Ken McMeikan, the chief executive of Greggs, says in this week’s cover story that one way to save the high street is for shops to be so exciting and have such brilliant service, that people buy from them there and then, rather than online or with a competitor.
He says: “If people can buy goods as easily online [as they could in-store], retailers will have to think about why customers would come to their shops.
The service in shops has to be so good that it will encourage people to browse and buy in-store.”
As his chain, along with Costa and Subway, expands, he envisions a time when the high street might become more of a social hub than it is at the moment. But he points out that retailers and local councils must work together to try to make parking cheaper and shops easier to get to.
Meanwhile, I’ve been speaking to other retailers who have gone undercover in their own bricks and mortar shops, for a feature on mystery shopping out next week. All of them discovered new things about their brands and have made changes to how their businesses run, for the benefit of customers and staff.
For example, Ann Summers realised it wasn’t sexy enough, so revamped its marketing, after its deputy managing director disguised herself to work as a sales assistant.
The chief executive of Canadian waste disposal firm 1-800-Got-Junk found new business in rural areas and will expand into them, after he shaved his head, grew a goatee and spent time ‘slinging junk’ into its trucks. And a director at travel firm TUI saw that shop staff should be sent on more trips abroad to get to know its hotels and resorts - so they can sell more holidays.
The director, Nick Longman, worked at one of TUI’s high street travel shops on one of the busiest Saturday of the year. He went as himself, rather than undercover and says the experience helped him identify things that could be improved.
While many retailers practise management by walking around, it seems that even just spending one day working on the shop floor means learning fundamental things about their businesses.
How on earth can a retailer run well without doing so? The ‘frontline’ really is the ‘sharp end’ because it deals directly with one of the only things that makes money for a company: customers.
Recent research by agency Iris puts forward the idea of the ‘outsellers’, those retailers which consider the fifth ‘P’ of marketing: premium shopper experience. It cites an Accenture study showing that a quarter of shoppers have gone to another retailer because of a bad experience and just 8% would accept poorer customer service if it means they get a lower price.
With M&S launching an online outlet shop and Tesco trialling virtual fitting rooms via Facebook, it will be interesting to see how retailers also focus on making shopping in-store a brilliant experience.
Wed, 29 Feb 2012
1 March 2012
Tue, 21 Feb 2012
Readers' comments (1)
Lucy: the following comments are not in any way a criticism of your article ! But the most ridiculous thing about articles like this is that we even have to read them to be reminded of stuff that should be so mundane as to be second nature to ANY marketer ! Its astounding that such management and marketing ‘techniques’ have to be researched and ‘statisticalized’ in order to be brought to people's attention. One supposes it must fall into the category of “I’ve already forgotten more than you’ll ever learn, son” ?
A couple of months ago I read – in this esteemed journal – a report on IBM’s worldwide survey of CMO’s. In it was a comment suggesting Chief Marketing Officers were thinking perhaps they should start paying more attention to the bottom line of their businesses to guide what they do (!) … the second forehead thumper came when CMO’s added that maybe their marketing campaigns should be more customer-centric ? Double exclamation mark !
Personally I have made a point of working the shop floor, the factory or the customer front-line with just about every employer or client I’ve ever worked for. It always helps deliver marketing and brand management focused on what both the business and the customer want, and it’s consistently increased revenues, brand perception and market share for all my employers
When I was an 18 year old smart-assed upstart (as we all are when going through our university educations !) I made the mistake of trying to tell the foremen on our family farm how he should be doing a particular job one day. “hev you ever done this afore ?” he asked. “well no Freddie” I had to honestly reply (though I had studied it just that week !). “Well lemme tell you boy” he continued “I don’t care how many letters yer gonna have arter yer name, or how many certificates you might hev up on yer office wall – unless yer done a job, you ‘int never gonna be qualified to tell some other (expletive deleted) how to do it !”
Its become a business philosophy, along with common sense that’s served me well – and I’m delighted to hear that there still are some practical sensible people running and marketing businesses out there (accolades to Ken McMeikan of Greggs, Ann Summers deputy MD, 1-800-Got-Junk’s goatee’d CEO, and Nick Longman at TUI) among all the other CMO’s around the world who don’t seem to have a clue !
Andrew Richardson – Principal, ARCS