According to the latest data, retail sales in June were above forecasted figures. While business investments were down, consumer confidence grew as evidenced by an upward surge in spending. According to the US Department of Commerce, consumer spending was up by 0.4 percent after a growth of 0.2 percent that had been forecasted. A large part of this growth was in the area of new car sales along with other consumer goods, but the question remains as to whether this growth can be maintained. So then, what will it take for economic growth to continue? Here is some of what many leading economists feel need to be put into place:
Any small to mid-size business hoping to maintain a growth pattern needs to realize that repeat business is a key part of continued growth. While so many retailers spend the bulk of their operating budgets on customer acquisition, the successful retailer understands that unless they retain their current customer base, they are only replacing current with new customers. Building a customer base requires the addition of customers, not the replacement of them. Here is where a Customer Relationship Management, CRM, platform can be of major benefit. There are several on the market, so it is imperative to pick one best suited to your business. Two of the most popular are HubSpot and Salesforce, but which CRM should you choose? Briefly, Piesync says HubSpot is good for small to mid-size enterprises while Salesforce is better for those companies growing rapidly and expect a huge amount of expansion.
If you are wondering why you need a CRM in the first place, it is imperative to understand the psyche of today’s consumer. Today’s consumer wants to have a relationship with any company they do business with and often the key to success lies in the way in which these B2C relationships are built. If there is a strong connection between the consumer and the merchant, you can expect repeat business. It is said that millennials, especially, want to deal with businesses that have common goals with theirs. From environmental awareness to humanitarian aid, if a consumer finds a common bond with a company, then they will develop a strong relationship. This is all part of what it will take to continue growth in retail sales.
Few economists expected this type of growth in June and as a result it took a bit of analytics to understand which sectors saw the most growth prior to understanding what prompted it. It all boils down to consumer confidence, so if growth is expected to be maintained, B2C relationships must be developed. That’s going to be the key to continued growth and if it holds, investments may rise proportionately as well. Again, the key to growth is consumer confidence and the key to consumer confidence is that relationship spoken of above. Which CRM should you choose? Your answer will determine your growth.