Retail
How to know if your store is profitable
2023
Is your sales strategy working? Are you optimising your resources? Is your store profitable?
It is essential to ask these questions when running a retail business. It is also vital to do an exam to auto-analyse your business and know if it is working as it should.
The only way retailers can grow their profits and improve the customer’s journey is by analysing the data and their customers experience inside the store.
The famous SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis is necessary to discover the weak and strong points of the business and discover which areas need improvement and attention. An example? Ask yourself if you have a compelling online presence, if the clients are satisfied with the experience or if the location of your store is correct.
Once you have answered all your questions, you will be more aware of the status of your business, and you will be able to develop new strategies.
Analysing an e-Commerce is way easier than analysing a brick-and-mortar store. With just one click, it’s possible to know the client’s personal information, how much time they have spent on a page and all the actions they have taken on the website.
The great news is that you can also gather this data in a brick-and-mortar store. To do this, retailers need to bet on new technologies that allow them to analyse all the main KPIs a retailer should know.
You know your products like your pockets, but what added value do they have? What makes your brand unique and your product indispensable? What are the values that your brand brings into the market?
If all the points above are clear, clients will choose your brand and your products.
Attracting clients is not an easy thing to do. To achieve this goal, it is essential to have the store located in a good position as well as know the pedestrian flux that passes by your store every day. Needless to say, that having an attractive window shop is also fundamental.
This last point is what truly marks the difference. Nowadays, clients are more and more focused on their phones, so your goal is to attract their attention better than an online campaign could do.
Once you did that, you can check if the changes you made have improved your brand awareness and the visits to your stores.
Suppliers, clients, activities: there’s always something to do in a brick-and-mortar store. An example? Accounting, marketing campaigns, training, human resources. Do you have everything under control?
Clearly is essential to know the profit margins, but to try and save by cutting expenses that could have an impact on the clients is not the way to go. So, what to do? Calculate how certain investments can bring long-term results. If you reduce your staff presence, will you be able to attend to all your clients? Should you invest in advertising or an omnichannel strategy? These are vital questions to consider.
The retail sector is changing rapidly. At the basis of a modern store, there is an omnichannel strategy, which allows clients to buy your products using the channel they prefer the most.
Usually, the term “omnichannel strategy” refers to all the multi-path buying experiences. What marks the difference when implementing an omnichannel strategy is the level of integration between all the available channels.
Would you like to receive more information or request a free demo? Contact us! And don't forget to follow us on LinkedIn to stay up to date on everything Retail.
It is essential to ask these questions when running a retail business. It is also vital to do an exam to auto-analyse your business and know if it is working as it should.
The only way retailers can grow their profits and improve the customer’s journey is by analysing the data and their customers experience inside the store.
1. Did you do a SWOT analysis of your business?
The famous SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis is necessary to discover the weak and strong points of the business and discover which areas need improvement and attention. An example? Ask yourself if you have a compelling online presence, if the clients are satisfied with the experience or if the location of your store is correct.
Once you have answered all your questions, you will be more aware of the status of your business, and you will be able to develop new strategies.
2. Do you know what are the main KPIs of a successful business?
Analysing an e-Commerce is way easier than analysing a brick-and-mortar store. With just one click, it’s possible to know the client’s personal information, how much time they have spent on a page and all the actions they have taken on the website.
The great news is that you can also gather this data in a brick-and-mortar store. To do this, retailers need to bet on new technologies that allow them to analyse all the main KPIs a retailer should know.
3. What are you selling? Does it have an added value?
You know your products like your pockets, but what added value do they have? What makes your brand unique and your product indispensable? What are the values that your brand brings into the market?
If all the points above are clear, clients will choose your brand and your products.
4. Do you know your potential clients?
Attracting clients is not an easy thing to do. To achieve this goal, it is essential to have the store located in a good position as well as know the pedestrian flux that passes by your store every day. Needless to say, that having an attractive window shop is also fundamental.
This last point is what truly marks the difference. Nowadays, clients are more and more focused on their phones, so your goal is to attract their attention better than an online campaign could do.
Once you did that, you can check if the changes you made have improved your brand awareness and the visits to your stores.
5. Are you aware of the daily or monthly activities that need to be done in your store?
Suppliers, clients, activities: there’s always something to do in a brick-and-mortar store. An example? Accounting, marketing campaigns, training, human resources. Do you have everything under control?
6. Are your revenues compensating for your investment?
Clearly is essential to know the profit margins, but to try and save by cutting expenses that could have an impact on the clients is not the way to go. So, what to do? Calculate how certain investments can bring long-term results. If you reduce your staff presence, will you be able to attend to all your clients? Should you invest in advertising or an omnichannel strategy? These are vital questions to consider.
7. Are you implementing an omnichannel strategy?
The retail sector is changing rapidly. At the basis of a modern store, there is an omnichannel strategy, which allows clients to buy your products using the channel they prefer the most.
Usually, the term “omnichannel strategy” refers to all the multi-path buying experiences. What marks the difference when implementing an omnichannel strategy is the level of integration between all the available channels.
Would you like to receive more information or request a free demo? Contact us! And don't forget to follow us on LinkedIn to stay up to date on everything Retail.