Retail figures out this week have served to highlight the winners and losers of the retail sector in the current depressed market. Those with the right product, marketing mix and customer service do better than those who do not get it right. It sounds like a glib remark, but when consumer money is tight and credit no longer easy to come by, customers will no longer support those stores who were on the edges of their repertoire.
So what seem to be the golden rules:
The right product goes without saying: know your market and make sure both the quality and price levels meet with the expectations and needs of your target audience.
The right sales channels are key. Retailers are learning, some the hard way, that they can no longer rely on customers coming into store. Some don’t have time, some don’t live in the right places and some don’t have the inclination to come to the high street, so an on-line shopping option and correct online strategy is a must. It allows customers to shop when it suits them and allows the retailer effectively to remain open 24/7.
The right marketing channels are crucial, but even before that, knowing your customer is critical. Who are they, what are they buying, when are they buying, where are they buying, are they multi-channel customers, how important are they as individuals to your business? Did they used to spend and have stopped? Can you bring them back? Market research and customer relationship management enable retailers to target their marketing activity as closely as they can to reap the returns on the bottom line.
Customer service is an area which can never be over-estimated. Whether it is the person on the sales floor, at the till or on the phone, they represent your brand to the customer. Good service will bring the customer back and encourage them recommend you to friends. Poor service will encourage them to do neither.
Finally, it’s important to remain positive. The media paint a picture of doom and gloom and this can be self-perpetuating to an extent. Retailers who really believe in their business and take the right steps to reach their target market will thrive and come out stronger on the other side.