As fashion stores in the UK remain in lockdown, retailers are busy
behind the scenes looking at ways to mitigate the impact of the pandemic on
their businesses and, for those lucky enough to be able to reopen once it
has passed, ways to adapt to a post-Covid-19 world.
A new report from UK payments provider Klarna based on a survey of 2,000 UK shoppers
highlights how emotional brand connection, word of mouth and in-store experiences are key for
retailers to stay relevant.
In-store experiences remain key
When stores begin to reopen, in-store experiences will continue to play
a huge role in the world of retail, especially when it comes to customer
acquisition, according to Klarna. Thirty-five percent of consumers say they
are more likely to shop somewhere with an enjoyable in-store experience,
while 30 percent said it would likely increase their spending. One-fifth of
the Gen-Z generation said their first interaction with a brand was through
a pop-up shop or physical experience, with the demographic the most likely
to value in-store services such as Wi-Fi, food and drink and charging
stations.
Consumers want smart and funny ads
Creating an emotional connection with consumers is critical for both
retaining customers and acquiring new ones, according to Klarna. A third of
consumers (33 percent) said intelligent or humourous advertising encourages
them to visit a brand or retailer’s website or store. That strategy is
particularly important for the younger generation, with 39 percent of
16-34-year olds saying it was the most likely factor to influence their
visit. In contrast, consumers are being increasingly put off by traditional
marketing solutions, with 49 percent saying they get irritated when brands
get personalisation wrong, and 59 percent feeling dissatisfaction when they
see targeted ads for items they’ve already looked at or purchased.
‘Customers want to be acquired’
Companies should not become complacent with their customers or they will
likely go elsewhere, according to Klarna. Two in five (40 percent) say that
they are loyal to a number of ‘loved brands’ they shop with to a certain
extent, but almost all (97 percent) would shop elsewhere if they saw
something they liked. When finding new brands, price remains shoppers’ key priority (58
percent), while flexible payment options are also becoming increasingly
important (18 percent).
Don’t ignore word of mouth
As companies increasingly focus on digital marketing spends, Klarna
found that word of mouth shouldn’t be underestimated. Three in five (60 percent) said that
when they love a brand or retailer, they’ll actively try and convert their
friends, with the factors most likely leading them to recommend a brand
including an enjoyable in-store experience (16 percent), a good user
experience across all devices and channels (15 percent) and a good returns
process (14 percent).
Laurel Wolfe, vice president of marketing at Klarna commented in the
report: “In today’s world, marketers across the globe are being challenged
to think differently about how they approach customer acquisition and
retention – especially in light of the current situation. Our report
highlights the importance of selecting well-connected partners.
“By being strategic with their partnerships, retailers will see cost
efficiencies, increased sales and the flexibility to redirect budget to
areas where it could be better spent.”
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