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Journal Of Economics, Technology, and Business (JETBIS)

Volume 2, Number 9 September 2023

p-ISSN 2964-903X; e-ISSN 2962-9330

RETAIL BUSINESS STRATEGY IN INCREASING SALES THROUGH

INNOVATION AND CUSTOMER EXPERIENCE

Ayu Lestari

, Hanum Agnia

Sekolah Tinggi Agama Islam Kuningan, Indonesia

1,2

E-mail: [email protected]

, [email protected]

KEYWORDS:

Retail Business, Business

Strategy, Customer

Experience

ABSTRACT

In retail, strategies for increasing sales through innovation and

customer experience can be a critical factor in business success. In

this case, artificial intelligence can be used to analyze customer data

and market trends to develop innovations and customer experiences

that can increase sales. To achieve this goal, it is necessary to

implement an effective data management strategy and the use of

appropriate technology to collect and analyze customer data in real

time. Thus, retail businesses can understand customer behavior, and

design innovations that suit their needs. In addition, artificial

intelligence can help retail businesses in the development of effective

and relevant marketing strategies, leading to increased customer

traction and experience. Through data analysis, retail businesses can

identify market trends and customer needs, and develop innovative

solutions that can improve customer experience. In addition, artificial

intelligence can help retail businesses in developing effective and

relevant marketing strategies, leading to increased customer attraction

and experience.

INTRODUCTION

The retail industry has undergone significant changes in recent years, mainly due to

increased competition and changing customer preferences. Innovation and customer

experience are key to winning this increasingly competitive retail market. In this context, this

study aims to analyze and understand effective retail business strategies for increasing sales

through product innovation and superior customer service.

The retail industry is one of the most dynamic and rapidly changing sectors of the

economy. Technological developments, changes in consumer lifestyles, and increasingly fierce

competition have forced retail companies to constantly adapt and look for new ways to increase

sales. In this context, product innovation and customer experience have become key factors in

winning the competition and maintaining retail business success.

However, consumer behavior continues to change along with technological

developments and social trends. Figuring out how to understand these changes and strategizing

relevant customer experiences most effectively can be challenging in increasing sales. One

strategy that can be applied in a retail business company is to improve innovation and customer

experience. Even though the strategy used in this analysis is a marketing strategy.

A strategy in marketing is a plan or action designed to identify, reach out, and meet

customer needs in a better way than competitors. One of the problems that may arise is the

difficulty in finding or implementing innovations that are by the marketing strategy that has

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been made. It may be difficult to find new innovative ideas that could differentiate a business

from competitors, or there may be limited resources to implement the desired innovation. The

purpose of this marketing strategy is to create a profitable position in the market and increase

business profits. This marketing strategy also involves careful market analysis to understand

market dynamics, trends, customer needs, and competitor advantages. From this analysis, retail

businesses can develop appropriate action plans to produce products or services that match

market needs, select the most promising market segments, and determine effective marketing

and promotion strategies to reach the intended market.

Analysis of the successful strategy of the retail business is important because increased

sales will have an impact on business growth and greater profits. In addition, a positive

customer experience will increase customer loyalty and recommend products to others.

And experience can also lead to a positive attitude towards consumers, which will cause

feelings of satisfaction or consumer satisfaction, besides that positive emotions built towards

the product will build trust. (Mowen & Minor, 2002) state that consumer trust is the body of

knowledge that consumers have and all the conclusions consumers reach about objects,

attributes, and interests.

Based on the results of research according to (Kursunluoglu, 2014), (Osarenkhoe et al.,

2017) and (Williams & Naumann, 2011), show that customer satisfaction has a significant

relationship with customer loyalty. When it comes to customer satisfaction, several factors

affect customer satisfaction. These factors include value (Rintamäki et al., 2007); (Jones et al.,

2006), service quality (Kitapci et al., 2013); (Khare et al., 2013), and customer experience

(Chen and Lin).

The purpose of this study is to explore successful strategies of retail businesses in

increasing sales through innovation and customer experience. This study also aims to identify

the key factors that influence the successful implementation of the strategy.

The benefit of this research is to provide a better understanding of retail business success

strategies and the factors that influence their successful implementation. This research can help

retail business owners increase their sales and profits as well as retain customers by providing

a positive customer experience. In addition, this research can also contribute to the

development of literature on successful retail business strategies.

Retail businesses need to develop products that are different from competitors to attract

customers. Product innovation can include the development of new products or improvements

to existing products. Retail businesses need to provide a pleasant and satisfying customer

experience to keep customers coming back and recommending the business to others. The

customer experience can include friendly service, an engaging store atmosphere, or an easy

and intuitive online shopping experience. Well-trained employees can help improve customer

experience and sales. Employee training can include sales skills training, customer service

training, and product training. Retail businesses need to have an effective marketing strategy

to reach potential customers and promote their products or services. Marketing strategies can

include the use of social media, online advertising, or promotion in physical stores. Retail

businesses need to analyze sales and customer data to identify trends and patterns in innovation

and customer experience. Data analysis can help businesses to identify the best-selling products

or services, customer buying behavior, and emerging market trends.

Retail Business Strategy In Increasing Sales Through

Innovation And Customer Experience

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RESEARCH METHODS

This research uses qualitative methods of understanding research results to identify key

factors that influence retail business strategies in increasing sales through product innovation

and customer experience and can provide practical recommendations for retail companies

based on research findings. The results of data analysis use statistical software to analyze

survey data collected and can apply descriptive statistical analysis to describe the

characteristics of respondents and perform regression analysis to identify relationships between

product innovation, customer experience, and retail sales.

RESULTS AND DISCUSSION

Product innovation

Product innovation is the process of developing and introducing new products or

significant improvements to products already on the market. It involves creating, designing,

testing, funding the launch of new products or improvement of existing products to meet

customer needs, increase competitiveness, funds create added value. Product innovation can

include changes in features, functions, design, technology, materials, or the way products are

marketed.

Customer experience

Customer experience refers to all the interactions and contacts that customers have with

a business or brand during their journey as consumers. Customer experience encompasses

every touch point between the customer and company experience, including direct contact such

as shopping for a physical Ditko or talking to customer service staff.

The main key to increasing customer loyalty

Customer service is something that many businesses want because loyal customers tend

to make repeat purchases, receive positive referrals, and can be a long-term source of income

for a store or company.

a. Quality of product or service

A high-quality product or service is the foundation of customer loyalty. Customers who

are satisfied with what they buy or use are more likely to return and stay true to the brand

or business

b. Positive customer experience

A positive customer experience, from initial interaction to after-sales service, has a huge

impact on loyalty. Friendly, responsive, helpful customer service can create a positive

customer experience.

c. Competitive price

Competitive pricing or offering good value to customers are important actors in

maintaining loyalty. However, price is not the only factor customers can also take into

account the added value they receive.

d. Availability of products or services

Customers want the product or service they want to be available when they need it.

Product availability can be a decisive factor in maintaining loyal customers.

e. Effective communication

Communicating effectively with customers about relevant products, offers, or updates

can increase loyalty. Customers want to feel cared for and informed.

Discussion

Consumer Withdrawals

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Innovative products have greater appeal to consumers. Consumers often look for

products that are new, different, or unique. Companies or stores that are always making changes

and continuously presenting innovative products can attract more consumers to their stores.

Better quality

Product innovation can improve product quality. So that the product is better and tends

to get positive reviews that can influence consumers to choose and recommend the product to

others.

Overcoming competitive challenges

In a competitive market, innovation can be a way to differentiate yourself from

competitors. Innovative products can help a company or store compete more effectively and

take market share from competitors.

CONCLUSION

An effective retail business success strategy is to increase sales through innovation and

customer experience. In the world of retail business, it is important to continuously develop

innovation and offer an engaging customer experience to increase sales. Innovation strategies

can be done by creating new products, developing new technologies, or introducing new

business models that are different from competitors. Meanwhile, a good customer experience

can be achieved by providing friendly, fast, and high-quality service, as well as providing an

attractive and comfortable environment. By improving innovation and customer experience,

retail businesses can increase their competitiveness in the market and win the hearts of loyal

customers. Therefore, retail businesses need to continue to innovate and prioritize customer

experience to win the competition and achieve long-term success.

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