Author Archives: Jennifer Bosavage

by Jennifer Bosavage

3 Ways to track your inventory for better sell-through

Retailers more than ever before are faced with critically evaluating their inventory to curate a selection of products that will sell quickly and reduce their inventory costs.

The longer products sit on a shelf or in a warehouse, the faster their value decreases.

Carrying costs can be between 20 and 30 percent of inventory value, which indicates too much stock is simply taking up room and not providing revenue.

Capital costs are the largest portion and perhaps the greatest burden of carrying inventory; they include the investment made in acquiring goods and the interest lost when cash becomes inventory.

There are also storage costs and service costs.

And of course, there are risks with carrying inventory, primarily that the real value of the items will decrease while in storage, waiting to be sold.

1. Watch shopper demand

To streamline offerings, companies routinely weed out what’s not moving, and focus on products — and related items — that are popular.

One of the most efficient ways to determine exactly what customers are buying is by monitoring your inventory and sales data.

That provides the data necessary to determine what customers really want.

It can also help determine what they’ll want a few months down the road; investing in an analytics expert can be a cost-effective way of understanding and acting upon the information gathered.

Retailers tend to look at revenue as the primary metric of success or failure.

But knowing what drives those sales is equally important, because that information can help formulate a strategy for growth.

The additional analytics provide a more complete picture of a retailer’s health.

2. Audit store inventory

A complete audit includes more than an inventory count of both product on shelves and back stock, as it also can include a count of damaged products; assessments of in-store displays; planogram compliance (shelf location, number of SKUs, missing or inaccurate shelf tags).

Some retailers include a summary of competitors’ strategy as well as a look of their own roadmap.

Many retailers use point of sale software like Retail Pro to track current inventory, which is crucial in determining the right balance of products to carry.

POS software provides real-time inventory visibility and helps ensure the items are available in-store or for fulfillment of online orders.

It’s also important to confirm that data visually to have an exact idea of current stock.

While it may seem old-fashioned — and certainly not a replacement for today’s technology — performing a visual inspection could find an underlying reason for the slow sales, such as poor product placement on the retail floor.

Technology like RFID can help a retailer conduct physical inventory counts in hours rather than days.

Similarly, POS software can also help retailers identify product shrinkage, which may be easily remedied by physically relocating the item or by changing loss-prevention techniques.

3.Manage turnover ratio

By effectively managing the inventory turnover ratio, cash flow is optimized.

It provides feedback that the retailer is meeting customers’ needs, and results in maximized profits.

Even and especially the largest retailers need to be aware of their inventory situations and make their stock work for them.

Not only does that result in healthier revenue, but it also ensures more satisfied customers who know that what they come for is in stock.

by Jennifer Bosavage

Luxury after lockdown: High quality, high value

Crises such as COVID-19 present the shopping public with tough decisions.

During the current uncertain times, many are anxious about surging unemployment rates and continued social distancing protocols in public.

Some shoppers will be forced to “make do” and sacrifice “nice to have” purchases for those that are considered “must-have.”

Luxury buyers, however, are less concerned about price, and more focused on quality.

High quality wins high loyalty

Luxury shoppers tend to have a strong bond with the brands they favor; customers are loyal to them for their reputation for quality.

This group is not concerned with price; sometimes, status is part of the allure, but increasingly, these shoppers see their purchases as high quality and as investments.

For instance, the purchase of a limited-run, hand-crafted handbag or a precisely cut French crystal decanter could very well be enjoyed for a lifetime before being handed down to a grandchild. 

The worth of those items is tangible: It is evident in their appearance they are quality items. They are not trendy, flashy pieces evidencing conspicuous consumption and thereby casting their owners in the harsh light of criticism.

Practical lux

Instead of being symbolic of an ostentatious life, luxury goods will, at least in the near-term, likely fill a somewhat more practical need.

They will be expensive but will focus on the overall value and their storied histories.

Such brands often have rich backgrounds, and they’ll focus on their uniqueness and heritage to their new and loyal customers who are now shopping in a more discerning manner.

Understatement will rule the day, and prominent logos will fade.

The voice of luxury during the lockdown

But not all luxury brands will come out of this retail lockdown for the better.

Those who were actively promoting their products’ quality as part of an overall “lifestyle” will fare better than those who were passively counting the days until reopening, focused on cash and cutting employees.

Brands who have furloughed their distinguished associates and gone into hibernation are risking their futures.

They have damaged their abilities to create the value for which they were once renowned, and that once drove their customers’ eagerness to buy their products.

Goods & experiences

Pre-COVID, luxury goods were feeling a bit of a pinch, as millennials looked toward more “Instagrammable” high-end experiences.

Boomers, too, having bought and accumulated luxury items over the years were also looking at trips and adventures rather than jewelry or automobiles.

Analysts at McKinsey note that while the positive momentum of experiential luxury will likely persist, it will slow down in the short term as consumers temporarily revert to buying goods rather than experiences.

From depression to recession, the luxury sector has reinvented itself many times.

It is as strong as a colobolo desk, yet as fluid as 1959 Dom Perignon.

Companies that were well positioned before the crisis yet continued to have a positive presence throughout the retail shutdown could well wind up stronger, more innovative and more deeply connected to their core customers – and attract some new ones as well.

by Jennifer Bosavage

3 Ways to keep customers from feeling ‘distant’ during COVID-19

The current economic lockdown has exacerbated challenges many retailers have faced during the past several years, as decreasing foot traffic and increasing online competition has chipped away at margins.

Even as local governments consider when retailers’ doors can and should reopen, many customers will remain wary of running non-essential errands.

However, a vast majority of retailers already have employed successful strategies to compete with online merchants, and now they are redoubling their efforts to keep customers happy and satisfied.

For many retailers, that means continuing to invest in the online portion of their businesses to remain viable.

Current circumstances have forced them to offer new services — including some “out of the box” solutions — that may become permanent additions to their business strategies.

Here are 3 ideas that retailers large and small are using to meet, and even exceed, customer expectations during COVID-19.

1: Social media engagement

Topping the list of retailers’ worries is figuring out how maintain and possibly even increase customer relationships with their customer bases digitally.

These are strategies that are not only imperative when in-person engagement is impossible or reduced, but important also when competition from online merchants seems overwhelming.

Social media marketing via Facebook and Instagram are perfect tools for the task, as is direct-to-consumer email marketing.

Customer relationships can be nurtured, and clients can still feel the strength of their loyalty and engagement with brands using social media as well as personalized emails.

These can be targeted to specific sets of customers, and might herald the introduction of a new offering, or provide a unique service.

2: Unique offerings

Customers engage online with retailers that provide unique services online.

Offering an online class or special event can offer a much-needed “social” activity, while encouraging staying in the privacy of one’s own home.

Tying the online presentation to products for sale with handy links boosts sales as well as the retailers’ reputation.

Any retailer can offer a relevant online class, including flower arranging, lawn care, golf instruction, cooking lessons, makeup application, etc.

3: Expanding online and delivery options

Retailers that offer more stock online will reap more sales, and appeal to a broader customer base that may stick around long after social distancing mandates have disappeared.

Expanding the breadth of online offerings, including gift cards, lets customers support businesses 24 hours a day, 365 days of the year.

If shipping is a problem, curbside pickup has become one innovation that is likely to become part of everyday shopping. The convenience of calling ahead and picking up without leaving the car is addicting.

In addition, it may actually require some retailers to hire “runners” specifically to satisfy those customers.

Omnichannel or online retailers are well-positioned to deal with restrictive store hours but should always be alert to maintaining the best experience for customers.

The website experience should be straightforward and welcoming, so customers can shop and engage in a frictionless, easy way.

Engage the whole supply chain

The retailer-vendor relationship is also crucial during these uncertain times.

All of the supply chain is in uncharted territory, so continuous partner engagement is critical.

All links in the chain should be encouraged to provide the best customer experience for their customers, in ways that can be mutually beneficially for all partners, such as passing along special offers through finance partners or working with distributors to provide free shipping.

Those relationships will become particularly important as customers return to in-store shopping, as retailers rebuild their customer loyal bases and engage the newer customers who were attracted by the retailers’ digital presence.

by Jennifer Bosavage

The rise of voice-enabled commerce in ubiquitous retail

Shopping is an increasingly “invisible” activity, embedding itself seamlessly into new digital and physical channels, using ever-more natural gestures and simple conversations.

 Gesture recognition helps retailers gauge shoppers’ real interest 

For example, a mom goes for an afternoon walk with her child. She notices she could use some silicone straws for their water bottles, and asks Alexa to place the order.

As they walk to the park, Mom sees an ad for a pair of running shoes. She takes a picture on her phone, successfully searches the Web and finds the item for sale, and makes a purchase just before greeting her friends at the playground.

On the way home, she sees a local restaurant is having a farm-to-table event that evening, so she sends invites to her husband and another couple to meet there.

The idea that people can shop virtually all the time from any location with an Internet connection is referred to as ubiquitous shopping, and is seen especially in the rising use of voice-enabled commerce.

According to Accenture, 94% of retail executives believe ubiquitous shopping represents a complete transformation or significant change for the industry.

The survey found that while two-thirds (65%) of industry executives view online commerce as the driving characteristic of ubiquitous shopping, and over half (53%) cite mobile purchases as key, just one third (33%) say new technology such as voice commerce is top of mind.

However, Accenture forecasts that the next big thing in shopping is voice recognition technology, and suggests that retail executives are under-estimating voice-enabled commerce.

In the U.S., one in every five households with a wireless internet connection is already using a smart speaker, making nearly 19 million homes ready for voice shopping.

 The first step to recognizing customers with AI 

However, last August, TheInformation.com reported that only 2% percent of people with Amazon-Alexa enabled devices made a purchase via voice and of those, “90% didn’t try it again.”

Still, the technology is there, ready and waiting. It may just be slightly ahead of its time.

Considering that today it’s possible to jump into a Ford, have Alexa ask Starbucks to start an order, swing by the drive-thru, pick up and be back on the road, it seems as though that 2% will grow to a far greater number in a very short time.

by Jennifer Bosavage

3 Ways to reinforce your brand’s authenticity

 

 

Authentic brands project sincerity and approachability, and their stories resonate with customers.

Customers enjoy supporting businesses that have compelling histories, remain true to their roots and have a relatable brand message.

Shoppers buy more from authentic brands

Communications agency Cohn & Wolfe recently conducted its Authentic Brands study, in which it surveyed more than 15,000 consumers across 15 markets.

Consumers rated more than 1,400 brands on the three key attributes that comprise authenticity: reliability, respectfulness and reality.

 Read blog: 3 qualities of authentic retail shoppers value most

Globally, 91% of consumers said they’d recognize a brand for its authenticity by purchasing from, investing in or endorsing a purchase.

The number is less in the United States but is still an impressive 62% of respondents who say they’d be apt to purchase from a brand that they viewed as authentic.

Building your brand’s authenticity is, therefore, an important strategy for cultivating and engaging customers. A few items on the to-do list would include alignment, commitment and storytelling.

 

Align your brand and messaging

Align your business slogan with the way you actually how you do business.

Dust off your company slogan. Consider how it impacts your current customers, what it says to them about your brand and the ways in which it evokes an image.

Then, think about whether those answers line up with your business strategy.

For example, Audi’s slogan is “Truth in Engineering,” which makes little sense. That begs the question, are there lies in engineering?

Compare that to Ford’s “Go further,” which is appealing to customers who want to be adventurous, do a little more, etc. In addition, the company has stated the slogan performs double-duty, acting as a motivator for employees as well.

A slogan is not a vision statement, but the two should complement each other.

For example, Ford’s vision statement is: People working together as a lean, global enterprise to make people’s lives better through automotive and mobility leadership.

The slogan ties into the vision by underscoring the company’s resolve to “go further” for its employees and customers through exemplary leadership.

 

Commit to innovation

Your customers grow, change, move and evolve. To survive all that movement, your brand needs to keep up.

Understanding who your customers — are as well as their goals — is critical.

 Read blog: Digital innovation is not about technology. It’s about people. 

For instance, outdoor apparel company Patagonia was founded as a clothing and hardware shop for mountain climbers in 1973.

Today, Patagonia sells outdoor gear for a variety of hobbies and was instrumental in the development of a number of fabrics, notably Synchilla, which doesn’t pill, and Capilene polyester, which withstands the heat of a dryer better than polypropylene.

In addition, the company uses its popularity to raise awareness around environmental issues and climate change and also provides an in-depth history — including its trials and tribulations–on its website.

 

Tell your story

Like Patagonia, Yankee Candle’s history builds a story that is complementary to its brand.

The company’s founder was a broke teenager who melted crayons to create a Christmas candle for his mother.

A neighbor asked to buy it and thus began the company’s first sales cycle.

That one-man business gradually exchanged the crayons for paraffin and the operation moved from a residential kitchen to a former paper mill and then to a 1,600 sq. ft. factory store in 1983 which remains the company headquarters.

That loyalty to its roots coupled with a heartwarming inception story appeals to customers and sets the brand apart from its competition.

 

Being authentic, sharing history and providing transparency helps brands retain customers and improve loyalty.

As Millennials become a driving retail force, taking this kind of conversational, inclusive approach with marketing will be much more effective than traditional advertising strategies.

 

 

by Jennifer Bosavage

Brick and mortar’s latest AI experiment: Smart shopping carts

 

 

Today, traditional retailers are competing not only against each other but also against e-commerce — as well as online companies that are opening brick and mortar outposts.

Compounding the pressure is the breakneck pace of technological change.

Customers have experienced self-checkout and the cashless store concept of Amazon Go, and now artificial intelligence attached to the old, familiar shopping cart could reshape the shopping experience.

 

Are smart carts worth it?

AI designed into the cart may be the next trend that will help customers be more efficient by scanning and identifying goods, suggesting products, storing shopping or “punch” lists and directing customers to items.

Stores profit from the AI-driven carts, because more efficient shoppers take less time in the store, so the more customers can be served in a given time period.

 Read blog: Your retail data determines AI effectiveness 

Smart carts from Caper tackle the job with barcode scanners and card swipers, mounted cameras that use image recognition and weight sensors.

The company additionally claims the tech has raised consumers’ average basket size by 18 percent.

And that’s not to mention the positive word-of-mouth marketing about “the store that has no register lines,” because payment is completed cart-side by the customer.

Although currently customers must scan products before placing them in the cart, the company’s goal is to depend solely on cameras and weight sensors in the carts to automatically recognize products when they’re added.

So far, the technology is at two NYC chain stores, but its potential is far reaching.

 

Built in cross-selling

AI is particularly helpful for cross-selling: For example, at a home improvement retail specialty store, sheetrock is placed in the cart, and the screen asks if the shopper would like to add paint.

If so, it provides direction to the correct aisle — as well as displays on-screen any related products that are on sale in the store.

The ease of obtaining additional related products enhances the shopper’s experience, and strengthens the retailer’s bottom line.

While cross-selling is not always viewed favorably by shoppers who sometimes perceive associates as “pushy,” incorporating this type of “gentle reminder” feature at a specialty retailer, such as a drug store, may be viewed as helpful — a purchase of cough syrup may lead to a reminder to buy cough drops and menthol rub.

According to Caper, the carts aren’t much more expensive than new, traditional models.

And they are less costly than retrofitting a retailer with Amazon Go-type technology.

 Read blog: 2 years later, Amazon’s retail experiment is still unmatched 

They are also an excellent means of gathering shopper data, analyzing information such as product popularity and floor plans.

Just as a chatbot can be programmed to help an ecommerce retailer increase the size of a shoppers “basket,” smart carts are another method of integrating AI into the customer experience.

 

 

 

by Jennifer Bosavage

How to lift retail revenue with product drops

 

 

Retailers are challenged with making their product selections more exciting, alluring and sexy than those of the competition.

Having that certain product or designer that is unique to a particular brand can make a retailer a shining star, at least for the season.

“Drop culture” is a trend that is propelling some retailers to the heights of fame and, sometimes, fortune.

 

Create urgency

Product drops are special releases that will only be available for a limited time.

Customers are excited to be a part of the “in” crowd, getting something exclusive early.

For retailers, the buzz that’s created around these events promotes their brands even before the product is launched.

While it can be an opportunity to test new products quickly, product drops are really an event employed to encourage the competitive shopping mindset.

The product that’s dropped is special in some way: a limited edition, something new from a famous designer, a bleeding-edge fashion trend, etc. The value of a “drop” is therefore earned, not assigned.

 

Show scarcity

Today, many luxury products are devalued due to over-exposure in the market, which means that the most desirable items require a level of effort or cleverness to obtain.

For example, U.S. streetwear brand Anti Social Social Club (ASSC) partnered with product release app Frenzy (created by Canadian small business shopping platform Shopify ) on an event where fans had to check-in to a physical location at a designated time to buy a limited-edition sweatshirt online.

But figuring out the exact location of the drop required significant detective and riddle-solving skills. Those who solved the puzzler were automatically logged in, triggering the product to appear on-screen to purchase — but within a certain amount of time.

 

Sell them a spot in the in-crowd

Product drops take advantage of the basic human desire to be included. No one wants to miss out on being part of something special.

The excitement tends to prompt customers to make decisions faster and more impulsively than if they have time to think about the purchase.

Often, quantities are limited and therefore sell out, adding to the “limited edition” mystique.

Although more products often become available in the months following the first drop—and shoppers are well aware of that—the excitement of purchasing these items ahead of the pack is too alluring to ignore for many.

Product drops are a good way to stir up excitement especially during a lull in the shopping sales cycle — such as post-holiday.

By creating a “buzz,” a retailer raises the desirability of a product, and the “lucky” purchasers can enjoy basking in the afterglow.

by Jennifer Bosavage

3 ways to invest more in shopper relationships with 160 characters or less

 

 

SMS messaging — texts — are great to get the word out to customers about special events, sales and discounts. Retailers large and small can benefit from the marketing strategy primarily used to drive sales and foot traffic.

The trouble is, the limited space for content mandates writers use extremely concise verbiage.

With a character count of around 160, it’s difficult to create content that will strengthen customer relationships and drive business.

Conversations nurture relationships, and relationships can grow sales.

Texting is a great way to have conversations when your customers are not in the building or on your site, especially because 95% of Americans have cell phones.

However, to reach shoppers quickly and grab their attention enough to entice them into your store, content has to be engaging.

Your interesting offers, information, discounts and coupons were attractive enough for them to sign up to receive messages. Now it’s time for them to take action.

Here are 3 tips for creating strategic content in 160 characters or less.

 

1: Determine your goal

If your texts are meant to encourage sales, they should be inviting, not demanding.

SMS texting can be rather intimate, one-to-one conversations. Let your sales team establish a position of a trusted advisor.

For example: “Hi Steve. Remember the Sky-Dweller that caught your eye? We’re having a Rolex sale Saturday. Let me know if you’re interested – Leah @ Hughes Jewelry”.

 

2: Offer help consistently

Texts from trusted advisors should maintain a fairly regular cadence: Not too frequent, but not “out of the blue” either. Be authentic; customers can detect insincerity a mile away.

Try basing the timing of texts on the number of times per month or week customers are actually purchasing.

For example: “Hi Renee, thanks for attending the install demo. Sound system installation is Thursday, 10/10. Sign up: xyz.com/nmk. Let me know if you have questions – Rob”.

 

3: Include a call to action

While “Thank you for your business,” is a polite ending, it’s not the most effective use of 160 (or fewer) characters. Ending with a link or phone number shows you mean business.

For example: “Hi Fiona, the 20% discount on Natural Kat ends this week @KitsCorner. If you come in today, you’ll get a BOGO deal with this msg. Hope to see you later – Piper”.

Remember, a customer can easily call you from a text message, because the SMS is generated from a cell number. So using precious character space to include a phone number may not be the best use of the space.

 

Texting after contact has been established with a prospect can help significantly improve conversion.

Sales prospects who are sent text messages convert at a rate 40% higher than those who are not sent any text messages, according to research by Velocify.

It is also a effective way to keep your brand top-of-mind and to build strong, lasting, customer relationships.

by Jennifer Bosavage

Brick-and-mortar reclaims its advantage via clienteling

 

 

A generation ago, people shopped by visiting a retailer, chatting with the salesclerk, browsing and building relationships. An associate would place a call to customers if a new shipment arrived with pieces that were “just perfect” for them.

It’s that sense of a personal touch that is critical to the success of brick and mortar to this day.

 

Online retail’s forfeited advantage

Several years ago, online retailers had the advantage over brick and mortars as they could efficiently collect much more data about customers at every visit.

They knew what pages the shopper had visited, which items were of interest, and how many times they visited before they purchased items.

That amount of information would take far longer for a traditional retailer to collect, at that time.

Fast forward five years, and technology can now provide brick and mortars with deeper information than ever before.

Now brick and mortars have an advantage over their online competitors, as their stores morph into showrooms where shoppers can physically inspect products, and associates can make personal connections.

 

Building relationships in-store

Today’s retailers employ clienteling strategies to build customer relationships based on data collected about their preferences, purchases, lifestyle and other behavior.

Within stores, retailers are equipping associates with customer information that lets them deliver personalized service.

Clienteling software can be used to compile customer data from different channels – from in-store purchases to online browsing history to items stored on wish lists.

The in-store shopping experience can then be tailored to fit each customer’s unique interests and desires.

Such anticipation of needs enhances the customers’ in-store shopping experience and helps associates sell more effectively.

 

Staying top of mind

Clienteling data not only enhances the shopping experience for those in physical stores but is also used by associates to reach out to customers between visits.

Clienteling technology can be used to create alerts about any event that forms a customer connection.

Associates with access to customers’ spouses’ birthdates, for example, might place a well-timed call detailing the latest merchandise that would make a great gift.

And stock alerts can be correlated to specific customers, so contact can be made when a new shipment from a specific vendor arrives.

Such focused, one-to-one outreach is extraordinarily effective in attracting repeat customers and sales of high-margin, full-price items.

 

Machine learning drives personalized recommendations

Intelligent product recommendations aren’t limited to preparing for a customer’s future shopping excursions: They can also be used real-time when the customer is in the store.

Store associates can greet and engage with individual customers, anticipate their needs and function as a trusted advisor.

Software tools that incorporate machine learning transform mounds of customer data into insightful, targeted and personalized product recommendations. Machine learning digests every page view, every “like” and every purchase.

The result is increasingly smarter recommendations.

Clienteling solutions help retailers identify customers’ needs efficiently and quickly, so the shopping experience is ultimately more rewarding.

Implementing clienteling tools provides retailers and their associates the necessary tools to build long-lasting, profitable and mutually beneficial relationships.

by Jennifer Bosavage

2 years later, Amazon’s retail experiment is still unmatched

 

 

Much has been written about the importance of providing customers a “frictionless” retail experience.

Providing wireless devices to associates has helped with “line busting,” and advances in business analytics and operational intelligence have helped retailers predict sales trends more accurately.

But even the smoothest, most personalized experience still requires customers to slow down and pay at registers.

Except at Amazon Go.

 

The brick & mortar experiment

When Amazon opened its first brick and mortar store in Seattle in January 2017, retailers were skeptical the online behemoth could master the nuances of being a neighborhood shop.

Turns out, Amazon created a unique experience.

Rather than try to duplicate what was already entrenched in the neighborhood, it used what it already knew about shoppers — primarily, that they valued convenience and speed when shopping — and parlayed it into a successful, small grocery.

Amazon Go is equipped with technology that lets shoppers make purchases without visiting cashiers or using self-checkout stations.

Shoppers download the Amazon Go app, enter their credentials and receive a QR code, which offers access to the store.

Customers take their selections off the shelves and simply walk through the turnstile, products in-hand.

A few minutes after leaving the store, shoppers receive a notification from the app with their receipts.

 

An irreplicable experience?

Similar trials by retailers at self-service technology, however, have proven unsuccessful.

Among those issues:

  • Shrinkage: A study of 1 million transactions in the United Kingdom found losses incurred through self-service technology payment systems totaled 3.97 percent of stock, compared with just 1.47 percent traditionally.
  • Bugs: Not every item scans properly, causing delays and frustration.
  • Exceptions: Some items need a valid ID to purchase, which requires a cashier’s intervention.

Faced with those types of challenges, it’s no wonder that retailers are skeptical about implementing “Amazonian” shop-and-go strategies.

Some have removed self-service option altogether, eliminating the headache of shrinkage and hardware problems.

But some research suggests that offering multiple options for check out is really what customers want.

 

Amazon currently has locations in Seattle and Chicago with plans to expand in New York and San Francisco.

The company has leveraged technology to make these shoppers’ lives easier.

It has taken away a good deal of friction for customers, while providing itself with reams of relevant data about its shoppers.