define local communication zones stores retailerdefine local communication zones stores retailer

How to optimize store communication zones: 3 tips

As budgets decrease retailers want communication zones – the areas where printed advertisement are distributed – to be more and more precise and regulated. It’s important to select zones that guarantee a good return on investment (ROI). However retailers need information to be able to optimize their communication zones and, more particularly, to understand wherefrom the customers come.

1/ Systematization of the collection of clients’ addresses

It isn’t always the case but it should be a reflex: systematically collecting postal addresses constitutes a basic method to prepare for the optimization of shops’ communication zones.

Retailers can use many sources of information:

  • Loyalty cards – many different types exist but most enable the collection of  reliable postal addresses.
  • Retailer newsletters – even if it seems unnatural, it is useful to ask customers for not only their email address so they can actually receive the newsletter but also their postal address.
  • Invoices –  a client’s postal address on an invoice can be transferred into other databases.

2/ Set up a survey strategy at the cash desk

To prepare for the optimization of communication zones it’s recommended to collect postal codes at the cash desk. It’s simple: the cashier asks clients for their postal code, which allows retailers to identify the provenance of consumers and link them to sales revenue.

It’s not recommended to continue all year long as customers could weary of having to answer the same question week in week out, which might in turn have an impact on the quality of the information gathered. It is therefore more efficient to conceive an annual plan for postal codes collection at the cash desk at two different types of period:

  • Periods of important traffic, such as Christmas for toy shops or spring for garden shops, which enable to identify the zones that attract the most clients.
  • More “standard” periods concerning traffic for a better general idea of the catchment area.

Learn more: Large retailers – What is a competitive pressure index?

3/ Train and inform collaborators on the challenges of optimizing communication zones

The task of collecting addresses or postal codes is essential to prepare for the optimization of communication zones. It is therefore necessary that retailers train their shop managers to understand how important these strategic challenges are for them.

Managers will in turn relay the information to their collaborators. They will have to explain that this work will enable them to really understand where their customers come from and optimize their communication in order to increase the shop’s turnover!

By following these 3 recommendations you will be able to help your shops optimize their communication zones, and to help you do so CoSpirit teams are here for you!

Learn more: How can geomarketing help you estimate the development potential of a sales points’ network?

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