Bags and Bows and its parent company, Deluxe, recently surveyed Retailers to understand what’s keeping them up at night about their business. We also asked what they plan to do about their concerns. Read on to learn retailer’s key business challenges and especially if you want to know what marketing strategies they plan to deploy.
What is not surprising are Retailer’s top business challenges. Clearly, surviving the economic downturn is the #1 concern, followed closely by finding new customers. It makes sense. The news is filled with stories about Retailers struggling – even large, national chains that are household names are hurting and cautiously giving earnings guidance to Wall Street. If the big league retail players are hurting, you know Main Street is especially feeling the pain.
Taxes are also a top concern. This trumps concern with retaining customers. The threat of tax increases is very real at all levels of government, but should this top being concerned with retaining customers? I’m puzzled as I visit so many independent retailers and they don’t have a business card, a place to leave your information, etc i.e. a way for your to remember them and visa versa. This is such low hanging fruit for Retailers. I’ll give you an example. I recently stopped by a very cool, specialty coffee house in a trendy area of NYC. I, for once, didn’t want a cup of coffee at that moment, but was drawn into the store to look around and enjoy the atmosphere. The coffee house was located in an area I don’t visit often, so I wanted a business card so I would remember them. They didn’t have one and now the name of that coffee house is long gone from my memory.
Finding and keeping employees is not a huge concern – it didn’t even rank in the Top 5. This has traditionally been a top struggle but is probably muted by the fact that there are a large number of talented folks for hire. If you’re a smart retailer, you’re looking for good candidates now – there are a lot of experienced and mature folks out there. Hire them and reap the dividends from having a reliable employee.
So, if retailer’s top concerns are the economy, finding new customers, and taxes, what are they doing about them? I’ll give you a hint – they’re not waiting for the economy to improve – they’re taking action. Retailers understand how critical it is to get their name out there. Especially the independent retailer, who has to raise their voice above the chorus of the big box retailer. One of the top tactics retailers are increasingly doing is monitoring you, the competition. That’s right – you’re being watched by fellow retailers. They’re also increasing their visibility by leveraging signage, as well as holding periodic sales. Many are leveraging sales to keep their name top of mind with existing customers as well as giving new customers a reason to stop by.
They’re also out looking for new customers. Where are they finding them? Referrals from existing customers and vendors are top sources. More and more retailers are also embracing ecommerce and using email to connect with potential customers. Although most of them have a website, keeping it updated and search engine friendly is a concern. And a significant number of them are building a database of customers.
So, lots of action to address their concerns. What is the common thread? These tactics are all easy to implement and inexpensive.
If you’re a retailer reading this blog as we enter the holiday selling season, you know you need to get your name out there now. Think about what your competitors are doing. Ask yourself how potential customers know about your business. How are can they find you? What are you doing to retain existing customers and find that great new salesperson? The economy is on everyone’s mind, but it is by and large out of our control. What is in our control is how we proactively respond to it.
Are you facing similar business challenges? Or are you facing completely unique ones? What are you doing about them? Please share – we would enjoy hearing from you.
Want to learn more? Have comments? Contact Mike at michael.benedict@deluxe.com