Seven secrets for success in retail
1. Engage the customer
The power has shifted. The savvy retailer today is talking to their customer, they
know who they are and what they want. More importantly, what they don’t want.
They seek their opinion on everything from product development, including
collaborating with the customer to create new and exciting product through to
engaging ‘super-bloggers’ to permeate the marketing message. The result, ‘fans’
not customers! Fans love us; customers come and go.
2. Have product ‘to die’ for
Why are people prepared to queue for hours to buy the latest Apple product?
Why are some stores struggling to sell their goods even though they are heavily
discounted? The answer - exciting, innovative product that offers the customer
real value for money and gives Apple a real point of difference. Unlike most
Australian retailers, overseas retailers have been investing in good product
development for decades. To succeed in the future, you need to provide product
‘to die’ for!
3. Provide the very best service
It is an overcrowded retail market! If you want to grow your share of the
customer’s wallet, you need to provide them with exemplary service at every
touch point the customer interacts with you, whether this is in-store, online,
delivery or returns. You need to provide them with an experience they want to
repeat again and again. So, what does the service you provide say about your
brand?
4. Invest in technology
Retailers need to invest in both the ‘front end’ platforms that the customer sees,
those that deliver an instantly accessible, exciting and informative encounter with
the brand whilst also investing in ‘back of house’ systems that provide the
seamless omi-channel experience to the customer and also provide real-time
analytics to assist the buying teams make better informed and ultimately more
profitable decisions. For the retailer who sees ‘online’ as a threat so is now
charging their customers to ‘try on’ clothes in store, you may as well hang the
closed sign permanently over the door. You have no future.
Numensa Retail Consulting
Seven Secrets for Success in Retail
5. Have control of your supply chain
How many retailers go beyond their immediate (tier 1) supplier? Do they know
who supplies the components to their tier 1 supplier, or indeed who suppliers the
raw materials their tier 2 supplier needs? The result, little visibility of costs and
therefore little ability to reduce costs down the supply chain. Retailers, who have
taken this step, have a greater ability not only to reduce costs, but also to reduce
risk, improve quality and have complete control the product development and
manufacturing process.
6. Be a sustainable business
If the world wants to go on consuming at our present rate, we will need another 3
planets of resources in order for us to do this and with 28% of Australian carbon
output coming from retail activities (McKinsey for Climateworks), it’s not difficult to
see why this is an important issue for all retailers. So if you think charging your
customers for using a plastic bag makes you sustainable, think again! Overseas
retailers Wal-mart, Tesco and Marks & Spencer have developed long-term
sustainability strategies which touch every facet of their business and have
delivered cost savings to their bottom line.
7. Motivate and value every member of your team
Far too many retailers employ creative, intelligent and, (initially) highly motivated
people and then expect them to follow a process that stifles the very creativity
they were employed for in the first place. Clip the wings of the bird and guess
what, it won’t be able to fly! Give the bird a place where it feels safe and secure,
feed it and let it go. It will sore into the air, but will always return. If you want
great performance from your people, ensure your teams have the skills,
knowledge and ability to deliver results.
For more information on how you can succeed in retail today, please contact
Beverley Chambers on 0438 089 632 or beverley@numensa.com.au
Numensa Retail Consulting
Seven Secrets for Success in Retail