Happy.Inc is an established Canadian health and beauty ecommerce retailer that hosts a temporary, physical storefront at a regional mall. Prior to this location it held a first trial for 4 months in a different mall. The pop-up pilots aim to gain a better understanding of their customers´ cross-channel shopping habits and to increase brand awareness among new customers. Although Happy did not explicitly state this, the trials appear to be testing scenarios for a potential future retail strategy that may include brick-and-mortar stores.
The current store is located in a midway point between anchor tenants within an indoor mall, whereas the first location was located at an outdoor shopping mall. According to Happy`s Marketing Manager the locations were chosen because they are very representative of where existing customers are. Furthermore, the locations provide large customer acquisition opportunities. The physical pop-ups shops allow Happy to create brand presence, attract new customers and add personal interaction with their customers. With them being a health and beauty retailer, they added experiential elements such as workshops about selected beauty products and DIY instructions to their instore-experience.
Happy has been using its social channels, website and email marketing to drive customers to the physical stores. While Happy didn`t share any metrics about the first execution, it appears to be a successful model given the continuing operation of a physical location. Furthermore, Happy has already realized an increase in customers using their click-and-collect option and buying additional items in the store since the opening of the second location.
Omni channel shopping experience
With Happy.Inc being an established ecommerce retailer it truly exploits the strengths of both channels within their stores. Happy provides an omni-channel retail experience that expands its limited in-store assortment through access to the online assortment via tablets. It also offers the option to order online and pick-up in-store. Furthermore, it leveraged data analytics for its assortment. Happy identified a range of the 1,000 most popular products and displays those within their store. Finally, Happy tries to collect email addresses from all of their customers to send them their receipts after purchasing something in the store. It then matches these email addresses with previous and future online purchases to gain better insights on the cross channel buying behaviour.
What other metrics of success evaluation/ evaluation tools can you think of for Happy.Inc?
- Happy currently tracks their click-and-collect option as well as sales metrics
- Other evaluation tools:
- Customer exit survey
- Foot traffic tracking outside of the store and inside
- Conversion rates: Average Sales per customer
- New online customers in the region of the pop-up: this could even be measured through promotions, e.g, give in-store customers coupon with 10% to check whether their visit prompted them to visit online page
- Marketing conversion: track change in store traffic after e.g. email marketing campaign
The current store manager stated that the new location is better. Why do you think that is?
- With the current location being in an Indoor mall, customer movement options are more limited. Customers are almost “forced” to pass the store.
- Outdoors, customers had more navigation options.
- Current location is between popular anchor tenants. No indication where it was in between at first location
- Possibly learned from first set-up and changed some of their visual merchandising
Key Learning Objectives
- Buidling on success: Learning from previous initiatives
- Leveraging technology for an enhanced pop-up experience
- Considering different evaluation tools