Any retail organization should be weary of some of the statistics featured within the infographic coupled with this post. Through some studies regarding new customer acquisition, findings indicate some troubling rates when considering the likelihoods of selling to new customers compared to selling to a retailer’s existing customers. A nearly 60% to 70% chance of reselling to an existing customer, compared to a 5% to 20% chance of finalizing a sale with a new customer is an insane disparity. What’s worse is that these values are generally understood industry wide. Meaning despite being aware, more and more organizations continue to ignore their returning customers in hopes of attracting new ones. How can these organizations instead get the most out of their existing customers while still trying to draw in additional new customers? This post will detail exactly that.
As it stands, many retail organizations take the approach they do in hopes of increasing their dynamic revenue growth. However, as mentioned within the accompanying resource, this is not the most effective means to do so. The most sound strategy is one that interconnects both online and in-store sales techniques in such a way that creates a customized shopping experience for all customers. Obviously this is much easier to accomplish through online shopping compared to in-store shopping. With that being said, proper execution can lead to these online tactics being used effectively in physical retail locations as well. The two techniques this post and infographic are focused on are known as upselling and cross-selling.
These sales techniques are often used in tandem in hopes to find a healthy balance between digital and physical offerings for customers. Omnichannel marketing has become such a common strategy as a result of the technological advancements made in the last few decades. However, despite this fact, many retail-oriented businesses refuse to adapt to the landscape. A fully fleshed out digital marketing strategy, in addition to strong sales tactics used within physical locations, is the most ideal combination for retail businesses.
Why has such an emphasis been placed on a retailer’s online presence, though? Consider this: just how long does any customer spend in a retail store to purchase their goods? The average customer will spend between fifteen minutes to an hour in any retail store. Assuming the former, how many retail organizations are capable of making a meaningful connection within that time? Not very many, thus the importance of expanding the ways in which these customers can interact with their favorite retailers. This is seen today through countless social media platforms, an online marketplace where customers can check stock on products in-store or order online. The most experienced retailers are able to weave online and offline sales tactics targeted toward their customers for maximum efficiency.
The largest benefit provided by these omnichannel strategies has to be the feeling of personalization that customers get from each of their dealings with a retailer. Personalized methods of communication allow customers to feel more valued and appreciated by the retailers they frequently visit. E-mail and text communications that are tailored toward a specific customer can make all the difference. Promotions of particular products, incoming sales and even stock notices are just some of the ways in which these communications can be focused. Virtually none of this is possible while customers are shopping in-store. Digital techniques are still able to be utilized in-store, though. Typically this is seen through touch screen monitors or tablets that allow customers to interact with them. These digital displays will include information regarding products on display and allow customers to pinpoint exactly what qualities they need to decide on a purchase.
This post is only scratching the surface regarding these two sales strategies. For additional information detailing these strategies, be sure to check out the infographic featured alongside this post. Courtesy of IDL Displays