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How A Hybrid Model Can Help Retailers Survive The Online-Shopping Trend

How A Hybrid Model Can Help Retailers Survive The Online-Shopping Trend

With shoppers finding much of what they want online, the future of the brick-and-mortar store can seem bleak.

Such major retailers as J.C. Penney, Lowe’s, Gap and Family Dollar, among many others, have announced plans to close at least some stores across the United States this year.

Is it possible, though, that an answer for what’s troubling retailers these days could be a hybrid model that marries digital with an in-store experience? Already some are trying such an approach, as when Amazon opened a Black Friday pop-up store in Madrid where customers could browse, scan the QR code to learn more about any item that drew their interest, and instantly make a purchase online.

“This no-pressure concept is becoming increasingly popular as today’s customer strongly rejects any hard-sell tactics,” says J.J. Delgado (www.jjdelgado.xyz), a former Amazon marketing manager in Europe who led the largest sales day in the company’s history.

“Instead, they favor an environment that allows them to make their own choices based on all the information that is available to them.”

Retailers have been facing a sea change in their customers’ shopping habits for some time now. A recent Harvard Business Review article pointed out that some stores are handling the problem by cutting the number of employees and reducing the amount of training they give employees. But the three Wharton School of Business professors who wrote the article conclude that approach is counterproductive.

In Delgado’s view, retailers can’t waste time lamenting what was. They need to adapt to what is.

“The future of shopping is not in decline, it is evolving,” he says.

Delgado offers a few suggestions on how a hybrid of digital with brick-and-mortar can work for retailers determined to survive in the digital marketplace:

The customer must experience something they can’t online. Shopping has become a multi-sensorial experience that goes much further than a mere retail transaction, Delgado says. It is about replacing the traditional shopping experience and putting the customer at the center of the whole retail process. “The customer wants authenticity and something of real value, not just monetary value but emotional value,” he says.

Store staff must provide the human connection not available online. “That human connection is the store’s trump card and they must play it right,” Delgado says. “Maximizing that connection and combining it with online connectivity is fundamental to creating the ideal hybrid experience.”

Companies must seek innovative ways to manage their new reality. The changing retail landscape is paving the way for deals between manufacturers, retailers and delivery companies to create ‘mashups’ that allow them to combine their strengths and combat their weaknesses, Delgado says.

“Amazon is the main player in this game, as we have seen with their acquisition of Whole Foods Market,” he says, “but many others are following suit.”

One example is the clothing chain Zara. The chain’s London store features interactive mirrors and high-tech facilities, and combines traditional shopping areas with online areas where customers can scan QR codes and make orders that in many cases are instantly delivered to the store on the same day.

“Some see the digital transformation as the cause for store closures, but it’s very possible that this same digital transformation also could provide the solution to retail woes,” Delgado says. “It is clear that we will soon see more hybrid-retail strategies as retailers seek ways of consolidating their online and offline presence to deliver a seamless customer experience.”


About J.J. Delgado

J.J. Delgado, co-author of Think Video: Smart Video Marketing & #Influencing (www.jjdelgado.xyz), is a professional speaker and digital-marketing expert. He is a former employee of Amazon who led the largest international-sales day in the company’s history. In addition, he was recognized as one of the Top 15 unofficial LinkedIn influencers of 2018. He has helped drive the growth of many organizations, including Amazon, Burger King, Pepsi, Hertz, Ford, Liberty Mutual and others.












generation

What Buying Habits Tell Marketers About Each Generation

Each generation has unique experiences, lifestyles, and demographics that influence their buying behaviors, financial experts say. And studies show these distinguishing factors often lead to different spending habits between generations.
As a result, many companies are reaching out to consumers and trying to understand — and gain the attention of — these diverse buyers, says Gui Costin (www.guicostin.com), an entrepreneur, consultant and author of Millennials Are Not Aliens.
“This type of multi-generational marketing is the practice of appealing to the unique needs and behaviors of individuals within different generational groups,” says Costin. “In terms of finding and retaining buyers, companies cannot underestimate those generational differences.”
Costin discusses how the buying habits of different generations are influenced by environmental factors and how businesses must focus their marketing efforts accordingly:
Millennials. Now comprising the highest percentage of the workforce, this generation (born roughly from 1981 to 1995) receives considerable marketing attention. Many millennials grew up immersed in the digital world — a big difference from previous generations — and they think globally. “Attract this group early and earn its loyalty by appealing to their belief that they can make the future better,” Costin says. “Traditional mass marketing approaches do not work well with younger consumers. Be sure they know that your organization’s mission speaks to a purpose greater than the bottom line, e.g., globalization and climate change. Give them systematic feedback because they value positive reinforcement at accelerated rates and want more input.” 
Generation X. Following the baby boomers and preceding the millennials, their tastes are different from previous generations. “Because they have greater financial restraints, they often shop at value-oriented retailers,” Costin says. “On the other hand, they have a reputation of being incredibly disloyal to brands and companies. Generation Xers like initiatives that will make things more useful and practical. They demand trust to the extent that if your organization does not follow through once, then you are likely to lose them.”
Baby Boomers. This demographic group, with many now in retirement or nearing it, includes those born from 1946 to 1964. Health is a major concern, and change is not something they embrace. “They appreciate options and want quick fixes that require little change and instant improvement,” Costin says. “They do not like bureaucracy — but give them a cause to fight for and they will give their all. Focus on building value and they will be less price-sensitive. While this group may be aging, they’re focused on breaking the mold of what 60 and beyond looks like.” 
The Silent Generation. Born between 1925 and 1945, this group represents the oldest Americans and, Costin says, typically is labeled with traditional values such as discipline, self-denial, hard work, conformity, and financial conservatism. “It’s important to earn their trust,” says Costin, “as they believe that a person’s word is his or her bond. Patriotism, team-building, and sacrifice for the common good are appealing to this generation. As a group, they aren’t particularly interested in the information age; however, the younger members of this generation are one of the fastest-growing groups of internet users.”
“Communicating with customers in different generations can be challenging,” Costin says. “However, all generations appreciate honesty and authenticity. As environmental factors change, transparency and genuine interactions remain important to everyone.”

Gui Costin (www.guicostin.com), author of the No. 1 Bestseller Millennials Are Not Aliens, is an entrepreneur, and founder of Dakota, a company that sells and markets institutional investment strategies. Dakota is also the creator of two software products: Draft, a database that contains a highly curated group of qualified institutional investors; and Stage, a content platform built for institutional due diligence analysts where they can learn an in-depth amount about a variety of investment strategies without having to initially talk to someone. Dakota’s mission is to level the playing field for boutique investment managers so they can compete with bigger, more well-resourced investment firms.