Few sectors have borne the brunt of economic pressures more than small businesses, and particularly small retailers, as Aussies become more considered in their spending. With peak season still a long way on the horizon, small retailers could be forgiven for expecting a lean time in the months ahead. While we’re not anticipating an unprecedented spending splurge between now and then, there are many ways that small retailers can drive the incremental revenue increases that make all the difference, not just in peak season, but the proverbial slow season too.
Omnichannel commerce
The rise of eCommerce was for so long considered a boon to big businesses and a detriment to their smaller competitors who didn’t possess the same expertise or resources. Through the democratisation of technology, small retailers can now tap into eCommerce, and use that as one pillar of an all-important omnichannel strategy. Today, shoppers are engaging with brands in-store, and online: on websites; social media; and mobile apps. Being present wherever they are is essential to make the most of every shopper and every interaction. Consistency across every channel builds trust and loyalty, which enhances brand awareness and customer experience, essential for small retailers.
Leverage data
Data is a vital, growth-generating commodity for any business, even the smallest. Data doesn’t only enable personalisation, it drives operational efficiencies in an omnichannel strategy, by identifying and improving underperforming channels or processes. By collecting from multiple channels like Google Analytics, customer interactions and marketing channels, retailers can better understand their customers’ behaviours and address their pain points. Ultimately, this enables small retailers to offer experiences that incentivise loyalty and minimise churn rates.
Implement AI-powered personalisation
There is no bigger buzzword today than Artificial Intelligence (AI). However, it’s not just hype or something to benefit big business only; it can drive tangible benefits. Consider it in the context of personalisation, which is a necessity for businesses today. AI collects and analyses incomprehensible amounts of data to not only understand customer preferences but predict their behaviour and offer personalised recommendations. By tailoring everything from content marketing and product suggestions to an individual shopper’s interests, retailers will be better positioned to drive retention and revenue than through one-size-fits-all approaches.
Don’t overlook sustainability
Conscious consumerism is growing, and as it does so shoppers are being attracted to retailers who are aligned with their values on a more meaningful level. Sustainability is a key focus for them. In fact, according to research from Commonwealth Bank, 31% of consumers often choose brands with waste reduction policies and initiatives, while a further 44% said they sometimes do. The impact of focusing on sustainability isn’t a short-term revenue spike, but in building the strong, long-term relationships that retailers can rely on all year round.
Lean into loyalty
At a time when every sale matters, your loyal customers are worth their weight in gold. Over eight in ten shoppers stick with brands that offer loyalty schemes, so consider how you can incorporate that into your unified commerce strategy. Whether it’s offering a free gift to incentivise a small upsell, or segmenting shoppers based on common characteristics and targeting them with, for example, early access to a new range or a limited edition item. When shoppers feel like a loyal, valued member of your business, their affinity to you, and the revenue you generate, grows. Loyal, happy shoppers aid in customer acquisition too, by recommending you to their friends and family.
Economic headwinds are anticipated to persist for much of 2024, but that doesn’t have to be critical for small retailers. By focusing on these simple strategies, businesses of any size can drive the incremental revenue that is essential in building a bridge over the slow season and springboard into peak season.
