Humans are social entities, and with socialization coming to a standstill due to the pandemic, the current situation has brought the magnificent run of the retail industry to a near stand-off.
How are these two connected? One might ask! Well, if socialization becomes restricted, it directly affects what one purchases, one wears, one eats and where one goes, with the risk of catching the virus always looming over their heads.
These days people are at their homes, not attending any parties, not getting influenced by what others are wearing and hence not interested in following any kind of trends and this has directly affected the retail industry.
Here are some quick facts to support the same.
The global loss in the retail sector is pegged to hit $2.7 trillion in 2020 and predictive analysis suggests that it will take nearly four years to overtake the levels of growth seen before the pandemic. – Bloomberg
Cinemas and F&B outlets are the most impacted and will be the last to become operational. – The Economic Times
At this stage, it’s important to uncover the truth behind the change in the retail landscape, especially shopping malls and how they are dealing with the crisis.
Shopping Malls – Reactions to Revival
Following are some of the out of the box measures taken up by leading malls and how business/ strategic/ tactical changes are helping them cope with the situation.
- “Our malls have implemented globally-accepted safety features such as a crowd density control system at the entry and ultraviolet scanning systems.” -Rashmi Sen, COO, Phoenix Marketcity
- The Oberoi Mall in Goregaon has installed automatic sensor-based sanitiser stands near baggage scanners and escalator belts to continuously sanitise these touchpoints.
- DLF Malls has offered tenants & brands a graded rent waiver plan during FY20-21, until their sales reach 80% of last year’s figures.
Phase 1 – Full rent waiver from the beginning of the lockdown until June 15.
Phase 2 – From June 16 to June 30, tenants got a 75% rent waiver.
Phase 3 – 50% waiver for Q2; 25% waiver for Q3; and 10% for Q4.
The burning question statement is: –
After COVID, can Experience commerce be utilized to drive higher Customer LifeTime value?
We’ve tried to find out an answer.
A way forward: Loyalty 3.0
The need of the hour for Marketers is to understand customers’ behavior and create ideal responses for each customer interaction through personalization.
Transactional vs. Experiential
Proximity marketing and clienteling can be utilized to provide instant gratification which is most sought after, now more than ever
Customers prefer exclusively curated emotional rewards for them rather than an explosion of irrelevant offer notifications
Offer convenience and get rewarded by customer loyalty. Subscription can be for replenishment, curation or access
Voice Of Customers(VoC)
Support relationship building among customers to understand their opinions as a feedback for improvisation
What Reciproci offers?
Delighting customers through Reciproci….the Phygital way!
1. Subscription : Meet the needs of existing customer base that purchase repeatedly
2. Gamification : Create opportunities to earn non-routine points and to recognize engaged customers
3. Campaigns : Target particular customer segment and exceed their expectation.
4. Proximate Offers : Raise the experience quotient by giving deals at the right place and time
5. Family Loyalty Program : Allow and Facilitate the sharing of Loyalty Benefits in between Family Members
How is that achievable?
Here’s an answer…
- Know Your Customer : Know the who, why, when, what and where of customer purchase
- Own Your Community : Foster mutual loyalties through exclusive rewards and personalized experience. Close knit communities prove to be strong exit barriers
- Scale Your Commerce :Through subscription, gift cards or click – pick – deliver model