How does an electronics retailer such as Dixons, with hundreds of physical outlets, embrace the opportunities offered by the internet in a way that enhances their in-store offering? Livework helped Dixons understand the customer experience to develop an integrated ‘online/in-store’ strategy.
Rising to the challenge posed by internet retailers
Dixons is one of the largest consumer electronics retailers in Europe, but faced a serious challenge from pure internet retailers. Customers like coming into branches to see the products, but can always comparison-shop online. Dixons asked us to help them develop an integrated online/in-store strategy to counteract this trend.
Four types of shopping behaviour
We first needed to understand how customers really behave in stores and what they value in their in-store shopping experience. We found there were four key categories of in-store customer: researcher, browser, want-it-now and price checker.
Engaging with customer behaviours
We developed concepts relating to each type of customer, defining what type of service each values most. This was information Dixons could use to meet the needs of their various customers at every stage of their purchasing journey.
Shoppers can be browsers, researchers, price checkers, or simple want-it-nows.
A strategy with hard results
Dixons have implemented their online/instore strategy delivering an experience to customers that enables them to get the best from the virtual/physical mix. integrating the strengths of high-street and online retail has helped Dixons buck the trends and emerge a stronger retailer.
7% sales growth in 2014 and 25% uplift in cross-channel transactions in Q3/4
New technologies result in new behaviours
We learned from our work with Dixons that when customer behaviour changes in response to new technology, we need to really understand the new behaviour to inform new strategies. This insight has helped Dixons develop a successful approach to integrated retailing.