Did Ya Know?
1. Retailers who believe that that creating a customer loyalty program will cost them rather than creating incremental business are lost!
2. You can’t have loyal customers without loyal employees. They go hand and hand.
3. Being defense is stagnating. Being offensive is vibrant for both employee and customers.
4. Business Intelligence is that new buzzword. Data is only intelligent if you use it.
5. An item that you discount by 30% = ZERO profit (assumes 52% MU and 39% expenses).
6. Every penny change in gas prices moves 1.7 billion dollars in or out of discretionary spending.
7. The Apples stores have the highest per square foot sales of any retail chain. In one major mall there gross sales are greater than two of the major anchor tenants and the sales per square foot exceeds $5500.
8. Do the math on retaining your best customers. If they spend $400 per year and the acquisition cost of a new customer is $200 and your GM is 50% it will take one year to recover the cost. On a net profit basis of 8% it will take 6 years.
9. The acquisition cost of a new customer is 3x to 6x greater than the cost of retaining a good customer.
10. If a retailer can improve their inventory turn by two weeks the net result is a $15,000 positive cash flow for a store doing a million dollars in annual sales.