Preparing For The Future Of Retail: 5 Things To Look For In A Third-Party Partner
The retail industry in 2019 looks different than it did 10 years ago. Online shopping has taken over, and e-commerce revenues are projected to hit 6.54 trillion US dollars by 2022, according to Statista.com.
However, a recent survey of 1,002 millennials revealed that people ages 22-37 still make 40% of purchases in stores, a sizable opportunity for retailers to take advantage of. Since it’s well-known that today’s shoppers value experiences over things, retailers need to invest in strategies that enhance the consumer experience and entice people to shop in-store.
In order to prepare for the future, many retailers are turning to third-party partners who can help develop these strategies and manage day-to-day operations to improve shopping experiences. Third-party retail partners are typically up-to-date on industry developments and can make intelligent recommendations based on market best practices, consumer preferences, and merchandising trends.
However, not all third-party retail partners are created equal. If you’re searching for a third-party retail partner, there are 5 traits you should look for:
1. Customer Experience Focus
According to Forbes, consumers are willing to spend 16% more on products and services with companies that offer a better experience. From more efficient store layouts to improved grocery pick-up kiosks and helpful customer service, every decision should be made with the customer experience in mind.
From the moment a customer enters a retail location, they are bombarded with tiny details that quickly paint a brand impression. From product displays to price tags and sign placement, everything matters. There are many factors involved in creating an ideal retail environment in which consumers enjoy shopping. A third-party retail expert should be knowledgeable on these trends and make recommendations accordingly.
Maintaining just one retail location takes a lot of work, but that task increases tenfold if a retailer has thousands of store locations. From complex, large-scale product resets to point-of-purchase displays that capture consumer attention, a third-party retail partner should be able to handle all aspects of retail merchandising to guarantee high-quality, consistent customer experiences.
2. Innovative Technology
When you partner with a third-party retail partner, you are putting your brand’s reputation in their hands. Thankfully, innovative technology makes it possible for retailers and third-party partners to effectively organize retail marketing campaigns on time and according to plan.
It’s important to partner with a third-party retail expert who can provide custom technology solutions to ensure retail merchandising projects like product resets and planogram executions run smoothly. Additionally, a strong technology system should provide real-time insights that can be continuously used to shape your strategy.
From scheduling labor, analyzing data, and enabling field reps to work quickly and efficiently, innovative retail technology provides full project visibility so retailers can monitor daily activities, avoid costly issues, and ensure compliance verification.
3. Integrated E-Commerce Strategy
According to Pew Research Center, more than 5 billion people have mobile devices, and over half of these connections are smartphones. In 2017, Google Analytics data showed that more than 40% of online transactions were made on mobile devices, and that number has continued to grow. If retailers don’t have an e-commerce strategy, they’re already falling behind.
It might seem counterintuitive, but retailers need to develop effective e-commerce strategies in order to meet their customer where they are. E-commerce doesn’t mean customers will no longer shop in-store, but it means you are providing the best of both worlds to satisfy consumer choice.
Retailers should look for a third-party retail partner who has the ability to execute on e-commerce strategies, in addition to in-store initiatives. By integrating retail with e-commerce, retailers can gather and analyze consumer information to develop more personalized shopping experiences.
4. Open, Honest, Transparent Communication
When major retailers like Lowe’s, Target, and Costco complete retail merchandising projects, they need consistent, timely execution across thousands of locations nationwide. This level of work requires considerable coordination and open, honest, transparent communication.
When looking for a third-party retail expert, be sure they have a proven track record of success in completing large-scale projects on time and according to plan. Do your research prior to signing any contracts, and ask for quality references and case studies to prove their competence.
Each retail project is unique in its wins and challenges. An open, honest, and transparent partner will work with you to learn from past experiences and plan for future successes. Additionally, a third-party retail partner should be receptive to new ideas and openly communicate their perspective at all times. By doing so, the retailer and third-party partner can collaborate effectively as a team.
5. Full-Service Support
Retail merchandising is a complex industry, and there are many factors to think about including logistics and fulfillment support. By partnering with a full-service third-party retail partner that provides these services, you can ensure your inventory is shipped correctly and product displays are created according to specifications.
Third-party retail partners should also communicate directly with display manufacturers to preemptively avoid problems. Otherwise, you could end up with a display that’s too big, or an entire section of the store that ships to the wrong location. By providing logistics and fulfillment support, third-party retail experts can eliminate the middleman and streamline every step.
No longer do you need to work with multiple teams to get one job done; a third-party retail partner with logistics and fulfillment capabilities will be able to store, package, ship, and set up displays with zero disruption to the shopping experience.
Conclusion: Third-Party Partners Can Help You Advance In The Modern Retail World
The retail industry has been in a constant state of change over the past decade. With the growth of online shopping, retailers have been forced to adapt and create innovative plans to keep up with consumer preferences.
To rise above the competition, many retailers are turning to third-party retail partners for expert assistance. However, there a few factors to keep in mind when looking for the best partner for the job.
At SRS, we combine our industry knowledge, retailer relationships, and extensive team of merchandising specialists to deliver customized solutions and perform compliant and effective programs. And with our logistics and fulfillment services, we can be your go-to partner for all parts of the project.
If you’re looking to advance in the modern retail world, SRS can help. Contact us at sales@srsmerchandising.com or (513) 272-3439 to get started.