In the wake of Corona virus, it is abundantly clear that some retailers are doing better than ever, whereas, others are struggling to survive. Every retailer is evolving, transforming to a leaner, fitter version of their previous self.
Here are some strategies which retailers have embraced and are trying to execute.
Data driven intelligence has given rise to personalisation. Personalization refers to understanding individual preferences through various parameters like their purchase history, location, demographic, and previous searches to give suggestions for future purchases.
Battle for customer loyalty
A loyal customer base is always the key ingredient of every retail organizations success. During the pandemic, disrupted supply chain created an opportunity for retailers to win their competitors customers. Customers have recently favoured retailers which transformed quickly to fulfill orders and were able to create a seamless customer engagement and interaction. This includes chat bots, text messages providing information on orders, online, tele-based and safe instore communications.
Also Read – Sustainability of Big E-tailers
Redefining store formats
E-tailers and Brick & Mortar chains are re-evaluating their physical store footprint. E-tailers realize that some physical store foot print is essential for their survival, as the cost of acquiring a new customer is always rising, due to the competitive market environment. On the other hand, to improve operational efficiency, brick & mortar retail chains have been forced to redesign their store formats. Brick & mortar stores have to limit their store foot print and utilize the available floor space in a lot more innovative ways, to manage the increasing operational costs. For example throughout the pandemic, online order and in store pick up model has proved to be a very successful, with all the major grocery chains all across North America.
Embracing social values
Although convenience, ease and cash rewards attract and maintain a strong customer base, consumers connect more with companies, which resonate with their own values. More and more companies have taken stands on political and social issues. Be it ‘Sustainability’, ‘Black Lives Matter’, ‘LGBTQ issues’ or ‘pandemic related concerns’, companies which recognized and embraced these issues have received more visibility and have been able to build a sense of community with the consumers following these issues.
Data driven decisions
Data has proved to be an important tool to improve organizations performance in all key areas, from marketing, sales, operations etc. Having extensive customer and industry data, with the complementing framework to analyze that data will empower organizations to make high quality everyday decisions. This process can help navigate the organization and eventually result in tremendous success. Big data can be crucial for:
- Building the right product mix based on parameters like location and demographic etc.
- Manage the inventory efficiently.
- Testing marketing campaigns and other business strategies, and then monitoring their success.
- Pricing competitively and reaching the target audience.
- Forecasting customer demand.