The number of retail stores is rising, and we have so many places to go for just one product. What influences customers in choosing a particular shop and returning there? What makes a retail much more desirable in the public eye than others that offer similar product listings?
The answers might lie in retail strategies employed by the store.
If you’re also in the retail industry, effective marketing strategies can significantly boost your store’s sales. Our article will tell you more about them, their importance, and the components of the overall plan.
What Are Retail Strategies?
To understand these is first to know how retail operates. Typically, a retail store first buys bulk items from manufacturers or wholesalers before reselling them at slightly higher prices. Its ownership ranges from an individual- to business-owned, but in the end, a retail store offers those products directly to customers. The store needs to make its presence known, and this is where retail marketing strategies come to play.
Essentially, they’re still parts of general marketing strategies, though with a specific aim: getting customers to the store and generating sales from their purchase. The strategies focus on raising brand awareness and informing potential customers about the store’s listed products and services.
Why Are Retail Strategies Important?
The retail business grew by 9.7% in 2021, which is expected to increase again. More and more people are joining the trend, and the competition is getting fiercer. How can your store stand out and grab customers’ attention?
Curating effective retail strategies can surely help.
It’s not a secret that marketing requires time, effort, and budget investment. You want your store visitors to think they make a good decision by purchasing from you. You want them to have a satisfying shopping experience and keep returning.
Those objectives won’t happen if there are no marketing approaches that let your audience find and know you! Establishing your business presence—offline or online—is crucial for that and for later building relationships with your customers.
What Are the Components of Retail Strategies?
Retail marketing strategies often come in 6 components, collectively called 6Ps. When properly integrated, they help drive the growth of your sales and business plan.
#1: Product
The fundamental element in almost every company is the product, which refers to any offer listed for sale. Even though this component is called “product,” it doesn’t necessarily mean only tangible objects. A company can also offer services packaged as a listing, and in some cases, they sell both products and services simultaneously.
The stock of each product depends on factors such as the store size, inventory capacity, and item popularity. A collection of those items is referred to as a product mix. A regularly well-stocked product mix ensures customers that your store’s always ready to fulfil their needs.
#2: Price
The second component of retail strategies is the products’ price, one of the customers’ key considerations before purchasing a retail store’s goods. Set it too high from the wholesale price, and they’ll hesitate to return. Set it too similar to the original price, and you won’t get profit whatsoever.
Strike a balance between offering good financial value to customers and generating a reasonable profit for yourself with a pricing strategy. Many factors influence this, for instance, your ROI (return on investment) and profitability rates, the supply-and-demand situation, and government regulations.
#3: Place
Your shop location allows customers to find you and purchase necessities. It’s more common to see physical stores, but today’s digital era has also enabled retailers to operate online and deliver goods to the customers’ doorstep. A store can even work hybrid, providing a physical address and website to let customers find them anywhere.
Besides the location or platform used to base your retail, this component also deals with where you manage your item inventory, packing, and distribution.
#4: Promotion
This component focuses on expanding a store’s presence and attracting more people to come and make purchases. Every promotional approach—print advertising, digital marketing, word-of-mouth, etc.—can be used to promote your retail.
This component’s also concerned with curating attractive deals or events from time to time. Customers are more likely to develop a favourable impression if your store can create irresistible offers. Not only will you show that you care about your customers, but your creativity will also showcase some solid marketing skills.
#5: People
Human resource is undeniably crucial in any business, including retail. Whether you manage your shop alone or employ others, everyone promotes the shop to make customers return.
Properly well-trained employees represent the store in a positive light to the customers. They work efficiently and know the ins and outs of the shop. They’re the direct point of contact to both customers and suppliers, so it’s highly beneficial to develop retail marketing strategies based on their input and experience.
#6: Presentation
The last component of retail strategies is the presentation, which refers to how you present your products to the customers.
For instance, since your physical store has shelves and sections that separate different product types, provide the store visitors with directions or signposts. On the other hand, categorise your online shop into separate sub-menus or pages. Whatever platform you use, the UI (User Interface) should be easy-to-navigate but still visually appealing.
All in all, this component should represent your store image in the way you want it to be.
Retail Strategies to Boost Sales
After building your marketing plan with the 6Ps in mind, boost your store’s success rate further with our five retail marketing strategies below.
Social Media
Businesses have been using social media to expand their presence to a more diverse audience. Some popular platforms include Facebook, Instagram, and Twitter.
Good social media marketing combines attractive promotional content that properly presents the store and its products. Keep repeat customers in the loop of any updates and attract prospects with your growing reputation. (To learn more about social media marketing, read “The Basics of Social Media Marketing” from EWOR.)
It’s also not a bad idea to open the door to other types of prospects and business partners outside your target market. You’ll never know what kind of exciting proposition is coming your way!
Key Partnerships
If you plan any upcoming marketing campaign for your store, consider contacting other brands who might be relevant to that project. Key partnerships are good approaches to creating buzz among the customers of the participating brands.
This retail strategy doesn’t only involve retailers but also other types of business. The number of participants can also be more than two parties.
It can be exciting to discuss your marketing idea with others from another company to see how it affects your sales. If done well, customers will voice their approval and ask for more in the future. That’s what you want!
Psychological Pricing
Retails have done this for so long, and you probably notice it whenever visiting a shop. Psychological pricing refers to modifying the way you write your product prices, hoping that it affects customers’ perceptions.
One typical technique includes changing a price to anything that ends in 9. For instance, instead of selling your product in exact numbers like €3.00, lower it to €2.99. Another option is creating some sort of urgency or scarcity, such as placing a notice that says “today only!”
Whatever technique is employed for your psychological pricing, make your customers feel that they can’t resist your offer.
Store Upgrade
Don’t let your store just be a place with shelves of products and a cashier table. The same goes with an online shop: you don’t want the site visitors to keep seeing a boring product layout.
Upgrading the look of your store upgrades your customers’ shopping experience. Think about the lighting, walls, floors, and decorative items. Don’t forget about notices like accepted payment methods, toilet signs, and QR codes.
If you’re pressed for cash, start small by keeping the store clean and tidy. Go with a minimalist concept or concentrate more on beautifying your website instead.
Employee Development
Nurture your employees from within so that everyone performs well and assists customers accordingly. They’re the face of your brand, and you want them to present a likeable and reliable persona to your customers. Provide them with every necessary training from their first day. Monitor their progress and show any kind of appreciation for their hard work.
Conclusion
With the immense growth of the retail industry in recent years, the competition is fiercer than ever. To get one product, customers can choose from several stores. They need a place they trust and rely on for day-to-day purchases.
As a retailer, make your presence known to attract prospects, get them to come to the store, and generate sales from their purchases. Employ retail strategies by paying attention to the 6Ps: product, price, place, promotion, people, and presentation.
Lastly, pair the integrated components of your marketing plan with more strategies such as social media, key partnerships, psychological pricing, store upgrade, and employee development.
