In the times of economic downturn everyone is fighting for the same limited dollar from their customers. It’s also a time of hardship for employees who may fear pay cuts, layoffs and the prospect for searching for a job in this economy leaving many front line employees feeling a lack of moral. Typically customers will shop at stores that they trust and feel comfortable in so it has never been so important to make sure that customers are walking away with a positive experience. After all 80% of all purchases come from 20% of the customers shopping.
The proof of customer loyalty is in the pudding. Many companies can do when consumer spending is on the rise, but when the market turns retailers that have focused on retention of their loyal customers tend to be able to stabilize and survive. However one of the most important things for a retailer to remember is who their customer really is.
Remember the age of your customer. Teens many love designer clothing, but doesn’t always have the means to afford it. Whereas a more mature customer may have the funds, but want something more age appropriate. As designer Oscar de la Renta puts it “I have customers from age 20 up to I don’t know what. When I’m designing clothes, I’m not thinking about age. I’m thinking about the women who have the ability to buy the clothing.”
Knowing your customer, their needs, their wants, and their habits can be the key when bringing product into a store. Knowing what the customer will buy and serving their needs may be the difference between selling a dress for 25% as compared to 75% off.
This also comes into play with spending those important advertising dollars. This year saw an increase in advertising through social networking. Although this was a great success for many however if your core demographic thinks tweeting is something a bird does looking to Twitter for a marketing tool isn’t the option.
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