Implementing a Baby Shower Registry
Today's competitive retail climate demands that independent retailers discover innovative ways to increase sales, draw new customers to their stores, and keep them coming back. Gift Registry does just that; next to weddings, baby showers are the most popular registry events in America.
According to The New Yorker ("Bringing Up Baby" 11-15-04), approximately four million babies are born in the US every year. The same article reported that Babies 'R' Us registers nearly 1 million babies a year. With the right tools, independent stores can compete effectively.
Why Baby Registry?
The tangible benefits of a baby registry for the retailer are that it drives revenue, brings in new customers, builds long-term customer relationships, and encourages out-of-town sales while earning an excellent return on investment. Intangible benefits include generating incremental sales as unrelated purchases are made when gift buyers shop the registry.
Those that register their selections at their favorite store benefit from the satisfaction of receiving what they want and need. It also eliminates the unpleasant and inconvenient task of returning unwanted items to the store for a refund or exchange. Finally, the customer who is shopping gains satisfaction by selecting gifts that they know the recipient really wants, avoiding the possibility of making the wrong selection.
Implementation Options
Implementing a registry program can be easy and does not have to be expensive. You could create a simple file card system or build your own computerized application using a PC spreadsheet program. But will this rudimentary and labor intensive approach meet your business needs and, more importantly, satisfy your customers?
Maybe not, since today's Generation X and Y moms and dads have grown up with computer technology. Earning their confidence may require the right tools in addition to your first rate personalized service and great product selection. Successful marketing to this generation requires a true multi-channel strategy employing both in-store and web based techniques.
Several vendors offer reasonably priced off-the-shelf gift registry solutions. Do not make the mistake of buying the cheapest software, or using the least expensive service. Its limitations may negatively impact the success of your registry program.
Registries In-store
At minimum, you will need a way to create, update, and retrieve registries, and the ability to print them for parents who register and for those who want to purchase gifts. Most parents will want to print a copy of their registry as soon as they are done selecting items.
Parents tend to register for more items in-store when handheld scanners are used because it expedites the process. Even if you are not ready to use them immediately, be sure your system will support scanners.
To avoid duplicate purchases, you need a way to update registries quickly when gifts are purchased. If you are using a POS system, an automated purchase update interface is best, but manual systems work fine. If you have more than one store, frequent synchronization between stores (and your web site) will be necessary to avoid duplicate purchases and, ultimately, returns.
Ask if the software you are considering supports a self-service touchscreen interface. Again this may not be something you need right away, but keep your customer in mind—these are people who have never known a world without ATMs and who prefer to use a self-service touchscreen when checking in for an airline flight.
Registries on-line
If you do not have a website yet, address this shortcoming! A simple site, with a description of your business, competitive differentiation, store hours, a listing of the brands you carry, and similar useful information can be created for approximately $500 and hosted for less than $10 a month; you do not need to buy any special hardware or software.
A gift registry button should be created or added to your store web homepage. Minimally, this link will enable gift buyers to find, view, and print a registry and make a purchase, either with a toll free call or, better yet, using their credit card on your site. More than one gift registry software provider offers hosted services that can be added to your store site, providing this functionality for a small monthly fee.
You may also want to offer your customers the ability to create and update their registries and possibly even select items to add to their registries online. Again, you may choose to not implement this initially, but check out software capabilities before investing - you may need more advanced features sooner than you think. Do not accept the vagueness of a "we can build it for you" answer. Insist on seeing what you want running on other live store sites.
Calculating the ROI
The return on investment for a baby registry will be a function of management and marketing support in addition to the variables below. To calculate your ROI you need to estimate:
- The number of registries per store, per year
- Items per registry
- Average item retail price
- Average item margin
- Average percentage of registry sell-through
- Software and hardware costs
- Web hosting costs (if applicable)
Promotional Efforts
In-store signage, links from your website, inclusion in advertising campaigns, and public relations efforts are all mandatory for success. Marketing support can include a welcome package for parents that includes checklists suggesting items to include in a registry. Some retailers provide tastefully printed cards that parents can provide to friends and family stating that: "Our baby gift preferences have been registered with (your store)." Others keep customers coming back with post-event targeted marketing campaigns for "registry completion."
Unlike many retail automation projects, a Baby Registry does not profess to save money; rather, the Baby Registry value-proposition is making money.