If you are running a retail business - whether bricks and mortar or online - there are five core principles you need to adhere to. From customer care to the four Ps, Antony Welfare, author of The Retail Handbook, explains what you need to know
1. The customer is the most important person in your business
The main retail principle to master is: the customer is king. They should be at the centre of your business, and everything you do must revolve around customer needs. Knowing your customers, and focusing on them in everything you do, will help you grow your business.
2. Retail is detail
So, you need to address and improve your understanding of your customer. To do this, every retailer must focus on the detail and get things right the majority of the time. Mistakes happen, but you must learn from them and don't repeat sloppy errors. Customers will allow you some mistakes, but too many will turn them away.
3. Understand the four Ps
This is a very old principle but it still has validity. The four Ps - Product, Price, Place, Promotion - are the basic foundations of a successful retail business.
Product
You need products that your customers want to buy, and a product range that will satisfy your customers' needs and desires. The products must also deliver a profit for you to have a successful business.
Price
Price must be consistent across your range and meet all requirements for your business. You need to price your product range at the correct level for the customers to be able to buy your products, and for them to gain value from them. This could mean pricing high or low - this very much depends upon your customer offering.
Place
You need to provide the right place for your customers to purchase your product, be that a physical store, an ecommerce website - or a combination of the two.
Promotion
Once you have a product - at the right price, in a place where the customer can access it - you need to tell them about this and promote your business and your products.
4. Go the extra mile for your customer
Providing great customer service starts with understanding and knowing your customer; however, knowing them is just the start of the journey. To be successful you must deliver world-class customer service - continually going the extra mile, each time delivering just a little more than the customer expects.
Doing this each time you and your team interact with your customers will win them over and make them loyal over a long period of time.
5. Location, location, location
Historically, location has been one of the most important factors in retail success, and to this day it will have a major impact on the performance of a physical store.
The best location will be dictated by your brand and product strategies. However, location is becoming less of an issue than it once was, mainly because of the internet. The journey from retail to e-tail has been quick, and we need to embrace the changing landscape and ensure we understand its effects on our customers.
With new technologies emerging all the time, it will continue to change opportunities in the world of retail. Can you afford to be left behind?
Written by Antony Welfare.
FAQs
The 5 Ps of product, price, promotion, place, and people are the holy grail of business for retailers and consumer packaged goods (CPG) enterprises.
What are the five requirements for a successful retail business? ›
Top 5 Principles of Successful Retailers!
- Principle 1 - Customer is VIP.
- Principle 2 - Retail is Detail.
- Principle 3 - Understand the 4 P's.
- Principle 4--Go The Extra Mile.
- Principle 5-- Location, location, location.
There are seven in-store retail marketing strategies you should think about using if you have a brick-and-mortar retail store.
- In-store merchandising.
- Window displays.
- Curbside displays.
- Staff training.
- Partnerships and collaborations.
- In-store or virtual events.
- Referral and loyalty programs.
In 1927, Paul Mazur defined retail product merchandising as the five rights of merchandising: 1) the right merchandise, 2) in the right quantities, 3) at the right time, 4) at the right price, 5) in the right place.
What are the 5 F's of retail? ›
What are the Five F's of Retail? Fashion, Fitness, Food, Fun, and Furniture.
What is the 5S retail? ›
The retail price tag is set at $220 USD. UPDATE 10/27: Originally set to release November 7th, Nike confirms that the “What The” Air Jordan 5 will launch November 12th for $220 USD via SNKRS. UPDATE 10/19: Nike releases official photos of the Air Jordan 5 “What The” releasing November 7th for $220 USD.
What is the 5S system in retail? ›
This lean method encourages workers to improve their working conditions and helps them to learn to reduce waste, unplanned downtime, and in-process inventory. 5S is a cyclical methodology: sort, set in order, shine, standardize, sustain the cycle.
What are the 5 P's? ›
The 5 areas you need to make decisions about are: PRODUCT, PRICE, PROMOTION, PLACE AND PEOPLE. Although the 5 Ps are somewhat controllable, they are always subject to your internal and external marketing environments. Read on to find out more about each of the Ps.
What are the 4 C's of retail? ›
The 4 C's of Marketing are Customer, Cost, Convenience, and Communication.
What are the 4 basic retail rules? ›
The four gold standards of retail marketing are product, price, place, and promotion.
The three most important items to consider in retail strategy that factor directly into value are pricing, location, and merchandise (see Figure 18.10). Because retailers sell goods and services often produced by another company, communication with channel members is another important topic.
What are the five 5 selling strategies? ›
5 winning sales strategy examples
- 1) Solution selling. In the realm of Solution Selling, we focus on the customer's pain points rather than our product or service. ...
- 2) Value-based selling. Next up is Value-based Selling. ...
- 3) Relationship selling. ...
- 4) Consultative selling. ...
- 5) Social selling.
Steps of Retail Strategy Planning
- Objective Setting.
- Situational Analysis.
- Customer Analysis.
- Tactical Planning.
- Implementation and Control.
Philip Kotler, the five stages (Awareness, Appeal, Ask, Act and Advocacy) allow marketing and sales professionals to create a map of the customer's needs and priorities during the different parts of their purchase process.
What are the 5 dimensions of retail? ›
After conducting the test, 20 items were reduced to 14 items, and 6 items that didn't meet the necessary criteria were removed. Finally, a new scale was developed to measure the service quality with 5 dimensions responsiveness, reliability, tangible, assurance, and empathy for higher education.
What are the 4 pillars of retail? ›
These pillars serve as the foundation for creating a positive shopping experience and maximizing customer satisfaction.
- Here are the four pillars:
- Product:
- Price:
- Place:
- People:
