Retailers profiting with streamlined eCommerce Software in this subdued economy
Despite many analysts claiming the recession is over and asserting that the economy is making a grand recovery, customers still seem to be thinking twice before making any big purchases. For retailers, this presents a significant challenge, as meeting financial forecasts relies heavily on the ability to create merchandising strategies that will effectively engage customers and convert sales.
Focusing on efficient eCommerce Software in times of a down economy
New reports from Harris Interactive and AlixPartners both found that people are spending less money when and where they can. Compared to a year earlier, Harris found that people cut back on small-ticket purchases in 2013 and made more measured purchases instead of buying products on impulse.
The AlixPartners survey found that approximately seven in 10 American adults plan to be more careful with their spending across a variety of different categories, from personal care products to clothing. Subdued shopping habits tend to be closely tied to consumer pessimism about the recovery of the economy.
At the time of the survey, approximately 47 percent of Americans surveyed believed the country’s economic situation was either “not good” or simply “bad.”
According to AlixPartners, businesses can still pull a profit in this environment by streamlining eCommerce operations. Wasteful practices exist in many places, and better use of eCommerce software can go a long way in eliminating redundancies and improving efficiency. By operating a leaner ship, retailers can make the most out of each individual sale.
“[Businesses are] creating value by pulling on key levers available to them, including advanced product- and pricing-profitability techniques, targeted data analytics, flexible and responsive supply-chain strategies and, of course, talent acquisition and development,” explained Fred Crawford, CEO of AlixPartners.
“In today’s low-growth world, no stone can be left unturned in the search for value.”
Of course, retailers can take other steps with eCommerce software to incentivize and encourage customers to make more purchases. Discounts and sales can be executed with intelligent data to help merchants pique the interests of shoppers and at least get them shopping online and browsing products.
Moreover, sales don’t have to be costly if retailers have greater insight into their inventory management operations. With eCommerce software they can identify which products aren’t moving and should be discounted, develop merchandising strategies, craft relevant product bundles or execute just-in-time inventory to reduce risk while also satisfying customers.