Retailers are increasingly devoting time and money to their online presence. This includes their websites, blogs, social media, digital advertising and, increasingly, mobile apps as the lines between digital and in-person sales are rapidly dissolving. Many people who feared making an online purchase just a few years ago are now unhesitatingly making multiple purchases on the Web. And brick-and-mortar retailers are feeling the impact. “Showrooming,” in which shoppers examine a product in a store then buy it online for less, has become a common ”“ and accepted ”“ practice, one that puts companies and their salespeople at risk of losing sales and business.
This past week, according to Stores magazine, Amazon.com, with $44 billion in retail sales, became one of the top 10 retailers in the country and the only solely online retailer to ever reach the top 10. It also showed more than four times the growth (27 percent) of any of the other top 10 retailers. In light of Amazon”™s success, it is interesting to note that a revenue decline of 1.2 percent for Best Buy, which isn”™t in the top 10, was mitigated by its almost 20 percent increase in online sales.
So, how can retail companies compete with this digital onslaught?
The first step is to make sure their employees and salespeople are knowledgeable about the products they are selling. No longer is it acceptable to just point to a product and read the product features. This was indeed the case when I was shopping for a new computer at Best Buy. Their online promotions had drawn me into their store but the salespeople were ill-equipped to handle my inquiries and lost the sale. (I ended up buying a laptop online instead.)
Employees must be empowered. Not only must they know about the products they are selling but they must be aware of what is being said about them online. The comments and feedback that people make about a product are highly influential ”“ and can radically change which product is selected and ultimately purchased. Partaking in online comments and discussions ”“ or at least reviewing them ”“ increases knowledge of a product, and allows a salesperson to be ready to agree or disagree with online comments and demonstrate superior product knowledge. In short, it will help the sale.
Several years ago, while I was deciding on which new gas grill to purchase (at Home Depot), another customer talked me out of my original choice. He said he had done a lot of online research and that another grill (that he pointed to) was a better grill. In fact, during his explanation, a Home Depot salesperson came over and started listening to our conversation. When I asked the salesperson if he had any comments or wanted to add something, he responded that he was learning, too. End result, I bought the grill the other customer recommended and couldn”™t be happier with it; it”™s the best grill I have ever owned. What was important in the sale was the recommendation ”“ which should have come from the employee.
There cannot be a disconnect between the actions of marketing and sales; they must work in conjunction to be effective. If marketing is promoting a product, the salespeople must be knowledgeable not only about the product and the campaign, but any feedback associated with both the product and the campaign. Although most showrooming involves queries on price, already having the answers to objections and questions ”“ even involving price ”“ will generate more sales. Furthermore, a positive encounter that can elicit positive feedback and comments from customers can then be funneled back into the online marketing campaign, further increasing its effectiveness.
Almost every sales course emphasizes the importance of salespeople knowing everything about the products they are selling. Knowledge is power ”“ and sales. Just reading labels or knowing the basics is no longer sufficient. Your customers require more; they are more knowledgeable, Internet savvy and less tolerant. In today”™s rapidly merging digital and brick-and-mortar world, it is often the similarly savvy and knowledgeable salespeople working in conjunction with marketing who are best equipped to get the sale and repeat business.
Bruce Newman is vice president at The Productivity Institute L.L.C. and a regular contributor to the Business Journal. He specializes in content creation and digital marketing. He can be reached at bnewman@prodinst.com.
