Business changes and competitive landscapes are shifting faster than ever before. Since the onset of the COVID-19 pandemic, the rate of change has accelerated due to the rise in mobile apps, ubiquitous loyalty programs and third-party delivery.
The convenience store industry has changed dramatically over the past 25 years, but the developments over the past three years have been transformative. These changes are ongoing, mainly as artificial intelligence (AI) is integrated into retail marketing strategies nationwide.
To identify emerging trends, be prepared to regularly monitor your competition across the convenience store industry and other retail channels, such as grocers, quick service restaurants (QSRs) and drug stores. Choose wisely as you invest in the areas that best fit your brand and will be valued by existing and prospective customers.
Business managers must determine how to apply procedures to improve the possibility of overall success and minimize risks of failure. The manager must be prepared to examine their personnel, processes and goal setting to extract the most from their business planning activities.
Even when you have your plan in place, things can go awry. Terry Monroe, president and founder of American Business Brokers & Advisors, has seen it all over his 30-plus years in the retail industry. He has been involved in selling more than 800 businesses and serves as an advisor and consultant for convenience stores. He has helped craft marketing plans at dozens of chains.
Monroe said that marketing is vital to convenience stores, but it isn’t easy, and despite spending countless hours and resources crafting a marketing strategy, it can still fall flat.
The definition of a failed marketing campaign is undoubtedly subjective, but if you see no significant impact and your return on investment (ROI) isn’t cutting it, then it’s time to get back to the basics.
Monroe offered four tips for convenience store retailers looking to ignite their marketing strategy.
Think Like a Customer. Your campaign may have seemed bulletproof initially, but if you see less than great results, it’s time to think less like a business owner and more like a customer.
As a customer, Monroe said, consider what issues may have caused you to react negatively, or not at all, to this marketing strategy. Was the targeted audience too broad? Was the messaging not powerful enough? Consider specifying your target demographic and redirecting your message to fit that audience.
Make it Memorable. Thanks to social media, consumers are constantly bombarded with ads and offers from countless companies vying for their business. According to Monroe, this means your marketing may have gotten lost in the noise by failing to stand out and grab someone’s attention.
So, check if your campaign is similar to others that launched around the same time. You may need to return to the planning phase to differentiate your message from your competitors.
Amp Up the Offer. Customers love being rewarded for their loyalty. Gifts, special sales, discounts and other incentives are reasons a potential customer will engage with your business, but if the offer isn’t valuable enough, they will ignore it.
Whatever desired action, Monroe said, you want your clientele to take, you need to ensure they’re receiving enough in return.
Evolve and Adapt. If none of these approaches work for you, Monroe said it is advisable to start fresh. Take a new route and use the new information you’ve learned after evaluating your strategy’s results. Don’t consider this marketing strategy a failure but a learning experience that will help you build more effective campaigns in the future.
Learn from your mistakes, and you can return stronger and better than ever.
Business planning is the road map identifying where you are headed in advance. As importantly, it also identifies roadblocks in advance. Your business plan should provide a common vision supported by tactical initiatives that ultimately create greater value for your company. It may seem daunting, but knowing your vision and its corresponding financial targets will give you a better chance at getting there and avoiding traps in advance.
Elie Y. Katz is the CEO and president of National Retail Solutions (NRS).
