Presented by: Renee C. Tacka, DBADoctorate of Business Administration - Wilmington University

Assistant Professor, Graham School of Business - York College of Pennsylvania Former Regional Advertising Sales Director

Source: Meyers, A. (2020, April 10). When Consumers Say They'll Feel OK About Dining Out And Other Activities.

Two main purchase considerations:

◦Needs: To get them through each day◦Wants: To make them feel better or escape

Maslow’s Hierarchy of Needs categorizes consumer motives

◦ Creates a level of importance or prioritization◦ Lower-Level Needs v. Higher-Level Needs Physiological – water, sleep, food Safety – security, shelter, protection Love/Belonging – friendship, acceptance Esteem/Ego – prestige, status, accomplishment Self-Actualization – self-fulfillment, enrichment

Work to align the business with the need

Consider both your marketing and sales strategies Marketing strategy: a long-term view of an organization’s

marketing mix objectives (product, price, promotion, and place)

Sales strategy: short-term initiatives that focus on how to communicate with customers and prospects to drive product sales

Focus on the future of “normal” shopping◦ Make customers feel safe - clean and organize the store Make space for social distancing to ensure comfortable shopping Make hand-washing or sanitizing readily available Eliminate “community” product displays to reduce contamination Communicate state guidelines for masks Have contingency plans for non-compliance to minimize customer discomfort

Do inventory and analyze past sales data YoY analysis for sales volume by category/product, margins by category/product

Incorporate alternatives to in-store shopping◦ eCommerce via website◦ Curbside pick-up◦ Utilize alternative shipping / delivery options

Consistently offer alternatives to in-store shopping Build CRM strategies using customer lists for direct communication Evaluate your marketing mix (4 Ps)

These long-term initiatives will position you for success in the next 12-18 months

Product – analyze current product mix◦ Identify necessary (need) vs. ancillary (want) items◦ Track margins and mid-high volume sales items◦ Reduce existing inventory, especially in low-volume sales items

Price – plan for recessionary spending◦ Consumer price consideration will increase◦ Retailers with low/affordable price positioning will prevail◦ Evaluate your position and leverage your strengths

The 4 Ps drive all organizational decisions

Promotion – communication plans are key◦ Tell the market “you’re open!” with modified hours or alternative shopping

(online/ship-to-home, curbside pickup, appointments)◦ Reinforce “local” and your support for the community◦ Advertise on high-traffic, local news sites◦ Start blog or newsletter to connect with customers◦ Use social media for lead generation to grow customer base

Place – sell through other channels◦ Create/redesign the website so it is user-friendly and built for eCommerce◦ Partner with open businesses to increase distribution options◦ Use third-party partners (Amazon, eBay, Etsy)◦ Sell through social channels (FB MarketPlace, Instagram, Pinterest, YouTube)◦ Build a subscription service / auto-renewing program

The 4 Ps drive all organizational decisions

Implement or remind about gift card programs◦ Use regular (plastic or printed) or digital cards◦ Offers an opportunity to drive revenue today for purchases “tomorrow” ◦ Great opportunity to promote as gifts for others that are in need ◦ Allows the receiver to spend the money as needed◦ Important to understand how to manage/report/track in your POS system

Use alternative sales methods to in-person shopping◦ Simple eCommerce for online shopping Simple options – WIX, Weebly, Shopify, Squarespace, LNP Media

◦ Shop by appointment to manage customer experience with reduced traffic◦ Curbside pick-up◦ Home delivery using existing employees or third party (if available)◦ Partner with open businesses that align with sales goals/objectives Negotiate for a kiosk or central location to sell key items Identify a high sales volume or high margin product/category to feature

It’s all about “the cash”! Short-term initiatives drive revenue in the next 3-6 months

Create a Pre-Order Strategy◦ Use for popular products that are in inventory or on back order◦ Reserve space for upcoming events – especially those later in the

summer

Create a loyalty program or a subscription service◦ Creates a regular connection with customers◦ Increases opportunity for repeat purchases◦ Customer referral program – offer a sales promotion for new

customers referred by existing customers

Reduce inventory for under-performers◦ Don’t let your cash be tied up in “unwanted” inventory – be creative to drive

sales◦ Create new packages using multiple, low volume products◦ Bundle with other, relative, high-selling products◦ Price to SELL, but don’t give away – utilize discounts, coupons, time sensitivity◦ Clearance items (deeper discounts) that are off-trend and not in-demand Find balance between demand and customer’s internal price to make $$$

Update your website ◦ Include eCommerce for online shopping◦ Make sure UX is: Functional – works well, easy to navigate, simple, useful Creative – looks engaging, compelling content Choose pictures that reflect today’s normal

◦ Should be responsive design to adjust to any sales environment (PC, Mobile, Tablet)

Ultimate goal: create “new-to-you” products/packages that engage consumers in new ways

◦ Social Gaming / Entertainment Virtual bingo, music parties, book club/ reading group◦ Personal Wellness / Pampering Enhance personal space (sell linens), spa time (beauty items, relaxation)◦ Food / Dining Meal packages, recipe swap, cooking lessons◦ Enrichment Teach new skills: crafting, cooking, drawing, learning/reading/ education

Bringing people together ◦ Engage new audiences with entertainment Host bingo – retirement community, fire halls Sponsor music / concerts – new and/or past events Sponsor theater events – new and/or past events Host games / sporting events

◦ Support local needs giving back to the community donating time/money/products/services partnering with non-profits

5/11/20 Expand Your

Business Reach

There’s no rule book – those that think fast, smart, and like a consumer - will be most likely to succeed.

Upcoming Sessions:

5/18/20 Reinforce Your

Community Connection

Renee C. Tacka, DBA www.linkedin.com/in/reneetacka