omnichannel retail strategies might be to blame....

New research from the latest IMRG Capgemini eRetail Sales Index shows that British online retail sales in the first half of 2019 have slowed down...and a lack of focus on omnichannel retail strategies might be to blame. The retail index, which tracks the online sales performance of over 200 retailers with a combined annual spend of £28bn, discovered that retail delivered a year-on-year growth (YoY) of 5.4% in the first half of this year. And while 5.4% doesn’t sound low, when you compare it to last year’s 16.9% YoY for the same time period, it’s easy to see why the figure is so worrying. While 2018 was a big year for the UK in terms of public events that spurred spending (such as a Royal wedding and the World Cup), the somewhat slower news year isn’t the only reason for the slowdown. Consumer trust in retail is eroding as doom-and-gloom coverage of retail closures continues, and the looming mystery of Brexit plays a part in consumer skittishness. But while you can’t control Brexit or create another Royal celebration, one thing retailers can do is look at the connection between their online and offline connections. The importance of omnichannel retail According to IMRG, online-only retailers grew at a faster YoY than multi-channel retailers in the first half of the year (7.4% YoY and 5.2% YoY, respectively). And there are a couple of factors that influence that. For one, online-only stores can reach wider audiences, and can stay more agile in the market than brick-and-mortar shops. Additionally, people have simply gotten used to the convenience of ordering online, which means they might automatically go for an online-option over visiting a physical store. But that doesn’t mean that you need to close up your physical stores to accelerate your growth. As Andy Mulcahy, strategy and insight director at IMRG says, In this country we have a tendency to regard online retail and physical retail (high streets) as being completely separate; an idea that has been fed over the past few years by the consistent growth in online even as the high street struggled. What we are now seeing is that they are not separate at all, but in fact deeply interconnected – hence growth in the first half of 2019 was the lowest yet recorded. In other words, there is a disconnect for many retailers between their online and offline worlds. And the reality is that these two worlds are more interconnected than ever before. Make omnichannel an advantage If you’re a multi-channel retailer, chances are you feel overwhelmed by your two different stores. And if you’ve seen your growth slow, your not alone. But, if you think strategically, you can make your multi-channel store a competitive advantage. The key with omnichannel is to see your online and offline stores as complementary parts of a whole, not competing entities. And as two parts of a larger puzzle, they can work together to help drive more sales through improved customer experience. We’ve done a whole post on how to win at omnichannel retail, so if you want more specifics it’s worth checking that one out. But if you want some quick tips, keep reading. 1. Remember how consumers shop The first step to “winning” with omnichannel retail is to learn how consumers interact with your store...and remember that that interaction doesn’t exist exclusively online or offline. For example, almost 60% of American consumers use their phone while shopping in a physical store. And many of them are checking the price of the products on a shelf to the prices they find online. Shopping today is, in itself, a multi-channel experience. Smartphones have become so ingrained in our everyday lives that it is impossible to remove their influence on the buyer’s journey. Now, this can create problems for retailers or brands. If consumers find a different price online than they see in-store, it can erode trust in the product (and company). But it also works to your advantage if you use the power of the internet to create a seamless site-to-store experience. 2. Use technology to add value for your customers If you want to create an omnichannel experience for consumers, you need to think creatively. But you also need to think practically. How will this omnichannel experience improve the customer journey? When shopping for furniture, you can never tell what a piece will look like in your home until you bring it through your front door. At least, you couldn’t do that until IKEA created an augmented reality application that helps you discover which corner of your living room fits your new armchair. The IKEA Place app is an excellent example of filling a gap in the consumer journey: one that leads consumers directly to your products. But you also don’t need to sink money into developing an app. There are also some relatively inexpensive ways to use technology to your advantage. Some ideas? Use QR codes on physical shopping labels to provide shoppers with more product information Let a customer add something to their cart online (or in-store on their smart phone), then allow them to pick it up in-store Offer price-matches at the register No matter how you go about it, remember that the customer journey today offline includes online experiences, and vice versa. 3. Invest in measurement tools So if you use creative technology to improve the customer journey, how can you actually measure if your endeavors are increasing your revenue? To do that, you need the right tools that can measure online and offline sales, and their influence on each other. One example of a metric you can track to measure the influence of omnichannel is the ROPO effect, which stands for “research online, purchase offline.” Measuring ROPO allows you to evaluate your store’s performance holistically, and not in the traditional online/offline silos. These technologies do require an investment, both in time and money. But the insights that you can glean from this sort of measurement are priceless. Final thoughts Even though the UK retail market slumped in the first half of this year, there is plenty of opportunity for multi-channel businesses to thrive. With the right tools and strategy, multi-channel retailers and brands can connect their two stores, get a complete understanding of their customer journey,

Why UK Retail Sales Slumped in H1 2019 (and How to Fix It)

How to Win at Omnichannel Retail

The rise of omnichannel is one of the most significant revolutions in the retail industry. But what exactly does “omnichannel” mean, and how should retailers adapt to this sphere of influence? Keep reading to learn...

The rise of omnichannel is one of the most significant revolutions in the retail industry. But what exactly does “omnichannel” mean, and how should retailers adapt to this sphere of influence? Keep reading to learn everything you need to know about omnichannel and get tips on how to build the right strategy for your business. What is omnichannel retail? Omnichannel retail is an approach which gives consumers a unified, seamless shopping experience across all physical and digital sales channels. This means your store is connected on all fronts — from the app your customers have on their phone all the way to the checkout counter at your physical location. It’s important to distinguish a truly omnichannel experience from “multichannel” retail. Multichannel retail is selling through multiple channels, such as desktop and a physical store. But what separates multichannel from omnichannel is the unified experiences across your platforms. Having an app for your customers is an example of multichannel. Connecting that app to their in-store experience or the open shopping cart on their desktop makes the experience seamless across the board and makes it a unique omnichannel interaction. Omnichannel is increasingly important in retail, and the modern, tech-savvy consumer is the driver of the trend. Because of our increasingly interconnected world, consumers expect interactions from their phones to run flawlessly. And consumers will ditch the app at the first sign of friction in the process. We live in a “golden age of user experience” according to Jason Spero, VP of Global Performance Solutions at Google, and that demand for ease of use bleeds into our offline lives. Why does omnichannel matter? Omnichannel retail matters for one major reason: consumers demand the experience. In essence, omnichannel retail provides consumers with what they crave – convenience. Namely, omnichannel gives consumers reassurance they will receive the same seamless experience no matter where, when, or how they shop. However, just because consumers seek omnichannel experiences isn’t the only reason retailers should care. Looking at omnichannel data opens up a whole new world of opportunities for cross and upselling and illuminates a range of missed sales opportunities. In other words, by adjusting your thinking to an omnichannel mindset, you might uncover hidden opportunities for profit and margin growth. Some examples of omnichannel retail The phrase “omnichannel strategy” is an umbrella term, and, in truth, there is no single “right” way to optimize your business for omnichannel. Instead, there are numerous ways omnichannel expresses itself. The ROPO effect The “Research Online, Purchase Offline" (ROPO) effect is one of the shining examples of omnichannel retail. In the information age, consumers have access to everything they need to know about most products you sell from sources you do not control. As a result, by the time they get to your webshop, they likely know exactly which model they want. For many types of products though, many consumers won’t purchase online. Instead, they’ll visit your webshop (or see your Google Shopping advertisement), then go to your physical store to make the final purchase. The reasons why vary. Sometimes consumers want the product immediately, and they simply check your online store to see if you have it in stock at the nearest location. Another common reason is consumers want to see and feel the product before buying. This is particularly pertinent for fashion products where consumers want to check the fit before paying. Regardless of why a consumer does it, the effect of your online presence on your in-store sales might be extraordinary. That’s why you need to consider in-store sales data in your online marketing decisions on products where the ROPO effect is high. Even if you don’t sell a lot online, it might be worth investing heavily in the marketing to show consumers you carry a product in-store. Retailers can also embrace the “order online, pick up in-store” model that is gaining popularity. Crafting user experience through augmented and virtual reality Many retailers and companies are creating interactive omnichannel experiences for their customers with augmented and virtual reality. These experiences not only cultivate customer loyalty and interactivity, but they are also effective commercial sales points. A shining example of this is the IKEA Place app, which uses augmented reality to help consumers understand which IKEA products will look great in their home. This “try before you buy” concept reduces major consumer frustrations that are an inherent part of the furniture-shopping experience. Just check out their video below to see how it works. Pure online players opening physical stores A third example of omnichannel is the high number of traditional, online-only retailers who are opening physical locations around the planet. From Amazon to Warby Parker, “pure players” around the world are adapting their businesses to capitalize on the growth of omnichannel. This last example is interesting because it illuminates how mainstream omnichannel is: internet companies want to create physical experiences for their clients while brick-and-mortars strive to reach customers beyond their physical walls. Companies from both ends of the spectrum are adopting strategies to end up somewhere in the middle. Tips for developing your omnichannel strategy Omnichannel is the future of retail, but how do you build a strategy that meets your company’s goals? Let’s look at our top tips for winning at omnichannel: Tip 1: Think about your commercial objective Implementing an omnichannel strategy for the sake of joining the omnichannel sphere is a risky venture. Omnichannel can quickly become expensive if you don’t think about it strategically. Ask yourself why you want to implement an omnichannel strategy. Do you want to: Increase customer loyalty? Capture more sales? Solve a customer pain point? Drive more foot traffic to your store? Answering these questions should give you an idea of what kind of strategy you should implement. And as with all new strategies, use your commercial objective as a compass to guide your decision making. Tip 2: Ensure the same prices across all platforms One of the easiest ways to disrupt the consumer experience is to display one price on your app, a different one on your webshop for the same product, and a third price in-store. Since consumers are interconnected and research heavily before purchasing, they’ll notice these differences instantly. This rips them out of the experience you’ve crafted and leaves them with more questions than answers. Keep your prices are the same across all platforms so your customers stay captivated with the experience. An easy way to do this is with electronic shelf labels. Tip 3: Centralize and integrate your pricing and marketing data Omnichannel is an entirely new area in retail. So the historic ways of thinking about the industry won’t lead to a successful strategy in this new realm. The traditional silo mentality of pricing and marketing as two different departments doesn’t translate well into this new, 21st century model of retail. Instead these arms of your organization need to connect and collaborate. Click here to download your free copy of Why Pricing and Marketing Go Hand-in-Hand Software can centralize all of your pricing and marketing information in one place. You can then use this software to change your pricing or marketing strategy according to your omnichannel strategy. Software can also help you centralize all your data points, both in-store and online, so you can have all the information you need to make more strategic decisions. With Omnia you can include internal information like your stock levels or purchasing prices with external data to build a more informed omnichannel strategy. Final thoughts To execute a successful omnichannel strategy, you need the right tools. Without the ability to collect, store, and analyze data points on all of your products, you won’t be able to build the best strategy possible. Omnia’s tools give you the building blocks for your omnichannel strategy. By helping you organize and evaluate your pricing and marketing information, Omnia illuminates different opportunities that are useful metrics as you enter this new sector. Interested in learning more? Reach out today to request a demo of our software and speak with one of our consultants about your omnichannel goals.

How to Win at Omnichannel Retail

5 Benefits of Electronic Shelf Labels

Retail is one of the most innovative industries out there. In recent years, one of the most interesting changes to hit the industry has been Electronic Shelf Labels (ESLs). These “electronic” versions of price tags use...

Retail is one of the most innovative industries out there. In recent years, one of the most interesting changes to hit the industry has been Electronic Shelf Labels (ESLs). These “electronic” versions of price tags use e-ink to display a price and are connected to a computer database. This labelling technology makes changing in-store prices as easy as typing a new price into the software and clicking “send”. These digital price tags have numerous benefits for retailers. But ultimately, the greatest advantages of electronic price tags for retail are the ability to engage in real-time dynamic pricing in-store and build an omnichannel experience to enhance customer loyalty. Interested in learning more about the benefits of these price tags? Here are 5 reasons brick-and-mortar retailers should consider the investment in retail label shelf holders. 1. Accurate pricing across channels The internet has completely transformed how people shop, and it’s not uncommon for consumers to price check an item while they’re standing in a store. Shoppers lose trust in a company if the in-store prices don’t align with the online data display, and unfortunately this is often the reality they encounter. An electric labelling system, however, completely change that interaction. With one standardised pricing system, your customers won’t be disappointed by price differences anymore. Instead, your company can immediately reflect any online price change in-store. Digital shelves also allow you to align your promotion prices, audit trails for your headquarter to check changes, and fix any pricing errors. Each of these keeps your prices accurate across the board and ensures your customers see your optimal price. Image courtesy of DisplayData 2. Shelf edge influence The shelf edge is one of the most important sales influencers. Most purchases are made at this point — so you want to make sure your pricing information is accurate. A price label is prone to human error. It’s also a slow process, and by the time you finish re-labeling, prices might have changed again online. This is especially true in regards to pricing electronics in an attempt to compete with online and offline competitors. With ESLs though, these changes are easy, so you can capture more sales at the shelf edge. You can react competitively to price changes, enable instant promotions, track what promotions work, and protect margins on time-sensitive stock. You can even create offers based on where a specific customer is standing in the store with just a few clicks. 3. Enhance your omnichannel experience It’s no secret that omnichannel is the future of retail. According to Planet Retail, 56% of consumers feel that technology improves their shopping experiences. Image courtesy of DisplayData How do ESLs help you build a successful omnichannel experience? ESLs enable you to interact with your customers in ways that were previously impossible: Display stock levels so customers know whether the supply is limited Display online prices of competition so consumers can trust you when you say you have the best price Enable simple ordering with QR codes Display reviews of products, so shoppers can understand what others like or dislike about a product And these are just a few examples of the opportunities in using retail pricing tags! 4. It’s not as expensive as you think Here’s the thing: ESLs do require an initial investment. And if you’re unsure about whether you will use them, it’s understandable why you might be skeptical of moving forward with the technology. But with the shelf edge being the last — and most powerful — point of influence on a sale, the ability to control what a consumer sees at the push of a button is priceless. And the process of installing and configuring the electronic shelf labels isn’t as hard as you think: Minimal construction and installation: Electronic shelf labels are easy to install and can be set up with a simple screwdriver. They’re also easy to configure using the provided software High security with low maintenance: ESLs operate on an unused WiFi network for maximum security from interference at low maintenance for retailers Easy to use: Most ESL softwares are easy to use and learn. Just drag and drop the information you’d like to display and you’re done! After installation, your employees no longer need to monitor the price tags each day. The centralized system makes it easy for one person to control all pricing changes on the shop floor. 5. Payback is quick According to DisplayData, the payback for ESLs is high. The company reports in-store sales typically increase by 6%, with a typical margin increase of 2%-3%. The payoff in transitioning shelf labels is also fast. One of DisplayData’s customers, a major European retailer with over 800 stores, secured a payback on their investment in just 16 months and predicts over 170% ROI in the next two years. If you zoom out to 5 years, the retailer expects their ROI to increase by 400% Conclusion Creating an innovative omnichannel experience is all about connecting stores and online. And the shelf edge is no exception. Retailers should carefully consider this key moment in the omnichannel buyer’s journey and recognize that electronic shelf labeling is one of the easiest ways to connect the two domains. Read more: The Ultimate Guide to Dynamic Pricing Omnia can easily connect to ESL systems like DisplayData, which allows you to create a cohesive omnichannel experience based on the most up-to-date pricing and marketing information. Want to learn more? Get in touch with Omnia today. Click the button below to sign up for a demo and one of our consultants will be in touch.

5 Benefits of Electronic Shelf Labels

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