It's almost Memorial Day, and the weather here in the Northeast is heating up again. So is retail business. I was out at the Wrentham Village Outlet Mall outside of Boston last weekend, and it was a struggle to find a parking spot. It hasn't been like that in several years! Best of all, most of the shoppers I saw had shopping bags, many with bags from several stores.
Clearly, we're starting to bounce back, but the bounce has been uneven, and not everybody is feeling it yet. But it's coming.
From where I sit, there are two key imperatives for independent retailers in this environment. The first is to continue managing cash flow and inventories very carefully. Many independent retailers took a financial hit over the past couple of years, and it's going to take sustained work to improve cash flow and return to better financial health. Unfortunately, there's not been a lot written about this in the business press, but I've written extensively about it on my
blog and for my
website.
The second imperative is to rebuild revenues, and much more has been written on that. If there's a common thread running through the commentary, it's the importance of engaging customers, one-on-one, in a meaningful and memorable way. Focus on existing, known customers, and Wow them with an experience worth telling their friends about. That's the theme of the pieces I've chosen for this month's Retail Reader.
Beach season is upon us!. I was out this morning and it was 85 degress at 10:00am, and the heat felt great (and then I got in my car and cranked the a/c). It's a great time of the year. Breathe deep!
"A bigger basket. All retailers want it, and almost all of them have become adept at persuading shoppers to buy a particular item - whether it's a new brand of pet food or a line-extension in cereal. But, turning those one-off item purchases into long-term incremental behavior is an all-together different challenge. It takes a deft understanding of shopper needs, brand loyalty and price and promotional responsiveness to win the bigger basket again and again." From Retail Customer Experience...
"It is often the little details that customers recall even more than the product they purchased or the service they received. Little details that customers notice, and that makes them feel good about not only making the purchase, but making the purchase from you, is a significant part of the overall customer experience. Here are six ways to go above and beyond good customer service and boost customer loyalty." From Entrepreneur.com...
"The start of a great list is one that is filled with customers and prospects who have said "yes" to receiving information from your shop and who will be moved to action if the time and/or offer is right. But the list needs to grow if you want your retail business to grow. Asking for an email address at the end of your phone call is a great start and there are several other ways to gather new additions to your list. Follow these 10 tips and you'll soon find you have an email list that helps win business - and is the envy of your competition."
From Retail Customer Experience...
How To Show Customers You Appreciate Their Business
"The company owner sets the rules, and employees need to live and know them. The old adage "the customer is always right" isn't realistic, but empowering employees and rewarding employees for superb service helps each customer sense your appreciation.Perhaps sharing the following with the front line people can add to the desired goals of dependability, promptness and competence. Helping the customer service representative communicate in an upbeat, positive way, may just help the customer feel appreciated." From Customer Think.com...
"In a reversal, retailers are now reducing the amount of choice on their shelves. After years of tempting customers with ever expanding arrays of brands, hues, sizes and flavours, they're racing to simplify their offerings. The recession has encouraged them to focus on top sellers and private labels while throwing marginal products overboard."
From The Globe And Mail.com...
"Facebook's potential for retailers is that the site can allow them to connect with their customers - a potential that is immeasurable and impossible to ignore... Retailers who proactively use Facebook as a method to reach their customers in addition to more traditional methods of marketing and advertising may have an unmistakable advantage over their competitors." From Retail Customer Experience...