Consumers are much adverse to traditional branding and marketing messaging. Traditional marketing avenues – print, radio, and television – have lost their dominance in the last decade as the use of the Internet and new social media has exploded. The time spent by public on the Internet has risen more than 25% year-over-year.
To succeed today,the merchants should know the importance of new technology and more about the base of marketing and its strategies. Sales,revenue and profit are the main words that we keep in mind to plan sales strategies to strike the right balance for our business’s needs.
Sales,Revenue, Income and Technology
The words “sales,” “revenue” and “income” have different meanings and each needs its own strategy. Although the tactics for each might be different, they should complement each other. Every business should want to increase their profits. Profit is the main target of retailers in their businness. Inorder to increase profit ,we want to increase the sales and revenue.The main stratagies to boost sales and revenue in a business are Increasing marketing,Review pricing strategies,Diversify offering. And also with help of technology like developing relation through social media and Expanding distribution channels. It perform a careful study of the effects of using online selling, direct mail, wholesalers, retailers, distributors and outside sales reps to project how each strategies can increase sales volumes.
Another strategy to boost sale is advertisement. Advertising increase sales statistics in the business world by enabling sellers to effectively compete with one another for the attention of buyers. Advertising and sales promotion designate different parts of a business’s marketing strategy.While both can potentially affect revenue, sales promotions have a direct connection to the income that business brings in. Fact shows that retailers earn more profit from digital media tools. Hence they spending more on new technology to impress shoppers and making their shopping more profitable.
Retailers invest in Tech- A trend analysis
According to Salesforce study, Black Friday is expected to be the biggest online shopping day in U.S. The retail sector become more effective in bountiful holiday seasons and some shoppers start their shopping before the season.
The question is on whether wholesalers and retailers should invest in technology in order to make their sales more easy and profitable rather than focusing too much on hiring more staff and adding more inventory to help them cope with peak holiday demand.
As a conventional approach, the first activity done by retailer for a effective sales is to hire more people and add more inventory. According to the survey conducted by Brightpearl, reveals that out of 350 senior retailers , 53% believe they can remain competitive by simply hiring extra staff and 40% believe that they can increase inventory significantly to cope with peak periods.
As per this study , Retailers hire an average of 98 full-time seasonal staff to manage busy sales. While the top 50% hire approximately 190 holiday staff members. Both of these solutions can be costly in their own ways. Study shows that the retailers spend an average total of $312,816 for seasonal staff based on an average minimum wage of $7.98 at 40 hours per week.
On the other hand as a paradigm shift, about 58% retailers and wholesalers currently invest in technology to manage sales spikes. Also 38% were adopt a new technology solution to make their inventory process more effective and sales more profitable. Some ways to leverage technology are as follows.
- In store robots
- Leaving current holiday strategies
- Internet of things concept (IoT for ecommerce)
- Investing in management technology
By following this ways,wholesalers and retailers make the holidays a bigger profit center — without incurring the costs.
Marketers, advertisers, and merchandisers have had years of experience in the physical world to learn what works, what draws prospects to a product, and how to persuade them to purchase. However, techniques that work in the physical world must be adjusted to be effective in the digital marketplace and help to make it a record sales for upcoming days.
Recommended Reading : How to handle Holiday spike : by technology or on-boarding more sales staff