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With footfall on the high street reported to have declined month on month over the previous quarter, retailers are under pressure. A decline in confidence is affecting trade. There’s also the significant shift to online, with e-commerce growing 16% year on year, which, although decelerating compared with previous years, is still growing faster than stores. And, finally, there’s the move to the discounters. Read the rest of Tim’s article here, in which he discusses retailer’s market share and shares his tips for regaining customer loyalty over the Christmas period.
Whether Amazon, Uber or Alibaba, there's a lot written about these digital-only players and the impact they're having on the traditional high-street and more traditional businesses. But maybe they're missing the real challenge - customers just don't want what you sell. Or more specifically, how you sell it. You can argue about tax advantages, skirting existing regulations or the perceived benefit of not being tied to an existing estate of bricks and mortar stores. However, the real advantage these digital businesses have is simply a focus on the customer rather than the product.
Retailers understand that loyalty programs are crucial to their success, not only in terms of generating incremental purchases but for better understanding their customer behaviors, preferences and motivations. But what makes a loyalty program effective? Are there key pillars retailers must embrace to get loyalty right? And what happens when consumers – and the retail landscape itself – starts to evolve?
Marks & Spencer has just announced an exclusive joint venture UK partnership with startup accelerator Founders Factory to develop emerging retail technologies. The news follows barely a month after forging a partnership with Microsoft to integrate AI technologies into its customer experience, stores and wider operations, as highlighted by Eagle Eye CEO Tim Mason last month.