We set personal resolutions for the New Year, so why shouldnt we do the same in our businesses? Retailers around the world are spending this time reflecting on the previous 12 months and setting the goals that will ensure 2017 is an even better year.
If youre having trouble ruminating on your goals, take some inspiration from retailers around the world.
Boost Your Use of Data
Many retailers conduct market research when looking to open their business and then never use that information again. This year, one of the most solid resolutions you can make is to utilize customer data in your everyday operations.
The easiest way to collect data is through your point-of-sale terminal. Chances are you already prepare some sort of end-of-day, -week, and -month report. One of the biggest mistakes you can make is to file this information away and never look at it again. Those reports are a data mine and can help your business identify and capitalize upon many customer trends.
Information in these reports can include:
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Which day of the week logs the most purchases so you can tailor promotions to match that day or target others that may be lagging;
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The number of products customers are buying so you can create promotions if you see particular items are popular together;
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How quickly certain items are selling so you can more accurately track your product turnaround and calculate when you need to order more stock.
Your POS unit can collect all of this data, but you can go deeper. Try using this information to create customer profiles in order to get a better sense of prospective buyers and select or design products to fit their needs.
Utah-based headphone, speaker, and backpack manufacturer Skullcandy is an example of a company that has used customer data to its advantage. The company employs social media and email blasts to reach out to its customer base, gathering information about their lifestyles and what theyd like to see in future products. Skullcandy has also identified the value of content marketing and peer recommendations, especially when it comes to connecting with their young-adult customer base. These efforts can be replicated by any retail business out there.
The collection of data is a multi-step process. Beyond the gathering of information, a retail business must be able to look at those numbers and distill meaning from them. Most businesses outsource data collection to a firm with the technology and expertise to collect the information they need to forecast the trends that will create the most impact.
Cultivate Online Reviews
Businesses often have a love-hate relationship with online reviews. They give real customers the chance to comment on your product and service perfect for gathering data. But those reviews can occasionally be posted by anonymous trolls who seem to have a bone to pick with your business.
Whatever your relationship with online reviews, theyre incredibly important for your business. A whopping 92% of customers now read and consider online reviews when making their shopping decisions, and with the proliferation of smartphones, its possible theyre doing so while in your shop. This should create a sense of urgency for businesses who either lack an online review presence or have garnered a few negative comments.
While one or two negative comments may not seem bad, do consider that 40% of customers make purchasing decisions based on reading just one to three reviews. This emphasizes the importance of making sure your online footprint contains more positives than negatives and if there are negatives, to ensure that youre replying to the review over the same platform and following up with that customer.
So how do you cultivate a healthy community of online reviews? Your retail business can take a few steps.
First, make sure theres a place for people to leave those reviews. Whether its your official Facebook page, your Google My Business location, or on your website, there should always be a clear forum for customers to comment and critique.
Next, recognize that online reviews take up customers valuable time. To thank them for their feedback, offer incentives such as a percentage or dollar amount off of their next purchase.
Finally, give customers a retail experience so memorable that theyll want to review it. Offer quality products paired with excellent service and your customers will rave about the experience to their friends, family, and the online world.
Once you have a collection of online reviews, try showcasing a few of them front and center. This could mean displaying them on the homepage of your website or printing them to hang in your shop; whatever makes it easiest for customers to spot what others have to say.
For example, take a look at the website of retailer MVMT Watches. A section of each product page is dedicated to their positive customer reviews, and its easy for site visitors to click through and see the comments of others. To limit online trolls, you can take a page out of MVMT Watches book and make sure that only verified buyers can leave reviews.
Show Your Employees Theyre Valued
The two resolutions above will be completely useless if, when coming into the store, customers are treated horribly by apathetic or rude sales staff. While retail employees may be more temporary than office staff, for example, its still important for you to treat them well.
While not exactly retail, major airline Southwest still sets an example for its treatment of employees. In addition to offering free flights on Southwest Airlines and discounted stock purchase options, the travel giant prioritizes employee happiness over customer satisfaction. How is it then that Southwest has received numerous awards for their outstanding customer service without making customers the priority? They believe its a product of their happy and well-appreciated staff.
Bulk giant Costco has also been recognized as one of the top employee-friendly retail employers. It offers employees an above-average wage and makes health benefits accessible to hourly employees. These part-time staff members are eligible to collect benefits after 180 days on the job.
While Southwest and Costco are two examples of large organizations that have taken their employees needs to heart, small companies can also do their part. You dont have to go as far as developing a comprehensive benefits program instead, try positively commenting on an employees performance each shift, and create an open door policy where they can safely voice concerns to management. Showing a little appreciation and care for their job health will go a long way, and their happiness levels will translate to a better in-store experience for your customers.
Next Steps
As with any goals, take SMART principles into perspective. It will be challenging to accomplish your retail resolutions without making those goals specific, measurable, attainable, realistic, and timely. This can involve setting goals that contain sales benchmarks, specific timelines, and team members who will be involved in helping your business accomplish them.
Plotting these retail resolutions for 2017 should help summarize the previous year and get you energized and focused for the one ahead.
