The following strategies below can be applied to grow sales, increase revenue/market share and Customer Acquisition/Repeat Business.
Post Pandemic Market Analysis
- The entire global retail market witnessed a significant changes in customer buying patterns as a result of the global pandemic covid-19.
Therefore this necessitates the need for a more strategic approach towards customer acquisition & ensuring repeat business.
- This led to about 6% decline in total retail sales across the globe in the year 2020 and its projected to grow by 7.2% in the year 2021.
- Cross-selling is the practice of marketing additional products to existing customers.
- The strategy seeks to market to existing multiple products simultaneously to increase the overall basket spend/size per visit or purchase.
- Cross-selling is a marketing strategy that persuades prospective customers to purchase ancillary products.
- Upselling is the practice of encouraging customers to purchase a comparable higher-end product than the one in question, while cross-selling invites customers to buy related or complementary items.
- This strategy uses the concept of superior products or services in marketing to existing/new customers.
- A good example are the numerous bouquets offering of DSTV Nigeria.
- This is a relatively new concept in retail. The strategy here is to create a compelling buying experience for the customers thereby leading to more repeat business.
- The concept overhauls the entire sales cycle to present a process that is seamless, timely, easy and interesting for the buyers. The more easier it is to buy a product, the more likely it is for people to patronize.
- This strategy will ensure your brand is a one-stop shop as far as your industry is concerned.
- The retail brand must have the right stock of products of its sector and its relative products.
- The idea here is to ensure that all possible revenue sources are optimally maximized and also keep the customer in the store as long as possible.
- The right range/blend of products is needed to make the brand a go-to brand for the customers.
Differentiation: Cost leadership
- In business strategy, cost leadership is establishing a competitive advantage by having the lowest cost of operation in the industry. Cost leadership is often driven by company efficiency, size, scale, scope and cumulative experience.
- Sales can be increased by targeting a larger market segment with a relatively lower price in comparison with other competitors.
- Cost leaders manage to do so by emphasizing efficiency at every step of the value chain: production, manufacturing, sales, and customer service.
- The strategy works overtime by ensuring that your brand retail stock are of the very best quality in the market.
- Customers come to associate your brand with very high quality and are usually willing to pay a premium price because they are certain it’s the very best or one of the best in the sector.
- This is a long term strategy for any brand and it’s a bottom-to-top approach to gaining significant market segment and repeat business.
- Stand out of the crowded market place for easy identification by the customers.
- For a lifestyle retail brand this cannot be overemphasized.
- Customer is the reason for the business but most businesses do not treat the customers as the kings (chess board) that they are.
- The brand unique value proposition must have the customer as the central figure in the entire value chain.
- Managing customer effectively not only ensures repeat business but it’s the most potent form of new customer acquisition with an almost acquisition cost per new customer as the existing customers becomes for the brand ambassadors of the brands products.
- The application of the above strategies will not only increase revenue, it will also add to brand image and positioning in the industry.
- In applying these strategies, sales will grow and revenue optimization is certain.
- Lastly, if I can enumerate the above, who’s better to implement if not ME.