As you’ll notice from this post’s featured infographic, retailers have a much stronger likelihood of re-selling to an existing customer (60% to 70% chance) than they do selling to a newer one (5% to 20% chance). This is a trend seen industry-wide in retail, yet year-over-year, these organizations continue to invest most marketing and advertising budgets on campaigns targeting new customer acquisition.
How can so many retailers’ marketing and advertising strategies be overlooking such an integral part in both their success and return on investment?
Retailers struggling to improve their revenue year-over-year should consult the accompanying infographic before developing any strategies. The most important take away is providing customers with the most tailored shopping experience both in-store and online through two specific techniques: cross-selling and upselling. This is made possible through the combination of both online and in-store retail locations.
This approach utilizes several omnichannel marketing principles, another topic that the infographic will go over in detail. For any retailer hesitant regarding this approach, it’s important to understand that integrating digital marketing strategies is integral to the success of any retail business. Here’s a few reasons why:
The first reason is related to the amount of time any given customer spends in a retail store. On average, the range is between 15 minutes to an hour. However, through the use of these omnichannel strategies, they can continue to communicate and interact with any retailers brand through social media, a supported online store or even personalized e-mails. This type of interaction is exactly what spurred certain retail trends such as the buy online and pick-up in-store option to bring otherwise exclusive e-shoppers into retail stores.
Building off of this trend, personalization is really the differentiating factor for many retail organizations. The ability to provide personalized messages, product suggestions and more is what keeps customers coming back for additional products. This is done much more effectively online than in-store, though, as it can be hard to establish a genuine connection between sales representatives and customers in such a short period of time.
In-store operations benefit from these adaptations as well. For example, take all of the signage you see in retail stores today, both digital and physical. Most times, these are meant to direct customers to the products they’re looking for in a retail setting. However, in some cases, think appliance stores, they can provide details regarding functionality or reviews of a specific product or set of products, so customers get a clearer understanding of what they’re buying.
These are just a few of the reasons of how integrating an omnichannel approach can enhance the customer experience and convince more and more customers to come into retail stores. If you’re searching for additional insights regarding upselling and cross-selling techniques, please review the infographic accompanying this post. Courtesy of IDL Displays.