The dynamic retail environment depends on how well a retail company identifies and understands its customers and forms its business strategy to appeal the consumers’ characteristics, needs and attitudes. Each consumer segment has its own value equation and shops accordingly, Retailers must examine consumers on different levels to identify and understand the target market and generate relevant business strategy, The consumer demographics consists of gender, age, population growth rate, life expectancy, literacy, language, house hold size, marital and family status. All the above factors affect retailing. A retailer should acknowledge such factors and trends to generate business from the store.
Consumer lifestyle are based on social and psychological factors and influenced by demographics. The developing target market profile the retailer should identify his key consumer for retail perspective understanding his basic shopping requirements. Consumers today spend proportionately less on basic necessities compared to last decade.
Acknowledging the lifestyle of the consumer with a broader spectrum, a retailer can transform target consumer needs into true competitive advantages.
Demographics and lifestyle:
The interest rate of shopping differs for every individual, women and men of their area of interest decides the purchase activity. The retail consumers are more knowledgeable in trends, service and pricing hence it is very important to a retailer to maintain these at the optimum level, failing of such service and merchandise would lead the consumer to migrate. The major success of retail depends on how many hours you engage your consumer in your store.
Driving consumer to our store and increasing footfalls is the big agenda in between the retailers for which they adapt Commercial advertisement, Store Display and Visual Merchandising; these factors create a physical drive of the consumers.
Each customer segment has its own value equation and shops accordingly. Understanding what drives different groups is critical but it is essential to create an experience and product offering that satisfies their individual value equations.
Identifying shortage and unfulfilled desires:
The quality of retail strategy depends on how well a firm identifies and understands its customers and forms its strategy mix to appeal to them.
Positioning of its merchandise in the retail arena should have a value addition in service or in the product itself. Effective analysis of buying behavior and taking regular feedbacks from its consumers will make him understand the shortages and desires of the customer.
The act of Purchasing:
For a retailer the purchase act may be the most crucial part of retailing which involves the three main criteria
o The place of purchase
o Price and payment method
o Available Stock
The purchase transaction is important as it is the last impression the customer has of that purchase situation. Ease of purchase, lack of queues, credit facilities, and treatment of sales personnel, efficient handling of problems, comments or complaints can make the last impression.
The after care makes much more difference because the consumer wants to ensure that he has taken a right decision which can be even a phone call, a service visit, or email, etc. which is nothing but the secondary sales, 50% of the retail consumers shop at a store where they get long lasting service.