Consumer trust and loyalty are paramount in the competitive retail industry, and brand transparency is a powerful catalyst for unlocking sales growth and building long-lasting connections with customers. In this article, we explore the various ways retailers can use transparency to strengthen their game in the market.
What is Transparency in Business?
Transparency in business refers to the open and honest sharing of information between a company and its customers. It involves providing insight into various aspects of the business, including operations, policies, and practices. In essence, it is about building trust by demonstrating integrity and authenticity, which in turn leads to customer loyalty and business success.
Cost Transparency
A key element of brand transparency lies in openly sharing pricing details. This is something consumers value, and it contributes to building trust and credibility. Hidden fees, ambiguous pricing structures, and unforeseen costs can rapidly undermine customer trust. Being clear on pricing aids customers in making well-informed purchasing decisions but also fosters a perception of fairness, which helps to strengthen the connection between the brand and its customers.
Communications Transparency
Effective communication is the core of brand transparency. Retailers should openly communicate their values, business practices, and product sourcing to build trust. This includes sharing information like the manufacturing process, materials, and relevant certifications. Transparent communication also extends to customer interactions, where responding promptly and honestly to inquiries and feedback can reinforce customer trust and satisfaction.
Transparency in Owning Mistakes
No company is immune to mistakes—they’re an unavoidable part of the journey. However, acknowledging errors, taking responsibility, and actively working to fix mistakes are critical steps to strengthening trust with customers. This includes responding to negative online reviews by addressing known issues and how the company is working to resolve them. When retailers engage in transparent communication and feedback, it underscores their commitment to improvement and customer satisfaction.
Transparency in Sharing Ongoing Efforts
Establishing transparency as a fundamental company value that influences every facet of a company’s operations is crucial for long-term success. Transparency should be an ongoing, integral initiative rather than a one-time effort. This involves regular updates on websites to provide transparent information on pricing, products, and business practices.
Additionally, businesses should routinely assess their adherence to core values and, if necessary, strategize the best corrective measures while transparently communicating these actions to customers. A lack of transparency effectively leads to a loss of customer trust and loyalty, which can substantially impact a retailer’s bottom line.
Brand transparency is a powerful tool for retailers to build a strong foundation of trust with their customer base. It is not only a business strategy but a fundamental principle that can redefine the retail landscape, and retailers that embrace transparency will thrive in an industry where trust is the currency of lasting success.
Small retailers often find it challenging to compete and thrive in markets driven by big stores and retail chains. However, with the right strategies and a focused effort, small retailers can carve out a niche and strongly compete with larger stores. Here are some key strategies that can help small retailers compete successfully in a crowded marketplace.
Embrace Personalized Customer Service
A significant advantage that small retailers have over larger stores is their ability to provide consistent personalized customer service. By fostering a welcoming atmosphere, small retailers can build strong relationships with their customers and tailor their offerings to meet customers’ unique needs and preferences. Independent retailers should strive to greet customers by name, remember their previous purchases, and offer product recommendations. To help with this, consider implementing point-of-sale software with built-in customer management tools. Additionally, retailers can also consider offering multiple services to address client needs, such as free gift wrapping, personal shopping assistance, and customization options. By going the extra mile to meet customer needs, small retailers can differentiate themselves and create a loyal customer base.
Curate Unique and Niche Product Selections
Larger stores may be able to offer a wider range of products, but small retailers can compete by curating unique and niche products that might be challenging to find in large retailers. By carefully selecting products that align with their target market’s interest and preferences, small retailers can offer something different and exclusive, establishing themselves as a go-to destination for customers seeking these harder-to-find items. To be successful at this, small retailers should continuously have conversations with customers about the lates trends, and update their product offerings in order to stay ahead of the competition.
Focus on Local Community and Connections
Small retailers can build a strong local community presence. They are in a unique position to build connection with their communities by partnering with local organizations, sponsoring community events such as sports leagues and charity events, and collaborating with other small businesses to promote each other and create a sense of unity. Actively engaging in the local community allows small retailers to enhance their brand visibility and create a positive reputation as a trusted and credible local retailer.
Embrace Technology
Small retailers don’t typically have the same financial resources as larger stores, but they should still consider reaching a broader audience with a strong online presence. Setting up an online store and promoting products through social media platforms can help small retailers attract customers who prefer the convenience of online shopping. Additionally, small retailers should utilize customer relationship management (CRM) software to help analyze customer data, personalize marketing efforts, and establish long-term customer loyalty.
The retail industry has experienced considerable changes in the past few years, and 2023 is on track for continued transformation. Retail companies can expect to see several key trends impacting businesses this year, including the growth of e-commerce, the focus on personalized experiences, and a shift to adopting sustainable practices. Below we discuss the key trends that are affecting retail businesses.
An Increase in E-Commerce
Online shopping escalated dramatically during the Covid-19 pandemic, and it doesn’t appear to be slowing down anytime soon. Online shopping provides consumers with convenience, access to wider ranges of products, and competitive prices. If they haven’t already, retailers need to embrace the new e-commerce era and optimize their online shopping experiences to level with customer expectations. Even strictly brick-and-mortar stores should think about offering best-selling products in an online storefront.
Additionally, a continuing e-commerce trend can be seen in the integration of social media commerce and marketing strategies. Social commerce lets customers buy products directly through social media platforms, sometimes with the assistance of influencers or brand ambassadors, and it’s an ideal way for retailers to interact with clients and drive sales.
Personalized Experiences
Retailers will need to create a special in-person shopping experience in order to compete with online shopping, increase customer loyalty, and drive sales. This can include online pre-order and curbside pickup as well as personal shoppers who guide customers through the store to offer personalized product recommendations. For example, if a customer is keen on a particular fragrance, the salesperson can point them toward different products with the same fragrance, making sure the customer is aware of any sales, promotions, or customer loyalty rewards programs. A personalized shopping experience elevates the shopping trip for the customer in a way that is difficult for e-commerce stores to do.
Automated Technology
Automation in pricing and inventory management systems is on the rise, which helps retailers lessen staff labor. As the industry continues to experience labor shortages, more retailers will be investing in these technologies. And more companies that specialize in automation solutions are popping up. Implementation of pricing automation can balance profitability and revenue growth, while inventory management systems can pinpoint an accurate amount of inventory to have in stock.
Sustainability
Consumers are becoming increasingly conscious of the environmental impact of the products they purchase and bring into their homes. Retailers and brands can reflect this by offering products that use recyclable or biodegradable packaging materials. They can also take steps to reduce their carbon footprint by embracing more sustainable transportation operations and working with suppliers that have environmentally-friendly practices. Finally, retailers are seeking ways to use more sustainable packaging materials, such as biodegradable packaging and plant-based plastics, and reduce packaging overall.
Both small and big companies have been impacted by the labor shortage that has spanned the country since the pandemic. A short-staffed company can lead to overworked and burnt-out employees, dissatisfied customers, and even a decline in sales. Below we’ll discuss how retail store owners can better retain employees and maximize operations among the “Great Resignation” era.
Provide Consistency, Flexibility, and Gratitude
Consistency is key. Statistically, more than half of the employees whose work hours are inconsistent end up quitting their jobs. A consistent schedule lends a sense of routine and security. Flexibility is also paramount to setting up employees for fulfillment in their roles. Whether this translates into something like more flexible meal breaks; or greater or more flexible time off; or a combination of these, employees want to succeed when they feel like their employers support them and their wellbeing. It follows, then, that employees will likely become frustrated if they’re being overworked when the company is short-staffed. To make sure the workers who go above and beyond know how valued they are, consider small gestures of gratitude such as providing free lunch.
Take Advantage of Your Online Outreach
When the pandemic hit, retailers had to pivot seemingly overnight to online channels. Though it might have been a bumpy transition in the beginning, by now retail businesses should have their websites and social media accounts working to their advantage. Strategies like buy online pick up in-store and curbside delivery offer convenience to customers while alleviating some of the grunt work for employees who are working understaffed shifts.
Prioritize Peak Days and Tasks
To make the most of payroll budgeting, you should be scheduling the bulk of employee hours during peak traffic days and scaling back your staff on less busy days. Not only does this balance scheduling, but it helps to avoid employee burn out and boredom. Too, having a clear understanding of tasks that take priority in your store — and relaying this prioritization to staff — will help to increase efficiency in store operations and provide task-oriented employees with purpose for their shifts. A proven strategy is the 80/20 rule, where workers and managers dedicate 80% of their time and energy to the 20% of work that takes top priority.
Online shopping isn’t new by any means, but the EY Future Consumer Index, which has surveyed thousands of consumers since the Covid-19 pandemic began, discovered that 43% of U.S. consumers now shop more often online than in brick-and-mortar stores. All signs point to a new normal for consumers, who are realizing that as long as internet is available, geographical location isn’t necessarily a factor when it comes to getting products in their hands. The question now is, how do retail businesses best position themselves to adapt to a future that possibly favors online shopping and ever-evolving customer experience expectations? Read on for ways that you can best position your retail business for hybrid shopping.
Play to the Strengths of In-Store Shopping
In-person shopping has some advantages over online shopping, and if you want to remain competitive among exclusively online retailers, you’ll need to leverage those strong points. For example, when customers engage in in-store shopping, they don’t need to worry about shipping costs and time. Currently, this can be especially advantageous to brick-and-mortar stores by advertising and marketing in-stock products that are being held up within the supply chain. Brand visibility; personal interaction with customers; community outreach and involvement; and tangibility of product for customers to hold in their hands, try on, and inspect are all additional aspects of in-person shopping that provide potential points of strength over online shopping.
Adapting to the Industry Shift Toward E-Commerce
The focus for any e-commerce store, whether exclusively online or as an extension of a brick-and-mortar store, should be on the consumer experience. When making decisions regarding investment and operating models, pay careful consideration to:
A technology platform that’s able to quickly adapt to differentiated shopping experiences for customers.
Product that’s available only online versus product that’s available in-store, and the logic behind those selections.
Competitive pricing while sustaining margin (i.e., is there a way to influence impulse purchases online?).
The chain-of-events for the consumer from digital browsing to product in hand—and how you will get return customers.
The Store as Fulfillment Center
The pandemic ushered in the customer-centered convenience of buying online and picking up curbside or in-store, and this option is likely here to stay. While this is an effective service to attract and keep customers, long wait times and orders that can’t be fulfilled due to inventory shortage risk losing customers to comparable stores with better modes of communication and track records of product availability. As your retail business scales to meet new demands, it must be prepared to offer a consistent customer experience.
The retail industry can always count on change—whether it’s in the form of a global pandemic, ever-evolving consumer behaviors, or any number of unexpected roadblocks—and you must be willing and able to meet those changes by cultivating strong relationships with customers, no matter if your business is purely brick-and-mortar, exclusively online, or a hybrid of both.
The COVID-19 pandemic altered the way Americans shop. It also affected the way retail businesses reach customers and position their businesses for growth and prosperity. Looking forward, some of these changes are likely to stick around. Here are the trends small businesses in the retail industry can likely count on for the foreseeable future.
Online Shopping
Online shopping was certainly not a new concept when the pandemic hit, but nationwide lockdowns forced more consumers to shop online, and accelerated the rate at which business owners opened e-commerce sites. The shift to more digital business is likely here to stay, even as the world economy begins to recover. A recent study conducted by the United Nations Conference on Trade and Development (UNCTAD) and the NetComm Suisse e-Commerce Association found that online sales have increased across the majority of product categories. This suggests that consumers are increasingly content to shop online, and retail companies with dedicated e-commerce presences will be able to thrive in a post-pandemic era.
The Effect of e-Commerce on Brick-And-Mortar Stores
Retail strategist and experiential designer, Melissa Gonzalez, believes brands and retailers will be taking a close look at the role of physical stores.
“Capital allocation will have a tiered process where flagship destinations will exist in locales where there is evidence that a physical presence is justified or critical 12 months a year,” Gonzalez said. “Flagship locations will be complemented with smaller-format, specialty locations anchored around a specific purpose or localized effort. Partnering with department stores will also continue to be reimagined as they restructure and reposition as collaborative marketplaces, and there will be a deeper dedication to pop-in-shop retail.”
Tech Upgrades
The pandemic ushered in new safety requirements, changing regulations, and unpredictable staff availability. These changes are leading companies to think about tech-driven solutions that can support growing requirements and evolve with their business. Some of these tools include mobile payments, online shopping, and mobile scheduling. While the pandemic demanded the urgency of customer-driven solutions, like convenience and touchless transactions, they are proving to increase efficiencies as well as customer and employee experiences, and they are likely here to stay.
Personal Shopping Services
The role of a personal shopper, where a store employee shops for a customer, isn’t a new concept, but more retailers implemented this service to compensate for the loss of foot traffic during pandemic lockdowns. While this method is being embraced across the board, personalized experiences are especially well-suited to local and small retailers, who have an opportunity to lead the industry in this area.
Pricing Automation
A number of factors go into determining an item’s price, but more retailers are depending on automated technology to establish proper pricing. Expect to see more and more automation solutions implemented for small businesses, such as online pricing automation and inventory management systems.
Social Media’s Role
The pandemic accelerated the need for retailers to reach consumers through online and mobile-friendly methods. Social media is a major stimulator of online sales, and consumers want to interact with brands through these platforms. Experts even suggest that hashtags and memes could be just as effective as traditional advertising avenues. Small businesses should think about creative social programming to boost online shopping through avenues like shoppable TikTok and Instagram. This is especially important to reach and maintain younger consumers.
