7 Things Every Retailer Should Know About Their Customers
Understanding your customers is one of the most important aspects of retailing. No matter which sector of retailing you’re in, you should know the following seven things bout your customers–at a minimum.
- How much money they spend per transaction – There are several reasons you need to know how much money your customers spend per transaction. First, this is a good measure of your store’s performance overall, and if you know how many customers shop in your store during any given period of time, you can determine profitability. Maybe you should add another hour to your operating hours, or it cut it short. Another reason is it identifies who your best customers are so you can give them special treatment.
- Which channels they prefer to purchase products through – There are some products your customers may prefer to purchase online, and others they might prefer to purchase in the store. Knowing this can help you merchandise your stores better and help you organize your products to fulfill orders faster.
- Why they shop at your store (and your competitors) – If you don’t know why customers are shopping in your store or why they might prefer your competitor for certain items, you will miss important opportunities to make those customers happy.
- How their personal values influence their shopping habits – Some retailers are good at appealing to their customers’ values. Once you tap into your customers’ value systems, you can build loyalty without having to discount your products and offer other financial incentives.
- What their favorite products are – Knowing your customers’ favorite products can help you stock more of the best sellers and sell more products that they like. It can also give you a clue about complementary products you could stock.
- What incentivizes them to buy more – Every customer has a soft spot. Do 2-for-1 specials drive more sales? How about 10% or 20% off? Knowing what incentivizes your customers can help you sell more product and build a loyalty program that drives sales.
- How often they return to your store – If you know how often customers shop at your store, this is helpful when it comes time to budget. You can also incentivize them to return more often.
Every retailer should know their customers. Start with these questions and keep customer data so you can make your customers happier.