The best way to increase the size of your retail business
It’s no question that retail stores like supermarkets and department stores have transformed the way consumers behave today.
Peoples’ choices used to be limited and they would simply go in-and-out of the store to buy only essentials.
But nowadays, going to a retail outlet feels more like an experience rather than a chore.
With that said, small local firms are left with no other option but to scale in order to compete against large retail stores for consumers’ attention.
It is worth noting that scale-up does not necessarily mean doubling the size of your business. For small local stores, scale-up just simply means growth and it is generally cited as a centerpiece of entrepreneurship.
Understanding customer behavior
A survey conducted by Mckinsey revealed that brands nowadays need to assure strong availability as well as convey value. Retail shoppers showed that they value convenience and availability more than ever, and a number of shoppers even stated that they are willing to switch brands if these conditions are not met.
Because of this, local retailers are finding different ways to adapt and meet these conditions. Some retailers now offer in-store demos of their products and services. On top of that, customer service availability and online presence have now become a minimum requirement for almost all companies today. Every product that you can find in any retail store now has its own website, social media handles, and even e-commerce sites.
In-store demos
Despite the popularity of e-commerce sites, in-store demos are still an important factor that affects a customer’s purchasing behavior. That being said, local and even big retailers even hire an event staffing agency just to have a successful and effective in-store demo.
Thanks to the internet, consumers are now smarter and they want to see the actual value of the product before purchasing it. So having a physical store as well as doing an in-store demo is a great way to encourage people to buy products without any hesitation.
There is even a psychological explanation why products with in-store demos have the highest sales lift. The power of reciprocity comes into play and consumers are more likely to return the favor by purchasing the product.
Another explanation why in-store demos are so effective in luring customers to come back to the store is because they put them in a more positive mood, enhancing their shopping experience and encouraging them to return to the store again.
Customer service availability
Retailers with exceptional customer service often have a long list of loyal customers. By simply having a great customer service team, any company would be able to increase the size of their retail business in just a few weeks or so.
As mentioned before, going to a retail outlet nowadays feels more like an experience rather than a chore. So with great customer service, retail outlets can improve their customers’ experience and even make them loyal to the brand or store.
Online presence
Given that consumers are now embracing the digital world, it is only natural for local and national retailers to catch up and adapt to this trend.
Almost every brand and company now has their own website and even e-commerce sites. Companies do in fact invest and pool their resources in improving their online presence.
According to Semrush, 76 percent of the companies that they survey have dedicated content marketing teams of less than 3 people. Even though less than 3 people might not be enough to establish an effective content marketing strategy, this still proves that companies recognize that having an online presence is crucial to all businesses.
Local stores are a haven of fresh ideas
Small community stores are filled with cultural niches that have great growth potential. Contrary to the online shopping experience, local retail stores bring the community together and introduce new cultures to other people as well.
Even though most consumers today put a high value on convenience and availability, local stores that understand their own community are still highly praised and regarded.
With that said, increasing the size of your retail business does not always mean scaling up through franchising or expansion. Scaling up can also mean tracing your consumers’ behavior and ultimately improving your small local store in your own way.
