retail-strategy-112 – What Is the Most Powerful Marketing Strategy in Retail?
The Most Powerful Marketing Strategy in Retail
All kinds of retailers use marketing strategies to boost their bottom lines. Nike’s famous slogan, “Just Do It,” has stayed relevant with customers over time, while Sephora uses points programs and free gifts to create brand loyalty. Likewise, Walmart lures millions of customers with low prices, whereas specialty brands like Apple attract customers with their commitment to quality.
Whether it’s digital marketing, like email ads or social media influencer posts, or traditional marketing, like TV ads or vibrant brand displays, all retailers use marketing strategies to gain and retain customers. However, what retail marketing strategy is the most powerful?
As you learn how to develop an effective retail strategy, you will need to understand how to use marketing tools to boost sales and revenue. Marketing is a core element of a successful retail marketing plan. This page will examine four of the most powerful retail marketing strategies employed by companies today. While the best strategy for your business will depend on your circumstances, you should consider these strategies if your store needs a marketing makeover.
Revamp your Social Media Marketing
Social media is one of the most effective marketing channels to convert new customers. Unlike email marketing, which can be buried in spam folders, social media campaigns present ads directly to customers while they search Facebook and browse Instagram. However, while most businesses use social media ads, many don’t take full advantage of the platforms. Whether you’re still learning or are an influencer, social media strategy is a powerful online marketing tool.
The most important consideration in social media ads is your target audience. Different groups use different digital channels. Facebook, for example, is more popular among older generations. So, if your intended audience is younger, you may want to spend more money advertising on platforms like Instagram.
You can also foster organic social media interactions. Posting video content is one way to increase brand interaction without spending valuable ad money. Likewise, making a relevant Facebook group can help you create organic engagement with your customers. You can also leverage influencer marketing to create content and increase online traffic.
Another way to beef up your social media strategy is to use geo-targeted ads to corner the market in a certain area. These ads target people in a specific area, such as the neighborhood around your store. This allows you to make the most of the money you spend on digital ads by ensuring your target audience sees them.
Re-imagine your Space
Store layout is another powerful retail marketing strategy. Organizing and optimizing your store will boost its curb appeal while strategically increasing sales. And, if you’re on a budget, then you can easily redo your layout without spending a dime.
You can begin organizing your space by adopting basic retail merchandising principles. In the front, place new items and colorful displays that will draw customers in. Popular products and clearance sections, which attract buyers on their own, should be in the back. This allows you to manipulate store traffic to increase the visibility of new product displays and the likelihood that a customer purchases those products.
Creating a comfortable environment will also boost sales by increasing the time people spend in your store. A well-appointed seating area, interactive displays, sample stations for cosmetics, ample lighting, and appropriate music can increase customers’ enjoyment of their shopping experience. Accessibility features, such as wider browsing lanes and lower checkout counters, also increase comfortability in your store while ensuring all persons can shop there.
If a full rearrangement is out of the question, an easy and quick way to boost sales is by monetizing your point of sale. Placing small add-on or impulse buy items in checkout areas can increase sales with little effort. For example, Sephora scatters displays of travel-size items throughout its checkout lanes, increasing the likelihood of impulse buys.
Boost Employee Morale
A creative way to enhance your retail marketing is to take measures to boost employee morale. Happy and healthy employees are an asset to any company. A person who enjoys their job will provide better customer service, sell more aggressively, and even promote your company on their own social media.
Take a look at the compensation and benefits that your business offers. Not only should they be competitive, but they should also meet the needs of your employees. These morale-boosting measures often result in good press for companies. Costco, for instance, consistently receives good press for its high wages and expansive benefits packages. A customer wants to feel good about their purchases, so they want to buy from companies that value their workers.
Today’s customers are increasingly aware of pricing, and they’ll often go out of their way to find a deal. So, if you need to boost sales, you might want to ask: “is my pricing competitive?”
To answer that question, you will need to research your market positioning. This involves examining prices from other stores to see whether yours are lower, higher, or the same. You can also survey your customers to determine how they perceive your prices compared to other retailers.
If your prices are higher than average, then you may want to consider lowering them. However, lower prices can damage your bottom line, even if sales increase. Promotional pricing is a useful tool to test whether lowering a product’s price will hurt your revenue. These sales also drive foot traffic, creating a temporary boost in purchases. If increased sales make up for lower prices, you can make the markdown permanent.
Sales and promotions can also help you clear out inventory. Many retailers use clearance sections and end-of-season sales to make room for new items. This strategy can help increase your pricing competitiveness while clearing valuable shelf space for new inventory.
The Most Powerful Marketing Strategy in Retail for your Business
So, which is the most powerful retail marketing strategy for your company?
The best marketing strategy for your store will depend on your objectives and current challenges. You must determine where your current retail strategy falls short and search for ways to improve it. From there, you can find the best retail marketing strategy and make a plan to take your business to the next level.
For more information, please refer to the following pages:
- What Are the Elements of Retail Strategy?
- How to Design Your Store to Convert More Sales
- Top Problems You Might Have With Retail Strategy
- How to Attract Customers Who Will Pay Full Price for Your Products
- Tips for Streamlining Your Sales Process in Retail
- Retail: Top Reasons Your Customers Are Going Elsewhere & What to Do About It