What’s the common factor between Sprouts Farmers Market, lululemon and Michael Kors?
They’re all currently the toast of the retail world because of their remarkable growth stories. While there are definite advantages to standing taller than the crowd, fast-growing retailers often find themselves struggling to deal with the success and eventually lose sight of the big picture. After all, with great power comes great responsibility. How can fast-growing retailers make sure they don’t stumble off the path to success?
These following retail success stories have one thing in common – a well-defined value proposition. Though their success may seem like it happened overnight, constructing and articulating a strong value proposition isn’t so easy. It requires paying attention to a whole bunch of details that are the first to be sacrificed when it comes to playing the bigger stakes. One of these is a retail marketer’s understanding of customers and why they choose to shop at particular brand. This focus on customer understanding often takes a backseat because of the focus on scaling up the retail business (which involves bringing in newer customers). To keep up the promise of a well-defined value proposition, marketers at fast-growing retail businesses should stay in-tune with customer needs, wants and preferences. This understanding needs to be absorbed across all retail-related activities, whether it’s how sales reps interact with customers or what products the retailer decides to carry. More importantly, this understanding needs to be reflected in the tone, content and messaging of marketing campaigns that the retailer runs.