From shelves stocked with gourmet pet food, to clothing racks filled with the newest trends, the retail experience is a foundational part of everyone's lives. And now, technology has created pathways for the public to be consumers 24 hours a day, giving access to products on demand.
In order to keep pace, retailers must double down on their technology adoption to expand their reach. This can be done by ensuring they have a sound online presence that fosters a community with their customers and prospects through social media and loyalty programs.
Building a strong online presence: A must-have for modern retail
Creating an e-commerce infrastructure that allows customers to shop outside of brick-and-mortar stores is key for retailers to engage with a broader base of customers. The first step is developing a strong online presence.
The number of small businesses with an online presence has skyrocketed over the past few years. According to the 2021 Salesforce "Small and Medium Business Trends" Report, 95% of surveyed small businesses moved a portion of their operations online during that year and 63% had an e-commerce presence. Now, it is commonplace for even the smallest of retailers to have an online presence and e-commerce infrastructure — it's challenging to run a successful company without it.
Luckily, creating a business website has become straightforward. Even without web design expertise, retailers can find software that assists them in building a fully functioning website. Once the site is up and running, integrating it with technology like a point of sale system helps them ensure inventory is accounted for and sales are processed smoothly, creating overall cohesiveness across business operations.
Keeping a business offline is a missed opportunity for additional sales and connection with a wider customer base. Also, running a small shop can be more manageable with a technology infrastructure that helps automate tasks. While setting up an e-commerce site might seem intimidating, retailers will reap the benefits once it is actualized.
The power of loyalty programs: Driving business growth and community
Nothing drives business growth more effectively than having loyal customers. A great way to cultivate and retain this loyalty is through a rewards program. Once established, promoting the program enthusiastically will create eagerness among customers. For example, a pet retailer that offers discounts on food or grooming products via email a few times a month to "members" are encouraging customers to spend more while making them feel part of the store community.
In a different vein, Starbucks' My Starbucks Rewards program is a great example of the impact of a successful rewards program. The program has been instrumental in increasing customer loyalty, purchase frequency, and average order value. CEO Laxman Narasimhan conveyed on an earnings call that more than three in 10 Starbucks orders were made through the Starbucks Rewards app during the past quarter. He also shared that mobile ordering has increased orders at a rate so intense that it's hard for Starbucks employees to keep up.
Loyalty programs simultaneously incentivize customer spending while creating an environment of increased satisfaction where customers feel valued.
Connecting with customers on social platforms
Hand-in-hand with online presence and loyalty programs comes the use of social media — a vital tool for promoting a company and its offerings.
Small businesses have capitalized on the impact of social media marketing, with 96% of them using these platforms to capture consumer attention. According to a survey conducted by Synup, 71% of consumers who have had a good social media experience with a brand are likely to recommend it to others and 74% of consumers research on social media before making a purchase.
Let's take this back to the example of a pet store. If a pet retailer just received a new retractable leash with a holder for treats and waste bags, promoting it on social media with videos and photos would create visibility and buzz around the product. This can help drive interest, leading to increased sales while also giving the store's community the opportunity to see new offerings in action without even having to step into the store. What's more, having a social media presence also gives customers a forum to ask questions and give commentary and reviews about products or services.
The retail landscape has undergone a dramatic transformation, driven by technological advancements. To thrive in this new era, retailers must integrate online and offline strategies. By establishing a robust online presence, implementing effective loyalty programs, and leveraging the power of social media, retailers can not only survive but flourish in today's competitive market. Ultimately, a combination of these elements is essential for building strong customer relationships, driving sales, and ensuring long-term success.