Five steps

to woo the new consumer

The coronavirus pandemic and everything it has brought with it has redefined how, where and when shoppers want to spend their hard-earned money and it is unlikely ever to return to the way it was.

To help examine evolving consumer habits, Retail Week recently teamed up with Barclays Partner Finance to create a three-part video series Money Talks.

The series brought together leading retailers and brands to give you the inside track on how consumers are feeling, how they are shopping and how to win their spend.

As the pandemic continues to wreak havoc on both the retail industry and consumer expenditure we take a look at the ways in which you can give shoppers the confidence to splash the cash.

Follow these five ways of putting your customers' needs first to help boost your bottom line and improve customer experience in 2021 and beyond.

1. Communicate clearly

Clarity and transparency is key across the board. Make sure you have clear lines of communication with your shoppers whenever and however you are talking to them, be it about new products in stock, delivery timings or the payment options that you have available to them.

Communication across the board has been integral this year as the industry has navigated some of the most challenging times ever seen.

Barclays has also been increasing the number of channels it communicates with its customers on.

“We’ve been more proactive in our communications to our existing customers, using tone of language to show that we’re there to support them and help them and to be clear about the different ways in which we can help them,” said Owain Jones, head of strategy and insight at Barclays Partner Finance.

Tom McPhail, director of public affairs at Pure Electric, on how customers should stay at front of mind

Click here to watch the full episode

2. Be flexible

It’s been a year to be light on your feet and adapt to changing circumstances and this will continue throughout 2021. This is particularly important when it comes to payments.

Consumer mindsets are changing with regards to how they want to pay for goods, with the headline price becoming less important and growing demand for flexibility.

Studio Retail financial services director David Twigg said: “Our biggest learning has been the ability to be adaptable and really pivot our approach and strategy as the situation evolves on a daily basis… That’s the key thing we’re taking away from this, how do we imbed that culture of drive and innovation coming forward when we’re in a more stable period.”

Costa Stathis from Barclays Partner Finance on how shoppers are changing the way they think about spending

Click here to watch the full episode

3. Make things simple

Shoppers want things to be as quick and easy as possible and so it is integral to ensure the path to purchase is as simplistic as can be, whether that be one-click cancellations, frictionless finance or streamlined navigation.

How retailers can save their customers as much time as possible should be front of mind for all as we move forward this year.

For Secret Spa, easy cancellation is the key to keeping customers happy. “We’ve run some early tests and it has done amazing things for retention,” said Secret Spa CEO Rider Latham.

Rider Latham, founder and CEO of Secret Spa, highlights the importance of seamless experiences

Click here to watch the full episode

4. Diversify your offering

What customers want is changing on a daily basis and it is integral you cater to this to ensure you don't miss out on those all-important sales.

Shake up your digital approach to offer services that still allow them to have a humaised connection with the brand and arm customers with as much information as possible so they can make informed decisions around their options.

Retailers must remain extremely sensitive as to what is happening in the external environment and stay light on their feet across every aspect of the business.

Carly O'Brien, chief marketing officer at The Very Group, says the key is about choice

Click here to watch the full episode

5. Be responsible

Although times are tough for almost every retailer at the moment, businesses need to make sure it’s not just a sale at any cost and that the customer is going to look back on it as a great experience.

This is particularly important when it comes to finance options. Retailers must work closely with the lender to ensure everything is done with the interests of the end customer. Together they must ensure individual shoppers can afford the options they are being presented with and put the right checks in place to get the balance of a great but responsible customer experience. Otherwise, the chance of further looming furloughs or unemployment could lead to the bubble bursting if shoppers begin to struggle with repayments.

Barclays Partner Finance director Richard Brassey said demand for financing options is high and added “we are experiencing record applications”.

However, he said that when furlough schemes end in 2021, the unemployment rate will rise and consumers may struggle with repayments.

Some retailers need to change their mindset away from consumers simply being eligible to instead determine if they will be able to meet future repayments, he said, adding that this will drive a better result for everyone.

“We work closely with partners to attract customers where finance is the right option to solve their purchasing needs. Affordability is key,” said Brassey.

“What retailers do matters more than what they say,” said Emilie Mouquot, customer and growth director at Notonthehighstreet.com. “At this stage, people are really aware of social and environmental issues.”