David Fuller-Watts, CEO of Mallcomm, discusses the importance of tenant engagement in driving sales and how digital technology can add value to this strategy.
A return to physical stores, innovative technology, and a renewed focus on efficiency are all helping retailers to weather the economic and political storm. But for shopping centre owners and managers, these aren’t the only trends which will make a difference to the bottom line.
From our conversations with clients across the globe, there are not only positive signs of recovery but evidence of significant growth. Retailers’ sales are strengthening, resulting in higher retention rates and rents for retail destinations. Some larger shopping centres are now in a strong position to make further investments, which will generate further revenue in both the short and long term.
These discussions have also revealed that the most successful shopping centres all have one thing in common – a commitment to tenant engagement. Those that are prioritizing the needs of their tenants and providing the tools required to communicate more effectively are now realising the benefits.
Of course, tenant engagement is not the only driver behind their success. But it’s no coincidence that retail destinations outperforming their competitors are all putting their tenants front and centre; a trend which can’t be ignored.
Joining the dots
Engaging multiple retailers is not without its challenges. To be effective, tenant engagement relies on several factors, which need to work together to create the best possible experience. In many cases, that means changing mindsets and shifting away from a silo mentality. Property managers must look at their shopping centre as a single, connected community where all teams work together to empower retailers to do better.
At the heart of this approach is the need for effective internal communication. Whether a tenant is new or has been part of a centre for years, making sure they are armed with the latest and most relevant information relating to their environment plays a crucial role in engagement and improving satisfaction.
Communication must also be a two-way street. Making it easy for tenants to contact management with any questions, concerns or requests, strengthens relationships and helps to boost retailers’ productivity, freeing up their time to focus on what they do best.
So how can this be achieved?
Digital technology provides a powerful and highly effective tool for shopping centre managers seeking to enhance tenant engagement. Implementing a platform like Mallcomm enables all parties to communicate through a single source and using real-time messaging. The need for manual or multiple methods are eliminated, streamlining all communication, and bringing the whole community together.
Adding value
As well as providing updates on management and other operational issues, a digital platform can generate wider commercial benefits.
The technology can be used to maximise the impact of marketing initiatives for shopping centres as well as individual retailers. Offers, promotions and loyalty discounts can be promoted directly to tenants as well as details of events or networking opportunities. This strategy not only enhances engagement but can have a direct impact on sales.
For example, up to five percent of the turnover generated at a food outlet in the UK can be attributed to a loyalty discount offered through Mallcomm. This is true in the US too, where convenience, coupled with the alignment of centre management teams and retailers leads to higher success rate of promotions and positive customer journey for visitors.
The technology can also measure the success of marketing campaigns and other initiatives, ensuring shopping centres can continuously improve and that strategies can be adapted if needed. This can be achieved through bespoke surveys and polls designed to gather feedback from tenants.
Sales data can be collected through the platform too, enabling management to analyse patterns more forensically over time and the potential impact of an engagement strategy.
Changing tack
Much has been said about the need to improve the customer experience in stores and retail destinations. To differentiate in a competitive and challenging market, creating a memorable experience is crucial to attract shoppers and encourage sales. However, the experience for retail tenants is talked about far less – and that needs to change.
As the backbone of a shopping centre, retailers also need to operate in an environment which provides them with the best possible experience. That is why tenant engagement must be prioritized in property management, including the tools required for all parties to work cohesively, communicate effectively and measure success.
From our experience of working with many retail destinations, this approach can strengthen retailers’ sales, creating the opportunity for higher revenues and asset values for shopping centres of all sizes.
To learn more about Mallcomm or to book a demo, please email:
david.fuller-watts@mallcommapp.com
