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Avoiding Disappointment This Holiday Season

Guest Blog by Tamara Saucier

The National Retail Federation (NRF) predicts holiday sales will increase 3.9% this year. Last year the average holiday shopper spent $423 during Thanksgiving weekend alone. The holiday shopping season seems to start earlier and end later every year. And each year seems to bring new legendary tales of “must-have” items such as the Dancing Mickey Mouse, Zhu Zhu Pets, and Cabbage Patch Dolls.

In recent years, retailers have extended their focus on customers, attempting to bring the customer experience to new levels. But despite these efforts, as a consumer we more often than not come up disappointed. How many times has your holiday included one of these scenarios?

  1. “Sorry, the store was out but here’s a gift card so you can get it later.”
  2. An envelope with a cut out picture from a catalog and note saying, “This is supposed to arrive next week.”
  3. A substitute of what you really wanted with the gift giver stating, “I looked everywhere but couldn’t find it available.”

Retailers are in an extremely competitive environment and must be able to deliver on the year-round promises they are making to their customers. Recognizing that planning for the holiday sales season is part science and part art, what can a diligent merchant do? Here are a few tips for avoiding customer disappointment.

Know your sales trends – and be able to respond effectively

This means understanding your customers’ tastes and buying patterns, and mirroring that on the back-end of the business to ensure products can be delivered according to the needs and wants of the consumer. If you’re offering customized or tailored goods, such as engraved sporting equipment, be prepared. One way is to engrave or customize goods at the factory, instead of doing it domestically. Even better, if you can create customized sneakers in the factory and ship direct to consumer, you’re reducing time and costs while delivering a great customer experience.

Don’t make promises you can’t keep

A broken promise is more harmful than a promise not given. Know the limits of your customers but more importantly, know the limits of your supply chain. Do you have the ability to ship direct to consumers in 3 days? Is same day delivery possible given the existing logistics architecture? Do you have inventory visibility across all channels of the business.

If retailers can’t answer these questions with certainty, then delivery offers and promises need to be scaled back. There’s nothing worse than being the guilty culprit responsible for a disappointed child on Christmas morning. “The delivery will be here tomorrow” just doesn’t cut it. E-commerce companies like Amazon carved out their niche by “delivering” the goods. They invest heavily in their supply chains to ensure they have the resources and inventory visibility to deliver on their promises to customers. The result? 129 million consumers shopped online last year on Cyber Monday.

Enable full assortment availability to your customer

Consumers expect and demand options. Millennials in particular demand goods that are new, shiny and different. The “wow” factor is huge. Capturing this audience requires smart assortment offerings with options. This means being able to deliver what they want, when and where they want it. Consumers will remember it if you can provide real availability with confidence. But again, this requires inventory visibility.

Something we’ve all learned the hard way: There’s nothing worse than unmet expectations during the holiday season. Retailers who get it right and deliver on promises will be heavily rewarded this holiday season.

 Tamara Saucier is VP Industry – Retail Solutions with GT Nexus

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