Today's challenges in retail
Retail is undergoing a period of profound change. Technological innovations and shifts in consumer expectations have significantly impacted the industry: advancing digitalization has revolutionized the way people shop, and e-commerce has become a staple of everyday life.
As a result, brick-and-mortar stores face the challenge of developing creative strategies to attract and retain customers over the long term.
Key questions your business must answer:
Are our number of stores and locations optimized to effectively reach our target audience, including Gen Z?
How relevant is a physical presence in retail, and how can we enhance the success of our stores through experiences and increased customer traffic?
How can we effectively integrate online interactions and in-store visits to create a seamless omnichannel customer experience?
How do we successfully integrate online marketing campaigns and promotions into our brick-and-mortar operations, and how do we measure the ROI of these efforts?
Which store management strategy – self-operation or partnerships — maximizes sales while enhancing the brand experience?
All these challenges demand a clear solution: a well-thought-out format strategy.
What is a format strategy?
A format strategy in retail refers to the deliberate planning and alignment of a company’s approach to presenting and selling its products and services across various sales channels. This includes the design and positioning of physical stores, the use of online platforms, and, importantly, the integration of these channels to create a consistent and optimized customer experience.
Why is this crucial for success?
An effective format strategy enables retailers to adapt flexibly to changing market conditions and consumer habits, target the right audience precisely, and differentiate themselves clearly from the competition. Additionally, it enhances operational efficiency, maximizes space productivity, and ensures a consistent brand experience across all channels.
In short, a format strategy that addresses all the critical dimensions of retail is key to overcoming the challenges of the modern market and securing sustainable growth.
How do you choose the right format strategy?
At rpc, we follow a strategic approach based on five key dimensions. This systematic process allows us to address the challenge of developing the optimal format strategy for a specific store. Each of the five dimensions is carefully analyzed and interconnected to make an informed decision. This ensures that the chosen strategy not only meets current market demands but also achieves long-term success.
Possible questions and considerations in the 5 dimensions
Why do I want a physical presence?
To optimize corporate retail objectives, it is essential to define the product assortment, the KPIs to be measured, and the flexibility and longevity of the retail format.
Which existing environment suits the purpose?
For format alignment, it is necessary to determine the target audience, catchment area, partnership opportunities, competitors, and site conditions.
What type of space is needed for the format?
Determine the required customer and back-office space, evaluate the lighting concept and accessibility, and assess the building infrastructure needs.
How is the space spatially used and designed?
Focus on a presence-oriented and optimally utilized layout, adhering to corporate identity guidelines and incorporating sustainability aspects in the design.
How is atmosphere and human feedback measured?
Develop a purpose-driven store design and operational model that considers the measurement of customer and employee satisfaction.
Additional opportunities for retail optimization
While reviewing and adjusting locations and store formats is crucial, it alone is not enough to succeed in today’s retail environment. Customer needs and expectations are highly complex, which makes it necessary to address various points along the customer journey simultaneously to create real value and remain relevant in the long term.
In addition to location and format optimization, it is essential to continuously evaluate how and where products should be offered and how to effectively reach customers. Here are some examples:
- Direct-to-consumer (D2C) channels:
Building D2C channels, whether through online shops or physical stores, provides direct customer contact and strengthens brand loyalty. This allows for targeted and personalized customer engagement. - Pop-up stores and experiential concepts:
Pop-up stores and experiential formats offer innovative ways to showcase products, gather immediate customer feedback, and encourage purchase decisions. - Hybrid-models and services:
Combining physical and online presences, such as with pick-up and collect services, provides flexible shopping options. Physical services should be designed to optimally meet customer needs.
3 steps to an unforgettable customer experience
While a well-thought-out format strategy lays the foundation for your success in retail, it is crucial to also optimize all additional touchpoints with your customers. The journey of your customers does not end when they enter the store—it truly begins there. To thrive in a competitive market, you must ensure that the customer journey is enhanced at all critical points and that various channels interact seamlessly with one another. Here are three steps to elevate your customer experience to the next level.
1 | Format Strategy
A carefully planned format strategy ensures that your products, themes, and content are consistently and purposefully placed across all channels. This way, you reach your target audience exactly where they are and provide a seamless brand experience.
2 | Customer Journey Booster
By implementing targeted actions and campaigns, you can enhance the customer journey at key points. This booster ensures that your customers are guided more swiftly and effectively through the purchasing process, ultimately increasing the conversion rate.
3 | Omnichannel Interplay
A well-thought-out omnichannel approach ensures that your customers have a consistent and seamless experience across all communication channels. This enhances satisfaction and strengthens long-term customer loyalty by presenting your brand as consistently present and reliable.
What makes us different
We make customers shine and inspire your customer-centric transformation
We carry the right technical and industrial know-how...
Embracing CX transformation
rpc enables organizations to adapt to changing customer needs globally. We have a proven track of record of successfully accomplishing cross-industry CX projects in the B2C and B2B environment.
Excelling omnichannel CX
We have deep understanding of key success factors in the online and offline customer experience. We also successfully carried out projects that unite the digital and physical world and offer a seamless customer journey across channels.
Understanding the value of data
To design a data-drive CX strategy, rpc analyzes existing customer journeys based on data. This makes it possible to measure the performance and contribution of channels towards CLV and to identify synergies between touchpoints.
...and bring broad methodical skills across teams.
From strategy to action
Our strategic concepts always consider an overarching perspective including implementation. As experienced consultants, we holistically steer transformations E2E from strategic concept to the physical store rollouts to training of employees.
Ready-to-go CX toolkit
We can start to deliver the project today and adjust the setup to client preferences. Tools, methods, concepts are available to be utilized. We opt for a co-creation approach to deliver results most efficiently and guarantee buy-in.
Diversified omnichannel CX experts
Our employees make the difference. In addition to classic management consultants, our employees are subject matter experts, coaches, trainers, designers, data scientists or rollout experts that bring the right expertise and skillset.
