Every owner needs to find a retail marketing strategy that works best for them. While it’s easy to be overwhelmed by the many different retail sales options available, knowing how each type of retail sales approach would affect your retail business is the first step in picking out which one best fits you. Luckily, there are various ways retail stores can attract and retain their customers and maximize sales.
1. Discounted products
The word “customer” is important, but what’s more important is the product. To attract and retain your customers, you’ll need to offer them something they want at a price they can afford. That means discounting products when possible so you can sell more while staying profitable. But there are some things to keep in mind if you’re going to use discounted products as part of your retail sales strategy to attract or retain customers.
-Items in this category are usually “loss leaders” that bring people in the door who will also buy higher margin items. If you offer too many discounts, though, you might be undercutting your margins too much.
If the item isn’t discounted enough, you risk it seeming too expensive compared to other options. If it’s discounted too much, you risk undercutting your sales prices and losing out on future sales by alienating customers with a perceived lower value.
Discounted products are just one option in which you can approach your retail sales. However, there are many more ways that you can approach your retail sales to attract or retain customers.
2. Free Shipping or Returns
While consumers may appreciate free shipping, they’re often disappointed when a retailer is unable to honor their loyalty and the product they ordered doesn’t meet expectations.
When loyalty is broken, consumers are more likely to go back to their usual purchase or shop around for a deal elsewhere.
If you are running a free shipping or return promotion, consumers need to know that they can trust your business.
If you are unable to meet consumers’ expectations, they are likely to move on and go back to their usual purchasing habits.
They’ll likely forget the power of your promotion, which will cause consumers to miss out on more loyalty and deals.
Consumers appreciate free shipping and returns, but they need to be able to trust retailers for consumers to continue to buy from that retailer.
3. Flash Sale Promotions
Flash sale promotions are a product marketing strategy that involves offering select items at steeply discounted prices for a fixed period of time. The product is offered at the discounted price for a short period of time, often just several hours or days.
Flash sale promotions are primarily used by product manufacturers to get rid of excess inventory. The product is sold at a deeply discounted price, often for a product that is slightly damaged in some way or has been returned by customers.
In addition to clearing out excess products, flash sales promotions also serve to generate product awareness and product interest. New product launches are often accompanied by flash sales that offer steep discounts on the products.
While flash sale promotions do not usually generate a high volume of product sales, they can serve as a product marketing tactic that generates product interest and product awareness.
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4. Create a customer loyalty program
Purchasing is quite an easy process, but most people are unaware of how much more they would buy if only they knew what to buy or how to buy it. Customer purchase behavior is a large part of marketing. The store’s goal is to sell all the items in its store.
To accomplish this, retail marketing strategies such as sales and promotions are employed by retailers to entice customers into buying their items. One technique that store owners are currently using to help increase store revenues is called “loyalty point.”
What are Loyalty Points?
Customers earn points in the form of loyalty points, sometimes known as store points or bonus points, when they make a purchase with their credit card on a website. Customers are given free store credits in the form of loyalty points by shopkeepers.
The goal of loyalty programs is to encourage customers to make repeat visits, thus increasing sales and fostering greater brand awareness. Customers earn points by making purchases with credit or debit cards at a store, and those points may be redeemed for products in the future.
How can owners use loyalty points to increase store revenue?
There are several options for store owners to use loyalty points to boost income.
First, Any customer who redeems a particular number of loyalty points will receive an immediate discount on the item cost, for example, a 5% reduction. A shop owner, for example, might provide a 5% reduction to a client who redeems 500 loyalty points.
Second, owners may give extra points to consumers who make purchases online after earning loyalty points. For example, a shop owner might provide customers with store credit when they reach a specific number of loyalty points.
Finally, store owners may operate loyalty program for customers. For instance, store owners might give loyal clients who make purchases online for their birthdays shop credit.
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5. Special offers
A special offer is an offer where a retailer sells products below their regular price. Special offers are used by retailers to attract customers. Sometimes retailers use special offers for a limited period of time, so the retailer cannot sell products below their regular price very often.
6. Offer expert help
Every customer walking into a store is there for something. If it’s not to shop or pick up an order, then they are there to get help. You would be surprised at how customer behavior changes when they know you are an expert in your field.
Customer service in retail shops is an extension of the customer experience. Customer care workers have a significant impact on client happiness and loyalty. As a result, retail store management must place a high value on customer service.
Providing good customer service is not just about how many customers walk out satisfied or with a smile on their faces. Truly providing great customer service is about first listening to what the customer has to say and then asking questions before getting down to solving the issue.
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7. Encourage recommendations
Social media is one of the most effective channels to promote your online store, but social media isn’t just about posting images and hoping that people see them. You can use social media more strategically by encouraging your customers to recommend you.
Recommendations are social proof. Social proof is shown to increase conversion rates because it shows potential customers that other people have purchased from your store. And if they haven’t already purchased, then there is social proof that shows that others were satisfied with their purchase. This social proof can show potential customers that your store is trustworthy and reliable enough to purchase from.
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8. Focus on your brand
Increased sales and revenue from repeat customers is the ultimate goal of any digital marketing campaign. According to Salesforce in an article published in 2012, repeat customers spend 60–70% more than new customers. Therefore, when looking at repeat business, your brand must aim to retain loyal customers and attract repeat business by adopting a strong focus on your brand.
9. Holiday Promotions
As shoppers, we are always on the lookout for the best deal. We are constantly checking online stores and advertisements to ensure that we are getting the best prices available anywhere. Promotions during the holidays are especially important to shoppers, as they give shoppers a chance to buy items at discounted prices or even below retail prices. Though shopping is usually done in person, these promotions have allowed shoppers to buy from their homes as well.
Online sales are becoming an integral part of shoppers holiday experience. More shoppers are buying items online than ever before, and this trend looks to continue. The more items shoppers can purchase online, the more satisfied they will be with their purchase. Not only does it save them time by not having to drive all around town looking for what they want, but it’s also more convenient as shoppers can buy from the comfort of their home.
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10. Provide Free Samples
Current customers are the most likely to make online purchases. They know your online store and they like you already, so it makes sense to offer them special deals on the site. Motivate customers who haven’t purchased in a while by giving free samples of new items or products that are difficult to find online. Existing customers will be even more likely to place online orders if you offer free samples online.
Retail analytics has come a long way since the days of P&L reports and sales quotas. With today’s technology, retailers can capture and analyze customer data to determine consumer trends, increase sales performance, and even cut costs.
This consumer data can come from any number of sources, each providing an advantage for creating consumer insight.
Retailers can integrate consumer data from their company’s website, loyalty program, product reviews, and social media posts to gain a more comprehensive consumer understanding.