Why do you think a retail business runs successfully?
Well to run a retail business successfully you need to control inventory, use marketing campaigns and manage the supply chain almost all at the same time. For that you need retail planning strategies.
Retail Management cannot adequately promote products and define merchandise assortment without a detailed plan. It includes the 4 W – what to sell, when to sell, where to sell and who to sell.
Retail planning is the process of developing a strategy for retailers to meet customer demand while increasing the ROI using data and other resources. When you take time to come up with a plan which ensures the right amount of inventory available to meet demand while decreasing the risk of having too much inventory tied into capital.
8 PROVEN RETAIL STRATEGIES FOR GROWING YOUR BUSINESS
1. Know who your customers are –
You need to know your customers who will be eager to try out your product. Knowing keeps you from overestimating demand and helps you create a vibrant niche for your shop. Take time to understand your customers’ background, habits, motivations, age, gender and even problems they might face when they shop or interact with your brand. If you can empathize with your potential customers in a true sense, you will surely have a method of making sure your merchandise planning strategy is a success. You can use analytical tools, online insights, feedback forms, testimonials and focus groups to understand your potential customers to provide better service.
2. Attract new customers –
Customers are your saviors. You need to value them the most and so your retail planning should focus mostly on them. You need to attract your customers. Grab their attention as much as possible using various tools like blogs, engaging websites and offers and discounts. Creating attractive window displays be it online or offline will assure one thing – the potential customers to get fixated with your creation.
3. Social Media –
In the present age, social media plays a key role in any kind of strategies to keep a business running and successful. And for retail management it is more important. As a brand you need to have a good presence on social media platforms. You should focus on social media marketing launching different interesting campaigns. You can collaborate with bloggers and influencers to increase your brand’s reach, to interact with more customers, to engage them with fun activities, giveaways, contests and surprise gifts and vouchers. In this way, in a very organic way not only you get new customers, you get to understand what they like and what they reach out to more.
4. Analyze the market –
Analyzing the market is a very crucial step in your retail strategy. Research can open up competitors’ strategies, performance and weaknesses too. It also shows consumer expectations. Through this companies can develop a plan of action that fulfills customer needs and stands apart from the competition. Research can show any risks and opportunities the company may be exposed to and how to respond to that. Retailers can prepare upcoming events through risk management and proper planning. Through this process, businesses can analyze their own strengths and weaknesses. This also allows them to improve in the necessary areas. This may include financial planning, resource allocation and staffing.
5. Set objectives –
Brands need to set specific short term and long term goals. You can set a general objective to just increase the sales. But it won’t be beneficial for a long term project. You can set benchmarks based on product improvements & product performances and based on that specific revenue goals and ideal profit margins for each item. As the internal objectives, brands can set clear monthly, quarterly and annual targets to motivate employees and keep them focused on boosting sales. The external objectives include customer service, retention, loyalty and product pricing. Companies should aim to create a personalized experience that attracts and generates returning customers.
6. Outline retail strategies –
After analyzing set goals, targeted customers, social media and demography, marketing teams can begin developing effective promotions for their products and brand identity. The retailer must create a positive image that will attract customers and also show what they can expect as well. Another main objective of implementing a retail strategy is to remain competitive and that can be done through several methods, such as product pricing, variety and quality. Providing a unique experience that customers cannot receive anywhere else is a significant advantage that as a brand you need to create at every moment. With access to current metrics, marketing strategies can become very effective and for that you need to stay up to date with the ever-evolving current market trends.
7. Implement the strategies –
Once you have analyzed the market and the customers and set specific goals, now you are ready to implement the strategies. While implementing the planned strategy, you might discover that you have to change some methods based on the business model, staffing and supply chain. However, with successful planning, the staff can get into new roles to avoid overwhelming team members. Companies should consider offering incentives and bonuses if the employees adapt well and the strategies improve work performance.
8. Analyze the strategy performance –
Once the strategies are implemented, organizations should continuously monitor performances to ensure that the growth is consistent. This monitoring helps in identifying any errors and necessary steps can be taken to remove any damages. Companies can also take note of the strengths and weaknesses to streamline future planning.
Retail planning is vital to get business objectives. It helps to maintain a foothold in a competitive market. Without a detailed plan, retailers can exhaust time and resources on ineffective marketing tactics. A comprehensive retail plan ensures that employees are working together to provide the best service, products and experience, boosting company revenue.