Retail is the process of selling goods or services from a business centre to a consumer for their own use or consumption. Retaining a customer, or customer retention is always the concern of every business owner as well as the marketing plan for the business. Whereas acquiring a customer is much expensive and might take time. And that is just among the many highlights we want to cover on retail translation tips.
Customer insight is one of the key retail translation tips for marketing your brand. The main thing you have to do is apply the insight to move beyond immense internal reports for you to develop marketing and the customer experience. On the other hand, you could also opt for machine automation to enhance your marketing in retail translation.
What are customer acquisition and retention?
Customer retention is defined as the ability of a business to not only attract but also maintain repeat customers. Whereas customer acquisition is the ability of a business to attract new customers. The two are slightly different, we can take a quick peek at how.
Your customer acquisition can be the saviour and the spearhead that drives your business. However, it is the customer retention that your money is based at, that is dependable on the kind of data you cite. Looking at the two, customer acquisition is much more expensive than customer retention for your retail translation.
But, the more important question is that how can you maximize your benefits from customer retention. One of our retail translation tips is to be prudent. Take your time to investigate the best way to hold onto your most valuable business driver who is your customer.
In retail, you can measure your customer retention rate; that is the rate at which your business is able to retain the existing customers. The customer retention can help you not only understand how positive the customer experience is but also how you are able to meet customer’s expectations. Therefore, one of our retail translation tips is not only to take into consideration your customer’s loyalty, you as the retailer have to fulfil the demands of the returning customers as well.
But what is the significance of customer retention?
Having knowledge of its significance is one of our key retail translation tips. In the retail sector, customer retention is far more effective and profitable than customer acquisition. In truth, customer retention is more than just profitable, it also assists you to gauge the health status of your customer relationships. And just as highlighted in the retail translation, your loyal customers can in time be your brand advocates out there that will take care of the customer acquisition for you!
And that could be achieved through word of mouth as it is the most influential factor in a purchase decision for most of your customers. Thus, there is a need for you to drive customer retention in your retail business. There are six best retail translation tips to boost your customer’s repeat sales and loyalty or customer retention strategies for your retail business.
Retail translation tips and strategies for your retail business
The very first interaction you have with a customer, or a customer has with your brand is the start of your customer retention. It does not have to be at a point of purchase, it can be a window-shopping experience for your customer. Here are some retail translation tips;
a) Customer personalization – here technology can have a hand in play, and it has been witnessed in the most retail business as it made personalization more accessible to the retailers. There is the technology that can track customer’s purchase history and sync with a loyalty program, this way you can identify the trends and feed the data to an app tool that will determine the trend.
Another way is spending a one-one time with the customer that is in need and make an effort to find the best product in the retail for them.
b) Customer loyalty program – another way to drive customer retention is to get to know your customers and provide the most relevant value through a customer loyalty program. The program will provide more insights into your customers and also assists you to stay top of mind.
When implemented properly, loyalty programs can increase customer lifetime value. In addition, there will be an inevitable increase in the basket size, with more than half of the consumers belonging to the loyalty programs changing the expenditures to maximize the rewards.
c) Proactiveness – a strong relationship between you and your retail employees will ensure repeated purchases in your retail business. The employees form an integral part of your customer retention strategy. In simple terms, they are a human extension of your brand, how they treat the customers determines whether there will be customer retention.
d) Form a community – you can use your retail store to build a community, the purpose of this community will be to build and nurture authentic relationships that will, in turn, bring about customer loyalty, thus, customer retention. Always give them a reason to come back with events and you will eventually establish trust and a strong relationship with your customers.
These and among others will definitely assist you in customer retention.
Important retail translation tips to note!
Try to ensure that you always respond to and use the feedback you receive from customers. In any case, there are customer complaints, attend to them immediately to secure your brand. Also, you can;
- As part of the retail translation, you can send product education content to assist customers to get what they want,
- Make available a personalized recommendation for products and contents based on previous purchases,
- Make invitations of shoppers to join and even provide for them an update on their status in your customer loyalty program.
And regardless of the method you use to try, truth of the matter is, an automation process will assist in saving quite some time and stay ahead and mindful of your customers. You can always try and see if the methods or ideas you have can work, and from there you can see what does not work and what works, then make the necessary steps to change or rectify to better your strategies, and this is one of the most important retail translation tips for your business.
Having said that, we can then investigate the advantages and disadvantages that come along with using a translation in the retail sector. Here are some of them;
Advantages of using translation in the Retail Sector
a) Automation processes
The automating process renders many advantages to the retailers, for instance, it reduces costs, increases accuracy, reduces processing times, enables quick decision and speeds up customer service. The electronic point sales that use scanning of products ensures the elimination of the need to fix price label to goods, thus reduce cost in a considerable manner.
b) Collection of data about the customer All the purchase details of individual shoppers can be collected and analyzed. Product extensions and promotions will then be based on the analysis of purchasing patterns of different types of shoppers.
This will provide demographic information about the customers that will be determined from a loyalty card database. The entries in the loyalty card are related to transactions data furnished by the automated electronic system. These data can be further used in profiling a customer base. This ensures that specific offers to be made to certain types of customers. You as the retailer can then send mail order catalogue to all loyalty card holders who have bought in the previous year. To add on this, the internet and electronic commerce sites use the previous transactions information to personalize their sites for each shopper by offering them products and items that have been related to their last few transactions. And that is what is imitated.
c) Marketing decisions feedback
Analysis of the automated data from the scanning system helps the retailer in knowing the impact of promotion, prices, new products, and packaging modules. You the retailer can assess the result of changes in the layout of stores with regards to; category sales, competitor brands, gross profit and sales in your retail store. Your innovative product ideas may be tested against the realities that are already in the market. In short, automated scanning system data analysis helps the company in the following:
✓ Predicting the outcome of its newly adopted policies,
✓ Evaluating its promotions,
✓ Calculating customer price responsiveness for core and seasonal products,
✓ And Planning its promotional measures
d) Effective communication As a retail store manager, you can indulge in effective communication with your suppliers. You could be sending documents such as purchase orders, stock, and sales information over a third-party communication network; This is known as electronic commerce or e-commerce. This means of communication works fast and costs less as it is sufficient for retail stores to place their orders one or two days and in advance, against seven days earlier in the traditional paper-based means of communication.
The system automatically sends the required documents electronically overnight to the distribution centre. So, delivery of product items is possible the very next day. This effective communication form reduces the time taken between sending an order and receiving the merchandise.
e) Business planning tools
With the use of sophisticated computer software packages, retailers are able to;
✓ Plan, budget and forecast,
✓ Choose the most successful location,
✓ And Control their business. But that is not all! Model decision making, statistical packages of sales forecast and data mining tools are available. Retailers can also use geographic information systems. Sociodemographic data along with company transactions data and intelligent analytical tools can be used to forecast sales in different retail stores.
f) Additional value to the retail transaction
Most customers prefer IT-assisted transactions to traditional retailing. This is because IT-assisted transactions to provide speed, accuracy, and convenience for their purchasing of goods and items. Looking at an example from your daily life, ATMs are used at any time of day. Thus, the use of technology will add value to your retailing business.
g) Technology enabled shopping
Selling goods over the internet has become popular all over the world. Electronic means of selling goods and items include the following:
- Products: these include grocery, clothing, footwear, music, books, videos, cameras, photographic goods, computer hardware and software, pharmacy goods among other items and goods.
- Services: Retail banking, personal insurance, financial service, real estate, stocks and shares, Tourism, exports and imports, entertainment tickets, virtual education, information services, among other inclusive services.
Therefore, information technology is transforming the nature of products, processes, companies, industries and even competition itself among retailers and business dealers. And the most amazing part of it all is that information technology or IT is widely accepted.
However, let us not just dwell on the good side, there are disadvantages of using translation in the retail sector.
Limitations of Using Information Technology in the Retail sector
Here are some of them…
1. At the inception stage, IT was used by retailers to automate control services such as finance, payroll, and management accounts. Electronic point of sales systems can be affordable only by very few department stores, in other words, it can be expensive for some retail sectors. And when we talk about retail business, it is a highly dispersed kind of business. You as a retail manager have to incur an enormous amount of expenditure on the installation of IT equipment in your retail business.
2. In retail stores, a case scenario of staff may be having limited knowledge about computers. Thus, computer specialists are to be employed to deal with the automation process of the retail business, and this is an added expense which only the largest retailers can afford to employ technically qualified people.
3. Your retail business involves a wide array of products. Hence, a complex system is required to handle a large number of product lines or products.
4. There is also costs of routine investment in automation process which is very costly.
5. Some of the technology projects fail and the risk of such failure is too high for retailers.
6. When we talk about IT alone, it has not produced performance advantage in the retail industry, there have been inputs from others.
Despite having determined the above disadvantages in using Information Technology (IT)for competitive advantages in the business, retail sectors have gained advantages such as flexible culture, strategic planning, and improved supplier relationships.
All in, the key advantage lies in people and systems rather than systems alone, from the look of things. In order to get full competitive advantage of IT requires long-term investment in the information technology sector which with time, might be successful.