Specialty Retailer - Motivations for a Consumer to Make a Stop

Part
01
of one
Part
01

Specialty Retailer - Motivations for a Consumer to Make a Stop

Motivations that make a consumer make an extra stop at specialty retailer include the selection of products, the personalization of services, access to professionals, access to view or try the products before they purchase, and reward systems that further their experience such as coupons inspired by past purchases. In addition, strong social media and digital offerings also entice consumers to make an extra stop at brick and mortar specialty retailers. These retailers tend to have better products than bigger mass merchandisers and loyal fan bases.

SPECIALTY RETAIL CONSUMERS

  • A survey of over 3,000 adults found that regardless of age or income, virtually everyone wants a bargain even when big-ticket splurging.
  • Seventy-nine% of consumers prefers more personalized shopping experience including receiving product offers or promotions based on previous purchases. Eighty% of consumers research their purchase online before making a purchase, thus retailers should also try to reach consumers online. Research focused on smart data and creating more personalized customer experiences empower specialty retail stores to adapt their strategies to motivate a stop in their stores.
  • Consumers shop at brick and mortar specialty retailers for: discounts; "food, drug, and health and beauty aids, electronics, building supplies and clothing." Social media interaction influence 48% of in-store purchases.
  • A survey of over 3,000 adults found that regardless of age or income, virtually everyone wants a bargain even when big-ticket splurging.

FOOD AND BEVERAGE

  • Millennials buy specialty foods wherever they shop due to the rise in popularity, and the brick and mortar stores account for 61% of the total specialty food market in 2016.
  • In 2018, specialty food sales from brick and mortar retailers accounted for 76% of the market, however, only 5% of these locations are dedicated specialty food retailers. The trend for more natural and specialty foods is the motivation that drives consumers to stop at these stores as they offer the particular products they desire.
  • Total Wine & More is a specialty store that reaches out to consumers by way of social media to drive foot traffic by offering coupons, advice and videos on wine. They also offer classes and events that can be checked through their website, app, or social media. Some of these types of establishments also offer memberships and clubs with other special benefits that drive customers to make that extra stop.

BEAUTY

  • The leading and fastest growing channel for beauty boutique retailers are providing unique sensorial experiences while learning more about their consumers preferences, needs, thoughts and passions. Personalization and superior customer experience keeps customers returning to the brick and mortar boutiques. The growth in visits to brick-and-mortar retailers in the beauty industry is due to the nature of the industry. Consumers prefer consultation from professionals because "Amazon can't put makeup on you". Two brands experiencing this grow are Ulta and Sephora.
  • According to social media posts, consumers also enjoy perks, such as double points, during their birthday month in addition to other discounts and points that entice them to visit the locations. Ulta customers on Twitter voice various reasons that they go is for new products, take advantage of discounts, and a genuine desire for their services.
  • The specialty brands have huge social media followings, and they take advantage of these platforms to reach out to their consumers and inform them with instructional and product videos, reviews, promotions and events and more. In regard to Ulta, the current market leader, their success in bringing in customers is how they sell by covering the widest range of consumer needs at all price points, a personalized approach from full-service to self-service, an expanded rewards and credit card program that builds loyalty, and an integrated mobile app that draws in 60% of its visitors. Ulta also reaches a wider range of age of customers than its competitors. Their Instagram account has over 17 million followers, which means their content reaches a very large audience.

STRATEGY

Research included surveys and consumer trend reports for information regarding the motivations of consumers of specialty retailer in general, then food, alcohol and make-up. An examination of news and business articles, such as Forbes, actually revealed more specific information as to specific brick and mortar specialty make-up stores and their success. It also revealed valuable information about the retail industry. We identified some specialty brick-and-mortar specialty store through business lists and examined their advertising campaigns, social media postings, news and events, to identify how these retailers reach out to prospective consumers and if they served as motivators to prompt a visit to the store.

We also examined social media databases for mentions, posts, and reactions about specific specialty retailers by consumers to the gauge response to their campaigns and for the motivations that spur them to go shopping.

American Customer Satisfaction Index may be a good source of information, as it has been analyzing the customer experience with specialty retail chains for over two decades. They offer their full 2018 consumer report for immediate download if willing to enter your email information.
The tweets mentioned above can be found at this link.

Sources
Sources