The retail market continues to grow rapidly. Over the past couple of years, the strategy of retailers has changed markedly. If earlier retailers were primarily focused on rapid growth, an increase in the number of stores, the development of distribution and delivery, and an expansion of the audience of new customers, now the focus has changed. Modern retail is a struggle for every new idea, the market is demand-oriented, buyers have become more prepared, they have a better understanding of quality and prices, and competition is greater.
Therefore, the ability to understand the consumer, effectively manage costs and create a flexible business model become important success factors. If a retailer wants to stay competitive, it needs to constantly update and improve pricing strategies, adapt to the market and explore the value of its products and services. These tasks can be combined into a competent retail marketing strategy, and in this article we will cover the main points that must be developed within it.
Think Over and Write Down How You Will Make the Best Impression
The concept of impression that a brand makes upon a shopper becomes an innovative component of retail. This is the first starting point in writing a strategy on which all the rest will be based. The strategy of retailers should be directed precisely at the mapping of their activities in the impressions and evaluations of consumers. This is a logical continuation and support of the strategy of an anthropocentric approach, where a person, life and honor, will, awareness, opinion and emotions are above all.
For several years, this policy has begun to show extremely positive results. Thus, the category of “customer experience” by 2020 will become the main differentiator of brands. Traditional communication with the consumer will never be replaced by technologies. From a practical and theoretical point of view, this is possible, and we can observe it. But, from the moral and ethical point of view, digital technologies will never replace impressions, living feelings, and emotions. Such communication will give retail a push among over-technicalization.
List in Your Strategy What Makes You Better Than Competitors
The main task of retail branding is convincing shoppers your product and services provide greater benefit than others. Retail branding is aimed at building a clear mission for your company and creating its unique values. Your task is to clearly state these points in your strategy in order to adapt your offers according to your values.
Analyze Your Products, Create Pricing Lines and Describe Them
To sell a fairly expensive product, it is not enough to simply place it next to another, more expensive product. To do present it more effectively, you need to develop a comparative line of similar products.
For example, if the store sells three types of beds, most often buyers choose the average price – they don’t want to choose the cheapest bed, as low price is associated with poor quality, but they avoid buying the most expensive bed. Even if the beds are more or less similar, the price difference helps the buyer to make a decision.
Write Down Innovative Features You Can Incorporate into Your Loyalty Program
It’s getting more and more difficult to surprise and delight your shoppers with bonuses or discount cards. And if your loyalty program is reduced simply to a card on which you can give a discount, then it can hardly be considered a tool for making meaningful impressions, which we have already mentioned.
However, retailers should go further and build entire ecosystems, “entangling” customers with various convenient services and “drawing” them into a long dialogue with the brand.
For example, Russian retailer LavkaLavka together with TalkBank released the first payment card with BioCoin tokens. Points are awarded for purchases, which can then be exchanged for tokens. In the future, tokens can be converted to rubles at the current rate.
Think over what convenient and modern opportunities you can offer to your clients, having previously segmented them, and write down all the points in your strategy.
Develop and Fix the Value-Add to Take Benefit from an Omnichannel Approach
An omnichannel trading strategy is aimed at providing universal opportunities because this strategy involves a uniform interaction through all possible sales channels: physical stores, online stores, a website, catalogs, emails, a mobile app and more. No matter how a shopper interacts with the brand, he or she does not feel the difference in pricing or in the level of the service provided.
But for a retailer, the danger lurks in a situation where a buyer comes to a retail store, selects a product, and with the help of a smartphone, searches for the best deals from other retailers and then buys goods at a cheaper price from another brand.
But there’s already a question for the retailer: if the goods are offered at a higher price, a certain value-add should be provided to the shopper in order to keep consumer demand.
Emphasize Content to Attract and Engage Your Intended Audience
A successful content marketing strategy always relies on two important aspects: the voice of your brand and the audience. For example, if you want to attract more young shoppers, use the social networks and vocabulary they use.
If your goal is an older audience, you should focus on gaining prestige in your industry. Harry’s, a company that manufactures shaving accessories and publishes an online magazine about lifestyle, fatherhood and much more, is a great example.
Tools like Google Analytics will help you accurately measure the popularity of any content among your subscribers and evaluate which topics are most popular among different segments of your audience. Understanding how users are consuming your content can help you determine which topics and formats it should contain.
Understand and Write Down How Will You Work with Big Data
Retailers now have powerful sets of tools to determine what will be most popular next season – whether it be children’s toys or designer shoes. Brands and marketers participate in the analysis of attitudes and opinions, using complex machine learning algorithms to determine the context when a product triggers a wave of discussion in social networks. And this data is then used to make a sales forecast.
When it is determined which products will be purchased, retailers need an understanding of exactly where the demand will be. Here it is necessary to use numerous demographic data, economic indicators, and even weather forecasts. For example, through the use of big data analytics, Walmart can detect completely unobvious patterns in customer behavior and manage marketing tactics online. To determine such patterns, retail needs to process a truly huge amount of data, so make surе to think and write down how you will integrate big data analytics with your retail strategy.
On a Concluding Note
Technology has forever changed our lives, the way we work, make purchases and have fun. And today, retailers have the opportunity to analyze what expectations consumers place on their relationships with brands. These expectations are the driving force of retail evolution and a key reason for changes in marketing. For this reason, check again whether you have written down all of the above points in your strategy, and may good luck accompany you.
About the writer: Kristin Savage is a successful freelance writer at BestEssayEducation and GrabMyEssay. Currently aimed at getting a Creative Writing degree alongside her publishing experience, she uses all the power of words to provide relevant research and content on marketing strategy for publishers and authors.
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