When it comes to retail locations, the playing field has changed drastically over the years. Today, with online shopping and Internet-based stores popping up daily, both new and established traditional stores need to focus their efforts if they want to be successful. The best way of doing this is by understanding the key success factors of retail locations.
Driving Customer Traffic
It's no secret that customer traffic is a key component of retail success. The most important formula for driving traffic relies on making sure that you know what customers are looking for, and that you have it available at the right price. In addition, you also have to ensure that customers know what you have. This means you need to take advantage of advertising opportunities available in your area in order to get consumers inside your location.
Be a Fast Follower
While many believe that the key to success is to be the first to develop a new product or service, research has shown this is not the case. In fact, there is a failure rate of around 47% for those who are the first to introduce or sell a product. This is compared with only an 8% failure rate for those who enter the market early on. If there are new products that you believe have potential, taking advantage early and offering them in your locations is important.
Technology is also a major factor in driving customer traffic. Utilizing Facebook and other online platforms is a necessity, and one that will keep your store in the forefront of current and potential customers' minds. Announcing sales and new products on these platforms will keep interest high, and drive traffic to your store. Even though you are a brick and mortar location, technology is still an important success factor that you should not ignore.
Once consumers are inside your location, your customer service is the most important factor in generating sales and repeat customers. If your customers are well-served, they are considerably more likely to make a purchase during their visit, and to return later. Ensuring that all employees understand the importance of exceptional customer service will go a long way in helping your retail location see success.
Determining whether you are following and meeting these key factors can be difficult. However, with the proper tools and analytics, you can easily determine how many customers are entering your store, and their buying habits.