Surprising Results With Customer Fashion Marketing

A fashion shoe store owner (a client) and I have just been analysing the results of her recent Back-to-School summer marketing promotion.

The shoe store owner was thinking about how big her database was getting and the cost of mailing out a letter promotion to 4,000 past customers (about $3,400). So instead, we just did one email and two SMS campaigns.

Did they work? Absolutely. The almost identical SMS, email and letter promotion has been sent out the past 4 years. Every media worked – email, SMS and post.

See the results below:

Fashion marketing shoe sale results

Now the 110 (approx) sales the store owner missed out this year (Jan-Feb 2013) versus the 2012 result of 225 came down to not posting the letter. So I did the sums. 110 sales x the average sale. The result was approx $2,000 profit.

So the moral is… if a promotion works, don’t stress about the cost.

If your database is growing – fantastic!

If on the other hand you don’t know if your letter or SMS campaign will work, then test on a small batch of 400-500 customers. Less than 400 won’t give you enough of a measurable result.

What To Do If Your Fashion Retail Sales Are Down

The GFC and the rising interest rate cycle has certainly affected retail sales in the past two years.

However, certain clever retailers have been able to leverage their fashion marketing and branding to maintain their revenue and even grow during this time. For the rest – recent times have been challenging. So let’s examine what is the role of the fashion store owner.

Fashion sales - what not to focus on

What NOT to do if your fashion store is quiet

I was contacted by a fashion marketing newsletter subscriber (a store owner) recently who said this (word for word…)
I know – it’s incredible…

…."I’m finding that we do not have time to read the ideas let alone implement them…"

I also had on my computer one of the original emails from this particular store owner – here is the important excerpt:

We own two clothing stores and have been in business for over 6 years. Although we haven’t made a profit in those 6 years! Our major goal, of course, is to turn a profit.

Yes, incredible. This owner says they don’t have time to implement our Smart Fashion Marketing strategies (actually proven to work – not theory), yet confess to spending 100% of her time on SHOPKEEPING ACTIVITIES!

This is real important – if you are fashion retail store… are you in the shopkeeping business or in the business of marketing of your store and brand?

I hope you answered MARKETING!

Absolutely – at least 4 hours a week of your time should be devoted to marketing, promotion and branding activities. It will only cost you $80 or so to free up those 4 hours (i.e. you pay a casual to do your shopkeeping work).

It’s YOUR role as the retail store owner to WORK ON your marketing and branding – no one else you employ will have the passion about your business that you do (you can, of course, leverage your time by utilising the services of a marketing house like ours).

Remember – you have to think like a marketer, and hand most of your shopkeeping activities to staff if you want to enjoy healthly profits and see your fashion store(s) grow!

About the author: I’m Mark Fregnan, founder of Smart Fashion Marketing (Kinetic Media & Marketing) – an Australian consulting business that assists fashion retailers to increase sales and improve business value. Because we have a passion for marketing, our retail business clients enjoy better store and label brand exposure, greater cash-flow and more time off to enjoy the finer things in life!

Retail Shopping Centre Fashion Advertising

Shopping Centre fashion retail advertising

Do you have a retail store located in a shopping centre? If so, I’m sure you’re familiar with the extremely high rent and outgoings bill you receive every month.

Besides the building and services component – a portion of your monthly fee to the shopping centre company also covers centre promotion and advertising. It’s the shopping centre’s role to bring in people so they can charge the retailer a fee for the space. Nothing new with that.

However, it’s actually a good idea to know how much of your annual rent is attributed to receiving store traffic (browsers and customers).

Let say you have a 30m2 store. Figure 1 : Your current shopping centre rent (let’s use $50,000 per annum for simpicity). Figure 2 : The cost of renting a 30m2 office in a street in the back lots of an industrial area (let’s say it costs $15,000 per annum). The difference $35,000, is the annual cost paid for the ‘better’ location (shopping centre v.s. back lots).

Some retailers choose to have a store located in a quieter street location and not in a shopping centre, but in order to create the same revenue, much more money needs to be spent on fashion advertising.

i.e. Shopping Centre = high rent, lower individual store fashion advertising expenses.

Quiet location = lower rent, higher individual store fashion advertising expenses (in order to produce a similar annual revenue).

There is aways that trade-off. Whether one option is better or not for your store really comes down to your level of experience in fashion retailing, your brand and sales system.

About the author: I’m Mark Fregnan, founder of Smart Fashion Marketing (Kinetic Media & Marketing) – an Australian consulting business that assists fashion retailers to increase sales and improve business value. Because we have a passion for marketing, our retail business clients enjoy better store and label brand exposure, greater cash-flow and more time off to enjoy the finer things in life!