Managing return on investment is critical to a healthy business. Many factors go into investment decisions, ranging from what merchandise to stock for what season to how many stores to open in a given geographic location. Retailers have an opportunity to take a close look at their investments in customer experience, staff, technology, and real estate. Moreover, expansion is a very important part of retail business which is only possible when you are able maintains a healthy cash flow.
Furthermore, these days retail has become extremely competitive since pure play online players are popping up every day and they don’t necessarily require stores or warehouses, and can be based around the corner—or on the other side of the planet. They are popping up in every product category. Thus, it is quite essential for retail business owners to go beyond the traditional when it comes to investment. Here are top tips to invest right…
Invest in the mobile site, not the mobile app
It could be quite confusing for consumers to decide whether they preferred to shop via a retailer’s mobile website or a retailers’ mobile app. The final result could be fairly evenly split, with shoppers favoring mobile apps for augmented rewards and loyalty points from retailers, but viewing mobile sites as far more convenient. So, it is important to invest in an excellent website and optimize it for any device.
Invest in talent
Despite the rise of e-retail, the physical store isn’t in danger of disappearing any time soon. At the same time, the digital experience is all-important to consumers. Retailers need to consider both dynamics in their search for talent. Also, it would be great to invest in social media talent as part of a retailer’s marketing arm could generate a healthy ROI. These employees could create social media marketing campaigns, track social trends, monitor what is being said online about the retailer, and craft appropriate social media responses to consumers.
Invest in big data insights, not just data collection
One of the top issues for retailers today is parlaying the enormous amount of customer data they generate into actionable insights. In a recent PwC/SAP retailer study, retailers say that creating value out of reams of consumer data is their biggest challenge. In fact, huge gaps exist today in the data retailers possess and their ability to glean insights from it. From customer store visits, to store and warehouse inventory, to how long shoppers spend on retailer websites, retailers are held back by the chasm separating the data collected and what is done with that data.
Invest in the “story”—not traditional advertising
More and more of the global population isn’t attracted to traditional advertising— they want authentic information they can find at their fingertips: what are their friends doing, which brands are hot on social media, what is trending with their favorite influencers.
Invest in more secure platforms
On the one hand, technology provides a lot of new, exciting opportunities for shoppers but, on the other, it also increases the risk for all kinds of cyber breaches, including data hacking. So it is very important for retailers to invest in all possible solution so you never lose the customer’s trust.
Invest in keeping already loyal customers
Loyal customers should not be taken for granted. They are less inclined to look elsewhere. Other tools such as direct email communications and blogs are also used for inspiration, but not as much. So, it is quite essential to invest here as well.
Invest in showrooms, not the entire store network
While the store is not going away anytime soon, its purpose is evolving. There is compelling evidence that people want the physical experience of trying things, but aren’t that happy with aspects of the in-store customer experience.
Invest in the authenticity of branded goods
Authenticity of branded goods is a huge issue for retailers, particularly for products made and sold in developing markets or whose supply chains wind through developing markets.