Daymon report shows how private brands can be part of the store experience
A new report from Daymon provides perspective on what it takes to create a memorable customer journey, and how private brands can play a defining role.
The study, “The State of the Store Experience,” which Daymon said is the latest edition of its recent “The Private Brand Intelligence Report,” found that everyday shopping frustrations leave a lasting impression. In fact, 55 percent of shoppers said they would no longer visit a store where they experience repeated service issues — and 45 percent would not return due to navigation difficulties, according to Daymon, a Stamford, Conn.-based retailer services company that specializes in private brands.
To help retailers address these challenges, Daymon used direct consumer feedback to identify 31 distinct attributes of the shopping journey that offer opportunities to create an ownable experience led by private brands.
“Shoppers have come to expect private brands to be a part of the store experience and most retailers have obliged,” said Dave Harvey, Daymon’s vice president of thought leadership. “You can say [private brands] have become table stakes. But it’s not just about products. Private brand is a service, a voice, an authority. It puts a face to the name of a retailer and when executed in the right way, it becomes the driving force behind store choice.”
The report reveals key opportunities for retailers to raise private brands from basic table stakes to “actively delighting customers”:
• Go beyond the national brand equivalent (NBA): 28 percent of best-in-class private brand programs are value-added, according to Daymon. Retailers that go beyond “me-too” products and services have a reputation for differentiation.
• Lead with curation: Store navigation frustrations lead to 45 percent attrition. Retailers should lean on their private brands not merely as products, but as the authority on helping shoppers identify what’s right for them, Daymon states.
• Credential private brands through your staff: 55 percent of shoppers reject stores with poor employee engagement. As part of a training regimen, retailers can mobilize their associates to become knowledgeable ambassadors of private brand products, according to Daymon.
• Expand private brand reach: Best-in-class store loyalty is 50 percent among heavy private brand buyers. Daymon says progressive retailers are extending their private brands beyond the shelf to embrace value-added services and customer outreach.
• Transform the front end: The No. 1 pain point is checkout.
• Don’t neglect the basics: Even the best retail strategy can be undermined by something as basic as out-of-stocks. In fact, Daymon finds that $1.4 to $2.4 million per week is lost at an average retailer due to promotional out-of-stocks.
To learn more about how private brands can be used to enhance the shopper experience, download the study at http://daymon.com/.