Stay Selling: The Data Shaping Retail Operations For 2024

In consumer goods sales, we can certainly point to a few practices that will help operations leaders in these verticals stay prepared for the next year. Ahead of 2024, close observers of the global situation will know to expect the unexpected. From political conflicts to elections, and economic growth to consumer behaviors, there is a great deal up in the air; if the past few years have taught us anything, it is that most predictions of the near future are destined to miss the mark.

Consumer Behaviors in Flux

Consumer buying power has decreased with high interest rates and depressed consumer sentiment. Retail sales fell in October 2023 for the first time in seven months, signaling a shift in consumer behavior. This presents a challenge for operations leaders in consumer goods sales as they need to adapt their strategies to accommodate this reality.

Enhancing Customer Knowledge

Statistics reveal that 80% of consumers value product knowledge for a positive customer experience. In-store sales strategies have to change to accommodate decreased purchasing power. Increasing customer knowledge can help shoppers feel more confident making buying decisions. The advantage of in-person shopping lies in the ability to ask store employees for advice and insights, particularly for high-ticket items. Retailers need active employee insights and interactions to drive repeat foot traffic and boost consumer knowledge.

Motivating Retail Staff

Extrinsic motivators such as tangible rewards and in-store recognition have been debated in today’s thought Leadership on sales. However, data on seller behaviors shows that these motivators can significantly boost sales volume and retention growth. Operations leaders should consider introducing badges, award ceremonies, and store credits to drive seller engagement and success. By offering such rewards, leaders demonstrate their investment in the sales force during a time of scarcity and austerity.

AI-Based Sales Coaching

AI can play a crucial role in improving the sales force and customer experience. AI chatbots equipped with large language models can assist sellers in providing technical details and product information on the go. This aids in enhancing the human touch that online retailers cannot provide. Effective AI-guided sales technology has been shown to lead to higher sales and improved efficiency for both the seller and the consumer. It is crucial for operations leaders to plan for the effective use of AI in 2024 to establish a community vibe and enhance the sales interaction.

In conclusion, the retail landscape is evolving, and operations leaders need to adapt their strategies to stay competitive in the changing consumer goods sales environment. By focusing on enhancing customer knowledge, motivating retail staff, and leveraging AI-based sales coaching, operations leaders can position their retail operations for success in 2024 and beyond.

Source: forbes