Why putting more attention on retail stores channel than online marketplace?

Why paying so much attention to your retail strategy? Because of commitment rate ! By spending $1, you will reach 10 potential customers offline for 175 potential customers online. The difference is important, of course, so why pay so much attention to your retail strategy? Because stores usually offer a higher commitment rate closed to 25% (for 1% online). What does it mean ? This means that the purchase of a product is increased with the right customer experience in physical stores: it allows potential customers to understand the benefits of your product through a demonstration. A potential customer pays an average of 3 seconds of attention to a product when he discovers it online, compared to 20 seconds when he discovers it in store.

Retail is not dead. Retail is changing and offer a long term vision with scalable ROI

Case study : Smartwatches for kids, smart expenses

We made the test thanks to 2 000 $ spent in a month with So sample, we spend money on both google shopping/ads/amazon marketplace fees & retail operations like demos and negotiations for PO with many retailers at the same time.

During the LandIn France program by So sample, in 3 months, Xplora, a smartwatches GPS for kids had several Demos in stores and generate more than 20 sales in stores without stock, only with 10 times ambassadors in stores that explained the product and gives physical demos.

After this period, Xplora proved to decision-makers that the product can be in stores with display and more demos. He is now available in stores with a recurrent purchase order (MOQ per order per stores is 20, and Boulanger have 147 stores in France).

For the same cost on a unique online strategy, Xplora spent 60€ as CAC (cost of acquisiton channel) so 6000 € for an average of 100 units thanks to google ads. It's the contrast to a short term vision and a long term vision for the same cost. The ROI is here thanks to the potential of expansion and MOQ per stores.

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