Identifying Four Major Problems Of The Retail Traders
The retail industry is evolving every day. That’s why even the most successful retail traders also face difficulty in this market. Many retail stores faced untimely closure during the pandemic. But that’s not the root of their problem.
The Forex industry is not a stable place. Here, lots of changes can occur and the retail traders are required to deal with these changes properly. When they are unable to cope with the situation, they become incapable to carry out the trading process well. If you want to be successful in the retail industry, you must find the problems and try to work out a solution.
What Are The Major Problems For Retail Traders?
Among the various problems faced by the retail traders, we are mentioning the ones that are the most common. We have summarized these issues from several business articles. So, most likely you’ll find your problem and its respective solution in this article. Let?s learn about the four major problems for retail traders now:
1. Too Many Technologies But They Don’t Work Together
There are many technologies available for retail businesses that automate the business process. These technologies indeed ease up their day-to-day operation. However, sometimes they don’t work together. While there are some technologies that generate a huge amount of customer data, there are not enough staff to analyze that data. Choosing the wrong software can also create major problems for retail traders. So, it’s important to find a solution to this issue.
How To Fix It?
If you can choose a technology that is specifically attributed to the retail industry, it will be better for you. Retail traders often benefit the most when they use the Point-of-Sales software or barcode scanners. So, you can use these technologies to automate your business operations where possible, manage inventory, manage customers, and for many other purposes.
2. Engaging Employee Is Tough
The retail industry has one of the highest rates of employee turnover. Despite being the only industry generating the highest rate of employment, this sector often faces employee engagement issues the most. Even when those traders try to retain employees, that requires a lot of energy, and cost on their parts. On top of that, the economic downturn in the pandemic has affected the employee engagement level hard in this sector.
How To Fix It?
The best way retail traders can increase employee engagement is by offering training workshops for their employees. If they can use training workshops within the company, and pair the employees in certain groups, it will increase team bonding and team-engagement ratio. They can use the HR Management System, which is an automated software to cultivate the maximum potential of such training workshops.
3. Maintaining Customer Loyalty Is Becoming Difficult
Retail traders know how important it is to maintain customer loyalty to ensure the ongoing operation of their brands. Sometimes the traders think that they can afford to let the existing customers go because it will be easier to replace them. But, that’s where they are utterly wrong. As a retail trader myself I know first-hand how hard it is to maintain customer loyalty. You better meet customer expectations and give them what they want.
How To Fix It?
If you want to maintain customer loyalty, you need to use a more personal approach while addressing them. You can use some special discount offers to attract them, and add a personalized email template to let them know about your offers.
4. Failure To Manage The Internal Communication
Retail traders know how difficult, and complex the internal business operation of the retail industry is. Mostly the large-scale retail firms face this complexity the most because they have a lot of business units to handle together. That’s why when they fail to maintain internal communication among all the employees, it creates disruption in their daily workflow.
How To Fix It?
The retail traders can implement an ERP system that will be the perfect solution for managing internal communication in the retail store. This software will centralize all the business operations and will generate real-time business reports for employees.
FAQs
We have discussed several problems for retail traders in this article including their solutions. But, you may have a few questions still left on your mind, which is why we are including a few more questions for you in this section. Let’s take a look:
1: How Many Retail Traders Are There?
Ans: According to the latest reports published by the BIS, and The Modern Traders, there are millions of retail traders in the market right now. There are 9.6 million retail traders in the world who are conducting business online. For the brick-and-mortar stores, currently, there are 4 million such traders in the globe.
2: Can Retail Traders Make Money?
Ans: Of course, retail traders make money, but the odds of that are often against you. According to recent statistics, only 5% of such traders make money consistently. But, if you judge the current pandemic situation, the chances of making money as retail traders are probably less than 3%.
3: How Much Of The Market Are Retail Traders?
Ans: In the wide-trading U.S. Stock market, retail investing holds almost 10% of the market. As per the Russell 3000 stocks, 98% of the biggest retail stocks have equity securities in the market. With an average trading volume of $380 billion, retail investing indeed looks like a promising venture.
Conclusion
If you can combine cross-channel marketing with authentic customer personalization services, you will be included as one of the most successful retail traders of all time. The retail trader association is there to protect your rights as a retailer, and to inform you about the new regulations in the retailing business. If you manage to find some common problems of such traders in this article alongside their solutions, please let us know in the comment section below.
