How to drive more sales in-store this festive season
Simple, proven strategies to stand out this festive season.
Welcome to retail’s most critical period.
The final few weeks of the year are crucial for any retailer. But after a year of on-again, off-again lockdowns and store closures, many merchants are hoping for an extra special festive season.
That’s why Afterpay’s Retail Studio Team has produced a special webinar (below) dedicated to helping retailers win the peak trade period. We’ve also compiled this article, recapping the key points and insights, in case you’d like to delve into the topics in more detail.
We wish you a happy – and successful – sales season!
What’s in this guide to winning peak in-store trade
Why this sale season is different
Why in-store is critical for the omnichannel shopper
Understanding your customer and the Covid-19 impact: Meet 2021’s holiday shoppers
How to make your store stand out from competitors
How to identify key in-store moments with customers and maximise sales
A very special – and different - sales season
This year is shaping up to be a festive season like no other.
For many Australians, the combination of emerging from lockdown and celebrating the holiday season makes for a uniquely joyful moment. In fact, Afterpay’s recently released Festive Forecast report, which surveyed 1770 people, found that most are feeling excited about the festive season.
That’s positive news for retailers, says Jacqui Allin, Afterpay’s Retail Experience Lead. In fact, the Australian Retailers Association (ARA) expected that Australians will spend nearly 59 billion in the lead-up to Christmas - This is well above pre-pandemic numbers.
Why in-store matters
Although online shopping soared during the pandemic, the in-store experience should not be overlooked, says Allin. “Research suggests that the more channels a consumer uses, the more brand loyalty they have. In fact, our omnichannel customers spend 56 per cent more than online-only customers.”
In addition, Afterpay’s Festive Forecast found that 81 per cent of Australians plan to do some of their shopping in-store this festive season.
PART 1: Understanding your customers’ behaviour
This year, Afterpay’s Insights Team, led by Dr Flavio Souza, identified four distinct customer personas, and determined their shopping motivations and triggers. This data was all driven from Afterpay’s Festive Forecast report.
Customer personas
Local Lucy
- Buys locally and from small businesses
- Represents 37% of Gen Z
- Spends $73 on average
In-store Isaac
- Favours in-store shopping
- 14% of Gen Z
- Spends $117 on average
Zoomer Zoe
- 17% Gen Z
- Spends $152 on average
Discount Dave
- 21% Gen Z and Millennial
- Favours discount shopping
- Spends $288 on average
Dr Souza notes that while Local Lucy, In-store Isaac and Zoomer Zoe tend to be motivated by “love and care”, and plan to buy presents for their parents, Discount Dave is more interested in buying products for himself.
To succeed this sales season, it’s important to consider who your customers are, what motivates them and what their spending triggers are likely to be, says Dr Souza.
Are they Discount Daves, who are spurred on by sales events and VIP shopping nights? Or are they more likely to be Local Lucys who are more likely to be wooed by personalised touches like gift-wrapping?
PART 2: Stand out in store
Shops may be open again, but the retail landscape has changed forever. E-commerce sales are up, buy-now-pay-later services are growing and consumer expectations have changed.
In short, says Caroline Stensved, Afterpay’s Retail Experience Lead (ANZ), expectations are “higher than ever”.
After months of lockdown, customers are looking for a personalised experience and even a sense of entertainment – which presents a unique opportunity. “This is an amazing time for retailers to capture customers’ attention, create unforgettable experiences and build those authentic customer relationships that simply can’t be replicated online,” says Stensved.
Stand out with an omnichannel approach
One way to drive customers in-store is to take an omnichannel approach and leverage your digital and social audiences and data.
Dive into your data
Unlock your most valuable insights by analysing your online data. Review which digital strategies worked over the past year, who your shoppers are, what they bought and, crucially, whether your store layout and design is set up to cater to this audience. Tools like Google Analytics and HubSpot can help you understand your customers and make data-driven decisions.
Try a breadcrumb strategy
“This is about creating a path to purchase that guides your customers in store,” says Stensved. Taking its name from the well-known fairytale, the so-called breadcrumb strategy is essentially an omnichannel approach. It might involve using your social and digital channels to let customers know you’re on sale, offering ‘advent-style’ daily deals and holding exclusive in-store events, followed by a limited-time sale offer to add urgency and entice customers in-store.
“The key to this strategy is ensuring that your messaging across online and in-store marketing is consistent and tells a story that is aligned with your brand and the messaging you’re trying to get across to your customers,”
Make the most of Afterpay
“All of us here at Afterpay want to help retailers succeed in every aspect of their business. After all, our mission is to empower an economy in which everyone wins,” says Stensved. “We want you to get the most out of our partnership and know that you can turn to us in the Retail Studio Team for ongoing support.”
To leverage Afterpay, Stensved recommends using the always-on assets available here to remind customers that you have Afterpay. “These have been designed as your silent sellers.”
Afterpay's Business Content Hub, is also filled with tips, advice and success stories – offering everything from holiday sales examples, stories about how to convert sale shoppers into long-term customers and interviews with merchants who share their tips.
Stand out by having fun with your store design
Customers’ sales journeys begin before customers even enter your store. “So what’s capturing their attention, and making them want to walk into your store?” asks Stensved.
Consider your store design and window displays. For example, Swarovski’s latest store design helps convey its exclusive positioning, and the pink and green spaces are a creative way to capture shoppers’ attention.
Stand out by creating a sensory experience
Touch
Offer shoppers the opportunity to touch and feel your products. If you’re a beauty or spa brand provide testers.
Taste
If you’re a clothing store, consider offering champagne or chocolate.
Sight
How are your products grouped? Consider creating beautiful gifting tables or creating outfits. Think about aesthetic aspects of the shopping experience like beautiful gift-wrapping or even reusable bags, which offer ongoing brand exposure.
Sound
Upbeat music can create urgency, while Christmas music encourages shoppers to think about gift-giving. Does your music match your brand intentions?
Smell
The right scent can help create an instant emotional connection – whether it’s a scented candle or fresh flowers.
PART 3: How to identify and make the most of key shopping moments
“Once your customers are in-store, the focus is on identifying key sales moments”, says Caitlin Bennett, Afterpay’s Retail Experience Lead (ANZ).
This is where investing in staff comes in. “They are your secret weapon in-store,” says Bennett. “They are the ones who create those special human connections and unforgettable customer experiences. They are the ones who can understand customer wants and needs and have the ability to boost customer purchasing power and to close the sale with confidence.”
To succeed, your staff need to have access to the right tools and phrases. For example:
When customers first walk in
This is your first opportunity to engage your customer and capture their imagination or strike up a rapport. “Instead of simply asking, ‘Hi, how are you?’ every single time, try to get the conversation going in a more natural way,” says Caitlin Bennett, Afterpay’s Retail Experience Lead. This might mean complimenting a customer on their shoes or enquiring after their baby’s age.
Another approach is to bounce conversation off another sales colleague. For example “My colleague and I are so excited that we’re going to get out again, what about you?”
When customers are browsing
If a customer is clearly looking for something specific, ensure you give them a sense of space, while also offering your assistance.
For example: “Please feel free to let me know if you’re looking for anything in particular. I know the stock really well and we have more in the back room, so feel free to give me a shout when you’re ready.”
When customers are deliberating
Let’s say a customer is struggling to decide between two dresses; one is from the sales rack and the other is a newer piece, and she is leaning towards the less expensive dress because of budget concerns. This is an opportunity to use Afterpay as a sales tool to drive up the average transaction value, says Bennett.
For example: “Just letting you know we do offer Afterpay in-store if that’s helpful. That would mean you’d pay the first quarter today and the rest over four weeks.”
For more insights, head to Afterpay’s Content Hub or access Peak Trade resources here. If you have any questions, don’t hesitate to reach out to Afterpay’s Retail Studio team at [email protected].
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