So you’ve set up your micro market.
What’s next? How do you keep your sales up? How do you rotate in new products without breaking the bank? How do you keep your customers happy?
All of that requires a close look at market trends and a proactive product launch strategy. Below are four proven steps to testing new products that’ll drum up excitement, boost sales, and improve the overall consumer experience at your micro markets.
1. Partner with suppliers.
Do you have suppliers who want to test out new products? Is there a new supplier you’re interested in but not sure how their product(s) will resonate with your customers? Take the opportunity to partner with them.
Testing out a rotation of new product samples keeps your micro market new and exciting for customers. It can also help you avoid the financial burden of buying product and warehousing it, only for it not to sell.
Suppliers can share information about products that are popular in certain markets. Understanding your customer demographics is key. For example, if the product you want to test is a salad that costs more than $5, consider putting it into high-tech, health-conscious, or white-collar locations. However, if you are testing a new breakfast sandwich that’s under $4, consider testing it in distribution centers, call centers, or more blue-collar type locations.
Know your demographic and appeal to them appropriately with the right product mix from the right supplier partners.
2. Use signage to share what’s new.
Promotion. Promotion. Promotion.
How you communicate with customers about new micro market products can make or break their success. There are a few ways you can do this.
- Develop vibrant, eye-catching signage and place it around new products to draw attention.
- Use digital screens, like those on Cantaloupe self-service kiosks, for dynamic advertising.
- Create coupons or incentives for products in the Cantaloupe Go dashboard to drive interest in new products.
- Send out a monthly or quarterly newsletter to your clients, who can then forward it on to their employees, residents, etc.
Remember to highlight the benefits of the new products. Focus on things like health benefits, convenience, or cost-effectiveness — depending on what your customers like.
3. Hold regular customer events.
Ever wonder why you go into Costco and see product demos all the time? Because they work!
Hosting market events like tasting events, live demonstrations, or themed product days can significantly improve product visibility and customer engagement. It’s a chance for you to get facetime with your customers while they get an opportunity to experience new products first-hand.
Try timing events at the same time as you do a market refresh — ideally once a quarter or every six months. You can try:
- Holiday-themed events
- Customer appreciation event
- Supplier-sponsored raffles or giveaways
During an event, you’ll likely see a same-day boost in sales. But you also have a chance to get valuable direct feedback from your customers. This can be crucial for adjusting product offerings based on real customer preferences, which will help increase revenue in the long run.
4. Analyze your sales data.
Data is your friend.
After you introduce new products into your market, you need to track their performance. Collect data on sales, customer feedback, and any other metrics you find relevant. Then analyze this data to understand what works and what doesn’t.
Start with an analysis of overall sales of the product for the test period. First, pull the data by total sales of the product. Then, break that down by the specific locations where the product was offered. You may find that the product was a high performer in certain markets and a low performer in others. Knowing how the product sells in different places will help you decide where the product will work best in your whole network.
Next, evaluate category sales to see if your new product performed well within its category. If it did well (for example, it’s in the top 20%), then consider making that product available in other micro markets. If it’s in the top 50%, then try slowly introducing it to other market locations to test more.
Tip: Always make sure you give any new product enough time to test. A full quarter is generally a good benchmark for performance.
Data analysis is crucial to refining your product strategy. It helps you identify bestsellers, underperformers, and customer preferences. It can also help in negotiating better terms with suppliers or deciding on promotional strategies.
Launching new products in your micro market requires more than just adding new items to your inventory. You need a strategic approach and careful planning. By building strong partnerships, communicating effectively, engaging with your customers, and making data-driven decisions, you can ensure that your product launches are successful. These steps will help you sell more and build a loyal customer base.
Embrace these strategies, and watch your micro market thrive.
learn how to boost your micro market sales
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