This week, I am attending GlobalShop in Las Vegas, the world’s largest annual event for retail design and shopper marketing.  It’s the only show in the world where you can find the largest, most comprehensive array of store fixture companies and more in-store solutions than any live event in the nation, along with a conference led by top retail experts, who provide insight, advice and best practices on retailing and brand building.

This year’s conference kicked off with a keynote presentation by social anthropologist Paco Underhill of Environsell, entitled Lessons from the Recession.  The author of “Why We Buy” and “What Women Want” said that while America is probably 15-20% over-stored, you can still be successful by remaining in touch with and relevant to your consumer.  Perhaps smaller stores in new locations, or reaching out with simplistic solutions; complicated is not better.  He believes in “rubber-soled shoes,” meaning, get out of your office and away from the spreadsheets, and be in your store with your customers.  The same can be said for salons and spas; management needs to be visible on a regular basis.  You can learn a lot by mingling with your customers.

Crosby Renwick of CBX Strategic Branding presented Shopper Marketing  – A Revolution in Need of an Objective. While this presentation was targeted to large retailers, there were a few good takeaways for the beauty industry, notably we need to work together with vendors and manufacturers and explore mutual long-term goals; not just making money but developing exclusive (but not necessarily private label) brands or finding ways to impact the consumer on their “Pathway to Purchase,” before they make their final purchasing decision.  The triangle of Consumer, Retailer and Brand all have similar objectives, including family, education, health and sustainability, and successful retailers will leverage that to their advantage.

Reimagining the Retail Store, presented by Alan Treadgold of Leo Burnett and Bryan Gailey of Arc Worldwide, was based on a survey done in June 2010 of 2200 US adults regarding their opinions on 40 top retail brands, looking towards how to keep stores relevant in the current multi-channel area.  Consumers now manage their own shopping experience; they come armed with information and use a variety of tools such as apps and social networks to make buying decisions.  This fascinating presentation broke the survey results into three areas, with some of the relevant points below

1. Understanding What Shoppers Want – shoppers today organize stores into terms of the experiences they want, not just the merchandise, on an x-y axis of self-directed vs. retailer-directed, and browsing vs. buying.  Of course, spas are all about the experience, but consumers now want high quality and value pricing too; you must know how consumers judge you compared to your competition.  The speakers noted that, “Price competitiveness will get you an invitation to the party, but won’t guarantee you a dance.”

2. Fixing the Disappointing Retail Experience – shoppers want the basics; convenience, great selection, good value, prompt service, good policies, store they can trust – and many retailers fail here.  I think the same can be said for many spas; in an effort to provide sumptuous environments and exotic treatments, we sometimes don’t execute on the basics, like greeting clients or optimizing appointment booking.  Another relevant issue here is providing accurate information to consumers regarding services and pricing.  Front Desk staff need to be very well trained and should function to help the consumer make better informed decisions about the services and products that they may want to experience.  Staff cannot just “be there.”

3. Going Beyond Basics – The survey found that loyalty to a particular retailer topped out at 52%; shoppers today are “promiscuous, they shop around!”  Loyalty has to be earned and can be strengthened with more personalized experiences.  This is an area where spas and salons should excel, but we need to use our technology tools to aid us, such as remembering that a customer prefers their tea without sugar, or enjoys a certain scent.  The presenters also mentioned the importance of making the physical store more appealing, sensory, and a place to participate, such as LuluLemon offering yoga classes in their stores.  “Winning retailers break convention.”

Jay Highland and Joanna Felder of Chute Gerdeman showed how they used consumer research to fine-tune retail offerings in From Research to Reality; Turning Shopper Insights into Successful Store Design. They felt that research was essential in order to understand your core customer, or “tribe,” so you know how to reach them and understand their world.  Analysis of your clientele should include paying attention to cultural and sociological trends, as well as common market motivators.   According to Felder and Highland, your competition is wherever a sale takes place, and some of the best and biggest ideas can come from out of your category.

Their methods of research vary from Ethnographic interviews to Focus Groups, Online Communities, and Customer Sensing, a method utilizing your best customers.  They closed noting that research does not work when; 1. You use the wrong method, 2. You’re not clear on objectives, 3. Not knowing what to ask or listening to the response, 4. Not being able to understand the insights provided, and 5. Doing the research, but not knowing how to provide a solution.

The day ended with a presentation by Patrick Rodmell of Watt International, The Future of Retail; The World Beyond Recession.  Rodmell wanted to make the point that consumer shopping behavior has definitely changed, but the recession just accelerated changes that were already underway, it was not the sole cause.    His 4 trends to look for were;

Shopper + Consumer Insights Go Mainstream – national brands used to have all of the information, but now we all use loyalty programs to both acquire more data and reinforce our relationship with the consumer.  Good news for spas – women influence 95% of all purchases and control 80% of household spending.  Good news unless you have a men’s spa!

Economic Instability Changes the Value Equation – it’s now smart to save.  Consumers are rationalizing their purchases and looking for more value than ever.  One result of this will be the continued assent of private label brands.

Conscious Consumption – Clients want to feel that they are spending money with businesses who are doing the right thing environmentally, or at least making an effort.  There are wide-reaching social issues which will only continue to grow.

Adaptation of Technology – Nearly 47% of US mobile subscribers accessed mobile media in 2010.  Rodmell noted two location-triggered reminder apps; Loopt offers limited time perishable inventory deals, and Neer links tasks in your to-do list to your calendar and sends reminders.  Imagine a client driving by your spa and they receive a text message to stop in and buy a gift card for their partner’s birthday next week!  Business-owners today need to consider that the Personal Retail Experience (PRX) today exists in the middle of a circle of social, rewards, access and entertainment.

Check in on the blog tomorrow for more great information you can apply to your salon and spa operations.