In the digital-first era, the prevailing narrative suggests that moving from a physical storefront to an e-commerce platform is the only way to survive. However, a fascinating counter-trend has started that has provided a new goal for many brands. They can easily transition from a purely electronic business to a physical location, which can be perfect for boosting their growth. While overhead costs are higher, the strategic advantages of having a legitimate presence are grand.
Having a physical store is great for offering immediate product gratification, allowing for sensory interaction and creating trust through in-person, personalised customer service. They provide immersive brand experiences, reduce high online return rates and drive impulse buys. This is a competitive advantage over online retailers.
Here is an in-depth exploration of the benefits of moving an e-business to a physical location, so get ready to boost your business appeal today.
Why You Should Move Your Business to a Physical Store
High-Touch Brand Experience
A physical location transforms a brand into a 3-D experience that allows customers to get a better look at products. When a customer walks into a store, they are immersed in your brand’s vibe, as everything plays a part in how they feel about your business and whether they’re going to complete a purchase or not. For example, some brands will have physical stores that embrace a specific type of lighting that is a staple of branding and makes them instantly recognisable.
This sensory engagement builds a much deeper emotional connection than a website ever could. For industries like high-end fashion, the ability to touch and feel a product before purchase is the difference between someone who is hesitantly browsing your online stores and customers who live in person, ready to create a purchase.
Improves Trust
One of the primary hurdles for e-businesses is the inherent lack of trust, as customers can’t physically see the items that they’re purchasing. Customers often worry about the quality of the item too and when they purchase online, they have no idea if it’s going to meet their standards. They then have to go through returns procedures, which can be a chore when it comes to some e-businesses. A physical storefront is far more trustworthy, with customers being able to see the quality of your products, reducing the chances of them having to return the product further down the line.
Having a permanent address suggests legitimacy too, as opposed to being only available online. If something goes wrong, the customer knows exactly where to go to resolve the issue. This face-to-face accountability reduces purchase friction, so the customers feel more comfortable handing over a bank card to a human being than a digital form.
Passive Marketing
Having a physical store is a permanent advertisement, as customers will walk past your store daily so it will be a constant reminder that you exist. This boosts the chances of them completing a purchase with you in the future, whereas when you’re only online, it reduces the chances of you being seen. This is known as the Billboard Effect, getting your business in the eyes of more potential customers.
Research also shows that when a brand opens a physical location in a specific zip code, their online traffic from that same area typically spikes. The store validates the online presence, which drives foot traffic and creates an improved cycle of growth.
Improves Logistics
Shipping and returns can reduce the profit of e-commerce businesses. High shipping costs can lead to abandoned carts, while the cost of processing returns can get rid of profit margins entirely. A physical location allows customers to buy online and pick up in-store, which is a win-win, as businesses save on last-mile delivery costs and the customer gets their item instantly without paying for shipping.
Return to store policies are significantly cheaper for the business to manage and provide a perfect opportunity for upselling. When a customer comes in to return an item, a skilled sales associate can often suggest an alternative. This helps with turning a lost sale into an exchange or a larger purchase, which can help reduce the chances of missing out on any profits.
Instant Customer Feedback
E-business is often limited to star ratings and online reviews when it comes to feedback, which sometimes don’t give a real-life indication of whether or not a business can be trusted, with customers more likely to leave a negative review than a positive one.
Business owners can observe how customers interact with products, giving them a better indication of what their target audiences like and dislike. Do they pick it up and put it back down? Do they look confused by the packaging? Why do they hesitate at the price tag? You should have direct conversations with customers, so you can change your product development or marketing strategy much faster than waiting for enough data to accumulate in Google Analytics.
Builds a Community
Electronic businesses struggle to build community, as the interaction is transactional and fleeting. Physical locations allow for events, workshops and social gatherings that turn customers into a community. That’s why you see businesses like The Liberty Shopping Centre in Essex having regular events that bring customers together in one place.
These experiential elements create a lifestyle around your brand, which can improve the chances of customers returning to you on a regular basis. People are more likely to stay loyal to a business where they have personal relationships with the staff and fellow shoppers.
Diversified Revenue Streams
Relying solely on digital algorithms is risky for your brand. A change in an algorithm can hurt your traffic overnight, whereas moving to a physical location diversifies your acquisition channels. You are no longer dependent on the digital landscape, as you now have access to foot traffic and local referrals.
A physical space can be monetised in ways a website can’t, such as renting out space for events, offering in-person services or partnering with local businesses for pop-up collaborations.
Local SEO
When you have a physical location for your store, it can be beneficial for improving how your online store ranks on Google Search Engine results pages. It gives you the chance to optimise your Google My Business profile, which is another website that helps you collect customer reviews, post updates about your physical stores and get directions.
You can even include location-based schema on your website, letting Google know that you have physical locations. This can help you rank for location-specific keywords.