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The e-commerce fashion status is projected to grow to $1 trillion by 2025, crediting its growth. Moreover, its global market value was approximately $759.billion in 2021, with clothing, footwear, and accessories leading the sector. Indeed, starting an online fashion store is profitable, but maximizing profits is important to keep you ahead in the game. Here are some strategies to try
- Be abreast with your customers’ needs
Your customers are instrumental to your fashion business, and it makes sense to be abreast with their fashion needs to facilitate more sales. Statistics indicate that 76% of customers expect business owners to understand their needs, while businesses that understand their customers are 60% more profitable than their counterparts. Although you can introduce new items according to seasons and trends, offering items that your clients don’t need may be detrimental. Not only will it cause financial loss, but these items will take your storage space and prevent you from stocking up. Moreover, you won’t profit even if you sell at discounted prices.
Fortunately, you can identify your customers’ needs in many ways. You can begin by viewing your sales history to determine the high-demand products. If tracking your sales data manually is tedious, you can leverage an inventory management system with a forecasting tool for the best results. Also, you can conduct customer surveys to figure out what trends they are into and tailor your products accordingly.
- Create loyalty programs
Loyal customers are assets of every business and what better way to keep them happy than by creating loyalty programs? Loyalty programs are designed to encourage clients to continue patronizing your brand. Research reveals that existing customers are likely to make more purchases, and acknowledging their support will keep them loyal to your business. That said, you want to design your loyalty programs if you haven’t already.
To get started, create a catchy name for your program, and ensure that it’s not all about the money. Likewise, ensure that your rewards vary and include various customer actions in the program. As a tip, partner with other complementary brands to create more exciting offers. You can also include games and competitions for the best results.
- Minimize customer return rate
While some customer returns are unavoidable, higher return rates can be detrimental to your business. Not only do you lose a sale and gain an unhappy customer, but returned products can become resale or liquidation and would be sold for less than their original value. Moreover, dealing with manual workflows to process exchanges and returns can be time-consuming. You may also find it challenging to keep track of returned items. Therefore, it’s best to reduce your customer return rate as much as possible.
You can achieve this by leveraging a customer-focused returns policy. For instance, experts advise lengthening your returns window to 45-90 days instead of the standard 28-30 days. This is because longer time windows can trigger the endowment effect where your clients become attached to your products the longer it’s in their possession. Research also shows that inaccurate sizing charts led to higher return rates. That said, leveraging a size guide app to create accurate sizing charts for your products will prove helpful.
- Prioritize customer service
According to Forbes, 96% of customers stated that customer service would determine their loyalty to a brand. Moreover, they would likely pay 17% more to patronize businesses with great service. These statistics reiterate the need to strengthen your customer service. Fortunately, there are several ways to achieve this. For starters, you can seek feedback through online reviews and testimonials. You can get personal by asking them about their experiences with your products and services through phone calls, writing, or face-to-face interactions. Likewise, exceed their expectations by remembering unique details about them. For instance, send gifts and personalized birthday messages to clients on birthdays or anniversaries.
You also want to improve your customer service skills for the best results. For instance, practicing active listening will help you understand your clients’ wants and deliver accordingly. Also, use positive language and be calm even if your clients are angry. It’s also prudent to admit your mistakes and find solutions, so keep this in mind.
- Leverage a good website
Research shows that customers will patronize a business with a good website. Despite this, ESPRESSO.digital statistics reveal that 97% of small business websites are ineffective. That said, it’s important to work with professionals to create a functioning website. As a tip, ensure that your pages have CTAs (call-to-actions) to help your clients contact you with ease. Consequently, ensure that your website is mobile-friendly and easy to navigate.
