Content Marketing for staying relevant

Content that relates to your needs, goals and desires is what is most relevant to you. Relevance is usually what catches your eye like specific trends, stories and updates.

Relevant content is personalized content that feels conversational and speaks to your audience’s needs, pains, goals, and desires. To simplify this concept, your business should think of relevant content for your buyers, as individuals, based on what they do, continuously over time, directed toward an outcome, and everywhere they are (the ABCDs of Relevant Content). Buyer’s expectations of your business are rapidly changing. They expect you to know who they are, know what they like, and have personalized conversations on every channel they are on. Because of this, it is essential to make sure that everything you put out there speaks to your individual buyers.

  • Keep Your Competitors Close

Every industry has its key players, so every little thing matters. Tracking similar and competing brands positions you to make proactive competitive changes. Keeping up-to-date on industry newsletters, scanning press releases for competing products and practicing social media listening can help a brand anticipate the various ‘threats’ from competitor activity.

  • Analyse market trends

As trends change, marketers need to reinvent their strategies to generate content that engages their customers.

Take, for instance, the video marketing trend that picked up pace in 2017; HubSpot reported that 48% of marketers planned to add YouTube videos to their marketing plan in 2018.

Another recent trend has been to address the needs of the consumer not to the end of making an immediate sale but to ease their customer journey. This is why there’s been a sudden decline in sponsored posts, branded email, and even traditional ads all of which are no longer as effective as they were earlier.

A case-specific example of a brand having adapted its marketing strategy and content would be Warner Brothers Studio.

To prepare for an upcoming movie, it decided to base its media planning on insights gathered from big data. It considered the behaviour and engagement patterns of the target audience. By personalising its approach and tailoring content to the chosen platforms, WB Studio registered a 26% increase in ROI.

This goes to show that analysing marketing trends like these can give you a competitive edge and help your team create customer-relevant content pieces.

  • Understand who you’re creating content for

Imagine you’re going for a job interview. How would you prepare for it? You would understand what the company does, where its interests lie, the gaps in its industry presence that you can help fill, and so on.

What you wouldn’t do is walk into the interview without any background research and offer answers based solely on your assumptions and beliefs.

Creating relevant content for your target audience is exactly like that. You need to know the context they function in, what they already have access to, and what they need. So, define demographics, the context of content, pain points, and so on of your average buyer before creating content.

Consider the phone-case brand Peel. It has managed to stand out in an industry where phone cases are bought and sold in bulk, by creating covers that are thin and functional, yet attractive.

The brand has utilised Facebook ads to help differentiate their product from those of their competitors. And Instagram has been used for a dual purpose: first, as a platform to establish brand presence and product identity through an aesthetically appealing feed, and second, as a means to respond to customer feedback.

  • Use an apt medium

You can do everything possible to generate and post premium quality content. But if your target audience does not find it, does it even exist?

The truth is that effective content can only have a chance at being path-breaking when an effective distribution strategy is also at work.

Start by finding out how your audience consumes content. Using the right medium to start conversations, speaking in a language they are comfortable with, and using audience targeting options will help you build a better relationship with them.

Lead with Your Purpose

Audiences usually discern what you do fairly easily, but what sets your brand apart is why you do it. At CB&A for example, we’re driven by a passion to increase awareness of education initiatives that deliver equitable learning opportunities for schools and students. This mission influences everything about our brand marketing philosophy. It keeps us motivated, but our mission also drives our engagement in the education community and attracts clients to us in the first place.

Create niche relevant content

As has been discussed by Joe Pulizzi in this blog, creating generic content will lower your chances of breaking through the clutter on the internet, making it difficult for consumers to differentiate you from your competitors. You need to set your brand apart.

But before beginning to create a new area of specialisation, identify your potential competitors. Study their content approach, writing style, popular posts, and specific jargon used to target niche areas. Then build trust and influence by creating a niche content that’s relevant to your audience.

Mobile Marketing foundations

Mobile marketing is a multi-channel, digital marketing strategy aimed at reaching a target audience on their smartphones, tablets, and/or other mobile devices, via websites, email, SMS and MMS, social media, and apps.

Mobile is disrupting the way people engage with brands. Everything that can be done on a desktop computer is now available on a mobile device. From opening an email to visiting your website to reading your content, it’s all accessible through a small mobile screen. Consider:

80% of internet users own a smartphone.

Mobile platforms, such as smartphones and tablets, host up to 60% of digital media time for users in the U.S.

Google anticipates search queries on mobile devices to surpass desktop searches by the end of 2015.

Effective mobile advertising means understanding your mobile audience, designing content with mobile platforms in mind, and making strategic use of SMS/MMS marketing and mobile apps.

Types of Mobile Marketing

Mobile marketing has proven to be effective as now, the consumer has an increased control over the kind of advertisements that are sent to him. There was a time when most messages sent to consumers were not very useful, posing a serious threat to mobile marketing.

Corrective actions, both by corporations and network providers have helped to weed out unscrupulous elements, making mobile marketing an ethical way of promotion and publicity. Some types of mobile marketing are as follows.

Short Message Service (SMS)

Short message service initiated the concept of mobile marketing and still is used to promote a variety of products and services. Although, it has been put to a lot of abuse, regulations in the past few years have meant a revival of this form of mobile marketing.

The biggest advantage of SMS marketing is its reach and the low cost of marketing. Every cell phone has an ability to receive an SMS, which essentially means a larger target audience for corporations.

Multimedia Message Service (MMS)

Multimedia messages score over SMS as being a more effective form of marketing as it provides the user with images, audio and video. MMS can also be used to run advertisements as one gets to see on a TV, and offers a more efficient way of marketing a product, however, the cost of sending an MMS is more than that of an SMS.

Mobile Applications

Mobile applications have proved to be a great tool for mobile marketers, as these are innovative and offer the user a host of features. There are certain widgets that are displayed on the home screen of mobile phones, allowing the user to directly log into them, and advertisements can be placed on these applications to promote a product.

Bluetooth Mobile Marketing

This type of marketing helps in customizing the type of advertisements a user will receive, and most of it is based upon the geographical location of the user. This is an effective form of marketing as it helps in delivering relevant information to the user, and helps in filtering the advertisements which may not be useful for the user.

For example, the probability of a person enrolling for a dancing or a yoga course is more if the venue is closer to where he stays. This is the prime reason why Bluetooth mobile marketing is an effective tool for serving custom ads to the user.

Mobile Internet Advertisements

When you are online, you might have seen several advertisements popping up on your computer screen. Mobile Internet advertisements work in the same way, and deliver high-quality content to users. These are mostly built for smartphone users who have a reliable Internet connection.

Apart from the general consumer advertisements, mobile marketing has also helped entrepreneurs to expand their business and network with people. The QR (quick-response barcodes) allow interested parties to know more about a business project.

Today, iPhone is equipped with Near Field Communication, which allows users to buy stuff online, as one does from a computer. Truly, there are more exciting times ahead, and innovations in technology can provide some magnificent options to corporations as well as consumers.

Mobile Marketing Strategy

As with any marketing effort, every brand and organization will develop a unique mobile strategy based on the industry and target audience. Mobile technology is all about customization and personalization, which means mobile marketing is, too.

Step 1: Create Mobile Buyer Personas

Understanding your audience is the first step to any marketing strategy, and buyer personas are a valuable tool to aid in that understanding. Buyer personas are simply fictional representations of your various types of customers. Create a profile that describes each one’s background, job description, main sources of information, goals, challenges, preferred type of content, objections, and/or role in the purchase process. It is easier to determine a channel and voice for your marketing messages when you have a clear picture of your target audience.

Make a specific point to detail your target audience’s mobile habits as well. How much of their web usage happens on mobile devices? Are they comfortable completing a purchase on a smartphone? A simple way to start is to research big data reports on mobile usage. Some interesting observations include:

  • 65% of all email is first opened on a mobile device.
  • 48% of users start their mobile internet sessions on a search engine.
  • 56% of B2B buyers frequently use smartphones to access vendors’ content.
  • 95% of adults primarily use their smartphones to access content/information.

To better understand your specific target market, monitor Google Analytics for your site’s mobile traffic numbers. You can also ask or survey clients and prospects about their mobile web usage.

A/B testing which compares two versions of the same campaign on a certain channel can also be informative for developing any aspect of buyer personas. When all other factors are the same, do your email campaign landing pages get more views when you send a related email on weekends or on weekdays? In the mornings or in the evenings? Which title or email subject gets more click-throughs?

Both the general and specific data will help develop audience personas that include mobile usage.

Step 2: Set Goals

The key to defining any effective strategy is to first decide what success looks like. Get the key stakeholders together to map your mobile marketing strategy. Identify goals by asking your team some of these questions:

  • What are we currently doing for mobile? This will define your starting point, and make sure everyone is on the same page as you begin.
  • If you are already doing mobile marketing, how are those initiatives performing? This conversation will identify what is already working, what is not, and what’s not even being measured.
  • What are your main objectives for including mobile marketing in your overall strategy? Discuss why you’re considering mobile now, what conversations have led up to this point, and what you expect from mobile marketing.
  • Who are your key audiences for mobile marketing? Talk about your customer personas in light of mobile usage updates. How similar or different is each persona’s mobile usage?
  • How are you engaging your mobile audience cross-channel? This discussion will help analyze how the channels you’re currently using can be included in your mobile marketing strategy.

Step 3: Establish KPIs

Just like your other marketing efforts, mobile marketing needs to be tested and optimized. Determine which realistic, measurable KPIs define your mobile campaign’s success. For example:

  • Engagement: Provide mobile-friendly content for potential customers who are searching for information about your industry or product. Make sure your website is mobile-responsive to improve mobile SEO.
  • Acquisition: Make sure lead nurturing emails are mobile-friendly with clear calls-to-action. Buttons in emails should be near the top of the message and be big enough to easily tap in order to facilitate click-throughs. Then make it as easy as possible for someone to fill out a form on your mobile-optimized landing page.
  • Customer Service: In a connected, social marketplace, customer service is very much a marketing opportunity. Allow your customers to easily reach you through any platform they want, including simple click-to-call buttons for smartphone users.

In order to identify the right KPIs for your mobile marketing campaign, ask yourself:

  • Do I want to increase conversions from email messages?
  • Am I trying to improve traffic to sales pages?
  • How important is it that I generate more qualified prospects?
  • Does our brand need to improve sales by converting more traffic on certain pages?

Step 4: Monitor Mobile Metrics

Google Analytics can help monitor mobile usage of your site:

  • Mobile behavior data reveals how well your mobile content engages your audience.
  • Mobile conversion data will indicate whether or not some of your key landing pages still need to be optimized for mobile browsing.

Adding the Device Category field to the Site Content dashboard will display the quantity and quality of much mobile traffic to each individual page on your site.

The table on the Site Content dashboard includes metrics like pageviews and bounce rate. Add the Device Category by clicking the “Secondary dimension” menu above the first column and selecting “Device Category” from the “Users” submenu. The table will then display the most-viewed pages on your site, per device, so you can see how mobile actually affects your web traffic.

That information can hint at which search queries may be leading mobile traffic to your site, what content your mobile audience is most interested in, and which pages to optimize for mobile browsing first.

Newsletters for Content Marketing

An email newsletter is a periodical email sent by a person or business containing news, updates, curated content from the topic that you signed up for.

Unlike a promotional email that almost hypnotizes you to ‘buy’, ‘join’, ‘enroll’ or email from boss that asks you to change the font on a presentation immediately (at 6 pm on a Friday!), a newsletter just asks to be loved and enjoyed.

Go niche: Write about topics your subscribers signed up for. If you told them, you would send them poetry, it would be awkward & confusing to send them financial analysis or cooking lessons.

Provide value: Before sending the hit button, ask if you were reading this newsletter from someone else, would you trash it in 2.3 seconds or keep it bookmarked as favorite?

Write with intent. Think of what it is that you want to say with this piece. Your every content should either move a reader away from pain or towards pleasure.

Be authentic: Write as if you are having a conversation with someone. Write honestly. Don’t embellish your stories. Write with emotions; to express, not impress.

Steps

Define your goals

Start by defining your goals. They must be integrated into your overall content strategy. Goals must be very specific: for instance, increase prospects by 12%.

Before developing a newsletter, it’s important to ask yourself what focus it will have and how that fits into your overall marketing strategy. Readers have short attention spans that are continuously getting shorter. If they don’t immediately see something relevant and interesting, your email gets deleted. Producing unique content by segment returns routinely justifiable results.

Define your audience

Who do you want to reach and stay in touch with? Should you have one or several newsletters? This can be a matter of resources and commitment within each department, but the closer the content comes to meeting the reader’s specific interests, the better. Of course, recruiting future students is always a top priority and newsletters can be an effective tool in this regard.

Determine how often you will publish

Maintaining a regular schedule is great, but your priority should be on developing relevant content to share. If you send too frequently, you risk recipients unsubscribing from being perceived as a spammer. Some newsletters let new subscribers choose frequency-specific options (“weekly”, “monthly”, “bimonthly”, etc.). Testing which day of the week and times of year are most effective, along with the relative success of all other aspects of your publication, should be an ongoing process.

Continuously develop your contact list

  • On your website
  • Ask students to sign up on social media
  • If it is a general newsletter, have a sign-up button at the end of all your outside communications
  • Communicate what they will receive and the benefits of signing up. For a prospective students’ newsletter, an effective call to action could be “Stay tuned to what is happening on campus.”

Create engaging, digestible content based on your audience

Busy readers are likely to browse a newsletter before deciding if any article is worth reading. Enhance your usability with punchy headlines, easily readable short stories and attractive visuals. Since people generally process information better in smaller chunks, be aware that in a newsletter with ten articles, most readers may perhaps only read two or three. Shorter, more frequent delivery might be preferable. Subject lines have to instantly engage, and by limiting what is displayed to an introductory paragraph, encouraging readers to click to see the full article on your website, browsing becomes easier and your website’s traffic is increased.

Use Google Analytics to track your newsletter’s impact on your traffic

Studies analyzing online behaviour suggest email newsletters are the best way to drive users back to websites, where the real engagement takes place, so it is imperative that users are directed to an optimal student recruitment landing page. Feedback and your website’s analytics will allow you to constantly improve the effectiveness of your message and fully integrate the newsletter into your education marketing strategy.

Email Marketing Segmentation

Segmentation is the division of email subscribers into smaller segments based on set criteria. Typically, segmentation is used as a personalization tactic to deliver more relevant email marketing to subscribers based on their geographic location, interests, purchase history, and much more. Segments are created so that the marketer can cater specifically to each different email list and that list’s independent interests, rather than creating one mass message for all.

The basic identifiers for someone’s digital existence is their name and their email address. If you’re trawling your database and encounter very old email addresses, fair warning emails tend to degrade. People change email addresses when they change jobs, change webmail providers, adopt a different handle, or simply change their throwaway, but don’t worry about this now. When your campaign is underway, you’ll be able to track unresponsive email addresses and cull them from your list.

  • Existing email list: Of course, if this isn’t your first email marketing rodeo, then draw from your previous efforts at list-building.
  • Email account: Naturally, the first place you might look would be your present and former email accounts. Webmail accounts in particular make it easy for you to export your contacts, usually in CSV format.
  • CRM: If you use a CRM (and take steps to maintain clean data) then you’ll have a wealth of contact information in here. If it’s a fairly well-known CRM, there’s a good chance your email marketing service provider integrates with it already. If not, you can export your contacts in a CSV file.
  • Contact management system: Contact management apps can sync with your email, phone, and social media, so you might be able to get most of your contacts in one fell swoop. (Your CRM may have already replaced this, though.)
  • Ecommerce platform: Check your online store for current and past customers. Different platforms have different methods for exporting customers: depending on the solution, you may be able to export their purchase orders, their email addresses, and other relevant information. Check whether your email marketing solution integrates with your ecommerce platform.

5 ways you can segment your list:

  • B2B and specialization email segmentation: You work with other businesses. You may sell or provide services to other businesses. And because of the different people you work with, you wouldn’t send the same email to a vendor contact as you do to a sales manager, a marketing specialist, or an administrative assistant. They each require their own messaging.
  • Geographic email segmentation: The most obvious way to segment emails is through geography. For instance, imagine your business is hosting a special event. You send out content to a full email list, which includes contacts both local and distant.
  • Content-specific email segmentation: For this, you need to rely on data collected about specific contacts. What pages did they visit on your site? What did they download from it? What tools did they use? Did they purchase anything?
  • Influencer email segmentation: This is more complicated than the title alone suggests. Customer loyalty is no longer just about purchase totals and the frequency of purchases. Today, it’s about who recommends your brand. Who’s given you testimonials or reviews? Who shares your brand on social media? Which platform? How effective are they? Send superficially to those customers and show them some love for being a voluntary brand ambassador.
  • Behavior-specific email segmentation: This goes into a level of email marketing segmentation that’s even deeper. How long is a customer lingering on a page? How many pages do they view on an average visit? Do they visit and buy quickly, like an impulse buyer? Or do they visit a few times in a week, loading the same items into an online cart and canceling, like a nervous buyer?

Email Marketing Tools and Setup

Email marketing tools are very useful and cost-effective to market your products and services. They are especially great marketing tools for small businesses that don’t have the technical knowledge.

Factors

Integrations

It should also integrate easily with other third-party apps and social media platforms. Seamless integration allows you to handle customer data better and easily view key metrics.

Mobile-Optimization

According to an IBM study, most consumers prefer to read their emails on mobile. 49.1% of all emails in the world are opened on mobile. Compare this to 33.3% read on webmail and 17.6% on desktop.

Tools

  1. Sender

Sender is an effective email marketing tool built to help startups and fully established businesses grow. It allows them to reach their goals faster by providing useful features that enable them to take their email marketing strategies to the next level.

Sender has numerous pre-built email templates to choose from, but you can also create your own using custom elements. With Sender, you can also create signup forms and pop-ups.

Additionally, you can leverage their email automation feature to manage abandoned carts, welcome emails, and personalized celebration emails.

  1. Pinpointe

Pinpointe’s ‘Email Marketing Tool for Teams’ is the best solution for companies who have multiple people collaborating to design and deliver their email campaigns. Enterprises and marketing agencies can define specific user roles like campaign creation, database management and reporting, for each team member. Agencies can set up as many as 500 separate team accounts for each customer and define or restrict what each team member can have access to.

Pinpointe provides one of the best drag and drop editors we’ve seen. With hundreds of templates and pre-made blocks, companies can create beautiful looking, mobile friendly emails very quickly and without having to know html.

The smart-segments feature allows you to target your emails to relevant prospects with precision. Overall, this is the go-to tool if you want to do email marketing at scale.

  1. HubSpot Marketing Free Email

HubSpot offers a fully-featured email marketing tool that was built to help businesses grow, no matter where they are on their journey.

The tool has a free-forever plan that allows you to send up to 2,000 emails per calendar month. Once the business grows, you can opt for one of the paid tiers and unlock more features and benefits.

The great thing about HubSpot is that it offers all-in-one solutions to help you do more than just email marketing. They enable you to use your website data to run more personalized email campaigns. You can also benefit from their live chat, form builder, CRM, and other features.

  1. SendinBlue

Sendinblue is a great email marketing tool that can help you run effective campaigns in an automated, seamless manner.

It allows you to create professional-quality newsletters using their drag-and-drop feature and just a few clicks. Even professionals who don’t have any knowledge of coding can easily use their platform to create attractive newsletters.

Its advanced segmentation lets you target narrow audience segments with the right message.

Key Features

  • CRM integration for you to access contact details and insights
  • Unlimited contacts
  • Support for bulk emails
  • Rich email template library
  • A/B testing of email subject lines and sending times
  • Dynamic content to give your emails a personal touch

Setup

Determine Your Goals.

If you’re like me, then when you get an idea in your head, you’re eager to rush out and put it into action. Slow down there! If you want your campaign to be successful, you’ve got to step back and think about what you’re trying to accomplish.

  • If your website earns money on ad impressions, you’re probably trying to drive traffic. Your emails will likely contain links to popular or recent content on your site.
  • If you sell products in an ecommerce store, you might be trying to drive sales. In this case, your emails might link to best sellers, promote new merchandise, welcome new members, or reward loyal ones.
  • If you’re looking to bring attention to a cause, you might send out a newsletter with human interest stories, current events, details on community activities, or requests for donations.

Choose an Email Marketing Platform.

There are a few ways you can go about doing this. If your email marketing needs are fairly simple, it’s possible your CRM provides email marketing features that fit your needs. However, if you’re looking to build self-sustaining email marketing campaigns with email triggers and autoresponders, you’ll probably want a dedicated email marketing service provider.

  • MailChimp: MailChimp allows you to send automated, targeted emails, track performance metrics, design templates with a drag-and-drop interface, and incorporate social media ad campaigns. It also integrates with major ecommerce platforms. MailChimp has a free version, while paid subscriptions start at $10/month.
  • Mailify: Mailify Sunrise is the newest version of the email marketing and marketing automation platform. This version brings new features, such as the possibility to create online forms linked to your contact lists or to easily create and send out SMS marketing. Mailify also offers a wide range of fully responsive templates to choose from. With an intuitive interface, you can easy create emails and landing pages that reflect your style with the drag and drop builder. The app is also integrated with Magento, Prestashop and WordPress.
  • GetResponse: GetResponse offers email marketing, custom landing pages, and webinar marketing with solutions tailored to different industries. It integrates with popular ecommerce platforms, and its marketing automation scales for growing companies. Its basic email marketing package starts at $15/month, billed monthly, with discounts available for annual/bi-annual plans.
  • Constant Contact: Constant Contact offers highly effective email marketing with a bevy of mobile-responsive templates suited for various needs and industries. It tracks KPIs in real-time, simplifies list-building and contact management, and provides campaign ideas by industry. Constant Contact offers a 60-day free trial; paid subscriptions start at $20/month with annual discounts.
  • ActiveCampaign: ActiveCampaign offers email marketing and marketing automation with a drag-and-drop campaign builder. It enables highly-specific segmentation strategies by consolidating data from your integrated third-party apps. It provides detailed reports, optimization tools, and ecommerce integration. Subscriptions start at $9/month with annual discounts, and further discounts for non-profits.
  • Campaign Monitor: Campaign Monitor provides a library of professionally-designed email templates for branded email marketing. It offers a drag-and-drop campaign builder, dynamic content, optimization tools, and detailed tracking tools. It rates very highly in customer support touted as the “highest among major vendors” with 24/7 customer support. Campaign Monitor offers a very limited free version to get users started, while paid plans begin at $9/month. There are also pricing options to pay per campaign.

Build and Segment an Email List.

Your list may have humble roots with only a few subscribers, but prospects are prospects. It’s tempting to buy an email and bulk-send cold emails (hey, it works for some people), but you probably already have a fair number of contacts floating around in your records. If you choose to build an email list from scratch, there are ways to do that, too.

Consolidate Your Contacts

The basic identifiers for someone’s digital existence is their name and their email address. If you’re trawling your database and encounter very old email addresses, fair warning — emails tend to degrade. People change email addresses when they change jobs, change webmail providers, adopt a different handle, or simply change their throwaway, but don’t worry about this now. When your campaign is underway, you’ll be able to track unresponsive email addresses and cull them from your list.

  • Existing email list: Of course, if this isn’t your first email marketing rodeo, then draw from your previous efforts at list-building.
  • Email account: Naturally, the first place you might look would be your present and former email accounts. Webmail accounts in particular make it easy for you to export your contacts, usually in CSV format.
  • CRM: If you use a CRM (and take steps to maintain clean data) then you’ll have a wealth of contact information in here. If it’s a fairly well-known CRM, there’s a good chance your email marketing service provider integrates with it already. If not, you can export your contacts in a CSV file.
  • Contact management system: Contact management apps can sync with your email, phone, and social media, so you might be able to get most of your contacts in one fell swoop. (Your CRM may have already replaced this, though.)
  • Ecommerce platform: Check your online store for current and past customers. Different platforms have different methods for exporting customers: depending on the solution, you may be able to export their purchase orders, their email addresses, and other relevant information. Check whether your email marketing solution integrates with your ecommerce platform.

Build and Grow a List from Scratch

It’s possible that even after trawling your contact databases, your emailing list is emptier than a middle school dance floor. Not to worry, there are ways to build a database of contacts from scratch. It’ll take some work, but the good news is your list will probably be more current, with more relevant prospects, than if you scoured addresses from an old database.

  • Attract visitors with compelling content. Building organic traffic through inbound marketing (i.e. creating relevant content for your target audience and promoting it) is a slow but reliable way to build an email list. Better yet, these self-selected subscribers are more likely to have interest in your email campaigns.
  • Offer relevant, gated assets. This works well particularly for B2B email campaigns. If your company produces a white paper, case study, research report, etc. then you can make it available for free in exchange for an email address. You might collect a few throwaway accounts, but there’ll be a lot of work emails in there.
  • Make it easy to subscribe. Putting a nice call-to-action at the bottom of a custom landing page will attract conversions, especially if the visitor is coming from a targeted ad or promoted content.
  • Offer guarantees against spam. People are more likely to sign up for your newsletter, promotions, fundraising, and so on if you assure you won’t flood their inbox. If you offer subscribers an option to choose their level of engagement daily, weekly, bi-weekly, monthly make sure you respect that.
  • Offer promotions for subscribing. For example, new subscribers receive 15% off their next purchase and free shipping! Choose any promotion you want. This is a great way to build your list and also drive sales.
  • Use a Facebook call-to-action button. Facebook allows your company profile to contain a call-to-action button that you can customize to let prospects sign up for your email list. It’ll appear at the top of your business profile page alongside the like button. Another reason why you need a polished social media presence!
  • Tweet about the benefits of your email list. Promote the above gated content and promotions or simply the virtues of being on your email list to all of your followers. Set up an automation using a social media management platform (like Hootsuite) so new followers get a DM with a subscription link.
  • Include a subscription link in your email signature. There are dos and don’ts to email signatures, but you can find a way to include a subscription link.

Segmenting Your Email List

Segmenting your email list lets you send highly-targeted emails to people based on their interests or demographic criteria. If it’s relevant to them, they’re more likely to open it; if they open it, there’s a chance they could convert.

Depending on your product or service, there are several data points you might consider when segmenting your audience. These include:

  • Geography: The physical location of your recipients by country, region, state, or city. This can help you tailor content specific to certain places or accommodate time zone differences.
  • Demographics: Demographic criteria includes age, gender, language, background, job title, or any other data points specific to an individual.
  • Firmographics: Firmographic criteria refers to characteristics regarding a company, such as headquarters, industry, revenue, and number of employees. This is particularly useful for B2B account-based marketing or sales.
  • Past purchases: This is useful for ecommerce retailers in particular. This can inform an email’s dynamic content or the nature of promotions personalized to recipients’ interests.
  • Amount spent: This is useful for encouraging customers to hit a threshold at which they gain benefits, or rewarding loyal customers with a discount.
  • Position in sales funnel: The abandoned shopping cart is the most well-known example. However, you can send emails customized to any stage of the buyer’s journey to push them farther down the funnel.
  • Time since last purchase: Win back past customers before they go cold. Offer them incentives to return, announce new merchandise, or preview upcoming sales.
  • Expressed interests: Send relevant content to the parties most interested based on interests they confirmed when subscribing to your emailing list.
  • Email engagement: Customers who opt to receive emails no more than, say, twice a month can have abbreviated bi-weekly newsletters sent to their inboxes with the top topics of that period.

Enable Tracking.

Tracking and obtaining performance analytics is how you optimize email campaigns and marketing assets based on what works with which segments. The possibilities are nearly endless, and you can adapt subject lines, preheader text, email templates, content design, calls to action, and landing pages through A/B tests and analysis over time.

  1. Unique Open Rate: This tracks the number of distinct recipients who’ve opened your email. This is a separate metric than Total Opens, which includes multiple opens by the same recipient.
  2. Click-through Rate: Your click-through rate measures the number of recipients who click one or more links in the email, which bring them to a landing page on your website. Generally, the more clicks, the better. In practice, click-through rates can vary greatly per industry and by the nature of the campaign.
  3. Click-to-Open Rate: This metric divides the number of unique clicks by the number of unique opens to tell you the percentage of recipients who both opened the email and actually clicked a link. This gives you a sense of how well your content is actually performing with the people who see it.
  4. Bounce Rate: The bounce rate measures the rate at which your emails are rejected by email servers. There are two types of bounces hard and soft. A hard bounce usually occurs as the result of non-existent or invalid email addresses. A soft bounce can indicate recipient’s inbox is over quota or the email message is too large. High bounce rates are a sign you should trim your email list of unproductive addresses or use confirmation emails to ensure subscribers actually want to subscribe.
  5. Unsubscribe Rate: This is the rate at which recipients are unsubscribing from your email campaign. Unsubscribe rates vary by industry, but generally anything over 1% means you should look to provide more value in your content, improve the quality of your contact list, optimize the frequency of your emails, and better segment your list.
  6. Spam Complaint Rate: A high spam complaint rate is a sign your recipients don’t see value in your emails. This should concern you in particular because an excessive complaint rate may result in your account being disabled by email marketing service providers. Different providers specify different acceptable spam complaint rates, but it’s generally very low perhaps no more than .1%.

Send

Congratulations! You’ve created an email marketing campaign. Now it’s time to send your emails. You might hit a homerun on your first campaign, but don’t be discouraged if it’s a dude. we learn more from our failures than our successes. Segment your lists, study campaign performance, make alterations, test your emails against one another, and every day you’ll get a little closer to your goals.

Foundations of Analytics

Google Analytics is undoubtedly the most widely used web analytics application. Emerged from and based upon the analytics-package developed by Urchin Software Corporation (which was bought by Google in April 2005), the tool has become publicly available for free under the new flagship of Google Analytics. In May 2007 the application was heavily edited, developed and released; the design was simplified and more advanced featured were added. Over years Google Analytics managed to gain on popularity because of its simplicity and many advanced features for curious site owners and professional marketers.

Google Analytics can generate up to 85 different reports that will help you analyze all possible data about your website traffic. It not only tracks visitors to your site or the number of page views, it can be used to see which content gets the most visits, time on site per visit, which ads are driving the most visitors to your site, it track the performances of your marketing campaigns, including AdWords, Adsense and emails and much, much more.

GA Tracking Code

Google Analytics will only track pages that contain the Google Analytics tracking code, this is a small Javascript snippet that needs to be added to each page of your site, either manually or through the use of plugins or tool. You will find some tools and plugins to help you do this near the bottom of this post.

For a static webpage or if you want to manually install the code into your pages, copy and paste the code segment into the bottom of your content, immediately before the body tag of each page that you wish to track.

Analytics and Flash and Flex Content

One of the most common Google Analytic implementation challenges has been tracking Flash content. In the past, Flash tracking was not provided out of the box, and every implementation had to be tailored to each individual site, developers who tracked Flash had to create their own processes to get it working.

Social media analytics

Social media analytics as the gathering of data from social media platforms to help inform us and guide our marketing strategy. By paying close attention to social media analytics, you can measure your performance against your social media goals.

Buffer Analyze is social media analytics tool for online brands that want to make better decisions about their social media strategy and measure their results without feeling overwhelmed.

3 cool features:

  • Instagram Stories analytics
  • Posting strategy recommendations
  • Create professional reports in as few as two clicks

Social media channels:

  • Facebook
  • Instagram
  • Twitter

Hootsuite

Hootsuite is a great combination of social media management, listening, publishing and analytics tools. It helps you ascertain what kind of content is working for you, increase the reach of your posts, improve the effectiveness of your ads, and get your whole social media team working in tandem. It has in-depth analytics features that give you a clear understanding of your performance across all social platforms.

Features:

  • Customize reports by choosing from over 200 metrics and export them in PDF, Excel, or PowerPoint formats.
  • Measure your customer care team’s response and resolution time on Facebook and Twitter.
  • Track brand mentions better by integrating with specialized tools like Brandwatch and Talkwalker.

Social media channels:

  • Facebook
  • Instagram
  • YouTube
  • LinkedIn
  • Twitter
  • Pinterest

Difference between Salary and Wages

Salary

Salary is a fixed regular payment, typically paid on a monthly basis, for the performance of work or services. Unlike wages, which are often calculated on an hourly or weekly basis, salaries provide employees with a consistent and predetermined amount of compensation, regardless of the number of hours worked.

Components:

  1. Base Salary:

The core, fixed amount of money paid to an employee on a regular basis, forming the foundation of the overall salary. Reflects the employee’s role, responsibilities, and experience.

  1. Bonuses:

Additional monetary rewards provided to employees, often based on performance, company profits, or specific achievements. Motivates employees and aligns their efforts with organizational goals.

  1. Allowances:

Supplementary payments intended to cover specific expenses or costs related to the job, such as housing, transportation, or meals. Addresses the financial impact of job-related requirements.

  1. Benefits:

Non-monetary compensation, including healthcare, retirement plans, and other perks, provided to enhance employees’ overall well-being. Contributes to employee satisfaction and work-life balance.

  1. Overtime Pay:

Additional compensation for hours worked beyond the standard workweek, often calculated at a higher rate than the regular hourly pay. Compensates employees for extra effort and time invested in work.

  1. PerformanceBased Incentives:

Variable payments linked to individual or team performance, encouraging employees to achieve specific goals or targets. Aligns compensation with results and fosters a performance-driven culture.

  1. Profit Sharing:

Sharing company profits with employees, providing them with a stake in the organization’s financial success. Aligns the interests of employees with the overall success of the business.

  1. Commissions:

Payments based on sales or revenue generated by an employee, common in roles with direct sales responsibilities. Rewards employees for their contribution to revenue generation.

  1. Retirement Benefits:

Contributions made by the employer to retirement plans, such as 401(k) or pension schemes. Supports employees in building financial security for their post-work years.

  • Stock Options:

The right to purchase company stock at a predetermined price, offering employees a share in the company’s ownership. Aligns employees’ interests with the company’s long-term success.

  • Education and Training Support:

Financial assistance provided by the employer for the education and skill development of employees. Promotes continuous learning and professional growth.

  • Health and Wellness Programs:

Initiatives and benefits aimed at promoting employees’ physical and mental well-being. Enhances employee health, productivity, and job satisfaction.

  • Vacation and Leave Benefits:

Paid time off from work, including vacation days, holidays, and other types of leave. Supports work-life balance and employee well-being.

  • Severance Pay:

Compensation provided to employees upon termination of employment, often based on factors like length of service. Offers financial support during transitions and provides a safety net for employees.

  • Other Perquisites (Perks):

Additional benefits or privileges provided to employees, such as company cars, memberships, or flexible work arrangements. Enhances the overall employment experience and contributes to employee satisfaction.

Wages

Wages refer to the compensation paid to an employee for the hours worked or services rendered, often calculated on an hourly, daily, or weekly basis. Unlike salaries, which provide a fixed amount irrespective of hours worked, wages are directly tied to the time spent on the job.

Components:

  1. Hourly Rate:

The amount paid for each hour worked by an employee. Forms the basic unit for calculating wages based on time.

  1. Overtime Pay:

Additional compensation provided for hours worked beyond the standard workweek or regular working hours. Compensates employees for extra effort and time beyond the standard working hours.

  1. Piece-Rate Pay:

Compensation based on the number of units produced or tasks completed. Directly links pay to productivity and output.

  1. Commission:

A percentage of sales or revenue earned by an employee, common in sales roles. Rewards employees based on their contribution to generating business.

  1. Tips and Gratuities:

Additional payments received by employees, often in service industries, as a form of appreciation from customers. Augments income and is often based on customer satisfaction.

  1. Holiday Pay:

Compensation for hours worked on recognized holidays. Encourages employees to work during holiday periods and compensates for the disruption to personal time.

  1. Shift Differentials:

Additional pay for working shifts that fall outside regular daytime hours. Compensates for inconveniences associated with non-standard working hours.

  1. Bonuses (Variable):

Additional payments beyond regular wages, often tied to performance, project completion, or other achievements. Acts as an incentive and recognition for exceptional contributions.

  1. Piecework Bonuses:

Additional payments for meeting or exceeding production targets in piecework arrangements.  Motivates employees to achieve or surpass production goals.

  • Travel Allowances:

Compensation for work-related travel expenses, such as mileage or transportation costs. Addresses additional costs incurred while traveling for work.

  • Uniform or Tool Allowances:

Payments provided to cover the cost of uniforms, tools, or equipment required for the job. Supports employees in meeting job-specific requirements.

  • Incentive Pay:

Additional compensation tied to achieving specific targets, often related to productivity or efficiency. Encourages employees to meet or exceed performance expectations.

  • Danger Pay:

Additional compensation for employees working in hazardous conditions or environments. Recognizes the risks associated with certain jobs.

  • Call-out Pay:

Compensation for employees called in to work outside their regular schedule, often applicable to on-call positions. Compensates for the inconvenience of being available on short notice.

  • Benefits (Limited):

Some wage-related benefits, such as health insurance or retirement contributions, may be provided, but to a lesser extent compared to salary packages. Enhances the overall compensation package, albeit on a more limited scale compared to salaried positions.

Difference between Salary and Wages

Basis of Comparison

Salary

Wages

Payment Frequency Monthly Hourly or Weekly
Consistency Fixed, stable Variable, fluctuates
Calculation Basis Annual rate / 12 Hourly rate x Hours worked
Overtime Compensation Typically included Paid separately
Employment Level Often for salaried employees Common for hourly workers
Work Hours Impact Irrelevant to pay Directly affects earnings
Benefits Often includes benefits Limited or no benefits
Professional Positions Common for white-collar jobs Common for blue-collar jobs
Skill-Based Reflects skills and qualifications Often skill-independent
Administrative Work Common for managerial roles Common for administrative roles
Unionization Less common for unionized jobs Common in unionized settings
Job Complexity Reflects job responsibilities May not directly reflect complexity
Job Stability Generally perceived as stable Can be influenced by job market
Performance Impact Less direct impact on pay Directly impacts pay through hours
Perception in Society Often associated with higher status May not carry the same status

Basis for Compensation Fixation

Compensation refers to compensating any damage, loss or mental harassments, wages or salaries as reward for physical and/or mental efforts to perform any agreed task or job. But the concept of equity in remunerating any work or task has forced us to perceive wages and salaries as compensation, because people work efficiently only when they are paid according to their worth or feel satisfied with the remunerations. Besides basic salaries or wages, companies are forced to view the benefits and services to justify the positional and esteem needs of employees and to provide adequate cushion for inflations. Though the cost of human resources is estimated at between 2% to 20% of the operating cost (depending upon the type of industry), to retain the employees or to avoid job-hopping, some of the industries are even forced to adopt varying scales and benefits.

Compensation is the reward that the employees receive in return for the work performed and services rendered by them to the organization. Compensation includes monetary payments like bonuses, profit sharing, overtime pay, recognition rewards and sales commission, etc., as well as non­monetary perks like a company-paid car, company-paid housing and stock opportunities and so on.

Apart from the basic financial pay the employees receive paid vacations, sick leave, holidays and medical insurance, maternity leave, free travel facility, retirement benefits, etc., and these are called benefits.

The Fixation or determination of compensation involves considering various factors and elements to arrive at a fair and competitive remuneration package for employees. The basis for compensation fixation may vary across industries, organizations, and job roles. The Combination of these factors, tailored to the specific needs and priorities of the organization, forms the basis for the fixation of compensation. Organizations often develop a comprehensive compensation strategy that integrates these elements to attract, retain, and motivate a talented and satisfied workforce.

  • Market Conditions:

Aligning compensation with prevailing market rates for similar positions in the industry or geographic location. Ensures competitiveness in attracting and retaining talent.

  • Job Evaluation:

Systematically assessing the relative value of different jobs within the organization based on factors like skills, responsibilities, and complexity. Establishes internal equity and aids in determining appropriate compensation levels.

  • Industry Standards:

Considering compensation benchmarks and practices established within a specific industry. Helps organizations stay competitive and in line with industry norms.

  • Organization’s Financial Health:

Evaluating the financial capacity of the organization to sustain and afford the proposed compensation structure. Ensures that compensation is aligned with the organization’s financial resources.

  • Employee Performance:

Linking compensation to individual or team performance, often through performance appraisals and merit-based systems. Rewards and motivates high-performing employees, fostering a performance-driven culture.

  • Cost of Living:

Adjusting compensation based on the cost of living in a particular region or country. Accounts for variations in living expenses and ensures fair compensation.

  • Skill and Experience:

Recognizing the level of skills and experience possessed by an employee. Differentiates between entry-level and experienced employees, reflecting their contributions.

  • Legal Compliance:

Ensuring compliance with local, state, and national labor laws and regulations related to minimum wage, overtime, and other compensation standards. Mitigates legal risks and ensures ethical employment practices.

  • Union Agreements:

Adhering to terms negotiated and agreed upon in collective bargaining agreements with labor unions. Reflects the terms and conditions established through negotiations with employee representatives.

  • Market Positioning:

Positioning the organization’s compensation strategy relative to competitors in the talent market. Influences the organization’s attractiveness to potential employees and helps in talent acquisition.

  • Employee Benefits:

Including non-monetary benefits, such as health insurance, retirement plans, and other perks, in the overall compensation package. Enhances the total rewards offered to employees, contributing to their overall well-being.

  • Job Complexity and Risk:

Recognizing the complexity and level of risk associated with specific job roles. Reflects the nature of the job and the skills required, influencing compensation levels.

  • Retention and Succession Planning:

Considering the organization’s long-term talent strategy, including the retention of key employees and planning for future leadership needs. Aligns compensation with strategic workforce planning goals.

  • Employee Value Proposition (EVP):

Evaluating the overall value proposition offered to employees beyond monetary compensation, including career development opportunities, work-life balance, and organizational culture. Considers factors that contribute to employee satisfaction and engagement.

  • Global Considerations:

Adapting compensation practices to account for variations in economic conditions, cultural norms, and legal requirements in different countries for multinational organizations. Ensures consistency and compliance across diverse geographic locations.

Effect of Various Labour Laws on Wages

Labour laws play a pivotal role in shaping the employment landscape and influencing wage structures within a country. These laws are designed to regulate the relationship between employers and employees, ensuring fair treatment, safe working conditions, and just compensation. The impact of labour laws on wages is multifaceted, encompassing aspects such as minimum wage regulations, overtime pay, equal pay for equal work, and various other provisions aimed at protecting workers’ rights. Labour laws wield substantial influence over wage structures, seeking to establish a balance between the interests of employers and the rights of workers. While these laws are crafted with the intention of promoting fairness, equity, and worker protection, their impact is subject to various challenges. Striking the right balance between regulation and flexibility, addressing regional disparities, and adapting to evolving workforce dynamics are ongoing challenges for policymakers and businesses alike. Nevertheless, a well-crafted and effectively enforced legal framework is essential for fostering a work environment where wages are just, working conditions are safe, and the rights of workers are upheld.

Minimum Wage Regulations:

Intended Benefits:

  • Fair Compensation:

Minimum wage laws are enacted to ensure that workers receive a baseline level of compensation deemed necessary for a decent standard of living. This promotes economic justice by preventing the exploitation of vulnerable workers.

  • Poverty Alleviation:

Setting a minimum wage helps lift workers out of poverty, providing them with the means to cover essential living expenses. This has broader societal implications, contributing to poverty reduction.

Challenges:

  • Impact on Small Businesses:

Critics argue that higher minimum wages can impose financial burdens on small businesses, potentially leading to job cuts or increased prices for goods and services.

  • Regional Disparities:

Minimum wage regulations may not adequately account for regional variations in living costs, creating challenges in finding a one-size-fits-all solution that addresses the diverse economic landscapes within a country.

Equal Pay for Equal Work:

Intended Benefits:

  • Gender Pay Equity:

Labour laws promoting equal pay for equal work aim to eliminate gender-based wage disparities. This contributes to gender equality in the workplace, fostering a fair and inclusive environment.

  • Fair Treatment:

The principle of equal pay extends to all forms of discrimination, ensuring that employees are not subjected to wage disparities based on race, ethnicity, or other protected characteristics.

Challenges:

  • Data Accuracy and Transparency:

Implementing equal pay measures requires accurate and transparent data on employees’ roles, responsibilities, and compensation. Some organizations may face challenges in collecting and disclosing this information.

  • Subjectivity in Job Evaluation:

Determining what constitutes “equal work” can be subjective, and variations in job roles may complicate efforts to ensure equal pay. Standardizing job evaluation methodologies is a complex task.

Overtime Pay and Working Hours:

Intended Benefits:

  • Fair Compensation for Extra Effort:

Overtime pay regulations are intended to compensate employees for working beyond standard hours. This ensures that employees are fairly rewarded for their additional efforts.

  • Limiting Exploitative Practices:

Labour laws prescribing limits on working hours and overtime seek to prevent exploitative practices and promote a healthy work-life balance. This contributes to employee well-being and job satisfaction.

Challenges:

  • Operational Constraints:

Industries with fluctuating workloads may face challenges in accommodating strict working hour regulations. Flexibility in working hours may be crucial for certain sectors.

  • Compliance Monitoring:

Ensuring compliance with overtime regulations requires effective monitoring mechanisms, which can be resource-intensive for regulatory authorities.

Collective Bargaining and Trade Union Laws:

Intended Benefits:

  • Negotiating Power for Workers:

Collective bargaining laws empower workers to negotiate wages and working conditions collectively. This enhances their bargaining power, leading to more equitable agreements with employers.

  • Labour Market Stability:

By providing a structured framework for negotiations, collective bargaining laws contribute to labour market stability, reducing the likelihood of widespread strikes or industrial unrest.

Challenges:

  • Power Imbalances:

In situations where there is a significant power imbalance between employers and workers, collective bargaining may be challenging. This is particularly relevant in industries with limited unionization.

  • Potential for Disruption:

While collective bargaining aims for mutually beneficial agreements, disputes can arise, leading to work stoppages and disruptions that impact both workers and employers.

Social Security and Benefits:

Intended Benefits:

  • Worker Well-being:

Labour laws pertaining to social security and benefits, such as healthcare, retirement plans, and disability insurance, aim to enhance the overall well-being of workers.

  • Attracting and Retaining Talent:

Competitive benefit packages can attract skilled workers and contribute to employee retention. Labour laws often prescribe minimum standards for these benefits.

Challenges:

  • Financial Strain on Employers:

Mandating certain benefits can place a financial burden on employers, especially smaller businesses. Striking a balance between worker welfare and business viability is crucial.

  • Changing Workforce Dynamics:

The rise of the gig economy and non-traditional employment arrangements poses challenges in adapting social security and benefit regulations to accommodate diverse work structures.

Child Labour and Forced Labour Laws:

Intended Benefits:

  • Protecting Vulnerable Populations:

Laws prohibiting child labour and forced labour are designed to protect vulnerable populations from exploitation. These regulations prioritize the well-being of children and individuals subjected to coercion.

  • Ethical Business Practices:

Compliance with child labour and forced labour laws is integral to promoting ethical business practices. Organizations adhering to these regulations contribute to global efforts against human rights abuses.

Challenges:

  • Enforcement and Monitoring:

Effectively enforcing laws against child labour and forced labour requires robust monitoring systems, especially in industries where such practices may be prevalent.

  • Global Supply Chain Complexity:

Addressing child labour and forced labour becomes complex in global supply chains, where products may pass through multiple jurisdictions with varying regulations and enforcement capacities.

The Impact of Information Technology in Retailing

Information technology (IT) has had a profound impact on the retail industry, transforming various aspects of the business from operations and customer interactions to supply chain management and overall strategic decision-making. The integration of IT in retailing has led to increased efficiency, improved customer experiences, and enhanced competitiveness.

Technology has always played a major role, creating a massive impact in reviving the retail industry, bringing it reknown and repute. It is assisting retailers to become highly-equipped and advanced in the way they enhance the experience for consumers.

The Industry Growth

As per Euromonitor International’s recent retailing research, the market size of Modern Grocery Retailers in retail value sales at current prices (including inflation) was Rs 603 billion in 2017. Modern Grocery Retailers grew at 13.2 percent in 2016- 17. The category is forecast to grow by CAGR 9.2 percent through 2017-22.

The search for a one-stop shopping destination keeps making consumers shift from traditional to modern retailing stores. Modern retail stores attract footfalls in their physical store in Tier I and Tier II equally, albeit for different reasons. Aspirational Tier II consumers look at modern retailers as places to experience the new age retail. Equally Tier II & III cities have lucrative geographies for expansion of modern retail.

Retailers are tapping on to this new market of aspirational consumers increasingly. The lack of presence of most of the international and a major portion of national brands in these areas, have led consumers to resort to online channels in Tier II cities.

IT in Retail Importance

  • To collect and analyze customer data while enhancing differentiation.
  • To increase the company’s ability to respond to the evolving marketplace through enhanced speed and flexibility.
  • To work effectively; retailers need one system working across stores (or even across national borders) to make sure the most effective use of stock and improve business processes.

Helpful for Retailer:

  • Transparency and tracking

Retailers must increase transparency between systems, as well as obtain better tracking to integrate systems from manufacturer through to the consumer while obtaining customer and sales information.

  • Customer data

Many retailers struggle with information overload because they’re required to collect and sift through mass amounts of data, then convert it into useful information in a customer-centric industry.

  • PCI Security Compliance

PCI Security Compliance addresses the retailer’s internal security setup and practices, in order to mitigate payment security risks. Every business engaged in credit card payment processing is required to comply with PCI Security Standards. If a retailer collects or stores credit card information that becomes compromised, the retailer may lose the ability to accept credit card payments. Other possible consequences include lawsuits, insurance claims, cancelled accounts, and government fines.

  • Global data synchronization

Due to radio frequency identification/electronic product coding, the entire supply chain has become more intelligent. Retailers must enable the use of real-time data to watch inventory levels. In addition, radio frequency identification tagging positions the company to be able to safeguard its shipments by allowing products to be tracked from manufacturer through the entire supply chain.

Advantages of Information Technology in Retailing

  • Automating processes

Automating a process render many advantages to the retailers. It reduces costs, increases accuracy, reduces processing times, enables quick decision and speeds up customer service.

For example, EPOS (electronic point of sales) uses scanning systems. It ensures accurate prices, enables checkout staff to work faster, and it eliminates the need to fix price label to goods. All these factors reduce the cost considerably.

  • Collecting data about the customer

The purchase details of individual shoppers are collected and analyzed. Product extensions and promotions are based on the analysis of purchasing patterns of different types of shoppers.

Demographic information about the customers is known from a loyalty card database. The entries in the loyalty card are related to transactions data furnished by EPOS. These data can be further used to profile a customer base. This facilitates specific offers to be made to certain types of customers.

A retailer may send mail order catalogue to all loyalty card holders who have bought in the previous year. Moreover, internet and e-commerce sites use previous transactions information to personalize their sites for each shopper by offering them product items that have been related to their last few transactions. They automatically greet them by name when they enter the site.

  • Feedback on marketing decisions

Analysis of EPOS data helps the retailer in knowing the effect of promotion, prices, new products and packaging changes. Retailers can assess the impact of changes in layout or merchandising of stores in terms of category sales, competitor brands, gross profit and sales in the store. Innovative product ideas may be tested against the realities prevailing in the market. In short, the EPOS data analysis helps the company in

  • Evaluating its promotions
  • Calculating customer price responsiveness for core and seasonal products.
  • Predicting the outcome of its newly adopted policies.
  • Planning its promotional measures.

 

  • Communication

The stores manager indulges in effective communication with his suppliers. He sends documents such as purchase orders, stock and sales information over third party communication networks. This is electronic commerce. This method works fast and costs less. It is sufficient for stores to place their orders one or two days and in advance against seven days earlier in the traditional paper based method.

Store computers transmit EPOS data to the head office on daily basis. So, the senior manager is able to assess the performance of every store and product group.

Stock replenishment is done automatically. The computer system receives daily EPOS data from each store and next day’s stock requirements are known.

The system automatically sends the requirement electronically overnight to the distribution centre. So, delivery of merchandise is possible the very next day.

Effective communication reduces the lead time. It is the time taken between sending an order and receiving the merchandise.

Tools for Planning the business

(i) With the use of sophisticated computer software packages, retailers are able to

  • Plan, budget and forecast,
  • Choose the most successful location; and
  • Control their business.

(ii) Model decision making, statistical packages of sales forecast and data mining tools are available for retailers.

(iii) Retailers can also use geographic information systems (GIS).

(iv) Socio demographic data along with company transactions data and intelligent analytical tools are used to forecast sales in different stores.

  • Adding value to the retail transaction

Customers prefer IT assisted transactions to traditional retailing because IT assisted transactions provide speed, accuracy and convenience. For example, ATMs are used at any time of day. Thus, use of IT adds value to retailing.

  • Technology enabled shopping

Selling goods over the internet is becoming popular. Electronic means of selling include the following.

  • Products: Grocery, clothing, footwear, music, books, videos, cameras, photographic goods, computer hardware and software, pharmacy goods etc.
  • Services: Retail banking, personal insurance, financial service, real estate, stocks and shares, Tourism, florists, entertainment tickets, virtual education, information services, etc.

Thus, IT is transforming the nature of products, processes, companies, industries and even competition itself. The spectacular reach of IT is widely accepted today.

Components

  • E-commerce and Online Retailing:

Information technology has fueled the growth of e-commerce, enabling retailers to establish online platforms for buying and selling products. E-commerce platforms provide a convenient and accessible way for customers to browse, shop, and make transactions.

  • Point-of-Sale (POS) Systems:

POS systems, powered by IT, have replaced traditional cash registers. These systems streamline transactions, track sales, manage inventory, and provide valuable data for decision-making.

  • Supply Chain Management:

IT has revolutionized supply chain management in retail. Technologies like RFID (Radio-Frequency Identification), barcoding, and advanced analytics help in real-time tracking of inventory, reducing stockouts and overstock situations.

  • Customer Relationship Management (CRM):

CRM systems leverage IT to manage and analyze customer data. Retailers can personalize marketing efforts, track customer interactions, and enhance customer loyalty through targeted promotions and communication.

  • Data Analytics and Business Intelligence:

Retailers use data analytics and business intelligence tools to gain insights into consumer behavior, market trends, and operational efficiency. This data-driven approach supports informed decision-making and strategy formulation.

  • Mobile Commerce (mcommerce):

The rise of smartphones and mobile apps has given birth to mobile commerce. Retailers leverage IT to create mobile-friendly platforms, enabling customers to shop, compare prices, and make transactions using their mobile devices.

  • Augmented Reality (AR) and Virtual Reality (VR):

AR and VR technologies enhance the shopping experience. Retailers use these technologies for virtual try-ons, interactive product displays, and creating immersive environments that engage customers.

  • Social Media Integration:

IT facilitates the integration of social media platforms into retail strategies. Retailers use social media for marketing, customer engagement, and gathering insights into consumer preferences.

  • Automated Checkout Systems:

Self-checkout systems and automated kiosks, driven by IT, offer an efficient and convenient alternative for customers. These systems reduce wait times and enhance the overall shopping experience.

  • Personalized Marketing:

IT enables retailers to implement personalized marketing strategies. Through data analysis, retailers can create targeted promotions, personalized recommendations, and individualized communication based on customer preferences.

  • Cloud Computing:

Cloud computing technologies have streamlined data storage, processing, and collaboration. Retailers use cloud-based solutions for inventory management, data analytics, and overall business operations.

  • Artificial Intelligence (AI) and Machine Learning (ML):

AI and ML technologies are used for predictive analytics, demand forecasting, chatbots for customer service, and enhancing the overall efficiency of retail operations.

  • Voice Commerce:

 Voice-activated technologies, such as virtual assistants, have introduced new ways of shopping. Customers can use voice commands to search for products, place orders, and receive personalized recommendations.

  • Cybersecurity:

As retail operations become more digitized, the importance of cybersecurity has grown. IT is crucial in implementing robust security measures to protect customer data and secure online transactions.

  • Internet of Things (IoT):

IoT devices, such as smart shelves and connected devices in stores, contribute to real-time monitoring of inventory, temperature control, and other operational aspects, improving overall efficiency.

  • Feedback and Reviews Platforms:

IT facilitates the collection and analysis of customer feedback and reviews.

Limitations of Using Information Technology in Retailing

  • Originally IT was used by retailers to automate control services such as finance, pay roll, and management accounts. Electronic point of sales systems can be afford only by a very few department stores. Basically, retailing is a highly dispersed business. Retailers have to incur enormous amount of expenditure on installation of IT equipment in their retail business.

  • Retailing involves a wide array of products. So, a complex system is required to handle a large number of product lines.
  •  In retail stores, staff may have limited knowledge about computers. So, computer specialists are to be employed to deal with the automation process. Only the largest retailers can afford to employ technically qualified people.
  • The costs of routine investment in automation process is very high.
  • Many IT projects fail and the risk of such failure is too high for retailers.
  • According to Prof. John Sawson, many retailers concentrate on operational improvement rather than transformational ones. The expected pay off from IT has not been fully realized. Retailers devote only a small amount of their budgets to IT.
  • Getting the full benefits of IT may actually take a longer time. Retailers should learn how best to exploit the new systems. Many U.K. grocers invested in EPOS in the 1980s. But only a few made effective use of information about customer’s shopping behavior. Only after making heavy investments and learning from experience, retailers could create IT based stock replenishment system.
  • IT alone has not produced performance advantage in the retail industry.

Inspite of the above limitations in using Information Technology for competitive advantages, firms have gained advantages such as flexible culture, strategic planning and improved supplier relationships. Advantage lies in people and systems rather than systems alone. To derive full competitive advantage of IT requires long-term investment.

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