The retail industry is highly competitive, with companies fighting for customer attention and loyalty. To thrive in this environment, retailers must continually evolve and adapt to the changing needs of their customers.
To survive, you have to have a great product, good staff and a unique selling point. You also need clear goals to achieve. Setting dynamic goals for your retail business will help you stay focused and motivated. we you set business goalsyou take another step towards achieving your entrepreneurial dreams. But which one types of business goalsShould it be established as a retail store? This article will explore seven essential goals that every retail business should focus on to stay ahead of the competition.
1. Get noticed
The first goal you have to brand yourself as a retail business is to get noticed. The is especially important target if it is the first year in the company. The retail business model is one where if no one knows you exist, no one will walk through your doors.
Make sure you use attractive and clear signage in your store. Also, use banners, flags, and other eye-catching items in the parking lot of your business location. This will help draw the attention of travelers and passers-by to your store.
You should also use paid advertising and marketing methods to spread the word about your store. Depending on your type of retail business, traditional marketing methods it could work well. These include things like billboards, radio ads, and flyers. However, just because you have a retail business doesn’t mean you have to eliminate online marketing strategies. Don’t neglect social media, YouTube ads, and other online advertising options to help drive foot traffic.
Finally, you are part of the community. Try sponsoring local school events, participating in fundraising efforts, and attending local festivals. All of this will help increase brand awareness with current and potential customers.
2. Provide exceptional customer service
Customer service is the backbone of any successful retail business. Without good customer service, your customers will walk out your doors and never come back. In accordance with a survey, 61% of consumers have switched to doing business with a competitor after a bad customer experience. Now, can you imagine what would happen if you lost 61% of your customers tomorrow?
The experience your customers have in your store will determine whether they stay with you or simply move on to the next store. Exceptional customer service means going above and beyond to meet your customers’ needs and create a memorable shopping experience.
Here are some ways to make sure your customers have the best experience during their visit:
- Train your staff in effective communication– Train them on how to talk to your customers in various situations. Equip them with the tools they need to answer questions, resolve concerns and manage difficult situations.
- Empower employees- Empower employees to make decisions that benefit the customer. Give them the ability to offer discounts, fee waivers, etc.
- Personalize the customer experience– Use their names and remember preferences. This shows that you value them as individuals.
- Look for customer feedback regularly– Use this feedback to identify areas for improvement and implement changes accordingly.
3. Improve the design of the store
Although this may seem like one non-financial business objective, it is not. The layout of your store plays an important role in the overall shopping experience. When designing your store layout, keep in mind that it’s not about what you like, it’s about what the customer likes. Focus on optimizing your store design to provide the best customer shopping experience and maximize sales. An effective store design should be visually appealing, easy to navigate and strategically designed to drive sales.
For example, how do you use your “energy wall”? The electric wall is the area immediately to the right of where the customer enters. Many studies suggest that customers tend to turn right when entering a store. This could be because the majority of the world’s population is right-handed. Whatever the reason, you should look at your design and make it a goal to optimize it for sales.
There are a few ways to do this. First, monitor and analyze customer traffic patterns. Are your customers really turning right when they walk in? Or do they walk straight forward and back?
Maybe there’s something that immediately catches their eye when they walk in. Whatever your trends are, evaluate them to see if there are opportunities for improvement.
Another way to improve is by creating focal points and displays to showcase new or best-selling items. This will draw customers’ attention to these products and encourage impulse purchases. There are many challenges to running a retail store. But don’t let your other responsibilities distract you from making improving your store design one of your most important retail store goals.
4. Identify the best-selling items
Earlier, I mentioned that your design should feature your best selling items prominently. However, to do this, you need to identify what those elements are. Many retail store owners assume they know what their customers like. But, consumer tastes often change quickly. As a retail business, you need to identify which items are currently selling well.
There are several benefits to knowing which items sell best. And not all of them are just about sales. Identifying and leveraging your best-selling items can help increase customer satisfaction. By understanding which products resonate with your customers, you can make informed decisions about inventory, pricing, and marketing strategies.
Look for patterns and commonalities among your best-selling items. Why do these items sell better? Are they similar in price, style or color? There may be items that sell better with certain demographics. Talk directly to your customers or use sales data to learn more about how the items you sell are resonating with customers.
5. Manage inventory
One of the biggest challenges of the retail business model is managing inventory. If not done correctly, a retail business owner can have a warehouse full of products while losing thousands of dollars a month. That’s why inventory well management should be a high-ranking goal for a retail business. Efficient inventory management is crucial for retail businesses to minimize costs, reduce waste and ensure products are always available to meet customer demand. A well-managed inventory system will help you maintain the right balance between under-stocking and over-stocking, ultimately increasing profitability.
To manage inventory well, you’ll need to implement an inventory management system that tracks product quantities, sales trends, and reorder schedules. This can be a digital or manual system. It will really depend on the size and complexity of your business.
Another good practice for managing inventory well is to conduct regular inventory audits. These audits help verify the accuracy of inventory records, identify discrepancies, and adjust inventory levels accordingly.
6. Achieve profit margin goals
You may have set sales goals for your business and achieved those goals. But it’s also important to set profitability goals. And, these goals should be in line with the business sector your store is in.
Different companies have different profit margins. While your store may be making a killing in sales, you can end up hurting yourself if your margins are too low. Here are some of the average profit margins for retail stores by industry:
- Education: 41.15%
- General electronics: 26.53%
- Food wholesalers: 15.49%
- Women’s clothing: 46.5%
- Shoes: 42.6%
- Supermarkets and grocery stores: 28.8%
- Pet supplies: 43.6%
Find out the profit margins in your industry and make it a goal to reach that amount or more.
7. Sell online
This last objective is important. Just because you own a brick-and-mortar store doesn’t mean you have to limit yourself to brick-and-mortar sales brick and mortar location. Many small retail businesses only use their websites and social media profiles to help drive foot traffic. However, this approach limits the potential of their businesses. We’ve also seen how the recent pandemic hurt brick-and-mortar stores.
The world of e-commerce has evolved so much that almost anything can be sold online. Take a look at your retail business model and make it a goal to create an online presence that generates sales. Look at your best-selling items and see if those items can be sold to your customers directly, on Amazon, or on niche sites like Etsy.
Before you launch your e-commerce store, start collecting email addresses from customers interested in buying from you online. Then send monthly email newsletters until your online store is ready to launch. Once it is, make the big announcement and watch your sales soar!
Achieving success in the retail industry requires a proactive approach to managing all aspects of your business. By focusing on these seven essential goals you can create a solid foundation for long-term growth and success. Remember that the business landscape is constantly changing. And staying nimble and adaptable to new challenges will be crucial to maintaining a competitive edge.
As the retail landscape changes, retail businesses must remain focused on key goals in order to ensure success in the long run. Knowing what goals to set—and how to go about achieving them—can be difficult. Fortunately, Ikaroa can help you get on track and reach your targets with actionable advice.
Below are seven retail business goals to set if you want success:
1. Boosting Foot Traffic: Whether you’re running a physical store or an online outlet, increasing foot traffic to your shop will help ensure a steady stream of sales. Consider direct mail campaigns, promotional discounts, and social media campaigns to attract customers.
2. Increasing Revenues: Revenues are the lifeblood of any business and increasing them is a natural goal for any retailer. Make sure to evaluate returns on investments for your strategies and adjust as necessary to give your business the greatest chance for success.
3. Strengthening Customer Relationships: Retaining customers and deepening loyalty is a keystone of a successful retail business. Figuring out how to launch strategic campaigns to keep customers coming back for more will go a long way in keeping your business lucrative.
4. Selling on Multiple Platforms: With the emergence of multiple sales channels, such as social and mobile, retail businesses must take full advantage of these to increase their exposure and reach more customers.
5. Developing an Actionable Revenue Model: Having a revenue model in place will keep you focused on the strategies and tactics needed to reach your goals. This includes focusing on costs, services, and sale opportunities.
6. Enhancing Searchability: The primary way customers find products is through search engines. Improving your company’s search engine optimization and ensuring high rankings should be a goal for any retailer.
7. Optimizing your Inventory: Maximizing inventory turns is paramount for a successful retail business. Develop processes that minimize items being overstocked and unsold, as this can dramatically reduce profitability.
By setting and focusing on attainable goals every quarter, retailers can keep themselves on track to achieve their hoped-for results. If a goal seems daunting, Ikaroa can help by providing personalized advice and resources to help guide you in the right direction, and ensure success in the retail business.