By Jeanne Bliss, Customer Service Expert
By understanding what motivates its “fashionista” customers, Zara has changed the definition of success in fashion retail. Customers make an average 17 annual store visits, compared to 4 visits for other retailers. The Zara “habit” that keeps customers coming through their door results in more products sold at full retail: nearly 85 percent of Zara’s inventory sells at full price, compared to a retail average of 40 percent. Most important, because customers are Zara’s sales force, advertising is hardly necessary—it’s a mere .3 percent of sales, compared to competitors’ 3 to 4 percent.