Retailer’s big worry this shopping season -Customer Retention
Many parts of the world celebrate festivities in second half of calendar year! India is no exception. India is going to be celebrating yet another festive season. It is a great moment for retailers as they get more than 50% of their sales from the last 3 months of the calendar year. I am often asked a question by retailers…differences between the US and Indian economy. There are two stark differences that come to my mind immediately. While both enjoy vibrant democracies and great consumption economies…the difference lies in its structure. While the US has close to 80% retail business in organized sector, India has 75–80% in unorganized sector (brick and mortar) or small and medium size segments. These retail shops are mainly run by families who are into retailing over decades. The American model which focuses on top line or sales at the cost of (sometimes) profit, Indian model or retailers always focus on profits at the cost of sales. This is not to suggest that Indian retailers do not want to grow…it only implies they will not sell at cost or lower in order to attract customers and grow.
From Ganesh Festival in Western part of the country to Navaratri, the festive season starts in India. The precursor to good retail season is the success of monsoon season. Even after so many years of growth and focus on manufacturing and services sector, the monsoon is an important factor in Indian economy.
With the competition heating up, and ambitions of many small and new generation retailers to grow, attracting customers into a shop is always a challenge. With lack of predictability of demand, growth prospects, and less usage of technology to forecast, they often resort to traditional way of putting signs and boards, outside the shop to attract customers. It is changing but in a small way.
Customer engagement is very crucial factor in festive season for retailers, especially in sectors like clothing, fashion, lifestyle, jewelry, and electronics industry. Most Crucial factor for attracting customer is giving out rewards to every customer walking in to your shop. With rewards, retailers can track their customers, have targeted campaign, know their profile, spending habits and much more
Managing and Tracking customers is really painful task if it is not managed through effective and systematic process. The loyalty program can overcome these issues. One can know who is buying and target the ones who have not visited the shop in a while.
Few ninja techniques to engage your more customers,
1. Discounts and Offers: Every business and retail shop comes up with a lot of offers but offer that is more trendy and need based gets more recognition.
2. Customer Experience: Customer experience is most important factor to make customer happy and satisfied. Giving great customer experience boost word of mouth and can really add big difference in sales
3. Rewards: If customers are buying from you then make sure you are giving rewards to your customers on every transaction. If reward system is effective then they come back and buy more
4. Joint Venture : Do Joint Venture to provide great deal to customers like giving event ticket to your every restaurant walk in or point rewards on next purchase
iLoyalty can be best partner for your retail business in festive season , Reach more Customers , give them Rewards and increase word of mouth. Make customers as your brand ambassadors as they can help to get more traffic for the retailer.
iLoyalty has also invested in a mobile app that can easily capture customer feedback and pass on them rewards, iLoyalty will be really easy and effective way to continuously be in touch with your customers.
If you are looking for great success in coming festive season.