Jan 16, 2022It can cost five times more to get a new customer than to keep an existing one, and while it is always important to grow the brand, you must bring your existing customers along with you. Not only are they a great source of organic marketing, but you've already done the work and spent the money to get them committed to your business. That loyalty deserves special consideration.
For retail owners, customer service can be of the utmost importance, and post-COVID-19 trends are highlighting that importance. Fortunately, it is easier than ever to understand what your customers want. Through technology and research, any business owner can develop successful marketing methods for current customers.
Track Customer (and Product) Data with RFID Technology
Radio frequency identification (RFID) technology is nothing new. However, it is now allowing great methods of customer enhancement. Retail businesses that use RFID asset-tracking technologies will have greater control over inventory and supply chain logistics. This translates to better prices and availability for customers.
RFID assets can also gather data directly from customers. Retailers with returnable assets are using RFID-equipped tags to track their merchandise in real time. This shows customer purchasing trends, but it can also highlight specific business areas in which efficiency is lacking. For example, RFID-assisted returns can highlight warehouse storage issues, transit-based damage and in-store mismanagement. With RFID technology, goods can be tracked and monitored throughout their lifecycle. This helps to prevent issues before they reach the customer.
RFID tracking can also help retailers automate their return services. Manual returns are notorious for losing value, be it from mishandling items, improper inventory or simply human error. With RFID tracking, though, returns can be automated through the mail or even with in-store systems. Using these tracking tags, a quick scan can send an item to where it needs to go. This keeps inventories updated, goods in check and customers happy.
RFID can also be used to track customers' shopping habits. Some stores use loyalty badges with RFID trackers to track customers' in-store shopping trends. Others use front-of-the-store sensors that read loyalty cards. These sensors trigger personalized texts or emails with daily deals or special in-store products. RFID technology helps owners maximize their customers and their goods. Any tools that allow business owners to get closer to their customers are a plus.
Stay Relevant with Ongoing Changes
COVID-19 has changed the retail landscape for good. Though in-store shopping is still strong, mobile and online shopping saw massive growth. In 2020 alone, sales from mobile shopping reached $314 billion. Any retailer in tune with its customers will thus understand: customers are demanding convenience.
BOPIS ("buy online, pickup in store") is a great first step to meet these new needs. Curbside pickup saved many businesses during the height of the pandemic, and customers came to rely on and expect that service. BOPIS systems combine the convenience of curbside pickup with the appeal of in-store shopping. Such solutions allow a customer to buy something from a website or mobile app, choose immediate "shipping" at the store and make impulse purchases while at the store. BOPIS systems combine the best of both current retail worlds: e-commerce and brick-and-mortar. With both showing impressive sales potential, any retailer is missing out on sales by not catering to the two sectors.
Another necessity for retailers is a strong e-commerce site. Websites are essential for a business to be successful, and while social media pages are great for marketing, the goal is to get the customer to buy something, not just post a status update. Convenience is going to continue to drive retail trends. Therefore, as mobile shopping and loyalty apps continue to rise, customers will further expect all retailers to follow suit.
Implementing a strong e-commerce site shouldn't be a daunting task, either. The goal is to get a customer to make a purchase. Personalize the site with their shopping data. Highlight the ease of customer service with automated features. And always make it easy to make a purchase. Safely store purchasing data for quick sales. Incorporate reduced or free shipping, and test it now and then. You should know what your customers experience when they make a purchase.
Research What Your Customers Want
The common theme of the day is research. A retailer must not only know what their customers want; they must understand the how and the why as well. Connecting with customers will help to avoid issues, and it will ensure your current customers feel valued and rewarded.
Use social media to connect to your base. Understand what they want through direct outreach. A strong brand voice will create authority and make your customers want to share their positive experiences. This is organic, word-of-mouth marketing that costs the business nothing. Additionally, a brand that is easily accessible will receive the true wishes of its customers, both positive and negative. This first-hand data is invaluable when it comes to keeping your customer base happy and engaged.
Another benefit of consumer research is that it gives insight into the personal lives of customers. This allows a business to offer services tailored to their customers' needs. For example, suppose a customer uses a secured credit card to make purchases. In that case, in-store financing might be an attractive payment option. Financing helps smooth out the financial load, which helps those rebuilding their finances. It also builds loyalty, as customers will remember a business that made it easy for them to buy.
Today's marketing techniques highlight the importance of keeping your current customers content. Indeed, not only do they drive sales, but your current customers are much cheaper to maintain. Turn to technology that allows you to track and monitor your customers and your goods, such as RFID. Create personalized experiences and learn what your customers want. Finally, remember that a connected customer base will reward your insight with organic marketing and sales.
Jessica Larson is a married Midwestern mom and a solopreneur. She creates online courses for students and has started and run several other businesses throughout the years. Jessica's goals are to support her family while spending time with them, to act as an entrepreneurial role model for her two daughters, and to share what she has learned through SolopreneurJournal.com.
