Sometimes it feels like retail industry trends change faster than we can possibly keep up with. From technology and communication revolutions to cultural and generational shifts, there are innumerable factors influencing the consumer mindset — which of course impacts retailers. But with every change comes the opportunity to evolve and to create new paradigms. Innovative ideas emerge and we adjust using new tools and techniques. We've compiled 10 retail statistics that start to tell the story and might give you food for thought - and optimism for the future of retail.
In 2016, online sales grew 7.4 times more than all retail growth combined. (PWC)
While this stat is not surprising, it does underscore that to thrive in today's retail market, you must have both an online and physical presence with a seamless brand experience. Do you have a multi-channel strategy and is your sync flawless across all your channels?
Mobile commerce now accounts for 20% of all digital spending. (the Atlantic)
We're tethered to our smart phones, and it's only becoming more prevalent. Your website and ecommerce store must be optimized for mobile and provide a thoughtful user experience for the customer. Is your website up-to-date? And, can you access your store's data anytime, anywere in real-time on your mobile device?
Apparel’s share of total consumer spending has declined by 20% this century. (the Atlantic)
You know what's on the rise? Travel, restaurant expenditure and anything experiential. Less is more is the prevailing attitude and social media and millennials are driving the push. How can you merge product and experience and get people excited to shop with you?
67% of Millennials and 56% of Gen Xers prefer to shop on online rather than in-store. (BigCommerce)
Different generations shop differently. Learning to understand your customers by gathering data and analyzing their preferences will give you the insight to market effectively to each of your customer segments. Do you have the data and analytics you need to create strategic marketing campaigns?
92% Of all retail sales still takes place in stores. (U.S. Census)
Yup, there's still hope. But it's not business as usual. A big sale or promotion may draw people in temporarily but doesn't necessarily foster a connection with your brand. Are you giving them a compelling reason to come back beyond price? Are you listening to what they want?
81% Of shoppers research their product online before purchasing. (ChainStore Age)
The relationship is fluid; some research online only to buy instore and some want to see it instore and buy online. You have to be in both places and your inventory management needs to flow freely across each channel. Can you easily distribute your inventory wherever sales dictates?
Average Order Value for repeat customers is twice as high as for first-time customers. (Smart Insights)
It pays to nurture customers; it costs 7X more to gain a new customer that engage a current customer. The big question is how do you keep them coming back? Marketing is both art and science. Ask them and get creative, don't be afraid to try new tactics. And measure everything, your data can give you the clues you need to market strategically. Does your POS integrate with top marketing and loyalty platforms?
70% of buying experiences are based on how the customer feels they are being treated. (Smart Insights)
Bad customer service, low inventory, frustrating order or checkout processes, are all experiences that drive customers to your competition. Customers expect to be delighted when shopping with you and your POS software should be a tool that empowers you to deliver top notch service at every level of the enterprise. Is your POS a complete retail management system?
30% of products bought online are returned - and users expect this process to be easy! (Smart Insights)
Bought online, returned instore. No problem. Can your POS do that?
A 5% increase in customer retention can increase a company’s profitability by 75% (Bain and Co.)
Whoa. Need we say more? A robust customer relationship management and retail loyalty strategy is no longer optional - everyone in the organization needs access to customer data, from the sales floor to the C-Suite. What is your customer retention plan?
Managing retail business should include harnessing data, use the right tools and getting creative! See how you can grow your retail business in this changing retail landscape.
Craving more stats? Here's another great post!