As a retail business owner, it’s imperative to be able to discern sound business decisions from misinformed ones. Knowing this, why is it that more and more retail businesses are targeting new customer acquisition over existing customers? As seen in the infographic accompanying this post, retailers have a much better chance of attracting their existing customers back into stores and selling to them again compared to selling products to new customers. The difference is actually quite staggering. Existing customer resells range between a 60% to 70% chance compared to a first-time sale to a new customer coming in at a range of 5% to 20%. Despite most retailers being aware of this disparity, they continue to center marketing budgets around new customer acquisition methods.
Many retail organizations continue to invest their marketing and advertising budgets towards targeting new customers rather than offering unique products to existing customers. Knowing how effective existing customers can be, retail organizations should look to maximize their return on investment by prioritizing existing customer reselling compared to first time sales with new customers.
This is what is known as dynamic revenue growth. Improving this growth has proven to be quite challenging, but the accompanying infographic has a few known successful strategies businesses can incorporate to simplify this process. One of the most successful to date has been integrating online and in-store techniques to enhance the customer experience. The two techniques are known as cross-selling and upselling.
These techniques are made much more effective through omnichannel marketing, which is discussed in detail in the resource paired alongside this post. Within it, you’ll notice several real-world examples of how omnichannel marketing operates and how it impacts the brick-and-mortar retail store.
Consider this, most customers are in brick-and-mortar retail locations for anywhere between 15 minutes and an hour. Digital marketing allows these customers to remain in contact with your organization long after their visit to a physical location. Social media pages, a web store, e-mail and text communication; the alerts are endless. More and more opportunities to present customers with new products or sales of current products can lead to a competitive advantage.
In addition to this, as just touched on, customers of all stripes love personalization. Not only does a personalized message make them feel special, but perhaps more important, the message is highly relevant because it is based on their purchases. In the store, personalization is difficult to accomplish, but online, it can be done with relative ease.
Inversely, digital techniques used in store can also enhance the customer experience. For example, digital signage can lead customers to their preferred products based on customer reviews or price. Certain stores also have interactive screens that can be used to browse products exclusively in-stock at their location.
Through these techniques and an overarching omnichannel strategy, your retail organization could see tremendous growth. If you’re still struggling with ways to integrate these techniques into your organization’s processes, take a moment to review the infographic paired alongside this post for additional tips and tricks.
Courtesy of IDL Displays.