Acquiring new customers is simple: Find great products > promote 'em well > make sales. The tricky part is building an addictive brand that keeps customers coming back. 🏷️ This week we break down the best customer loyalty tips, plus talk FMCG trends with an industry pro. In today's edition of The Backorder:
- Wolf spiders launch attack on the global supply chain
- 5 effective customer retention strategies
- FMCG expert breaks down 2024 trends, challenges, and solutions
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In supply chain headlines
- Sports sector embraced by hybrid shoppers. A new report has found that the sporting goods sector has one of the highest levels of hybrid retail – with 40% of consumers shopping equally online and in physical stores, explains Internet Retailing.
- Spiders added to the list of 2024 global trade disruptors. After a recent vehicle-hauling ship pulled into a Belgian port carrying an eight-legged infestation, the two-day delay that followed became yet another contributor to the ongoing disruption of the global supply chain, Bloomberg reports.
- ÂŁ46m worth of new government grants for Northern Ireland food and drink manufacturers. As part of the economy minister's plan to boost poor productivity, the scheme aims to encourage investment by covering up to 35% of new equipment costs. Read the full story on BBC.
5 tips for improving customer retention and loyalty
Increasing customer retention rates by 5% increases profits by 25–95%, according to research done by the inventor of the net promoter score (NPS), Frederick Reichheld. Here are 5 proven ways to keep your customers coming back for more.
1. First impressions matter. Don’t underestimate the importance of a customer’s first touch with your brand or product. Be extraordinary where your competitors are ordinary by providing faster fulfilment, memorable packaging, free gifts, and personalised shopping experiences.
2. Get feedback… and use it. Encourage product reviews, send out surveys, and speak to your customers directly about their experience with your brand. Take what you learn from them and use it to inform what you sell, where you sell, and how you sell it.
3. Reward loyalty and advocacy. Repeat buyers – and the customers that shout your products from the rooftops – are worth their weight in gold. Whether you offer reduced rates, surprise bonus gifts, or special discounts, every brand advocate you keep equals free marketing for your business.
4. Excel at post-purchase problem-solving. Where many brands go wrong is failing to deal with the ugly stuff in a helpful, professional manner. Troubleshooting, returns, exchanges … how you handle after-the-sale support often determines whether a customer resents your brand or falls in love with it.
5. Accurate data = happy customers. Remember the axiom: A promise made is a promise kept. To preserve your customers’ trust, make sure you’ve got accurate inventory and customer preference data, and that (if you’re a retailer) the opening times on your website are up to date.
Fast-moving consumer gold – meet Phil Peters
FMCG is a hard nut to crack. That's why the UK-based FMCG specialists at YF are in such hot demand. We managed to grab 10 minutes with Phil Peters, Head of Supply Chain Services at YF, to discuss the current landscape.
In terms of growth, what's often holding FMCG firms back?
"The FMCG landscape is evolving rapidly, and many challenger brands struggle with scaling their operations to meet increased demand. Addressing this often requires optimising production processes, building a resilient supply chain, and ensuring consistent product quality as volumes increase."
How can FMCG businesses tackle the always-on challenges around cash flow?
"For challenger brands, the two best ways to manage cash flow are negotiating favourable payment terms with suppliers and customers, and implementing a robust inventory management system to avoid overstocking while ensuring you're always able to deliver on time and in full."
What tech trends are you seeing in FMCG?
"We're starting to see increased adoption of data analytics and AI in demand forecasting and inventory management. Additionally, blockchain technology is gaining traction for improving supply chain transparency and traceability, which is particularly relevant for brands focusing on sustainability and ethical sourcing."
Is sustainability a priority for brands you work with?
"Sustainability is a growing priority, but it's difficult – and can be very expensive. Cost-effective approaches include optimising packaging to reduce waste, improving energy efficiency in production, and partnering with eco-friendly suppliers. These initiatives often lead to cost savings in the long run, while meeting consumer demands for sustainable products."
On the lighter side
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