Retail employees should toss out the script to create more personalized interactions

For some consumers, visiting a brick-and-mortar location to find the products they are looking for is a fast and easy process. They enter the store, get the item, pay for it and are out the door in minutes, many times without ever talking to a sales associate. For other patrons, however, the in-store experience is something they want to spend more time on, and these individuals often seek out employees to get answers to their questions.

For this reason, retail workers need to be prepared to provide more personalized and detailed interactions with shoppers if they want to boost brand loyalty and revenues. The Sydney Morning Herald noted that in the past, businesses often had a script that employees were encouraged to use when talking to patrons. Now, with the emergence of new channels and changes in consumer demand, retailers need to throw out this script and focus on motivating sales associates to offer more personalized communications, the source asserted.

To do this, brands can follow a few steps. First, the news source recommended that instead of hiring candidates based solely on previous retail experience, companies should also look at how well potential employees interact with others. Next, merchants can keep a constant look out for people who have excellent communications skills, That way, when a job opening arises, they could already have someone in mind.

Retail employees should toss out the script to create more personalized interactions

For some consumers, visiting a brick-and-mortar location to find the products they are looking for is a fast and easy process. They enter the store, get the item, pay for it and are out the door in minutes, many times without ever talking to a sales associate. For other patrons, however, the in-store experience is something they want to spend more time on, and these individuals often seek out employees to get answers to their questions.

For this reason, retail workers need to be prepared to provide more personalized and detailed interactions with shoppers if they want to boost brand loyalty and revenues. The Sydney Morning Herald noted that in the past, businesses often had a script that employees were encouraged to use when talking to patrons. Now, with the emergence of new channels and changes in consumer demand, retailers need to throw out this script and focus on motivating sales associates to offer more personalized communications, the source asserted.

To do this, brands can follow a few steps. First, the news source recommended that instead of hiring candidates based solely on previous retail experience, companies should also look at how well potential employees interact with others. Next, merchants can keep a constant look out for people who have excellent communications skills, That way, when a job opening arises, they could already have someone in mind.

In-store experiences and technology getting more focus from retailers

A significant number of people are now shopping online, as they prefer to browse for and buy merchandise from their computers, smartphones or tablets. However, that doesn't mean that brick-and-mortar retail locations are getting any less attention – in fact, many merchants are implementing new strategies and technologies to make in-store operations more efficient and enjoyable for patrons.

Chain Store Age reported on some of the trends that are emerging within physical storefronts, one of which is companies putting more time and effort into developing more personalized service and interactions. This is being done in the hopes of generating brand loyalty, the source explained. Retailers are also thinking of ways in which they can use mobile applications and social media channels to drive brick-and-mortar foot traffic and boost sales. Businesses are interacting more with consumers through these mediums, and this approach is drawing in more people to stores.

Another method that merchants are following is utilizing big data analytics platforms for their operations, the source noted. To determine which elements keep customers coming back to brick-and-mortar locations, companies are adopting retail management software to give them more insight into what their customers want and need in terms of the in-store experience.

Retailers can create happy customers through engaged employees

Keeping customers satisfied is a goal that all retailers aspire to. There are many strategies and methods that merchants use to make their patrons happy, but perhaps one tool that many businesses may not know can help in this regard is their employees. Having engaged staff members means that more effort is put into answering customer inquiries and quickly resolving issues, ultimately leading to higher patron retention and loyalty.

Many retailers have boosted their hiring efforts recently, which gives them better opportunities to develop engaged workers that help with customer satisfaction. Chain Store Age reported that recent data from the National Retail Federation showed that U.S. retailers added approximately 28,000 jobs throughout June, an indicator that strong growth for the industry is on the horizon.

So how can merchants successfully engage new and existing employees to spur customer satisfaction? Retail Week suggested that properly training staff members on what behaviors are expected of them and how to effectively deal with patrons is the first step. Additionally, the source recommended frequently updating workers on new consumer trends and demands so that they can be proactive in responding to customer inquiries and issues.

Decline in retail vacancies points to improving industry

Shopping centers and other commercial properties around the United States are seeing a decline in vacancies as retailers move to open up new locations. This is indicative of an improving retail industry, as merchants regain their confidence that was lost during the economic recession and consumers boost their spending levels.

The Wall Street Journal reported that, according to data from real estate research firm Reis Inc., the average U.S. retail vacancy property rate fell from 10.6 percent in the first quarter to 10.5 percent in the second quarter. While this isn't a huge drop, it is the lowest average figure in more than three years, the source explained. As for the nation's shopping malls, the average vacancy rate also decreased from 8.9 percent in the second quarter of 2012 to 8.3 percent at the end of last month. This represents the lowest figure in four years, the news source noted.

The Reis Inc. study's findings coupled with the recent rise in retail sales in May is pointing to a strong recovery for the retail industry. During the economic recession, many merchants were forced to scale back their operations and cut their workforces all while offering affordable products for consumers who were more budget-conscious. Although full recovery has not yet happened, increasing optimism and the opening of new retail locations is welcome news for the U.S. economy.

Help retail employees follow their career goals

Many people have the goal of working within the retail industry – these individuals are dedicated to customer service, promoting the best products and services possible and watching their businesses grow. However, if retail employers are not taking the time to help their staff members follow their ideal career paths, merchants could see employee satisfaction go down the drain.

At the recent National Retail Federation Loss Prevention Conference & Expo, several industry experts discussed what businesses can do to retain their top talent. Ramon Jara, the regional director of loss prevention for Sears Holding Corporation, told attendees that in order to keep workers satisfied, employers must make sure the plans they have for their employees matches the workers' individual career aims. To do this, Ramon recommended that retailers frequently assess their staff members and ask workers to evaluate the company to pinpoint areas of improvement for both parties. In addition, he suggested that holding regular meetings is beneficial, as it allows employees to voice their opinions and concerns, giving merchants the chance to propel both their staff members and operations toward growth.

Ensuring that workers are satisfied and have a way to submit their feedback are some one of the most effective ways that retailers can retain their top talent.

Developing markets becoming more of a focus for retailers

Retailers often start out with one location that caters to local consumers. Once this storefront is successful, merchants make the decision to expand to new regions in the hope of capturing new business and offering products and services to additional audiences. Sometimes, opening more stores in their domestic markets is not enough for companies and they then enter foreign regions to reach consumers in these areas.

Now, a trend has emerged among American retailers – many are deciding to focus on developing countries as part of their expansion to new markets. While some merchants may be hesitant about opening up in these types of regions, the fact is that many brands are seeing success as these markets are proving to be lucrative for their operations.

South American retail is growing
According to the latest Global Retail Development Index by A.T. Kearney, many U.S.-based companies are making the move to developing countries, with South American markets being a particular focus for many brands. Nations like Brazil, Chile and Uruguay are especially valuable for merchants that want to expand, as these three countries made the top of the index lost. Brazil garnered a score of 100 on market attractiveness, while Chile received a 95.6 and Uruguay got a 92. These regions are still developing, but for retailers that want to try new markets, these were found to be the most lucrative.

China ranked fourth on the Global Retail Development Index, but its market attractiveness score of 62.1 was significantly lower than that of the top three South American nations. However, China has rising consumer demand for a variety of products and services, so opening up new locations in this region could prove to be successful for many brands.

European retailers hesitant about expansion
While American merchants are eager to expand to foreign markets, those in Europe are still showing signs of hesitation when it comes to launching operations in new countries. ChannelAdvisor reported that although many retailers have developed plans for expansion in the coming years, a majority feel that their domestic markets present the best opportunities for their operations. There are several challenges related to expansion that European brands are facing, including various government regulations and currency issues.

To overcome these obstacles, companies can adopt a retail management software solution that processes all payment forms and currencies as well as serves as a single platform for all operations, both domestic and in new markets.

Retail industry continues to add jobs in May

The employment numbers from the past few months have shown strong growth throughout the nation as businesses regained their confidence following the economic recession and picked up their hiring efforts. One sector that has been contributing to this improvement is the retail industry.

According to the U.S. Labor Department, retailers across the country added approximately 28,000 jobs to their payrolls in May. Home Accents Today reported that this figure was part of the 175,000 positions created during last month. Merchants could be bringing on additional workers to help deal with the expected influx of customers that normally arrives with the summer season, as shoppers stock up on merchandise for the warmer months.

May's retail employment figure was slightly less than that of April, when the industry added approximately 29,000 jobs to the nation's economy, the Labor Department reported. The National Retail Federation stated that these gains were exciting for the sector, which saw less-than-stellar employment in March and the beginning months of 2013.

The most recent numbers indicate rising confidence among merchants as they realize they have the means to hire more workers to handle increases in sales in the coming months.

Several factors worth considering when choosing new retail location

Whether it's an established retailer or a merchant who has decided to launch a business, choosing the right store location is a vital tasks that all businesses face. Scoping out a region, determining how big a storefront should be and picking which products to offer are all aspects that companies have to consider when opening a new location.

Entrepreneur Magazine offers some suggestions for retailers that are choosing to launch a new storefront. Knowing what local laws and regulations they must adhere to is essential for merchants. While some businesses may have brick-and-mortar locations in other regions, rules and legislation differ, so understanding which ones must be followed is vital. The source recommends that taking the time to analyze target audiences and determine a location that caters to these potential customers is important when choosing a new store. In addition, implementing options such as elevators and ramps for wheelchair-bound patrons or parents with baby strollers are elements that need to be thought about, the source writes.

Once a new storefront has been chosen, merchants can measure how well their brick-and-mortar locations are performing with solutions like retail management software. These platforms give businesses the ability to gain further insight into their operations so that necessary changes and improvements can be made.

Multichannel strategies not a strong point for many retailers

When consumer demand changes, many merchants know their own methods and operations must be altered to keep up with these new wants and needs. This has been seen with the emergence of credit and debit cards, as businesses quickly adopted point of sale systems that accepted plastic. Ecommerce is another aspect that merchants implemented in a timely manner, as shoppers preferred to go online to browse for and purchase items. However, a new trend is not being given the same level of attention as  past ones – multichannel strategies. As consumers take to the Internet, visit brick-and-mortar locations and interact with brands through their mobile devices, retailers are going to have to streamline their processes to accommodate patrons through every available channel.

Big-name retailers missing multichannel methods
According to a recently released study by SD Retail Consulting, many larger merchants in both the United States and the United Kingdom are missing the boat on multichannel strategies. PYMNTS.com reports that of the companies surveyed, 80 percent are not currently offering training opportunities for their employees on how to provide service and communicate effectively with shoppers who are using multiple channels. This means that retailers could be missing out on the chance to boost patron loyalty and retention as they are not meeting their customers' needs for multichannel operations.

Once factor highlighted by the research which shows the lack of multichannel strategies was businesses' response to mobile commerce. SD Retail discovered that a mere 18 percent of merchants have implemented mobile point of sale solutions despite the growing popularity of smartphones and tablets being used for shopping purposes.

"The largest retailers must examine every customer touch point and how they play their part in creating that seamless customer experience," states SD Retail President Antony Karabus. "For the minority of retailers who are successfully transforming their store environments, the rewards will be substantial."

Go from one to many
So how can merchants increase their focus on multichannel operations to improve customer loyalty? IMediaConnection suggests that retailers first start by ensuring they have the right technology and tools in place to support multiple channels. This includes retail management software and POS systems that accept all payment forms. Also, offering loyalty programs through all channels as well as incorporating mobile strategies are other effective ways to become a successful multichannel company, the source notes.