3 Proven Marketing Ideas to Generate Cash NOW!!
Guest Article by Ritchie Sayner, M1 Retail Expert
This is an ideal time of the year to build customer loyalty, show appreciation, and drive additional revenue. These are successful ideas and I want to thank Ritchie Sayner, my colleague and friend for writing this week’s blog post.
- Marc Weiss, Co-Founder of Management One
If you are an indie retailer looking to end the year strong and generate extra cash flow during the holidays, here are 3 easy-to-use and implement marketing ideas worth considering.
Customer reengagement strategy
Run a list from your POS system of any current customer who has not purchased from you in over 6 months and send them a light-hearted email with the words… “We Miss You” in the title. Explain that you have noticed they have not been in the store lately and you wanted to make sure they knew all the great new lines, remodel projects, new locations, events, etc. that may have changed since they were last in. Include a coupon with no restrictions, exclusions, or minimum purchase required. The amount of the coupon is up to you, just make sure it is an amount perceived to be of value, perhaps something in the $20-50 range. Remember the purpose is reengagement of past customers. Put a short expiration date in which to use, which of course you will make an exception for if they exceed, as a call to action. As the saying goes, “You gotta give to get.”
Another version of this email might include the title “Are You Unhappy With Us?”. Perhaps there IS a problem. Maybe they received bad service or felt slighted the last time they were in. Hey, things happen and we’re all human. It’s best to find out what the problem is so that it can be addressed. Provide your contact information and encourage them to reach out to you directly so the issue can be handled.
2. Take markdowns to move slow movers NOW
If your planned turnover is 4 or higher, review ALL merchandise that has been in the store longer than 90 days. This should include any complete-size runs of current styles that were timed properly. It might be great merchandise, but for whatever reason it’s not working and needs to go. Mark it down at least 50%. Be sure to include all broken size runs, single sizes, poor-fitting or discontinued styles, and vendors you are not going forward with. Adjust the length of time in stock based on your retail vertical and planned inventory turnover. For example, a store that is planned to turn 3 times might look for problem merchandise older than 120 days in stock. A store turning 5 times might review anything not performing that is over two and a half months in stock.
3. Customer Appreciation
Sort your entire customer list, starting with the customers who spent the most to the ones who spent the least. Let’s say you have 1000 customers on your list. Let’s also assume that 3 customers spent over $10,000 with you this year. (Don’t you just love these people?) Your breakdown might look something like this:
Send a personal mailed letter to the top groups thanking them for their past patronage, support of local businesses, and how much their business means to your small business. For your top customers, consider sending a unique gift. This demonstrates that you spent time thinking of them. In addition, include a gift certificate with the letter in the denomination earned. Don’t you think a customer who has spent over $10,000 with you in a year is worth $300, which costs you about $125 and only when redeemed? I do. You should personally sign the letters. The remaining majority can be emailed to save postage.
Again, put a tight use-by date to encourage immediate action, which you will naturally make an exception for. Be sure to mention this can be used on anything, no minimum purchase required. After all, this is a customer appreciation letter. The rate of return is exceptional and way above average. The goodwill generated is beyond belief. Be sure to track how much is sold to each customer when the certificate is redeemed. Most customers spend way more than the amount on the certificate.
The next few weeks are crucial for most retailers. These strategies are designed to help you create CASH now! Remember, nobody ever went out of business because turnover and cash flow were too good, but several stores have closed their doors with good margins on their P/L statement.
— Ritchie Sayner
If you have any questions or feedback, please let us know in the comments section below. Ritchie Sayner, is a seasoned M1 Retail Expert with a remarkable 44-year career and a talent for helping retailers succeed through deep data analysis. Ritchie has authored a stellar book on retail and regularly contributes educational material to our partners at the National Shoe Retailers Association.
Would you like to understand how to implement Ritchie Sayner's inventory management strategies in your business? Reach out to him directly via email.
You can also contact Management One directly for more information. We are always happy to discuss your results and share solutions for you and your indie retail business.