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Grab Your Share of Back-to-College Shopping

August 3rd, 2012 ::

By Rieva Lesonsky

Maria Valdez Haubrich recently blogged on this site about back-to-school shopping projections and what they mean for your small business. But back-to-college shopping is an even more profitable part of the back-to-school equation. The National Retail Federation/BIG Insight Survey recently took a look at how college spending is shaping up, with some insights into how your small business can grab your share of college students’ dollars.

Overall, the survey notes, back-to-school and college spending is projected to hit $83.8 billion this year, making it the second biggest consumer spending season for retailers (after the winter holidays). Back-to-college spending will account for $53.5 billion of that total. College students and their families will spend an average of $907.22 on everything from dorm furniture to school supplies and personal care items; that’s an increase from $808.71 last year.

Although they will be spending more than last year, 80 percent of college shoppers say the economy is affecting their budgets. To save, more shoppers will go online, more will use catalogs and more will use the Internet to comparison shop. More college-age students will also be making do with last year’s furnishings, clothes and school supplies.

What are the hottest product categories? Almost three-quarters (74.2 percent) of back-to-college shoppers plan to buy apparel and accessories, spending an average of $132.97. Electronics are also popular: 54.0 percent will buy a new computer, MP3 player, smartphone or other device, up from 45.8 percent last year, spending an average $216.40.

Dorm furnishings are in demand this year, with students spending an average of $100.27 on this category. With more children planning to live in a dorm this year (25.9 percent, up from 18.1 percent last year), spending in this area is poised to grow.

One big trend: College shoppers are spreading out spending, with an eye out for bargains between now and the start of school (or even after school begins). Nearly one-third (31.9 percent) will start shopping three weeks to one month before school starts, but almost 10 percent are waiting until after school starts.

Discounts and deals are still the way to college consumers’ hearts. Shoppers have an eye out for bargains, and the NRF suggests offering bundles, free gifts and gift cards with purchase, and free online shipping as ways to attract these value-focused consumers.

Image by Flickr user poeloq (Creative Commons)

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Posted in Business Development, Generational Marketing, Marketing, Sales Process, sales process, Small Business, small business | No Comments »

How to Source Products at a Trade Show

August 2nd, 2012 ::

By Karen Axelton

Is your retail or ecommerce business looking for hot new products to sell? One of the best places to scope out new products is at a trade show. Trade shows are where manufacturers and wholesalers show off their hot new products, and offer a great venue to comparison shop among different product lines you might want to carry.

Here are some tips for sourcing products at a trade show.

Start by checking out trade shows that might be good for your industry. You can find directories of trade shows around the world at TSNN.com and find industry-specific ones through your industry association. These days it’s easier than ever to scope out shows ahead of time by visiting their websites. You can see who the exhibitors will be and whether they’re worth your while.

Be prepared. Pre-register for the show so you don’t waste time the day of the event. Bring plenty of business cards, your business checkbook and/or credit cards, and a rolling suitcase or other method for carrying documents, samples or brochures you collect at the show.

Plan your attack. Look at the show layout online (or pick up a directory when you get there if the information is not available online). Determine key vendors you want to see.

At the booths, get all the information you can about the companies you’re interested in, including product catalogs, literature and samples. Talk to exhibitors and exchange business cards. It’s a good idea to have a list of questions to ask ahead of time so you don’t waste your (or the exhibitors’) valuable time.

Get a feel for trends. Don’t focus so closely on a few booths that you miss the big picture. Walk the whole show and notice what colors, products or materials stand out to you. For example, if you’re at a home décor show, maybe natural fibers and colors dominate this year. Take notes on what you see and use your smartphone to take photos, too.

Take breaks. Wear comfortable shoes and take breaks now and then to grab a drink or snack. While you’re resting, gather your thoughts, take notes and plan the rest of your day.

Place orders. You can often get good deals at trade shows, so if you see a product you’re interested in, place an order now. If you don’t want to pay right away, see if the vendor will let you place an order now for delivery in three or six months and still give you the “show price.”

Follow up. When you get back from the show, organize your data, go through the literature you gathered and follow up with companies you’re interested in while the show is still fresh in both of your minds.

Image by Flickr user calm a llama down (Creative Commons)

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Posted in small business, Small Business Success Index | No Comments »

Retailers: Time to Take Tech to the Next Level

August 1st, 2012 ::

By Rieva Lesonsky

The future of retail is online, mobile and social, reports a recent Motorola Solutions survey reported by Marketing Charts. U.S. retailers polled predict that within the next five years, nearly half (42 percent) of retail sales will come from online, mobile and social commerce sites. To keep customers visiting their stores in the face of this trend, 75 percent of retailers say developing a “more engaging in-store customer experience” will be essential, and more than 40 percent plan to provide personalized product details to customers’ smartphones based on their prior browsing or purchasing behavior.

Better customer service is the core goal for retailers in the survey, with 51 percent saying they will invest in new technology to improve their customer service.

But there’s a big difference between what retailers want to do and what they can currently do. Although the retailers polled want to customize their in-store experience to each shopper, three-fourths of them admitted they currently have no way to know when a specific customer visits their store, 85 percent don’t know how to customize a store visit, and 89 percent can’t link shoppers’ online actions to their in-store behavior.

Among the technology retailers plan to deploy in the next five years is mobile or portable POS technology manned by clerks. Currently only 9 percent of retailers offer this, but 18 percent plan to add it. And 12 percent plan to offer customers the ability to self-checkout on their own mobile device (just 4 percent currently do).

So far, about one-third of retailers offer consumers the ability to buy on a mobile device in-store and have a product shipped to them. More than half (59 percent) say they will offer this within five years.

There are some ways you can improve customer service without any technology. Two in five retailers surveyed said not being able to find something they came to buy is a top complaint among customers. Simply helping customers find products or order them if you don’t have them in stock is one easy way to improve satisfaction.

Marketing Charts also noted that most customers prefer to be recognized in-store in person, not via technology. Simply greeting customers as they come in or browse, or setting up a frequent or preferred shopper program where you can greet customers by name as they check out, can improve customers’ experience in your store.

Last, but not least, integrate your in-store and ecommerce experience. Allow customers to buy online and return at your store; buy online and have it shipped to your store for pickup; or order in-store and have it shipped to them.

How are you keeping customers happy?

Image by Flickr user cogdogblog (Creative Commons)

 

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Posted in Marketing, sales process, Small Business, small business, Social Media, Technology, Uncategorized, Web Design | No Comments »

What Retail Customers Expect and How Your Business Can Deliver

June 18th, 2012 ::

By Rieva Lesonsky

Is your retail store or ecommerce site effectively competing in a multichannel world? A new study by hybris, the Multichannel Shopping Survey, found that the vast majority of consumers (80 percent) are more likely to be loyal to retailers that offer an integrated experience across all sales channels.

Brick-and-mortar retailers are facing stiff competition, according to hybris, with more than one-third of consumers (39 percent) saying they make more purchases online than in-store. Asked to project to the 2012 retail holiday season, 46 percent of consumers say they’ll do more shopping online than they did last year; just 8 percent will do more shopping in-store.

The trend toward “showrooming” is continuing, with 19 percent of customers saying they look for products on their mobile devices even while they’re in a physical store. The most common reason is to compare prices (66 percent), followed by comparing product choices (27 percent) and reading reviews or ratings online (7 percent).

Given all of this competition, how can your business compete?

Offer cross-channel pickup and return. Customers are more likely to shop online if they can pick up a product in a physical store and/or return it to a physical store. Some 45 percent of respondents said in-store pickup options for online purchases were important to them, and 28 percent said in-store return options for online purchases were important. More than 73 percent of respondents said offering these features would make them more loyal to a retailer.

Send personalized offers and customized promotions. Forty percent of respondents said they would be more likely to shop at stores that gave personalized offers, and 42 percent would be more likely to shop at stores that delivered promotions to customers’ mobile devices while they’re in-store.

Make it easy to shop online. The top factors encouraging customers to make online purchases were easy website navigation (cited by 59 percent) and a simple checkout process (57 percent).

Use clear, appealing images. The presence of product images was a crucial factor in purchase decisions for 42 percent of respondents. Conversely, lack of product images was the third biggest factor in customers deciding not to buy from a website. If possible, offer product shots from multiple viewpoints and add video so customers can see the product in action.

Manage shipping costs. Shipping costs that are too high were the top factor in dissuading customers from purchasing online, cited by 47 percent of respondents. With many consumers expecting free shipping, you should make every effort to offer this option. You can provide free shipping codes or set a certain minimum price above which shipping is free.

Finally, from the “common sense” file, out of stock items were the second most common reason consumers didn’t buy from a website. With online customers seeking instant gratification, waiting to receive a product just won’t cut it anymore, so make sure your inventory is always up to par.

“Consumers have expectations that their favorite retailers will be accessible to them anytime and anywhere,” said Steven Kramer, president of North America at hybris. “Retailers who aren’t keeping up with the latest technology will find their customers moving to a retailer who will.”

Find out more about the survey and download the whitepaper at the hybris website.

Image by Flickr user David Sifry (Creative Commons)

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Posted in Business Development, Customer Service, Marketing, Sales Process, sales process, Small Business, small business, Technology, Uncategorized, Web Design | No Comments »

Is “Showrooming” Affecting Your Retail Business?

March 16th, 2012 ::

By Rieva Lesonsky

Is your small retail business being affected by “showrooming?” The latest trend in shopping, according to research company NPD Group, showrooming is when consumers visit a physical location to touch and try out a product. Then, MediaPost reports, they  then go online to do additional research and price comparisons before finally buying the product online.

NPD Group says about 15 to 20 percent of consumers showroom and that products which are technical and “somewhat expensive” are more likely to be showroomed. In addition to gadgets such as cell phones, laptops and other tech devices, small appliances and home improvement products like sewing machines, electric knives or power tools are also candidates for showrooming.

Perry James, NPD Group president of home and office supplies, told MediaPost that showrooming is good news for retailers, because it proves that brick-and-mortar stores aren’t obsolete and that consumers still want to touch and hold products before making a decision to buy.

But showrooming may not sound like good news to small, local retailers, especially if customers head out the door to order online from a big-box retailer after testing the product at their stores. So how can you get showrooming customers to not only try, but also buy, from you?

Personalized service and convenience are key. Your employees must be able to work with customers when they see them testing products to find out what they need and want. If they can engage a customer in conversation and provide exactly what they’re looking for right on the spot, then you have a better chance of making the sale.

What if you don’t have the exact item in-store? That doesn’t have to mean losing the sale. At Sears, for instance, associates with tablets can help customers find the exact product they want and order it online for them for delivery in a few days. Can you offer a similar service?

Helping customers get exactly what they want without the hassles of having to visit another store or search and compare prices online can help you get the sale. But brick-and-mortar retailers that don’t take steps to compete with online-only merchants could quickly find themselves losing sales…and ultimately their businesses.

 

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Posted in Marketing, Small Business, small business | No Comments »

Entrepreneurs, Beware: Big Restaurant and Retail Chains Are Thinking Small

March 9th, 2012 ::

By Rieva Lesonsky

Independent retailers and restaurant owners who compete against massive chains have long felt that being small offers an advantage in terms of greater personalization. But now big retail and restaurant chains are honing in on what’s been the independent advantage: They’re testing smaller locations, reports the Kansas City Star.

Huge corporations including Best Buy, the Gap, Kohl’s, Lowe’s and Sports Authority are among the retail chains testing smaller-sized stores. In the foodservice arena, Houlihan’s and Sweet Tomatoes are two chains trying smaller eateries.

What’s behind the trend? The recession is one big motivator. Smaller stores cost less to lease, build or remodel, making it easier to get financing for them. They also have lower overhead costs to run and require fewer employees. Smaller footprints give chains more flexibility in finding locations in crowded markets. And if the store’s sales aren’t up to par, it’s easier for the company close the location without a huge loss.

Beyond small size, retailers and restaurateurs are getting creative with spaces in airports, at colleges and even on military bases. RadioShack is testing a format that creates a “store within a store” in some OfficeMax locations.

When retailers like Ann Taylor, Chico’s and the Gap opened larger stores, they didn’t necessarily see an equivalent rise in sales, if any rise at all, that would justify the added expense, Green said.

“Any retailer that is opening larger and larger stores, I question their long-term viability,” Green said. “Costco and Sam’s Club defy that theory. That’s because consumers really perceive them as great values, and value trumps the inconvenience of size.”

Careful targeting is key to this strategy’s success. For example, with its smaller Cabela’s Outpost Stores, retailer Cabela’s is targeting smaller markets but focusing on areas where a large proportion of the population is already customers.

Companies contend the greater intimacy of smaller locations appeals to customers. And having more small locations, as opposed to one massive “destination” location farther away, makes it more convenient for consumers to shop or dine on impulse. Restaurant chain Sweet Tomatoes, for instance, says it has put smaller units as close as 10 minutes’ drive apart. Convenience is a big factor in a world where retailers are competing against the Web for sales.

When it comes to big corporations, of course, small and intimate are relative concepts. The smaller Cabela’s stores, though about one-fourth the size of a traditional Cabela’s, still weigh in at about 40,000 square feet—not exactly a tiny, neighborhood boutique. And Houlihan’s smaller restaurant concepts are about 5,500 square feet—just 20 percent smaller than a traditional location, and bigger than most independent restaurants.

How can you compete as larger chains get small? Play up not only your size, but also your independent stature. Provide personalized service and, if a “small” big chain that competes with you opens up in your area, be on top of what they’re doing so you can stay one step ahead.

Image by Flickr user Maxwell Hamilton (Creative Commons)

 

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Posted in sales process, Small Business, small business | No Comments »

Retailers Go Mobile

February 13th, 2012 ::

By Rieva Lesonsky

Whether in-store or in the consumer’s hand, mobile retailing is hot and getting hotter, according to the 13th Annual POS Survey from Boston Retail Partners. The study of the nation’s top retailers found rapid growth in both in-store use of mobile POS options and mobile marketing and sales.

For example, more than 33 percent of respondents have a mobile channel, up substantially from 12 percent last year. In addition, 7 percent had already launched a mobile POS system in-store; 52 percent plan to do so within two years; and 19 percent say they will do so in more than two years. Just 22 percent said they do not currently plan to add mobile POS. Some stores are adding mobile POS to their current POS systems; others are getting rid of standard POS terminals and going all-mobile.

Here’s what else retailers are doing:

8 percent of respondents allow customers to check out using their own smartphones and 38 percent plan to do so in the next two years.

20 percent of respondents let shoppers use mobile devices to share their shopping experience with a friend; 16 percent offer this service but say there are still kinks to work out; and 40 percent plan to add this option within the next two years.

8 percent of respondents send consumers mobile coupons and special offers on their devices and say it works well; 12 percent offer this service but say it still needs improvement; 28 percent plan to offer mobile coupons and deals within the next two years.

Over 25 percent of the respondents described their companies as being “early adopters” when it comes to using technology to provide a better customer experience.

The next step for retailers is making sure that all aspects of the mobile experience—in-store checkout, shopping from the mobile device, and mobile marketing—are integrated and convey the same brand and user experience.

“As we talk to retailers about their technology plans it is refreshing to see the shift as they realize that to succeed they need to think about the point-of-sale differently,” said Ken Morris, Principal of Boston Retail Partners, in announcing the survey results. “The POS is not just located at the checkout in the store – customers want to be able to shop from multiple touchpoints, whether it is online, a mobile POS, or their own smartphone – and retailers need to be able to accommodate this new, technology-savvy customer with an omni-channel strategy.”

Image by Flickr user Pink Sherbet Photography (Creative Commons)

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Posted in Business Development, Marketing, Sales Process, sales process, Small Business, small business, Technology, Web Design | 2 Comments »

Consumers Are Going Mobile for Holiday Shopping

November 28th, 2011 ::

By Rieva Lesonsky

 

The holiday shopping season is officially off and running—and one of the biggest trends marketers are talking about is how readily consumers are switching to mobile shopping, whether on tablets or smartphones. A recent study from Prosper Mobile Insights found that majority of mobile users plan to use their smartphone or tablet for holiday shopping this year, whether researching or purchasing.

Here are some of the specifics:

Nearly two-thirds (61.7 percent) of mobile users say they plan to use their smartphone or tablet for holiday shopping this year. More than 60 percent say they plan to use their device as a “mobile mall”—both purchasing products and comparing prices. The other 39.2 percent say they will use their device primarily as a data organizer to keep track of gift lists, budgets, sales and the like. Mobile shoppers say they expect to make 37.9 percent of their holiday purchases from their device.

Of those mobile shoppers, the majority (56.7 percent) expect to be using their device mostly during the planning and research stage; 40 percent plan to use their device mainly during the shopping/in-store stage.

What types of products will consumers be searching for the most frequently on their tablets or smartphones? The top three gift categories for mobile shoppers are electronics, clothes and entertainment items. More than three-fourths plan to research electronics on their device, while nearly half (49.9 percent) say they will buy electronics from their device. Clothing/accessories was the third most popular category.

What are consumers not buying? Candy, home décor, beauty products and gift cards were at the bottom of the list for mobile purchases.

Image by Flickr user Steel City Hobbies (Creative Commons)

 

 

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Posted in sales process, Small Business, small business, Technology | 3 Comments »

How Background Music Can Help Your Store or Restaurant’s Sales

August 5th, 2011 ::

By Rieva Lesonsky

You hear music every day when you’re out shopping or at restaurants. Most of the time, it’s just “background.” But did you ever stop to think about how that background music could be affecting what you do and buy? If you’re a retailer or restaurant owner, you should be.

Consider how teen/young adult clothing retailer Abercrombie & Fitch sets the mood for its stores with loud, throbbing music that effectively lures its target audience inside (while driving away anyone not in the right demographic). How can you employ some of the same tactics? BusinessInsider recently reported on seven ways background music can help or hurt a business, summarizing findings from a variety of academic sources.

  1. Loud music makes shoppers go through a store faster, but doesn’t reduce how much they buy.
  2. Slow-tempo music causes shoppers to go through a store more slowly and buy more. It also makes restaurant customers spend more time over their meal, but spend more.
  3. Classical music prompted customers to spend more—and buy more expensive items—than Top 40 music did. (This test was conducted at a wine store.)
  4. Classical music at a restaurant makes customers spend more than either Top 40 music or no music at all.
  5. When does classical music backfire? It can make customers think your store or restaurant is “too expensive” for them or more expensive than it really is.
  6. When music is played on-hold, customers are willing to wait longer before they hang up.
  7. When people hear music they like, they perceive wait times as shorter than they really are.

Of course, not every test is going to work out the same way in the real world as it did in these experiments. (If it did, every store would be playing loud, slow, classical music.) However, it’s worth experimenting to see what different types of music have on your customers.

If you own a fast-food restaurant or other business where you want customers to move on quickly, try playing faster-paced music or turning up the volume. If you want them to linger, try something slow. Also match the music to your customers—if your target market is seniors, playing rap music while they wait in line to pay for their purchases or hang on-hold isn’t going to endear you to them.

One conclusion all these tips seem to point to: Music is better than no music at all—so make sure you’re taking advantage of the power of music to not only soothe the savage breast, but encourage sales.

Image by Flickr user Kevin Dooley (Creative Commons)

 

 

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Posted in Branding, Marketing, sales process, Small Business, small business | 1 Comment »

5 New Rules of Retail

December 17th, 2010 ::

By Rieva Lesonsky

It’s no secret that the face of retail has been changed by the recent recession, as well as by emerging technology and a more sophisticated consumer. What habits will customers take with them going forward into 2011 and beyond?

A new study from Leo Burnett’s Arc Worldwide division, Re-Imagining the Retail Store, takes a look at what shoppers demand from retailers today. The study highlights five key findings:

  1. Technology can help, but humans must be in charge. While in-store technology can enhance the customer experience, there needs to be a seamless transition between the physical and virtual store. More important, technology is no substitute for knowledgeable, helpful service from a real person in the store—and thinking that it is can irreparably damage your relationship with customers.
  2. Shoppers are fickle. It’s hard to earn shoppers’ loyalty these days, and even harder to keep it. The recession has changed how people approach retail shopping. They’ve lost confidence and trust, and in a time when everything seems to be changing, they aren’t hesitating to change even long-held shopping habits. That’s why it’s essential to understand consumers’ expectations and deliver–every time—or you can easily lose their business.
  3. Price is important, but it isn’t everything. A low price gets customers to consider you, but if the product, service or experience is low-quality, customers won’t buy. Customers are seeking value—not cheap goods. And because today’s customers have become used to not spending, if you don’t give people enough reason to buy, they’re perfectly happy looking elsewhere–or not buying at all.
  4. Break the rules. Retailers can take one of two tacks to succeed: Excel within your store archetype, or break out and create a whole new store format that delivers a unique experience.
Which strategy will you choose?
  5. The basics matter more than ever. Too many retailers are seeking a “magic bullet” to improve sales. Deals, Groupons, or Facebook won’t help if you don’t have the basics in place. It may not be sexy but, in reality, many times success comes from simply getting the basics right. And with customers being pickier than ever these days, providing the basics of good customer service is the very least they expect your store to do.

What are you finding to be the “new rules of retail” at your store?

Image by Flickr user Lululemon Athletica (Creative Commons)

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Posted in Sales Process, Small Business | 1 Comment »

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