A challenge that all retailers face is staying ahead of the competition.
Staying ahead requires more than just offering great products. It demands a strategic approach that is anchored in research and driven by data. As retailers face a customer base who is more and more digitally-savvy and particular in their choices, the importance of evidence-based marketing strategies cannot be overstated.
In this article, we delve into six research-backed marketing strategies that have proven to be useful tools in the hands of retailers looking to improve their sales figures and elevate their brand presence.
These strategies, rooted in both empirical studies and real-world success stories, not only meet the demands of modern consumers but also position retailers to thrive in an era of rapid change.
Follow along as we explore how these six strategies can empower retailers to not only survive but thrive in an increasingly competitive market.
Six research-backed marketing strategies for retailers
Marketing strategies abound in the retail sphere—but not all of them are research-backed and proven to make a difference. We've compiled a list of marketing retail strategies that are sure to lead to happy customers and more product visibility.
1. Personalized customer engagement
Research consistently shows that personalized experiences lead to higher customer satisfaction and increased sales. Retailers can leverage customer data to tailor product recommendations, marketing messages, and shopping experiences. Implementing personalization through email marketing, product recommendations on your website, and targeted advertising can significantly impact sales.
Research conducted by McKinsey & Company states that 76% of consumers are more likely to consider purchasing from brands who personalize for their customers, 78% of consumers are more likely to make repeat purchases from companies that personalize, and 78% of consumers are more likely to refer friends and family to companies that personalize.
Their research also shows above average growth and revenue (40% more) in companies who invest in personalization.
The point is, personalization will pay off. By understanding your target customers, tailoring your retail marketing strategies to their needs, and offering a positive experience through personalization, you're sure to stay ahead of the competition.
2. Social media advertising ROI
By now we understand the value of social media marketing, especially on social media platforms like Facebook and Instagram, for reaching and engaging with target audiences. Retailers can use data-driven ad targeting to reach potential customers based on demographics, interests, and online behaviors. Additionally, influencer marketing has proven to be a powerful way to connect with audiences and drive sales through social media posts.
According to research conducted by Gitnux, the average return on investment (ROI) for social media ad campaigns is around 250%. This shows that investing in a social media presence is worth your time and money for the returns you'll see overall.
3. Data-driven inventory management
Efficient inventory management is crucial for retailers to reduce costs and meet customer demand. Research-backed strategies involve using data analytics and predictive modeling to optimize inventory levels. This ensures that products are in stock when customers want them while minimizing overstock situations that can lead to losses.
Myos writes that by optimizing inventory management, retailers can reduce costs and unlock growth potential. By addressing issues of over- and under-stocking through data, businesses can achieve a 10% reduction in inventory costs.
With data-driven inventory management, you'll be sure to stay ahead of competition, reduce carrying costs, increase sales, and improve customer experiences by having inventory available and measured.
4. Customer loyalty programs
Research consistently highlights the positive impact of customer loyalty programs on retail sales. Such programs encourage repeat business and foster brand loyalty. Retailers can use data-driven insights to design and refine loyalty programs, offering rewards and incentives that align with customer preferences and behaviors.
Research from Bond states that over 70% of consumers are more likely to recommend a brand if it has a good loyalty program and 77% are more likely to continue using a brand's services if it has a loyalty program.
Loyalty programs can bring significant returns, especially when you're selling to an existing customer, because you're likely to make more from them than if you were to invest in brand new customers. According to Altfeld, the probability of selling to an existing customer is 60-70%.
5. Omnichannel retailing
In our digital age, we know that consumers engage with retailers across multiple channels, including physical retail stores, websites, mobile apps, and social media. An omnichannel approach integrates these channels to provide a seamless and consistent shopping experience.
Porch Group Media cites an SDL statistic that 90% of customers expect consistent interactions across channels. This includes SMS marketing, digital marketing, marketing in physical stores (or offline marketing), mouth marketing, and several other retail marketing ideas. Retailers can use data to track customer interactions across channels and personalize marketing efforts accordingly.
Studies indicate that retailers with effective omnichannel strategies tend to have higher customer retention rates and increased sales. Omnisend cites that marketers using three or more channels in any one campaign earned a 287% higher purchase rate than those using a single-channel campaign.
These are significant conversion rates that shouldn't be discounted when it comes to implementing marketing strategies!
6. User-generated content (UGC) campaigns
According to Nielsen Research, 92% of consumers turn to people they know for referrals above any other source.
Retailers can leverage UGC by encouraging customers to share their customer feedback, experiences, reviews, and photos of products on social media and review platforms. Sharing authentic customer content can build trust, increase brand credibility, and drive sales. Research indicates that UGC can influence purchasing decisions positively, especially among younger demographics—Millennials are the biggest content drivers, contributing over 70% of all UGC.
By incorporating user-generated content into their marketing strategy, retailers can harness the power of social proof and customer testimonials to boost sales and strengthen their brand reputation.
How Clientbook can help you implement these strategies
Personalize your customer engagement with the following Clientbook features:
Clientbook can aid in your marketing strategies by giving you access to personal conversations with clients throughout their customer journey, omnichannel communication, data management capabilities, an organized customer base, and so much more.
In a time when countless marketing strategies are available to retailers, these research-backed strategies provide a roadmap for retailers to follow. They offer the possibility of increased sales, long-lasting customer relationships and a stronger foothold in the competitive retail landscape.
To begin implementing these marketing strategies and connecting with your customers in a new way, book a demo with Clientbook and get started today.