8 Developing Retail Strategies to Overcome a Bottom Line Growth Plateau
Every business hits a growth plateau from time to time. The reasons can be anything. Perhaps the economy is stagnant or customers’ tastes are changing. Maybe new competitors have entered the market or the company simply doesn’t have enough resources for further investments.
A growth plateau is almost inevitable. You may have a great product, excellent customer service, and a good inflow of sales, yet your business can still stall. Your top-line growth may be rising, but by the time you deduct all the expenses, you see how the bottom-line is just like last year.
Every business owner knows some uncontrollable factors that influence the success, failure, or stagnation of a business. In this article, we’ll be seeing how to optimize the controllable factors to avoid hitting a bottom-line growth plateau.
Quit funding unprofitable projects
Sometimes, the most obvious strategies are the easiest to overlook. Retailers constantly come up with and implement new strategies to increase profits. However, they forget that letting go of the strategies that no longer generate ROI helps cut the unnecessary expenses – increasing bottom line profits.
The reason why a lot of businesses hesitate to do so is because of something called the sunk cost fallacy. They fear quitting something they’ve already put so much time, money, and effort into. This makes them reluctant to abandon a failed strategy even though doing so would be the right decision.
Quit using obsolete technology
Keeping up with today’s technology is a battle of its own. It seems like every other day there is news about some new revolutionary technology that can change the face of business forever. Albeit, the headlines may not always be true, but failing to adapt to new technologies can hurt your business.
Switching to newer technologies is a must.
The potential of technologies like machine learning, big data, AR, VR, and AI in retail is unimaginably immense. Not only can this help reduce costs, but also increase profits. Here are some ideas to get you started:
- Use AI to automate social media campaigns
- Use machine learning to boost click and conversion rates
- Use AI for purchase order tracking to simplify shipping
- Use AI for recurring tasks to decrease the need for manpower
- Use AR to allow customers virtual try-on before buying
- Use chatbots for customer support to reduce human-error
Revamp your content output
Content is king. You must have heard that line quite often on the internet. And as it turns out, it’s true. As information increasingly becomes the most dominant force in today’s world, the need to consistently create and market exceptional content is not optional, but a necessity.
Keep in mind that extending your content strategy doesn’t necessarily mean creating more content, but better content. You want to be known for pushing out quality content that your customers can benefit from, instead of just spamming them with irrelevant noise that will make no impact.
Opt for an omnichannel approach
The omnichannel approach works by seeing the business from the eyes of the customer and optimizing every channel of commerce in the best possible manner. It’s a strategy that aims for a holistic bird-eye view of every element involved in the customer experience.
This means a robust integration between all the places the customer can be present, whether physically or digitally. Omnichannel selling is about how well different channels of commerce can communicate with each other. This helps track the customer and send targeted, personalized, and well-timed ads. This helps ensure maximizing conversion rate, return visits, and increases overall revenue.
Go hard on influencer marketing
Social media platforms run based on algorithms that promote posts and accounts based on engagement. It is more likely that a personality is more engaging than a brand. Since followers have a personal connection with influencers, they are more inclined to believe their recommendations.
Partnering with influencers can help you spread the word to a wider room of customers much faster. Influencer marketing is one of the highest ROI marketing strategies. Businesses can collaborate with influencers by:
- Paying them to promote your product/services
- Sending free products to make reviews
- Paying commission on sales generated by them
- Making them brand ambassadors
Master the mobile experience
Mobile commerce is gaining momentum faster than ever before. And with smart devices getting increasingly more capable, faster, more convenient, and better-integrated in our lives, this trend will only explode even further. This makes it essential to keep the mobile experience in mind when designing any retail strategy. Simply having a mobile responsive website is not enough.
A dedicated mobile app is a must. A mobile app allows you to track your customers, making it easier to send personalized notifications and targeted ads. When it comes to mobile, two things rule the experience side of things: design and speed. The faster the app, the more the sale. The more fun the app, the higher the customer retention.
Start a subscription model
Sales in business are not always consistent. To ensure a steady income, introducing weekly, monthly, quarterly, or annual subscription plans is a clever decision. You can offer your customers continued benefits and special discounts for a fixed regular subscription fee.
This allows for much better stability and predictability of income, making it easier to forecast future performance and make better business decisions. Not only this, but subscription models can also lead to higher repurchase rates and help in customer retention.
Go back to the drawing board
When older strategies stop working, it’s time to draw new ones. Whether it’s rethinking the business model, revamping your brand logo, launching a new product, or even redesigning your website. Something new has to be created for something new to happen. Simple as that.
You can’t expect old strategies to drive out new results. Experimenting with new ideas, taking up new opportunities, and discovering new avenues and customer segments can help scale your retail business and overcome a bottom-line growth plateau.
Hitting a bottom-line growth plateau once in a while is nothing too out of the ordinary for a business. But actively working towards overcoming it is just as considerable. And with these 8 strategies, you are sure to scale your retail business and surpass obstacles.