Post-COVID Keys to Retail Success

I imagine some of you have read several theses on what it will take for retailers to thrive in a Post-COVID economy. Well, I didn't want to be left out so here are my own hot takes:

1) Wherever/Whenever/However - Forget any of the former monikers including Omnichannel, Bricks and Clicks, BOPIS, Curbside service, yadda, yadda, yadda. The consumer wants to shop the way he/she wants - period. It could be on social platforms, through a physical catalog, on a mobile device in a texting app, browsing marketplaces, coursing malls...The fact is IT DOES NOT MATTER. The consumer decides how they want to engage and retailers need to adjust to being there in whatever manner necessary to make the sale

2) Experiential - Paired with #1 above, retailers need to provide a compelling experience in whatever manner the consumer engages. To be honest, I find most retailers' websites lacking on this measure. Most websites I view need to become more dynamic, engaging, and creative. Compelling content would help (such as Yeti) or leveraging more dynamic video features such as AR/VR capabilities would help. In-store, it is even more important to provide some form of entertainment and a unique and compelling experience through incredible staffing, unique features (like Canada Goose's Cold Room), and/or storytelling. In order to drive traffic back into stores, retailers need to provide reasons for consumers to get off their couch or their WFH office chairs and walk into the merchant's stores

3) Connectivity - This is more than a one-to-one marketing philosophy. This includes developing true connections with your consumers (which we will address in the next point) and also deep and lasting engagements with employees and vendors. As we have learned from this devastating pandemic, we are all inter-connected, whether we like it or not. We need to work together to solve major issues. In that context, retailers need to work in partnership with their vendors, suppliers, landlords, investors, and stakeholders to thrive in the future. The "Power of AND" can also be defined as working together so relationships can develop "Win-Win" strategies and avoid zero-sum games. I don't believe there is any other way any longer

4) Personalization - The development of algorithms to hone in on personalizing the shopping experience online is breathtaking. While the race to reduce the Cost of Acquisition (COA) is crucial to improving profitability online, developing more granular messaging to increasingly narrowly targeted individuals is the future. While an in-store experience could be perceived as the ultimate personalized experience (especially with the right sales associate and approach), each interaction with a consumer needs to make that person feel special and unique. Subscription-based merchants have an advantage as they are collecting individualized data based on surveying actually stated preferences and working those into that customer's purchasing and return habits to create an ultimate profile that can be leveraged for years to come and monitor how their tastes and preferences change. These can then be leveraged to generalize about certain segments which will, in turn, reduce the COA as they more effectively target their marketing campaigns. Text marketing, A/B testing, Facebook IQ, leveraging micro-influencers, all facilitate personalization

5) Sustainability - While the earth keeps warming and creating havoc on our ecosystems and weather patterns, humankind is finally starting to wake up to the fact that dire measures need to be taken to reverse the decline (or at least stop it). We have seen an influx of resale merchants, rental initiatives by the larger apparel retailers, and pledges to reduce carbon footprints within the next 10-20 years. Years ago, it started with leveraging "recycled" or "recyclable" fabrics or products. These can be misnomers and consumers need to be very careful when merchants make these claims. Today, all sustainability initiatives need to be evidence-based and easily understood. Product pipeline transparency is crucial as is accountability. One such company that has developed a scoring system to hold companies such as Allbirds accountable is Good on You. This is an important step to ensure companies are not in the greenwashing business but actually making a difference to protect our environment. Consumers now demand there be action taken on polluting less and upcycling more

6) Collaborations - "Leading with AND" provides an open mindset to be available to consider unique and mutually beneficial collaborations and partnerships. The Allbirds x Adidas futurecraft.footprint shoe is a prime example of that kind of forward collaborative thinking that merchants must embrace to move forward and tackle the really big issues of our time. Collaborations can alter a consumer's perception of a brand and create an entirely new customer base. Do not underestimate the power that the right collaborations can have to move markets and increase brand acceptance and revenue generation

7) Humility - While not one list I have read includes this trait as essential as any to a retailer's success moving forward, I would posit it may be the most crucial harbinger of future success. As we have all experienced (even personally) that a microbe can bring businesses and even nations to their knees. We are all vulnerable and no entity is invincible. I believe that has humbled even the most vainglorious. Consumers will look to retailers to admit their vulnerabilities and shortcomings and work publicly to improve them (see point #5 above). Consumers will demand transparency in every facet of any business. The consumer will enter into a notional contract with a merchant based on how honest, earnest, transparent and forthright they act each and every day. There may be disappointments and failings, but as long as the retailer comes clean with the shortcomings and shows publicly that it has learned from them, consumers will give them the benefit of the doubt

Lloyd A. Perlmutter is the Founder/President of Veritas Advisory, LLC and has been leading and advising organizations for over 35 years. Call 248-794-9673 to have a meaningful and powerful conversation