Part 1: Shop Priorities and strategy
Part 1: Shop Priorities and strategy
Every shop and business is different, but it can be interesting to see what paths other shops have chosen to develop their business. In this blog we have divided three main priorities and strategies; 3 most chosen and strongest represented growth pillars, alternatives and the choices of a few shops.
3 growth pillars: New customers, high customer satisfaction and online focus
The three most chosen strategies to expand and develop business of shops are: Reaching new customers and operate in new markets. High customer satisfaction and a sharp online focus.
New customers and new markets
Growing the sport and diversifying into new markets is a great way to expand the business. Kite shops often pick up new product lines and offer additional services to reach more people. With the growing popularity and increased media coverage of kitesurfing, the sales potential for kitesurf related powerkites has grown along. These power and/or trainer kites are often the perfect gift to get others into the sport. We noticed an increase in shops that stock power or trainer kites as these kites are relatively cheap and easy to sell, making it a great way to benefit from increased potential.
Customer satisfaction and retention are the second largest pillar in growing business for brick and mortar shops. People who want to buy a kite often want to receive some expert advice, a discount, inspect the product before actually buy it or simply to enjoy the process of the purchase. after all, it is something to look ahead to; buying a new set of kites.
This is exactly where shops can capitalize on doing that little bit extra: offering demos or clinics, organising local kite-events and giving some extra personal attention and information all works towards a positive buying experience that makes customers want to come back for their next purchase. It’s the personal touch that differentiates you from a webshop!
A lot of purchases nowadays are done online, so it’s no coincidence that running a webshop comes in as third most chosen.
Expanding the online presence and running a webshop is chosen by about 47% of our respondents. It is a movement that has been going on for years. It is quick, convenient and easy to order products from the comfort of your home, especially when the customer is in need of a new kite and wind is predicted. From our survey we learned that most shops plan to step up their online presence and improve their webshop.
Looking for inspiration to boost your online business? We have written some blogs on how schools can boost their business online and how to order kites the 2018 way.
Alternatives : More or less brands? More community focus
Introducing other product lines
32% of the responding shops in our survey plans to introduce new product lines into their shop to serve their customers with more choices. Most shops expand their range of products with non-kiting related products such as skate boards and clothing to lessen their reliability on kite sales alone. More about this in the next blog!
Decreasing the number of brands
23% of the respondents has chosen to reduce the number of kite brands they offer or display in their shop. Either to reduce their investment and have a better focus on the brands they do still carry. Additionally some brands offer the possibility of drop shipping, this means shops do no longer have to carry stock.
Investing in local kite communities
To stand out, shops organise a variety of things to do something extra for the local kite community. A perfect way to build long term relationships with your (potential) customers and get to know the local crowd. Handing out hamburgers at local kite competitions, support and coach local riders, organise trick clinics, photoshoots, demo days, are just a few but very doable examples of the things you can do to make a name for your shop. Often the local kiters can perfectly let you know what is needed or what is welcome. Additionally all these offline ideas are great to generate content for your online content strategy!
The choice of a few shops: Cost reduction, more staff or more brands
Increase productivity of staff
Taking on more employees or improve their productivity can enable you to offer that extra service, organise test events or do that little bit extra for the community. 19% of the survey participants will do so and reorganise their company to expand and grow.
13% of the responding shops will focus on reducing costs during the season. Reducing can be either subtle or radical; changing to new location, decreasing advertising budgets or promotional actions, decrease costs of employees, reduce the amount of money that’s tied up in stock by using more drop shipments directly from the manufacturer.