Adapting will continue in subsequent Informer issues with various topics of how the recent changes in the market, economy and retail world are affecting your business. This is the second of the series by Evan Wise.

The Adapting article in last month’s Informer dealt with the need to identify your niche and then market to that niche. To achieve that, you have to identify the customers who you serve and stay true and meaningful to them. In the past, retailers concentrated on merchandise as the driving force for the store, but now the driving force must be the customers. Learning about customer preferences, culture and lifestyle must drive the buying process. As a retailer, you must be meaningful to customers and stand for something to them. That means you must be targeted, focused and consistent. Marketing data collection and gleaning the right information and conclusions must be at the heart of the decision-making and buying processes. Merchandise planning that focuses on sales forecasts driven by customer choices and actions is the only way to satisfy customer demands while providing cash flow and profitability.

Learning about customers must be part of the culture, job descriptions and habits of sales staff too. POS systems are now more sophisticated in managing customer data but they can only work if the data is entered consistently and accurately. These POS systems can help retailers match merchandise preferences to the customer to whom it relates. This foundation of information is absolutely essential for the independent retailer as the concept of mass marketing gives way to the trend toward personalized marketing.

Communication between buyers and sales staff must be open, frequent and meaningful. One mantra used by Management One® is that you can only improve what you measure. Your POS system should have the capability to measure a lot about your customers and their purchases. The ability to target market to your customers better than your competitors depends on the full utilization of that capability.