The first step to retail success: Knowing your customer base

Gordana Redzovski explains the four different kinds of shoppers retailers encounter, in order to help them fine-tune their customer service and turn leads into sales.

Running a retail business is no easy feat. From tracking inventory and scheduling staff, to planning store visuals and balancing the books, it can be difficult for retailers to prioritise spending time on the floor; assisting and getting to know their customers.

While ensuring that things are running smoothly behind the scenes is important, it is just as crucial to understand the different kinds of shoppers you might encounter, so that you can match your customer service to their needs and turn leads into sales.

Each shopper comes with a unique set of traits, which means they enter a store with a different agenda than the person who walks in before, or after, them. With this in mind, a one-size-fits-all approach to providing assistance doesn’t work when everybody requires something slightly different. Here are some of the most common shoppers you’ll come across and how to best appeal to them:

The bargain-hunter

Despite 45% of Kiwis saying they pay more attention to the environmental impact of what they purchase, price still trumps eco-friendly products for many. This is particularly true for the bargain-hunting shoppers. Loyalty to a retailer comes second to the lowest price, and those looking for products at a discount will shop around until they find the best price available. If that’s your business, great; but if not, don’t worry.

Frugal shoppers are driven by cost, however, there are a few things that you can do to help these customers understand why this may not serve them in the long run. Bargain-hunters may think that they are getting the best deal, but explain to them that saving money now may cost them more later on because they may need to purchase it again in one, three or even five years. Not only is it beneficial for shoppers to see the quality of your product, it  promotes sustainable shopping.

The regular customer

Loyal customers love your products and the service you have provided them in the past, which is why they keep coming back. The effort you put into retaining you regular customers gives you the opportunity to increase your profits by 25% to 95%. Keeping customers happy can pay off – literally.

Nearly three-quarters of Kiwis agree the behaviour of a company is “just as important as what it sells”, so retailers that don’t put their best foot forward for every customer run the risk of losing brand loyalty. Taking the time to understand what a customer loves about your products, store, and customer service offers you the chance to recreate the experience for them when they return.

The well-informed shopper

Most consumers today fall into the ‘well-informed’ category –  a shopper who starts their journey searching products online. In New Zealand, 52% of shoppers said they first come across products online during their shopping process. This savvy customer knows what they want when they enter your store because they sift through product descriptions and reviews before deciding which retailer to visit.

With 20% of Kiwis using retailer websites and 39% using search engines to find the products they are looking for, it is crucial to develop an omnichannel strategy that seamlessly blends your online and in-store shopping experience. Ensuring that your website and social channels are easy to navigate and reflect your available stock in-store will entice the well-informed shopper to head to your bricks-and-mortar location.

Almost a third of shoppers in New Zealand conduct research online before making a purchase, so having a customer management and loyalty system that captures customer data will allow you to reach your entire customer base, from bargain-hunters to well-informed shoppers.

The showroomer

Showroomers are customers who prefer to check out a product in person beforehand,  then check online to see if there is a better price available. More than 50% of Kiwis use the internet to conduct research and compare products, prices or features – a style of shopping that showroomers favour. Much like the bargain-hunters, showroomers won’t always exhibit brand loyalty.

However, unlike bargain-hunting shoppers, price isn’t always their deciding factor. If you are able to switch their focus from price to value or convenience, you may be able to win the customer over. Demonstrate the benefits that only you can provide, such as in-store offers in conjunction with a purchase, or loyalty program points they can accumulate. Heading from store to store to view products in person can become exhausting, and for the showroomers who have already been around the block, emphasising the fact that you have the product in stock for them to take home immediately may be favourable. As the saying goes, time is money and showroomers know that all too well.

You can create remarkable and memorable experiences when you understand your customer’s needs and tailor your approach to servicing them when they visit you in-store. Doing this for every customer can help demonstrate that you value their business and loyalty, and may even turn your bargain-driven or showrooming customers into someone who chooses your store or products as their go-to option every time.

Gordana Redzovski (pictured) is Vice President for APAC at Vend, the point of sale and retail management platform that lets retailers run their business in-store, online and on-the-go. For more information visit https://www.vendhq.com/