Retailers need to prepare for growing importance of social media

There are many strategies that retailers use to create awareness about their brands and promote their products, and with the emergence of social media, merchants now have additional tools for showcasing their offerings. However, recent research has revealed that if companies take to social sites like Facebook and Twitter to strictly market their merchandise, they stand the risk of losing out on customers. Focus also needs to be given to providing service to shoppers through the networks if businesses want to leverage the technology effectively. By taking the approach of offering service options through social media as well as using the platforms for marketing, retailers will see that their efforts are successful and customer satisfaction increases.

Two-pronged strategy for social media
According to a report by J.D. Power and Associates, consumers of all ages are reaching out to brands through social media to resolve service issues and gain access to coupons and discounts, most of which are given out for marketing purposes. Companies need to take a look at the social media behaviors and preferences expressed by patrons, and then develop methods that meet those needs and wants, the research notes.

"Companies that are focused only on promoting their brand and deals, or only servicing existing customers, are excluding major groups of their online community, negatively impacting their satisfaction and influencing their future purchasing decision. A one-pronged approach to social is no longer an option," stated Jacqueline Anderson, J.D. Power and Associates' director of social media and text analytics.

Anderson goes on to add that failing to provide both marketing content such as coupons and discounts along with service options can have negative consequences for brands, mainly in the form of decreased customer satisfaction and retention.

Social media will continue to grow in retail industry
Social media sites are expected to become increasingly important for retailers, as more consumers will take to the sites to browse for, review and even purchase products. Computer World writes that research from Gartner estimates that by 2015, half of the new customers to merchants' websites will use their social media accounts to log in. This will give businesses a variety of information pertaining to consumers' preferences and needs, allowing them to offer products and services that are relevant. Getting a head start on social media now will help brands develop strong strategies that will boost their operations in the coming years.

Overload of retail marketing messages can exhaust consumers

When it comes to retail marketing, businesses know that generating awareness about their products through print, online and radio advertisements is one of the best ways to attract consumers. With the increasing use of the internet within the retail industry, many companies are turning to the web to reach out to target customers and showcase their items. Brands are developing content and graphics that are aimed at creating interest and promoting their products and services through banner ads, email and other forms of online marketing. However, sending customers too much marketing content and overloading them with messages can actually result in high levels of consumer resentment toward brands.

Negative customer sentiments come from too many emails
According to recent research from Emailvision, 75 percent of consumers surveyed stated they would begin to resent a brand after being sent too many email messages. Seventy-one percent said that unsolicited content from businesses was one reason for becoming resentful. When sending out email marketing components, merchants may want to pay attention to the details, as half of the respondents said that getting their name incorrect would be an important factor in developing negative sentiments toward companies they used to prefer. Forty percent said retailers not knowing their gender would result in resentment.

"With an abundance of choice, consumers are more demanding and they expect brands to engage them correctly. If someone is not providing them with the right offers, value and relationship … they will quickly switch to another brand," said Tim Watson, an email marketing consultant at Zettasphere, in the Emailvision report. "The key to success for marketers is not in the content; it's in the intelligence and actionable information that comes from customer data."

Making effective use of customer data for marketing
When using the customer data at their fingertips for marketing purposes, how can retailers ensure they are reaching their target audiences and spurring greater retention? In the National Retail Federation blog, Allison Kroger writes that keeping focus on local areas around brick-and-mortar stores can help with these goals. Instead of creating generic discounts and offers to be implemented at all locations, merchants can provide special deals for regional shoppers. In addition, constantly surprising consumers with targeted email messages that contain relevant information and perks will keep them coming back.

Retailers extending holiday deals throughout the new year

Once the holiday shopping frenzy died down, retailers began preparing for the new year by reviewing  which strategies to implement to boost sales and increase retention. One method that many merchants are using is extending the discounts and deals they offered during the last months of 2012.

According to Daily Finance, this tactic is being followed in the hope that it will keep drawing customers into retail stores and onto websites throughout the beginning of 2013. The source notes that clothing retailer Banana Republic is one example, as the company has been sending out emails with percentage off discounts for subscribers over the past two weeks. Of course, this brand is not the only one employing this strategy. Many businesses are looking to bring in shoppers and boost their after-holiday revenues.

The news source writes that the extended discount method has come to the forefront of the retail industry at the beginning of 2013 mainly due to the lackluster sales many companies saw at the end of last year. While the totals were not entirely disappointing, to improve them slightly, merchants developed deals and offerings. They are now hoping to entice more consumers with their continued product incentives.

Digital coupons, deals become effective tools for retail marketing

As consumers spend more time online, whether through computers or mobile devices, retailers are taking note by providing deals and discounts through the web. These offerings come in the form of redeemable codes at checkout as well as scannable components that are accessed by mobile devices.

Retailing Today reports that research from Kantar Media revealed that in 2012, merchants provided 46.1 percent more in digital coupons on their website than they did in the previous year. These materials are helping businesses increase their consumer retention levels and boost loyalty. Companies can develop these marketing components by looking at shoppers’ past purchases and targeting new offers based in this data.

In a separate article, the source writes that a study by Juniper Research found that mobile coupons are also gaining traction among retailers, as they look to accommodate customers carrying their devices and using them for shopping purposes. For 2013, the number of coupons accessed and redeemed by mobile is forecasted to come in around 10 billion discounts in total, representing a more than 50 percent increase from last year.

Retailers increasingly using email for marketing initiatives

Although it can sometimes be pushed to the wayside when determining how to connect with customers and reach new markets, email is making a comeback with retailers as a marketing tool. Businesses of all sizes are using the method to promote their products and interact with shoppers.

Bloomberg News reports that many companies have taken to tailoring the emails they send out, as this provides more personalized experiences for consumers and entices them to purchase items from retailers. Email has come back to the forefront of marketing initiatives, as most shoppers now carry smartphones or other devices with them all the time. This gives businesses the ability to reach target audiences at any time and any place. For many retailers, they can include links in their emails, which then directs consumers to merchants' websites and allows them to browse items, the news source writes.

Of course, the messages sent out by businesses need to contain information that is relevant to shoppers' preferences, states WARC. This content can be generated from individual customers' previous purchases, and emails can list a variety of products that may interest readers. Also, timing is important, as emails sent during working hours are more likely to be read than those sent in the middle of the night or early morning, the source notes.

Retailers try new tactics to keep holiday shopping going

While American consumers flooded retail stores over the Black Friday weekend, businesses have had a difficult time keeping the holiday shopping momentum going. The days right after Thanksgiving and right before Christmas are normally the highest periods of activity at brick-and-mortar locations, but retailers are hoping to draw in crowds in the weeks between by offering giveaways and unique incentives.

According to Bloomberg News, clothing store Banana Republic is providing its customers with Ghirardelli chocolates during the first weeks of December. To mix things up, the company is also giving away six Fiat 500 vehicles to shoppers. Department store giant J.C. Penney is offering seasonal items, such as firewood and cashmere scarves to its store visitors. Other brands, like Target and Neiman Marcus, are hosting limited designer collections aimed at bringing in customers during the holiday shopping lull, writes the source.

Some retailers are planning to sell food at their brick-and-mortar locations, which could draw in shoppers even after the holidays are over, reports Bloomberg News in a separate article. Tommy Bahama will be opening a restaurant at its Manhattan store in a few weeks, and J.C. Penney announced it will be offering juice bars and coffee shops at several of its locations throughout the country.

Retail online marketing budgets increased for holiday season

Consumers are increasingly taking to the internet to purchase items and gifts for the holidays, and many retailers are trying to take advantage of this by dedicating more resources to online marketing.

Internet Retailer reports that a study by Bronto Software revealed that one-fifth of retailers are planning on significantly boosting their budgets for social media, mobile and email in the hope of attracting more shoppers to their websites this holiday season. As a result of this rise in web budgets, 42 percent of businesses stated they expect their holiday ecommerce sales will jump by at least 21 percent when compared to last year's totals. Just over 50 percent anticipate their internet purchasing amounts will increase by 11 percent or more, and 67 percent believe they will see some slight boosts in their retail sales.

These extra efforts for online holiday marketing should come as no surprise, as ClickZ reports that this year's Cyber Monday brought in a total of $1.46 billion worth of purchases for retailers, according to research by comScore. This large amount made the shopping day the biggest online spending day of all time.

Retailers can see boost in sales by sending emails

Despite the emergence of instant communications through social media sites and mobile messaging, retailers can still see a successful results by sending out emails to their loyal and new customers.

According to a recent survey by Listrak, 32 percent of consumers stated they have purchased items from a retailer in the past six months after receiving an email from them, reports Internet Retailer. The trend is significantly higher among older shoppers, with 38 percent of those aged 55 years or more buying items recently from retailers due to emails. Women are more likely to respond to these emails by purchasing items than men, as 35 percent of females stated they did so compared to the 30 percent of men. While the amounts may not seem incredible when considering that 83 percent of consumers open emails, there are still many opportunities for retailers when they make use of their email lists, the source says.

This strategy could be a contributor to the increase in retail sales that occurred in September, and it could lead to higher gains within the industry over the coming months. The Associated Press reports that overall retail sales rose by 1.1 percent during the month, representing some of the largest increases since October 2010.

Thanksgiving is the day for retail email marketing

Thanksgiving this year will be filled with the usual for Americans – turkey, dressing, cranberry sauce and family. However, one new aspect is expected to make its way into the traditional holiday. Recent research has found that many retailers will be sending out targeted marketing emails to consumers this year.

Research from Responsys has revealed that 80 percent of major retailers are going to send promotional emails to customers on Thanksgiving, reports Internet Retailer. This is a significant increase from last year's amount of 76 percent, as well as the 60 percent that used the method in 2010. One main reason this is being done, of course, it because of the day after Thanksgiving, which is now referred to as 'Black Friday,' is one of the biggest shopping days of the year. Retailers are hoping that these relevant emails will draw shoppers into their stores and on the websites to make holiday purchases.

So how can businesses ensure that their targeted emails are hitting the right mark? Forbes suggests that marketers developing the emails focus on creating content that can accessed on mobile devices, as consumers are increasingly using their smartphones and tablets for purchasing holiday gifts. Another strategy that could increase sales is free shipping. The source states that shoppers will be enticed by the money-saving offer.

Imports expected to boost holiday shopping

There are many estimates and indications of how the upcoming holiday shopping season will fare. The previous year's numbers and totals help retailers prepare for the winter months. The amount of imports also serve as a good tool for determining what will happen in stores leading up to Thanksgiving and the holidays.

The National Retail Federation's Global Port Tracker found that August and the next few months will see increases in the number of imports, indicating that retailers are stocking up their shelves to accommodate the shopping masses. August is anticipated to see a 6.3 percent rise in imports compared to last year, while September and October will garner 7.3 percent and 13.2 percent more merchandise, respectively. While these amounts are not an exact estimate of how well retail stores will perform during the holidays, the tracker indicates that retailers are confident in their selling abilities and consumers' optimistic outlooks.

In fact, companies and suppliers are feeling more confident about the holiday shopping season, states a report by Capital Business Credit. Of the retailers surveyed, 77 percent stated they believe seasonal sales will be at least as strong as last year, if not more.