The five-step advantage

With consumers’ discretionary income seriously impacted by a myriad of factors, including adjustable rate mortgage rate resets, unstable home equity and credit card payment increases, many retailers are being forced to adjust their marketing strategies for today’s consumer.

According to Discover Financial Services, the Discover U.S. Spending Monitor fell again in July to 83.5 from June’s 85.6 (May 2007=100), marking the second consecutive month of decline as consumer attitudes toward the economy and their personal finances continue to deteriorate.

In addition, retailers are facing their own issues, such as whether to open a new store or close an existing location, to market their store online via a web site and whether to offer online sales or not. Of course, all issues are based on current economics.

According to Pitney Bowes Business Insight’s recent whitepaper, there are five steps retailers can use to their advantage and avoid economy pitfalls.

1. Focus on gathering accurate customer data and targeting core customer marketing campaigns

2. Understand the preferences of existing, core customers and interpret trends in customer behavior

3. Monitor, research, understand and anticipate the competition

4. Evaluate existing store performance to identify both successful and problematic locations

5. Establish realistic store goals

So, in thinking about your marketing strategies for upcoming holidays or the upcoming year, remember to incorporate some or all of these steps, it could help to turn your company into a powerhouse.