Over the past number of weeks senior members of our team at Péarlaí have been checking in on online conferences about the future of retail, and what the future holds for many brick and mortar retailers after lockdowns are lifted, and the dust settles.
Whilst many attendees agreed there will be some retailers who won’t make it through this crisis, many also believe there can be winners and opportunities at the end of this global pandemic.
Retail at its core isn’t rocket science, if you show your customers you value their custom by acknowledging them, they will reciprocate with loyalty to your business. Obviously, there are other elements such as the products you sell and the design of your store, but those factors are made impotent if you don’t have great customer service.
Great customer service starts with knowing who your customers are and knowing their behaviour, not so long ago you would walk into your local grocery store and the staff would know your name and most likely recommend things based on knowing what you like.
Loyal customers are the ones retailers should be concentrating on right now and when the dust settles on this unfortunate situation, and your doors re-open, 80% of your sales will come from your most loyal customers – the top 20% of your most frequent visitors to be precise. Retailers should concentrate their marketing resources at this time on maintaining relevance to core customers in order to sustain business after this crisis and into the recovery.
Sky holds top spot in the rankings of the UK’s biggest advertisers and astonishingly they spend 50% of their marketing budget on existing customers because they know what their current customers will like. This is what retailers should be concentrating on now, carrying out constructive research on their most loyal customers!
It makes sense if you can get an insight into the demographics of your most loyal customers like age, gender, postcode, marital status and other relevant information, then it makes it easier for you to attract them back to your store with relevant offers as well as entice like-minded customers.
In summary it has never been more important to know who your customers are, so during these challenging times you need to be thinking how do I get to know my customers a little better, than I have up to now.