Retailers need customers to survive. To a lesser extent, customers need retailers, though the law of supply and demand greatly works against the physical retailer today. The cost to obtain a new customer is nearly 5x what it costs to retain one, thus retailers should work emphatically to ensure that they retain their customers (who are also 40-60% more likely to purchase something than a new customer).
While shopper retention techniques are evolving – retailers should also be aware of what causes them to lose customers and come up with innovative ways of ensuring they stick around and tell their friends and family about your store.
A recent study by PlanetRetail outlines some of the top responses from customers about why they refuse to shop at certain establishments:
- The largest primary contributor to failed customer retention is inaccurate prices in the entire omnichannel presence – retail, promotions, social media & web. With traditional techniques, accurate and uniform pricing can be tricky. With ESL’s – one database automatically updates all sources automatically – greatly simplifying the procedures retailers must make and allowing more time for staff to concentrate on sales.
- Customer’s demand personalized shopping experiences and the ability to be recognized as a loyal shopper. Retailers who forego loyalty programs and fail to provide opportunities for individualized shopping through store-apps and direct-to-consumer marketing are missing opportunities to save their customer base.
- Drab, dry stores with no character are not impressive to customers. Psychological studies indicate that your customers are highly influenced by implementing a proper color pallet for your demographic, and following up with well merchandised stock. ESL’s can help by providing a “wow” factor that most stores simply don’t have.
- When a customer is interested in learning what sizes of shoes you have in stock, or what color widgets are on the shelf – they only wait so long before getting annoyed that there is no staff to assist them. 29% of consumers state this is a dealbreaker altogether. Realizing that labor costs are one of the most expensive line-items on your P&L, implementing a shelf-edge technology to communicate back-stock details and variants is a great way of letting the customer self-shop and minimize staff interaction time.
- Customers want more than just a price on the shelf-edge. They want reviews, stock, time-left-on-promotion, information and other key metrics – displayed right on the tag. If retailers give customer’s this information, they are less likely to pull out their phone and spend their money elsewhere.
- Paper price tags are static. Consumers have no clue how long a tag has been installed and whether or not the retailer is being competitive in their pricing. ESL’s give a renewed sense to customers of frequent updates and knowing that a retailer is always being responsive to competition in offering the best item at the best price.
- Customers tend to shop online and then migrate to a physical store to make a purchase. When that product is missing from the shelves, more likely than not they will just order online and leave dissatisfied. Savvy retailers can utilize ESL’s to allow consumers to scan a QR code, display approximate shipping time and fulfill an order while they are still standing in your store.
Though not a solution that can solve every single dilemma retailers face when analyzing lost customers, there ARE significant advantages to utilizing Electronic Shelf Labels. We encourage you to contact us to learn more today.