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Harrods, Nordstrom on same page: in-store, online consistency key

March 22, 2011

Harrods is a master at online and in-store consistency

Today’s luxury consumers are multichannel, tech-savvy and require a myriad of buying options that include a consistent in-store and online strategy.

Brands that have the same experience both in-store and online are more inclined to have better relationships and build loyalty with their customers. This will lead to a less confusing customer experience that can likely increase revenue in both channels.

“All brands should be integrating their online channel with the in-store channel because today’s consumer is a multichannel consumer,” said Larry Freed, president/CEO of ForeSee Results, Ann Arbor, MI. “They should have similar process and product, from inventory to check-out.

“Individual channels need to recognize this by making this transition smooth and easy, with consistent branding, products and content [so that] consumers will be more satisfied,” he said. “Luxury consumers are more likely to have the latest and greatest devices which can enable a multichannel experience that includes the mobile platform.

“However, some luxury products are less likely to be online, like super-high-end merchandise.”

Premium experiences
Luxury brands are first and foremost known for their impeccable customer service.

Affluent consumers who are willing to pay a premium for luxury products expect something in return. Whether this is in the form of free shipping, a gift with purchase or attentive and friendly salespeople, luxury brands are required to provide some kind of customer service.

Brands must incorporate this kind of customer service both online and in their retail locations.

When developing a consistent in-store strategy, brands should make sure that they emphasize a customer’s importance.

For instance, department store chain Nordstrom regularly has special events for its most valued customers. Some retail locations close down the entire store except for their most valuable customers, who are checked-in on a list.

Nordstrom serves these affluent customers cocktails and hors d’oeuvre, and they are treated to an exclusive shopping experience with an extra-attentive staff.

However, it is hard to offer the same kind of customer experience online, so brands have to digitally adapt to make sure that their consumers feel like they are being treated the same, even if they are on a different channel.

“It’s hard to maintain the same kind of customer experience online found in a retail store,” said Sid Banerjee, CEO of Clarabridge, Reston, VA. “Some companies use live video chatting to get that same kind of human interaction.

“Customers feel like they need to have control over the experience, and having someone to talk to them is a good way for brands to still get customers on the Web,” he said. “This especially applies to older customers, who may not feel as comfortable shopping online, because this makes it feel like they can still get opinions and advice from an educated source.”

Suggested method of marketing
Brands can use in-store sales opportunities to drive revenue through cross- and upselling.

“In-store is a great way to identify cross- and upselling opportunities,” said Marcos Sanchez, public relations and strategic communications executive for Clarabridge. “When you go into a Gucci store and talk to a salesperson, you’re probably not just going to buy a dress.

“A salesperson is also probably going to tell you that this necklace goes really well with the dress and so do these shoes,” he said. “Brands can really benefit from this sort of unmatched in-store strategy.”

The online equivalent of this is through email offerings.

Retailers such as Harrods and Nordstrom regularly send out emails that promote online offers.

harrods-in-store-email-drive

Harrods email

Consumers see the products offered via email and can click on links that lead right to a product page where it takes a minimal amount of clicks to buy an item.

When consumers log onto an ecommerce site, they can see suggestions based on what they bought in the past.

Some retailers have suggested accessories listed alongside or under an item while a customer is looking at a product’s individual page.

nordstrom-you-might-like

Nordstrom’s Web site with suggested items along the side

This kind of attention to detail not only makes a customer feel special and noticed, but will undoubtedly drive sales in both channels.

Along with this, brands need to make sure that the pricing is consistent in each channel.

“Brands need to make sure that the experience online is equivalent in terms of pricing and display as you would get in-store,” Clarabridge’s Mr. Banerjee said. “The price needs to be the same because things like that can annoy the customer, which can lead to other issues that push customers away from online buying.”

Additionally, product display must be consistent online and in-store.

One reason that consumers choose to go in-store is that there are some products that cannot be bought online. The tactile experience plays a key role in the buying decision.

For example, Web sites of cars, jewelry, watches and some high-end apparel generally serve as virtual lookbooks instead of ecommerce-enabled destinations.

Consumers like to touch, drive and feel an emotional connection to something for which they will pay a premium.

However, if a physical store is not available to the customer, brands should make sure that their online displays show their products in as equal a manner as possible.

“Images should be very high-resolution on a site, because if a retail location is not available it’s the only way that customers can see the products, and they have to look good,” Mr. Banerjee said.

When two become one
Mobile is becoming a big factor in how companies are converging online and in-store experiences.

QR codes found in-store allows customers to access product descriptions, video content or customer reviews on a branded Web site.

Furthermore, using a combination of in-store and online of efforts can help customers steer clear of competitors.

“If you don’t have a fully integrated multichannel experience, your consumers may bring a competitor in your store instead of referencing your other channels,” Forsee’s Mr. Freed said. “You risk alienating the consumer, who will have the ability to easily find other alternatives.”

Brands should make sure that the channels are properly aligned and that customers can reach one through the other.

For instance, Harrods has a link on its emails that gives customers directions and a map to its retail location.

Furthermore, today’s luxury consumers are the most well-educated and informed customers to date, according to a study by Condé Nast (see story).

Even if marketers know that customers are spending a lot of their time online whether or not they plan to buy there, brands should ensure that their sites have the same voice as their retail locations.

“Multichannel integration creates better loyalty by providing more alternatives to the consumer,” Mr. Freed said. “If they are able to meet consumer needs across all channels—Web, mobile, in-store and social media—they can create a stronger bond, stronger connection and stronger loyalty.”

Final Take
Rachel Lamb, editorial assistant at Luxury Daily, New York

Rachel Lamb is an editorial assistant at Luxury Daily. Reach her at rachel@napean.com.

Rachel Lamb is an associate reporter on Luxury Daily. Her beats are apparel and accessories, arts and entertainment, education, food and beverage, fragrance and personal care, government, healthcare, home furnishings, jewelry, legal/privacy and nonprofits. Reach her at rachel@napean.com.