Why Are Online Retailers Moving Back to Brick-and-Mortar Locations?
Operating an online retail store has its perks. For one, there is no need to pay rent on storefront properties, and you don’t have to pay overnight cleaning crews or maintenance workers to keep the store presentable and operational. It’s also possible to save money on staffing since online retailers require less manpower and managers need not waste time juggling employee schedules and filling gaps with budget killing overtime hours.
Things are easier to control online. Every customer sees the same pristine home page, product displays are never jumbled or misplaced on the wrong shelves and the check-out is quick and easy (albeit customers need to wait for shipping). So if it's possible to save money, operate with fewer people and allocate time more effectively with a solely online property, then why are more and more online retailers like Amazon and Google opening solid, brick-and-mortar locations?
Studies show that a growing number of consumers are looking for experiences and not just products. While shopping online provides ease, there is little to be had as far as experience is concerned. Providing a physical space and allowing people to interact with your brand makes for a more memorable and meaningful shopping experience.
Becoming More than Just Keyboards and Computer Screens in the Eyes of Your Customers
Not all online properties have the ability to open physical storefronts or even temporary pop-ups, but that doesn't mean it’s impossible to find ways of getting people to experience your brand. If you’re looking for a way to get people involved with your online company, offering challenge coins to your customers is a great place to start. They can be awarded to customers who make large purchases, included as a welcoming gift when customers join rewards or loyalty programs or just offered for sale as company swag for people supporting your brand.
People tend to remember physical experiences over digital ones. There have been studies conducted on our ability to comprehend written information on a digital platform over a physical piece of paper, and the results lean towards physical items as being easier to understand and remember.
The main focus was the difference between digital books vs physical books, and the discussion gets into how our brains are wired to use all of the senses as mental reference points to interpret things in the physical world. With a book, it’s easy to monitor progress and to see the beginning and end, hence a clear understanding. Your brain interprets the smooth textures of the cover, the smell of the paper and even uses the tops and bottoms of pages to remember physical locations for information. With digital information, there is less for your senses to interpret and interact with, making it less memorable or even meaningful.
While this information pertains to text, it points towards the fact that being able to interact with something physical creates a more meaningful and memorable experience. It's for this reason that retail stores of all different kinds put so much effort into the lighting, aroma and music in their stores. These sorts of things make a brand unique and shape the experience of shopping in a specific store. No one goes to Starbucks because they want to pay $5 for a cup of coffee. They go there because of the experience of being at the coffee shop. The smells, the sounds, the earthy textures of the wood tables and leather chairs by the window.
There is a difference between retail and food service, but the principle is the same. People want to experience your brand. While something like a challenge coin doesn’t offer as much physical experience as an actual storefront, it does give your online customers something to connect to your brand that is more than just a keyboard and computer screen. Coins with branded artwork have weight, intricate detailing and a substantial presence of quality. They’re beautifully unique, invite examination and the way they feel can even change how people interpret the meaning behind the coin.
The Balance Between Online and Physical Retail
In the United States, retail sales are on the rise for both online and old school brick-and-mortar locations. Some point to the fact that online sales are rising faster in percentage points than regular retail sales and conclude that the old school storefront approach to shopping is on the way out. It’s true that online retail sales are rising faster than sales at physical stores, but the fact remains that in 2018, about 90% of all retail sales were spent at physical stores and not online. That means that when you divide up the 3.4 trillion dollars in the American retail economy, $30 were spent at the store for every $4 spent online.
So, what does all of this mean? The good news is that retail sales are up because the economy is up. It’s also good news for online retailers because people are spending more online every year. But it also means that shoppers crave something more tangible than just a webpage. What people want is a way to experience your brand. Custom coins are a simple way to get started. Some companies bring them to pop-up locations while others use them as promotional tools, but in all cases, they’re helping establish a physical connection between your online brand and your customer.
