Piaras Kelly PR - Public Relations in Ireland

Catherine O’Mahony reported in the Sunday Business Post this weekend on comments made by Mike Lewis, head of sales, Yahoo UK and Ireland, at the National Marketing conference. According to Lewis, consumers now spend a paltry 23 minutes in car dealerships because of pre-purchase research online. These figures highlight the challenges that retailers are increasingly beginning to feel.

As I’ve mentioned before, shopping is now a leisure activity. Car dealerships have to become ‘experiential destinations’ in a bid to get the customer to stay on the premises longer. Auto companies are starting to pursue non-traditional initiatives to increase footfall such as inviting parents to see how to correctly fit childseats or to after hours cooking demonstrations by celebrity chefs. An article I’m fond of quoting in this respect is from The Economist’s Intelligent Life supplement which describes where retail is moving:

“The magic of the best retail outlets lies as much in the sensory experiences and instant gratification they peddle as in the goods and services on offer. There are opportunities for customers to handle and compare merchandise; to reconnoitre the goods before making the final commitment; and to seek support thereafter. At its best, shopping becomes entertainment.

As a result, more and more retail spaces are becoming ‘experiential destinations’ - offering fun, food and pampering, as well as things to take home. Their purpose is as much about converting visitors into customers over time as it is about moving the merchandise on a day-to-day basis.”

On the other hand, apart from having to revolutionise the retail experience, companies also have to engage consumers online. For example, Electric News also recently mentioned Dr Stewart Stephens’ comments at a recent hospitality industry event. The Gulliver Ireland managing director said that “internet bookings accounted for almost 70 percent of total Irish hotel bookings last year — up from 63 percent in 2005.” This highlights the need for hotels to engage with potential customers online. While most hotels have websites, very few take advantage of the capability the Internet offers today. Videos of the experience consumers could expect at hotels can easily be uploaded to YouTube and embedded on their websites. Amazon style customer reviews are also increasingly coming to the form and could also be extended to a hotel’s site.

Increasingly this kind of online experience is coming to the fore. VentureBeat recently gave an update on Smalltown, “another company seeking to offer a Yellow Pages-like service with a more compelling online experience and community feel. Store merchants can pay to upgrade their listings, and local residents can write reviews, leave messages and ask for tips.” This type of offering on the Net still has some way to go, but it is a good opportunity for the likes of the Golden Pages, a traditional advertising directory, which is increasingly feeling the pressure from the likes of Google or Craigslist.

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