Money is flowing in America today: GDP is growing; deregulation has freed up corporate cash; and with the crash of the late 2000s all but a distant memory, consumers are finally spending again.
For retailers, that is great news—and it couldn't have come at a better time. According to the National Retail Federation, sales during the holiday season can account for up to 30% of retailer revenue. With the end of the year looming, retailers must gear up to take their share of a massive pie, both now and in the long run.
Consumers don't just have money to spend only today, though; they expect to have more cash in the long run, too. Retailers need to both make sales in the current bull market and engender consumer loyalty so they can continue to enjoy those profits in good times and bad.
The following five tips can help American retailers make the most of this upswing in the US economy.
1. Identify your best customers
Consumers exhibit different purchasing behaviors at different stores. Some people buy only sale items from one place but pay high prices for top-shelf items at another. Figure out which customers are willing to pay face value for your products, and then focus on getting more of those customers on your site and in your store.
Lean on data, not intuition, to optimize marketing with your top customers. A/B-test different messages to see which ones resonate most strongly with your target audiences. Use that feedback to target your most profitable segments until you have even more visitors who are ready to spend.
2. Differentiate your brand
Take the first step (it's free).
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