The consumer electronics channel has learned how to jump-start their sales with interactive displays and hands-on customer service — and the aftermarket can easily adapt some of these techniques for their retail outlets.
"Consumer electronics stores have always had a reputation for being infotainment shopping venues," says Jason Goldberg, vice president of marketing for MTI, which works with retailers such as Target, Best Buy and CompUSA. "A lot of the new displays are designed to have an entertainment element to them."
For example, he says, digital cameras, which used to be merchandised behind glass, are now showcased in live displays that have a universal power system so shoppers can look at the LCD or take pictures.
"When retailers made that shift to live camera bars, they saw on average a 30-percent lift in sales," Goldberg states.
And stores like Circuit City, Best Buy and Ultimate Electronics have embraced these displays. Walking into any one of these stores, gadget gurus are in an electronics dream as they play with the latest video games, rifle through iPod accessories and listen to featured CDs. Every experience is a hands-on one, and many customers spend hours just walking the aisles.So how can the aftermarket generate excitement like this at the retail level? As more and more vehicles come equipped with mobile entertainment, and as more electronics are being designed for use in the car as well as the home, the possibilities are endless.
Engaging electronics
Electronic merchandise is meant to be entertaining; therefore, interaction between the product and the customer is key in making a sale. Whether it's playing games on the newest cell phone or watching football on HDTV, this is where electronics retailers are concentrating their efforts.
"The biggest thing is the interactivity," offers Peter Breen, content director with the In-Store Marketing Institute. He says electronics retailers were early adopters of this concept, and it shows in their stores. "For example, when you look at video games at a mass merchant, they're all in boxes in a locked case. Then you go to a Best Buy and you have an Xbox there that lets you play the game. It's a big difference in presentation."
A presentation that's working for Ultimate Electronics, a specialty retailer of home entertainment and consumer electronics that has been in business since 1968, is their integrated handheld device displays. The retailer, which works with MTI, placed these displays in all 32 of their locations in early June.
"We've moved MP3 players and cell phones, and their accessories, to the front of our store and merchandised them as active, working displays," explains Jim Pearse, senior vice president of merchandising with Ultimate Electronics. "They are growing categories and we want to maximize sales of these products and also show how (consumers) can integrate them into other parts of their lives."
Pearse says consumers have gravitated to those displays, and sales of the core products as well as accessories have increased. "We're trying to give the consumer a good experience in the store, and to allow the technologies to present the product right and explain it to them in a way they can understand."
For auto parts retailers, this concept is very familiar: Walk-in customers unaware of the specific use of a part or product might feel uncomfortable purchasing it themselves. Using merchandising displays that let customers see, touch and feel the product can drive sales and increase customer loyalty.
"In general, the fundamental challenge that CE retailers are facing is customer confusion," Goldberg says. Increased technologies and products with shorter lifecycles are making purchasing decisions more complicated. "Years ago, consumers only cared about three or four features for a TV, like size and brand," but now they need to know about their cable card compatibility and how the TV will work with their existing video/DVD player, he adds.
For aftermarket retailers, even their long-term do-it-yourself customers might be confused by their newest project as vehicle technologies continue to increase.
"If I as an aftermarket retailer want to keep that DIY customer, I have to teach him how to work on a newer vehicle. If I don't help them make that leap, they'll say they can't do it and won't buy the product," explains Goldberg.
He suggests demonstrating how to use new diagnostic tools, possibly plugging them into laptops right at the store.
"It's all about the experience, getting into the store and getting your hands dirty," says Rodger Roeser, vice president of Justice & Young Public Relations, which helps companies establish and develop their brand. "Customers can sit in a home theater chair and listen to the surround sound. It makes the experience much more engaging to the consumer. There's no reason that automotive aftermarket stores can't have that experience.
"I'd like to see aftermarket retailers engage with customers more and be more educational. Do demonstrations that show the viscosity differences between oils."
Setting the scene
Consumer electronics retailers also interact with their customers by creating a casual atmosphere where sales staff can effectively show products.
Retailers can take a cue from Best Buy, whose customer-centric strategy lets them create displays that are unique to each location's customer demographics. Stores that see a lot of families looking for home entertainment systems, for instance, display entertainment vignettes where home systems are shown in a living room with couches to demonstrate how the product would look and feel in the home, says Breen with the In-Store Marketing Institute.
Auto parts retailers might have an opportunity to create their own vignettes, possibly a garage setting to showcase tools or equipment on sale, or even a vehicle in the corner of a store displaying the different types of car speakers.
In addition, retail store displays should be dynamic, not static. For instance, Best Buy changes its store layout three times a year to stay current with changes in inventory, according to Joel Schwane, director of sales and marketing for Thorco Industries, Inc., a designer and manufacturer of custom POP displays and fixtures for clients such as Best Buy and Wal-Mart.
If you think about how different electronics retailers' product lines were 10 years ago when consumers used cassette tapes instead of MP3 players, it makes sense that new approaches should be taken when selling these ever-changing products. While aftermarket retailers don't have to be this drastic, the theory might be one to embrace as the aftermarket tries to capture the attention of busier and busier customers.
Proper utilization of store space is also crucial to a consumer's experience, especially since almost everyone we spoke with noted that the longer a customer is in the store, the more they will buy.
"When customers walk into the store, control their journey to walk them by all the accessories for the product they want," offers Goldberg. "Walk them through storage cards before getting to cameras and certainly train the salespeople to make their presentations around those value-added accessories."
A jolting task
It's easy to get overwhelmed with creating the perfect store experience, but merchandising consultants and display manufacturers are able to provide assistance. Consider contacting several to discuss your options.
Some companies will create a video program that can be played on in-store TVs and offer it to independent retailers on a subscription basis. Or, if funds are tight, retailers can create their own video, promoting weekly sales items and how they work.
"Circuit City and Best Buy are working a lot more closely with their product vendors on developing their displays," notes Breen. Retailers can ask their vendors what displays they offer or if they're willing to share fees.
In order to gather new ideas, consumer electronics retailers often attend merchandising trade shows, states MTI's Goldberg, who suggests retailers attend GlobalShop, a store design trade show in Las Vegas. Just as important as the displays is training store employees on how to use them, not just functionally but in the sales process as well. MTI provides in-store training on proper maintenance and how to use the display in a sales pitch, he notes.
"More interactive displays are being adopted all over the place," Breen shares. "If done well, and done in a way that suits the store environment, the ROI is there for retailers. In the long term, it's going to be expected by consumers. If you don't have interactive technologies and ways for the shopper to experience the product, you're going to be looked at as old school."
