The option to purchase in store is still extremely important to customers. In fact, recent research by Savoo tells us that 20% of Brits use the high street as their main way of shopping with a further 20% shopping evenly across both the high street and online.
According to The Company of Master Jewellers’ Spring 2023 report, UK footfall is unlikely to return to pre-pandemic levels. But there’s still plenty of value in high street sales, particularly for the jewellery industry. It’s now a matter of harnessing the power of physical retail.
Customers are taking a more purposeful approach to their shopping experience
Customers still enjoy a full high street shopping experience - browsing and buying when they see a product that catches their eye. However, customers are typically spending longer browsing online prior to heading out to retail destinations. There are also some customers who prefer to physically see a product but, keen to find the best deal, head back home to find the cheapest price online.
This is resulting in a more purposeful shopping experience for customers. They know what they want to buy when they head out to the high street. This will impact overall footfall in-store as most shoppers have a clear purchasing plan in mind, rather than simply setting out to browse.
Retailers must now work harder than ever to improve their capture rate to catch the attention of potential buyers on the high street.
About capture rate
The Company of Master Jewellers’ Spring 2023 report discusses the ongoing fall in UK capture rate, from 12.3% in 2017 to 9.2% just five years later in 2022.
A store’s capture rate is the percentage of footfall in the street that enters a store. It’s used to represent a store’s market share in a certain location, giving an indication of how a store is performing and whether its trading potential is being maximised.
Retailers should be looking for a stable, or ideally increasing, capture rate over time. The Company of Master Jewellers states: “If a store’s capture rate is declining it indicates that customer numbers in store are either dropping by more than in the location, or conversely customer numbers in store are not increasing at the same rate as external footfall.”
It’s imperative retailers operating on the high street invest time and energy into improving capture rate – which can have a significant impact on in-store sales.
From creating eye-catching window displays to testing out different in-store layouts, there are many ways a business can tempt browsers into store and keep their attention once there.
Is customer loyalty waning?
According to Google Insights, the number of fashion shoppers who tried a new brand has jumped significantly in recent years, from 24% in 2020 to 34% in 2021 to 51% in 2022. This suggests customers are being tempted to try new brands more often, possibly as a result of consumers spending more time window shopping online.
That doesn’t mean brand loyalty is a thing of the past. In fact, research suggests 73% of UK customers consider themselves loyal to certain retailers – a significant uplift compared to 2021, when just 55% of customers said the same thing.
Retailers that provide a consistently outstanding experience and treat customers well are, perhaps obviously, most likely to retain customers. Consumers are increasingly more concerned about staying loyal to retailers who appear to understand them, their needs and their frustrations. So offering relevant incentives and personalised customer support is likely to keep customers returning to your business time and again.
Keep customers loyal to your business by offering retail finance
It’s harder than ever for brands to retain customers. Offering customers simple, flexible payment options is a proven way to boost customer loyalty. Empower customers to pay the way they want to, and you’ll see them returning to your brand when they next wish to make a purchase.
Our retail finance options include interest free, interest bearing and buy now pay later finance. This could give your customers the chance to buy what they want now and spread the cost over more convenient, manageable monthly repayments.
Many customers return to a specific retailer as they had a smooth and easy experience when using finance to make a purchase.
Take a look at this case study, for example. Derek bought a brand-new watch using interest free finance and found the experience so simple and convenient that he returned to buy another just months later. Without finance allowing him to spread the cost, he may not have been able to invest in a second piece so soon. This not only gave Derek a great opportunity to enhance his watch collection, but also earned the jeweller a return customer.
Looking to find out how your jewellery business can benefit from offering retail finance?