Daymon, a leader in global consumer retail and private brand pioneer, has released its latest edition of The Private Brand Intelligence Report, The State of the Store Experience. The report provides a unique perspective on what it takes to create a memorable customer journey, and how private brands can play a defining role.
A product of several proprietary studies, this 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. 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. You can say they have become table stakes,” said Dave Harvey, Vice President of Thought Leadership, Daymon. “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 NBE: 28% of best-in-class Private Brand programs are value-added. Retailers that go beyond “me-too” products and services have a reputation for differentiation.
- Lead with Curation: Store navigation frustrations lead to 45% attrition. Lean on your Private Brands not merely as products, but as the authority on helping shoppers identify what’s right for them.
- Credential Private Brands Through Your Staff: 55% 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.
- Expand Private Brand Reach: Best-in-class store loyalty is 50% among heavy Private Brand buyers. Progressive retailers are extending their Private Brands beyond the shelf to embrace value-added services and customer outreach.
- Transform the Front-End: The #1 pain point is checkout. Shoppers told Daymon what they see as the future of 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-$2.4 million per week is lost at an average retailer due to promotional out-of-stocks.