Strategies for Retail Growth: How To Make Wise Investments in 2020?
The IMF and World Bank have reduced their economic growth forecasts and experts warn that the increasing interest rates in the united states, an economic war and economic tensions will have a debilitating effect on the economy.
Economic analysts from Deloitte warn that merchants who thrived in 2018 should be prepared for setbacks this season. Their Q4 forecast estimates a substantial decline in retail expansion: the 5.5% increase in Q4 of 2018 will fall into 3.4--4.1% by Q4 this year. Consumers are cutting back on costs, while loan costs and pressure on prices are rising; the first effect of the tax reform has also abated, clarifies Deloitte.
How to Get Ready for a Safe Financial Year?
Irrespective of which expert evaluations or recommendations you read, three important areas keep coming up: clients, investments and technology. This may not seem like earth-shattering intellect, but the value of these variables becomes apparent when we look beyond them and, more especially, several steps forward from where we are. So, let's get going.
Step 1: Clients
Use any info you collect wisely. POS applications will do lots of the valuable work for you. Connectpos includes a CRM module, so it has got your data analysis needs covered.
Take a close look in your loyalty programs. POS software permits you to personalize your approach to the preferences and choices of each individual client. ConnectPOS offers many different price formation strategies (special prices for products and product groups, loyalty points or points for a set purchase amount, coupon campaigns, birthday and buy-two-get-three campaigns, etc.) along with coupons and gift cards.
Ask the client for feedback on your service or product. This can allow you to understand what their expectations are -- maybe your clients would love a delivery service or client events. It may be common knowledge, but you can take it a step farther -- be as private as possible, because exclusive (or restricted ) deals are a valuable currency for many clients.
Help your client understand what they are getting from you. Personal offers, buy discounts, recommendations, special campaigns -- show the client that you are putting the data you have collected to real use and help the consumer understand why you collect information.
Make relaxation count. The principal reason people shop online is relaxation. You do not need statistics to know that this is an increasing trend that's mostly motivated by comfort. Bet on what clients want and make their life comfortable.
But then why is it that customers still see brick-and-mortar stores if shopping is far more comfortable with a smartphone or PC? Primarily for two reasons -- they do not wish to await delivery and they wish to touch-try-smell the item before buying it. This is where you come in again by creating the customers' shopping experience enjoyable and enjoyable. Make your shop appeal to their senses. Businesses that have turned present sales reasoning topsy-turvy are those that will survive this skirmish. Promoting your merchandise at any cost is no more what it is about -- what you should do is entertaining the consumer. Let them know the origin story of this item, make the consumer listen, taste and participate.
If you have only got a web shop, definitely contemplate opening a pop-up shop . Jump in the middle of your target group or appropriate community. Many little stores in the usa have got on board with the tendency and opened pop-up shops in big shopping malls to permit customers to taste or touch the goods before making the purchase.
Allow your customers to purchase online and choose the items up in the shop . According to the National Retail Federation (NRF), this was the preferred shopping method for 89 million Americans during the last holiday season. The prevalence of the option increased by a whopping 73 percent this last Thanksgiving and Black Friday in comparison to 2017. The alternative is mutually beneficial: the client does not have to cover delivery as well as the merchant profits because 64 percent of the consumers that come to pick up an arrangement wind up making at least another purchase, confirms NRF.
Think outside the box and consider unique possibilities for collaboration. Have a look at what other companies and sectors do to add value to your own goods or merchandise. Sure, it is a challenge and requires a little effort, but it will be worth it in the long run! By way of instance, you could try out a deal that lets customers use your store's loyalty points at a neighborhood café.
Allow your clients to exchange loyalty points by handing them out or selling them. It is possible to create a market platform in your site which you can use to keep your eye on trends and customer expectations. It may also be a distance, where you are able to guide and influence clients.
Step 2: Technology
Enlist AI-based tools. Install an interactive display near popular products in your brick-and-mortar shop and give price comparison choices on your site to enable your customers to pick the item that suits them best.
AI (chat bots) and MR (mixed reality) would be the incontrovertible future of retail. Although many admit to finding talking to a robot deterring, a chat bot is more than capable of answering basic questions and can do it 24/7. This is the reason a lot of airlines, hotels, convenience stores, etc. are choosing chat bots.
The simplest place to implement your chat bot is on Facebook Messenger with an adequate set of basic tools out there for you -- no IT group or API development required.
MR is a slightly different story. Pokémon Go introduced the marvels of MR to the world a few years back; at its summit, the match had 45 million active daily users. Clearly the technician has potential to become a client magnet, but growing MR is rather pricey. So, what should you do?
Collaborate with startups. Startups often introduce amazing inventions which may be just the thing you're looking for. You could try searching for ideas on crowdfunding sites. You don't know where you could encounter a valuable future spouse.
Group purchasing platforms which mediate orders and, rather than same-day shipping, guarantee delivery in a few hours, are also gaining momentum. The concept is that the companies that use the platform may make group purchases at any given point, enabling each step in manufacturing and sales to fulfill minimal amounts and have access to higher discounts.
Different mediation services are another popular option. By way of instance, you do not need to store your goods in a large central warehouse -- any entrepreneur that has some excess space in their shop can lease an interim warehouse to local producers or other owners. This notion forms networks of interdependent modest businesses and guarantees quick delivery to clients.
And if you are looking towards IT startups, you could stumble upon a passionate youth considering creating a Google Street View style virtual shop of your brick-and-mortar shop where clients are able to move in 3D space, look up prices and zoom in on products.
You may also consider adopting a cryptocurrency. Though we have not seen the breakthrough of blockchain just yet, it has proven incredibly popular with the younger generation of shoppers. Several online shops now accept cryptocurrency payments for everything from products and services to resort bookings and more. Apple's AppStore also accepts cryptocurrency payments.
Be cautioned, however, the cryptocurrency marketplace is currently unregulated, incredibly volatile and insecure. Do keep an eye on it, however, since the situation can change at a moment's notice. After regulations are approved, the market presents a fast, comfortable and comparatively forgery-proof payment system with minimal transaction fees.
Step 3: Investments
Go on your investment strategy for the forthcoming two years -- your priorities and investment plan. Deloitte claims that retail companies that reinvest more are more likely to survive a catastrophe. You may want to invest in self-service and cellular points-of-sale or present pick-up lockers to your shop for clients who can not find the time to collect their purchases during opening hours.
Try to incorporate your investments, such as by employing a variety of sales and marketing channels. You should take into account that smartphones have become an increasingly more relevant ad station -- based on NRF, 35 percent of all consumer purchase decision last year were created after browsing for information on a smartphone. Therefore, it's probably prudent to focus your focus on harnessing the possibilities of mobile advertisements.
If you would like to refresh your memory about the best way best to get unique sales channels to work together, read our recent post on omnichannel revenue . Also take a fresh look at what ConnectPOS's POS software offers -- you could find ideas for expansion on that list also.
Increasingly more companies are turning their eyes China, where advanced retail companies have been able to make a smooth and operational supply chain we can all learn from. But let's pick up on that in another post.
If you discover a moment, attempt to map new markets and develop strategies to reach new clients, even when you do it just as a thought exercise. Geographic and demographic flexibility provide added security in each scenario.
Thoroughly discuss the following 12 questions:
- Can you find ways to cut back?
- Can you discard a product/service in a moments notice in case of a crisis?
- Can you get the exact products at a cheaper price somewhere else?
- Is there any way to maximize your services?
- Can you get a better deal on your lease?
- Can you negotiate better deals with partners?
- Why do you question?
- How significant are you for your clients?
- Who would you supply services/goods to?
- How can you provide services/goods?
- Why should the customer care about you?
- Were you honest with yourself when answering these questions?
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