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.

This entry was posted by Retail Pro on Wednesday, February 20th, 2013 at 3:10 am .

Consumers are using their mobile devices for a variety of daily tasks, and this is carrying over to retail. Smartphones and tablets have quickly become effective tools for browsing for and purchasing products, and merchants need to move now to implement successful strategies for accommodating mobile customers.

In its recent MobileTrends Report, Allot highlights several categories of mobile retail consumers, one of which is the "Info Seeker," or someone who utilizes their device to obtain information about brands and merchandise. There is also the "Social Mingler" who take to social media sites on their gadgets to interact with brands. Also, the "Digital Mover and Shaker" are constantly online and are using social media as well as other platforms for their retail needs. For merchants to have successful mobile commerce strategies, they will need to develop methods to meet the needs of these consumer types.

The Financial writes that mobile applications are effective resources for customers who shop through their devices, and retailers may want to look into creating an app for their operations. In addition, the source cites research from Adobe and Harris Interactive, which found that two-fifths of mobile consumers using a retail app stated it "strengthened their connection to the brand."

This entry was posted by Retail Pro on Tuesday, February 19th, 2013 at 10:44 am .

Social media has been a resource for users to keep in touch with friends and family, but now, a new trend is emerging. Consumers are taking to the sites to praise their favorite brands and retailers, meaning that these social platforms are effective tools for businesses to connect with valuable shoppers and boost loyalty.

A study by Scarborough Research found that 13 percent of consumers use social media sites to showcase their support for their favorite brands. Of that amount, 80 percent stay with a preferred retailer when they find one, the research discovered. The networks that are most popular among shoppers who use sites for brand love include Twitter, LivingSocial and Facebook. Retailers can take to these platforms to connect with customers and offer deals and discounts that appeal to their tastes, further boosting loyalty.

Social media seems to be significantly popular for retailers, as Business News Daily reports that users seem to favor following their preferred brands on the sites more than they do their favorite celebrities. Sixty-one percent of people keep up with retailers on the platforms, compared to just over half of individuals who follow famous figures.

This entry was posted by Retail Pro on Friday, February 15th, 2013 at 10:01 am .

Businesses spend large amounts of time and money on marketing to potential customers and promoting their products. Most of these efforts are successful, as they get shoppers in the stores or on websites. However, once retailers have acquired consumers, these strategies should not be discarded and attention should be put on making these patrons loyal.

Brands should focus increasingly on loyalty initiatives, as a recent study by Synqera revealed that maintaining relationships with repeat customers is what drives retail growth. There are a variety of ways that businesses can foster loyalty, including offering discounts and deals based on past purchases, sending out marketing materials to valuable patrons and rewarding shoppers for buying additional merchandise. Synqera states that technology can also boost loyalty, especially in the form of more efficient point-of-sale terminals, such as mobile payments. Using these solutions gives customers more convenience and faster transactions, further increasing loyalty.

Troy Media highlights some other methods that can help with turning new shoppers into repeat buyers. One approach is for retailers to empower their employees and turn them into brand ambassadors. If workers are excited about their companies, customers will be too. In addition, businesses can gather feedback from consumers to pinpoint areas for improvement.

This entry was posted by Retail Pro on Friday, February 15th, 2013 at 5:56 am .

It is no longer acceptable to only operate one channel for retail operations, as consumers are demanding to do business with brands through brick-and-mortar locations, websites and mobile platforms. Merchants are aware of the importance of multichannel options, and many are implementing solutions to provide these for shoppers if they haven’t already done so. For the companies that have yet to move into the multichannel realm, now is the time to do it, as customers may not be interested in brands that do not offer merchandise through a variety of sources. By adopting new channels and expanding product offerings through the web, retailers are sure to see success in the near future, as consumers will increasingly interact with businesses in a variety of ways.

Use in-store and web elements together for success
Internet Retailer reports that a study by PricewaterhouseCoopers (PwC) revealed that many consumers have a “favorite retailer” that they frequent for their shopping purposes. The research found that merchants that operate both brick-and-mortar locations as well as ecommerce and mobile platforms are more likely to garner retention and loyalty, as 58 percent of customers prefer to do business with brands that offer multiple sales channels. In addition, those respondents stated they are willing to spend more money with retailers that give them the options they are looking for. On the other hand, the study also discovered that consumers have a select few brands they shop with, meaning that effective marketing and innovative products are key to attracting patrons, the source notes.

“It’s a bit of an all-or-nothing proposition,” stated the PwC report. “Those retailers that become multichannel favorites can expect that their online and physical operations to successfully grow in parallel. But others will find that increasing the number of channels won’t necessarily enlarge their customer base.”

Websites can serve as testing platforms
There are other ways that retailers can see success in multichannel operations, one of which is using their websites to test out new products and see how customers react, according to The Age. The merchandise offered in stores does not have to the be the same as what is provided through the web, so with newer items, merchants can offer them online and see how well they sell or test pricing strategies.

The success of these products can be gauged through online sales, the source writes, and then owners can make the decision on whether to include the merchandise at their brick-and-mortar locations. In addition, customers are more willing to offer feedback through the internet, giving businesses another way to measure interest and pinpoint areas for improvement.

This entry was posted by Retail Pro on Thursday, February 14th, 2013 at 7:11 am .

Mobile devices are used increasingly by consumers to research, review and purchase products, and it seems as though, when individuals have some downtime on their hands, they are also more likely to pick up their gadgets for some shopping. Smartphones and tablets are giving merchants additional tools not only for sales, but for marketing and consumer feedback as well.

Internet Retailer reports that a recent study from Monetate found that during 2012’s fourth quarter, mobile traffic on retailers’ websites grew significantly, and consumers used their devices the most on December 25, Christmas Day. On that day alone, merchants saw 16.05 percent of site traffic come from smartphones, while 15.57 percent derived from tablets. The rest was comprised of visits from laptops and desktop computers, the source notes.

The research report suggests that consumers are more likely to use their smartphones and tablets for shopping purposes when they have leisure time, such as on vacation, during the holidays or on the weekends. This information provides retailers with prime opportunities for extending their marketing efforts to customers through mobile devices. By using this approach, businesses can significantly drive their mobile commerce and reach out to shoppers through their preferred channel.

This entry was posted by Retail Pro on Thursday, February 14th, 2013 at 4:13 am .

As more consumers go online to purchase retail products, merchants will be focusing their efforts on creating attractive and easy-to-use websites as well as applications to boost mobile commerce. One aspect that needs more attention when it comes to internet shopping is the consumer experience that brands are providing.

Many retailers are not offering their web shoppers the experiences they are looking for, leading to decreased satisfaction and retention, according to recent research from Econsultancy. More than half (60 percent) of companies surveyed stated they are providing their customers with only average or less-than-average digital experiences through the internet and mobile channels. Merchants are not taking consumers’ expectations into consideration, and are therefore failing when it comes to offering satisfactory experiences online.

Fortunately, there are several strategies that businesses can use to enhance digital shopping experiences for shoppers. Business 2 Community recommends that including a frequently asked questions page can give many customers the answers they are looking for. For consumers needing more information, offering live web and even video chat helps to significantly boost satisfaction. In addition, letting patrons know about shipping and delivery charges up front keeps them from being surprised by extra fees at the end of their transactions, the source notes.

This entry was posted by Retail Pro on Wednesday, February 13th, 2013 at 4:53 am .

It comes as no surprise that younger generations are more adept at using technology for a variety of tasks, while their older counterparts rely on more traditional methods to get things done. These behaviors even carry over into retail, although Baby Boomers are increasingly going online to shop for merchandise.

According to a study by The Integer Group, consumers between 50 and 64 years old are taking to the internet more to purchase products, as there was a 4.5 percent increase the number of Baby Boomers participating in ecommerce since 2011. On the other hand, Millennials – individuals between 18 and 24 years old – have decreased their online shopping, as seen in a 7 percent drop from 2011. Analysts say this is mostly due to the slow economy and the younger generation’s decision to save more money, the report states.

While ecommerce is becoming more prevalent among Baby Boomers, The Guardian notes that they still largely prefer to visit retail brick-and-mortar locations to shop for items. The news source suggests that to accommodate this generation, merchants will need to implement aspects that these consumers are looking for. This can be accomplished by conducting market research to determine which products are most in demand and then stocking shelves with those goods.

This entry was posted by Retail Pro on Wednesday, February 13th, 2013 at 3:22 am .

Research has revealed that consumers went online increasingly over the past few years to browse for and purchase retail products. This behavior is forecasted to see significant growth in 2013 and the years beyond, as shoppers begin to prefer the convenience and efficiency of web transactions. What this means for merchants without an existing internet storefront or those that need improve upon their current ecommerce methods is that now is the time to consider effective ecommerce strategies. Failing to implement options for consumers who prefer to use the web for shopping could result in patrons going to competitors, leaving businesses to see declines in retention and loyalty.

More than $180 billion in ecommerce in 2012
According to a recent study by comScore, for the fourth quarter of 2012, approximately $56.8 billion was spent online for retail merchandise. This represents a 14 percent year-over-year increase in ecommerce purchases. Overall, consumers bought $186.2 billion worth of retail products through the internet in 2012, a boost of 15 percent from the previous year. There were several sectors that saw more growth than others last year in terms of ecommerce, including consumer electronics, books and magazines, apparel and accessories and toys, the report states.

“2012 was a year in which – for the most part – ecommerce continued to grow strongly, despite an uneven macroeconomic environment showing signs of recovery but also cause for continued concern,” said comScore chairman Gian Fulgoni. “With e-commerce growth rates consistently in the mid-teens throughout the year, it is clear that the online channel has won over the American consumer and will increasingly be relied upon to deliver on the dimensions of lower price, convenience and selection.”

More ecommerce increases in 2013
The growth of ecommerce is expected to continue into 2013 and the following years, according to research from the National Retail Federation (NRF). The organization forecasts that retail sales through the internet this year will jump between 9 percent and 12 percent from 2012’s totals. This will be boosted by increasing consumer confidence and shoppers’ preference of digital channels for reviewing and buying items.

To help improve online storefronts, Promotion World offers a few suggestions for retailers, including implementing clean web elements into their sites. This will make navigation easier for customers and simply transactions. In addition, making sure consumer inquiries and issues are handled quickly and effectively fosters satisfaction.

This entry was posted by Retail Pro on Tuesday, February 12th, 2013 at 10:54 am .

Businesses that have not yet implemented mobile options for customers may want to start paying attention to the growing mobile commerce trend, or else risk losing out to competition. Shoppers are increasingly using their smartphones and tablets to browse for, compare and purchases products from retailers, meaning that merchants need to provide resources for device-carrying customers.

According to a study from research firm MarketsandMarkets, the next few years are forecasted to see significant growth in the use of mobile devices for completing transactions for retail products. To put it in perspective, in the near future, the number of mobile phones could very well surpass the world’s population. This means that consumers will be using their devices to complete a variety of daily tasks, including shopping at retail brick-and-mortar locations and on websites.

This trend is set to change the retail industry, writes Mobile Payments Today, as people will perform a variety of shopping-related functions on their phones and tablets, such as comparing items, looking up reviews and completing purchases. To accommodate these customers, retailers need to focus on adopting solutions that can complete these tasks.

This entry was posted by Retail Pro on Tuesday, February 12th, 2013 at 9:10 am .