The largest retailer in the world is entering the Australian market. Amazon Australia will surely have a ripple effect on retailers across the country. While the increased competition could hurt some retailers, it will also provide opportunities for those retailers who can find the right niche.
That is why Harvey Norman founder Gerry Harvey refuses to “lie down for Amazon” and why he issued a battle cry to ensure his company can compete.
He is not alone. In the same article where Harvey issued his battle cry, they also stated “All of the big retailers have strategy teams that have been working for many months on how they will respond to Amazon.” Smaller businesses need to prepare themselves as well.
The best way to do this is to improve your marketing strategy for 2017.
5 Ways to Improve Your Retail Marketing Strategy
1. Tech funding
The difference between Amazon and most retail outlets is that Amazon has better technology. That is because Amazon does not operate like a traditional retail outlet. Instead, they use technology more effectively than their competitors. It is how they are able to keep their prices competitive and offer amazing turnaround times.
That means Australian retailers need to reduce the gap between Amazon and themselves if they expect to succeed.
2. Improved data
2017 is the year of data. We are now at the point where data needs to be used to improve the pricing, shipping, marketing, and support components of a retail business.
That is because quality data improves the decision making of a company. When you have the right data, you know what your target market wants from you. The right data improves your ability to track orders from ordering to fulfillment to shipping. Data also becomes an imperative part of marketers’ plans to create personalized offers that do not waste the time of your audience.
The more data a company has, the more they can improve their marketing strategy. That is why many retailers like Woolworths financed data analytics firms like Quantium, and why international firms like Ugam are working to ensure retailers have enough data to improve their marketing.
3. Upgraded search results
While most Australian retailers do not have the resources to face Amazon head-on, there are some international companies that do. One of those companies is Google. While they are not a retailer, they allow small businesses to leverage the billions of searches that happen on their network every day.
That is why, when small retailers like Bevilles Jewellers want to compete in a crowded online space, they work with Shout to help them upgrade their results.
The SEO strategy we put together for them lifted their company profile and position with targeted keywords. That is why we were able to help them rank first for Jewellery, DKNY Watches, Jewellery Online, and Diamond Earrings. They also rank second for JAG Watches and Watches Online.
Furthermore, Bevilles improved their paid search results. That included a 43% reduction in cost per acquisition, as well as a 72% increase in paid search conversion rates. This led to a 75% decrease in CPC paid search.
4. IoT devices
Another way that retail stores can combat Amazon is through IoT. From wearables to tracking devices, they provide a wealth of data that can add personalization to retailers looking to improve their customer experience.
This is something that most brick and mortar stores do not have in their current digital marketing plan. Leveraging these devices can level the playing field.
5. Email marketing
The final component to combating Amazon is to improve your email list. While you might not have a list as large as Amazon, you can improve the viability of your list by ensuring that you optimize your email marketing strategy.
While Amazon has all the fancy technology, they cannot always compete with smaller businesses that have better relationships.
Battling Amazon for position in the Australian retail landscape will not be easy. However, having the right attitude will definitely help. That is why having a strategy based on the strategies we discuss above is so vital.
A hope and a prayer is not enough for a data-driven, targeted retail giant who has ran their entire business on making it as easy to purchase as 1-2-3.
Therefore, if you want increase your marketing share it is vital for you to have the right strategy and team in place to provide you with the skills you need to ensure your business can succeed against Amazon. To help you with this, we encourage you to reach out to us for a free, initial consultation to learn how we can help your company today.