Today, deciding who we would prefer to buy from is primarily dependent on where we plan to shop. When it comes to the Net, distance selling specialists such as the Otto Group, Zalando, and – first and foremost – Amazon are the frontrunners. So how should retailers respond to such ever increasing online competition? The answer is clear – they should focus on the aces that Amazon and the rest don’t hold.
Dr. Monika V. Kronbügel (PhD.), CEO of Global DiVision, reveals the secret of successful retailers, saying “that it isn’t enough to set up an online store and hire knowledgeable staff. Our studies have discovered that there are three key differences between successful and less successful retail chains.”
1. Successful retailers solve customers’ sourcing problems.
2. They offer high-quality, enjoyable in-store experiences.
3. They provide personal interaction and comprehensive advice – not only in-store but also before and after customers make purchases.
When combined, these three factors not only deliver a multi-sensory experience but also generate loyalty, the reason why customers give preference to a company and keep coming back. In addition to this, there is a high probability that customers will recommend the company to others.
Identification is an outcome of differentiation, building on an emotional relationship with a retailer that an online platform cannot achieve. While online vendors may have the advantage of extensive product ranges and high-level functionality, they can still only offer a transaction. Who buys from Amazon because they find the company likeable; because they think the employees have expert knowledge; or because they feel well taken-care-of when making a purchase?
When it comes to creating emotional ties with customers and winning their loyalty, small but crucial differences will, in future, become ever more important and thus also key to greater success online.