As per usual, this is a trick question! Read on to find out why…
Online shopping is bleeding brick and mortar retailers dry. A couple of decades ago, stores only worried about other stores. Now, they are competing against online retailers and distributors across the world. The latest statistic is that U.S. online sales will reach $523 billion by 2020. Will physical store locations die out?
Not all of them. But it’s a real possibility. Just look at The Limited, who began closing all 250 stores across the country last month because online shopping and major shifts in consumer behavior and interest lead to drops in sales from which they could not recover. Macy’s and Sears is also closing down hundreds of stores because of declining in-store sales.
We can pull two hard truths from these jaw-dropping retailer dives:
1. Customer experience (CX) has never been more important than it is right now. According to Gartner, more than 50 percent of organizations will make significant changes to improve customer experience by 2018.
2. Brick and mortar retail locations must step up their efforts to understand and align with consumer behaviors, wants and needs.
This brings us to the topic of the day - In-Store Video: Yay or Nay?
There’s no disputing the fact that video is one of the most effective ways to engage customers and enhance the brand/customer relationship. But what about the customer experience? Nay-sayers are concerned that buyers are over-exposed to advertising and will tune out to in-store attempts, rendering the investment worthless. On the other hand, today’s consumers are too diligent to ignore helpful content, and they watch videos on their phones in check-out lines already. Why not support their behavior with branded content?
Digital signs are 34 percent more effective at promoting than static images like posters.
84 percent of customers admit that watching a digital display at checkout makes the time go by faster.
40 percent of shoppers claim they are more likely to shop in a grocery store that has video screens in checkout lanes.
76 percent of shoppers want in-store content that shows them what’s on sale.
Here’s the kicker:
Well-produced in-store videos can have a significant positive impact on CX. When equipped with specialized software, they can also help retailers better understand their customers. But if retailers get in-store video wrong, the negative impact can be just as significant.
The key to successful in-store video is the same as any other type of advertisement; serve the right video content to the right person at the right time in the right place.
Tips & Best Practices for In-Store Video
1. Don’t skimp on technology
Go for HD quality displays and controlled sound acoustics. If you choose to work with a solutions provider to outfit your stores with digital equipment, choose a provider that can update technology every 18-24 months.
2. Focus 100% on the customer
This may sound redundant, but retailers are still missing the mark when it comes to delivering on customer expectations. And because many in-store video solutions are manufacturer-funded, there may be a disconnect regarding how well the provider understands the shopper and the desired in-store experience.
To provide relevant content to the right person at the right time, retailers require a fact-based understanding of their consumers’ behavior at the point of contact in-store. Smart beacons and specialized software will help develop this understanding by tracking and analyzing how customers interact with physical stores and video content.
3. Partner with a video marketing agency
Retailers will want to experiment with a mix of 10- 15- and 30-second video spots to see how they perform with in-store customers. A video marketing agency will help retailers develop a sustainable strategy for video creation that incorporates audience insights and sticks to time and budget considerations.
4. Design video displays according to the store
You wouldn’t design a print ad without knowing the specs for the publication. The same goes for in-store video. Specifically design the video content and display arrangements for the store environment.
Example: years ago, I worked at Journeys shoe store. Back then, their specialty was foot apparel for skateboarders, and their in-store experience expertly supported the “skater” audience. Journeys used branded in-store videos that featured pro-skateboarders shredding concrete to the latest punk music in select Journeys footwear. Each video display was strategically placed just above the cash registers and could be seen from any location in the store. As a staffer, I always had to redirect the customer’s attention to the register when it was their turn.
5. Vary your video content
Create branded in-store videos that offer product tips, how-to tutorials and other content related to the products on the shelf. Content that adds value will perform well with the customers. However, customers can also appreciate new headlines, the weather and other “off-topic” information as they wait in line or peruse your store isles.
6. Run ‘What’s on Sale’ videos
Create in-store video campaigns that promote your store’s best offers and sales. These videos add value to your shopper’s experience and may convince them to make a purchase they weren’t planning to make.In-store video is just one of several trends brands should be prepared for in 2017. Here’s a few more to keep in mind: 5 Important Video Marketing Trends to Be Ready for In 2017.
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