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Investment Types: Increase Profits In Shopping Malls By Implementing These 3 Sure-Fire Techniques

3 fire techniques to increase profits in shopping malls

Innovative shopping malls have realized that the way to increase profits is to engage customers. 

Today’s consumers have an overwhelming variety of places to choose from when shopping; however, shoppers are always more likely to frequent a place where they feel a connection to. Years ago, when most stores were smaller and family-owned, personal connection occurred naturally as part and parcel of doing business in the same area where one lived.

Nowadays the predominance of big-box centers and superstores have eliminated the chance for store owners and employees to create meaningful relationships with customers. Instead, retail real estate owners should use other strategies which allow them to create deeper bonds with prospects.

Increase Profits: Use Technology To Offer Consumers Personalized Experiences

increase profits by using technology to offer consumers personalized experiences

Social media is the obvious place to start when attempting to engage consumers.

Most mall owners, however, make the mistake of using social media as a one-way platform, with the consumer on the receiving end. To increase profits, successful companies have learned that rather than using social media as a way of notifying fans of sales or damage control, it can be used to encourage consumers to initiate meaningful conversations.

One mall does this by soliciting ideas from consumers on ideas for new stores. Another mall uses different Facebook pages to communicate with specific interest groups or geographies. Both of these offer ways for consumers to interact in ways that are both more personal and feel more relevant to the individual.

Retail real estate investors can take this even further by taking advantage of consumers’ desire for personalization. 75% of customers like it when brands personalize products and offers, and brick and mortar stores have the obvious advantage of being able to offer personalized services.

Instead of sending consumers messages about status updates and low-value discounts, consumers should first receive content that is not only valuable but personalized according to their needs and preferences. Mall loyalty programs are an example where technology can be used to collect personalized data about each member and send relevant offers in real-time.

Some mall owners, for example, use in-store apps that offer discounts based on previous purchases when members are in or close to the mall. These owners are taking advantage of what marketers call “webrooming” which is the practice of researching a product online before entering a brick and mortar store to buy the product.

This is the opposite of “showrooming,” which occurs when consumers visit a store to see, touch, and try out a product before buying it online at a lower price. And while showrooming is a big concern for retailers, statistics show that 69% of customers engage in webrooming as compared to 46% showrooming.

There are several things malls can encourage tenants to do that to take advantage of webrooming:

  • Make sure the mall has a quality website that is fully responsive.
  • Offer coupons online that can be redeemed in the store.
  • Make it easy for shoppers to order online and pick up their product at the store.
  • Allow shoppers to buy products online and try them on in the store.
  • Keep your product database up to date, so that when consumers enter your store, they know the product they won’t waste a trip.
  • Ensure product descriptions are accurate, and that you provide high-quality product pictures that can be viewed from more than one angle. Also, show items in different colors or styles (when applicable).
  • Have staff carry mobile devices that allow them to check instantly on product availability, product features, online deals, or answer questions. This makes for a much better customer experience than waiting for the salesperson to go back to the counter, where they are likely to get high-jacked by other customers.
  • For apparel stores, getting customers to try on a garment increases conversions by 67%.

For the mall itself, there are several things that can be done to encourage consumers to visit. Shoppers can use their smartphone to scan in receipts, in exchange for points that can be redeemed for free parking, discount vouchers, concert tickets, or special mall events such as fashion shows or celebrity appearances. Face recognition technology or location-based marketing is an excellent way for mall owners to identify and reward repeat shoppers.

Increase Profits: Rethink The Tenant Mix

increase profits rethink tenant mix

While anchor stores are important, more and more mall owners are discovering that a curated mix of smaller stores provide a sense of novelty that many standard retail real estate malls lack. The addition of pop-up stores, kiosks, and showroom spaces add curiosity and encourage shoppers to visit frequently in order to uncover new treasures.

Increase Profits: Design Malls So They Are An Integral Part Of The Community

Traditionally, malls have been huge behemoths on the outskirts of the community.

However, with the trend towards urbanization and the failure of many super malls, developers are beginning to focus on how to help malls be seen as an integral part of the community. This can be done by using open-air malls that blur the line between indoors and outdoors. Another possibility involves making sure the mall is as environmentally sustainable as possible, by using green features, incorporating natural design elements in the mall, and using an integrated landscape to help create a different experience.

Mixed-use malls are also popular now and are expected to continue to grow in popularity.

These spaces can have a mix of anything from 70/30 to 50/50 but must be carefully planned in order to ensure all members of the community work well together.

Today’s consumers have an overwhelming variety of places to choose from when shopping; however, shoppers are always more likely to frequent a place where they feel a connection to. Years ago, when most stores were smaller and family-owned, personal connection occurred naturally as part and parcel of doing business in the same area where one lived.

Nowadays the predominance of big-box centers and superstores have eliminated the chance for store owners and employees to create meaningful relationships with customers. Instead, retail real estate owners should use other strategies which allow them to create deeper bonds with prospects.

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Tags: increase profits, retail real estate owners, shopping malls, showrooming, social media, webrooming