New Report Unveils Online Strategies to Drive Retail Sales
New York–based Tobe, a division of fashion and retail consulting firm The Doneger Group, released a May 11 “State of Retail” report listing 10 online-business strategies to assist retailers to drive sales growth. Tobe compiled the list after conducting an in-depth survey of technologies that are impacting online retail. Tobe also included its diverse roster of retail clients, which ranges from Wal-Mart to Neiman Marcus, with a majority already employing an e-commerce platform, according to Tobe Executive Vice President Catherine Moellering.
“There is significant opportunity for retailers to increase sales by taking advantage of new technologies,” Moellering said. “Understanding that the business opportunities the Internet has offered retailers can be overwhelming, Tobe has identified specific strategies that will have the greatest impact on top-line growth.”
Highlights of Tobe’s tips for retailers include:
bull; Treat the site’s home page as a storefront window so consumers can recognize it as the face of the brand. Showing all the site’s features can persuade customers to explore deeper into the site.
bull; Retailers must have a blogging strategy. “It’s unquestionable that retailers have a point of view,” Moellering said. Whether it’s penning their own blog or active outreach to the blogging community (70 percent of which discuss brands), being involved in the blogosphere gives retailers the opportunity to control their brand image, according to Moellering.
bull; Invest in new technologies to drive sales and marketing initiatives. Utilizing advancing technologies such as smart-phone applications, mobile marketing and promotions, and streaming video can directly translate to sales and, ultimately, keep retailers on the cutting edge. “Technological innovation is constantly changing,” Moellering said. “As such, retailers need to continuously assess whether or not new technology is relevant to their business strategy. In many ways, this constant stream of technological change mimics that of fashion trends. Just as a retailer would never purchase one collection of apparel and expect it to remain cutting edge and on-trend for several seasons, retailers need to understand that technology needs to be assessed on a regular basis, as well.”
bull; Test potential brand extension through Internet-exclusive product launches. Introducing products online can be a cost-efficient method of test-driving new lines and gaining immediate customer feedback prior to investing in bricks-and-mortar store launches.
bull; Utilize the Internet to take customer service to the next level. Leveraging customer-service tools such as live-chat, online fit guides and personalized product recommendations better serves customers and keeps them engaged to reduce cart abandonment.
bull; Reach customers where they live online. Various consumer groups interact with the Web differently. Millennials may fervently surf the Internet while boomers occasionally peruse. Thus, pushing beyond the usual social-networking sites, such as Facebook and Twitter, can gain momentum with the niche consumer.
bull; Don’t underestimate the power of customer service. Consumers are more compelled to buy from sites that list product reviews. “Even the occasional negative feedback can add authenticity and be seen as being more credible,” Moellering said. —Connie Cho
