If you’re running or considering launching a custom embroidery business, you’re undoubtedly already well aware what a unique and rewarding industry it is. What follows are a number of actionable strategies we at Impressions magazine have stitched together to help small embroidery businesses, in particular, thrive. Whether you’re just starting out or looking to boost your current operations, these insights will help you craft a more sustainable and profitable company.
Customer Service, the Cornerstone of Success
While opportunities abound, the continually improving technology forming the bedrock of today’s machine embroidery has also created a wave of new embroidery businesses, increasing competition for customers’ attention—a situation further compounded by the mix of challenges and opportunities posed by the explosion of e-commerce in recent years. The key to standing out is making customer satisfaction the foundation of your business strategy.
Customer service is an essential differentiator in any competitive market, and nowhere is this more so than in the custom embroidery sector. This is especially true if your customer base is largely locally. That said, given the nature of the ever more connected world we live in these days, the definition of “local” is becoming increasingly relative.
A simple personalized touch or attention to detail in your work not only makes customers happy, it can also generate valuable word-of-mouth referrals. For smaller embroidery business, especially, every happy customer has the potential to create yet more customers.
As a general rule, marketing professionals estimate acquiring a new customer can cost five times as much as retaining an existing one. Focusing on exceeding your current customers’ expectations therefore represents a powerful means of increasing margins simply by reducing turnover.
Strategies for making customers happy include:
- Addressing customer pain points with solutions that make your service unique. Examples could include quicker delivery times and bulk discounts. The creation of online “company stores,” which make the ordering process that much easier for your larger or more regular customers, is another great way to keep them from going elsewhere.
- Adding value through personalization. For example, offer color options, special design variations or consultation services to customize each order. This kind of personalization can also open to door to “upselling,” further increasing margins.
Optimize/Organize Your Embroidery Processes
If you haven’t already done so, then you’re overdue for an in-depth analysis of everything from the number of garments a particular machine can produce per hour to your cost of goods of sold (COGS), fixed costs, wastage and any number of other metrics or key-performance indicators (KPI). Simply “running the numbers,” that or taking a fresh look at whatever numbers you already have on-hand, can be a great way of taking your company’s production processes to the next level. In the words of famed business management pioneer Peter Drucker: “You can’t manage what you don’t measure.”
Hone and measure your production processes with an eye toward increasing efficiencies and fine-tuning your pricing. Photo courtesy of Impressions Expo
While you’re at it, take the time to evaluate your various production processes with an eye toward spotting any inefficiencies you may not have noticed previously. We’re not talking about buying a whole lot of new gear here, but taking full advantage of the gear you already have. Could your production spaces be better organized? What about the way you’re storing your blank apparel, thread or other consumables? Simply talking to the other members of your production team in order to find out where their pain points are can be an especially effective way of making big wins. Same goes for sales, shipping and receiving—you name it.
Note, getting a better idea of your company’s COGS, breakeven points and other financials is also critical to pricing your products effectively. As you start doing so, you may discover there are customers and projects you’ve been taking on that aren’t really worth the effort in terms of profitability. Then again, you may discover you’re not charging enough for the various products and services you currently have on offer, i.e., you’ve been leaving money on the table!
Creating a Competitive Edge with Your Embroidery
Again, even as the embroidery market continues to grow, it remains fiercely competitive, which means standing out is essential. Look at what your competitors are doing and then see if you can do even better. That said don’t just mimic what the rest of the industry is up to. Your goal is to address gaps in the market and identify products or services others may be neglecting or even failing to address in their entirety. Tactics for staying ahead of the pack include:
- Price Advantage: Can you provide a slightly better price point? Consider competitive pricing for bulk or recurring orders. As you do so, be careful not to get caught up in a “race to the bottom” in this area. Price your products and processes appropriately in order to be competitive without working at a loss.
- Value-Based Innovation: Introduce services like extended color palettes or personalized consultations/partnerships with local organizations. While you’re at it, consider the possibly of adding to your product mix. Already doing polos? What about tote bags? Sweatshirts? Hats? The possibilities are endless.
- Streamlined Systems: Invest in scheduling tools or an online ordering system to facilitate faster delivery without compromising quality. As an added benefit, these kinds of systems can be a great way of improving customer service, since you no longer have to worry about orders possibly getting lost in the middle of the hustle and bustle of, say, your company’s busy seasons.
Establishing a Reputation for Excellence
In today’s world, merely meeting customer expectations is no longer enough. Businesses that succeed work to surpass their customers’ expectations. Think about your own experiences dealing with, say, an online retailer to your local hardware store. When a business goes out of its way to ensure you’re well satisfied with whatever product or service you’re in need of, you remember!
Here are some ideas to build a reputation that ensures not just repeat business but recommendations as well:
- Supercharge your Service: Find ways to go beyond simply fulfilling an order. Surprise clients with little extras, like a sample of a creative design you think they might love or delivering their order ahead of schedule. Including a business card or “thank you” with each packaged order can be another great way of standing out.
- Seek Feedback: Actively ask for and then act on customer feedback. This will not only show customers you value their opinions but provides insight into ways you can improve. If and when you receive any unsolicited feedback, take it seriously—especially if it’s negative. Never forget the “silent majority” out there, i.e., customers who may feel the same way as the ones you hear from but who never say anything.
- Maintain Open Communications: Promptly reply to all inquiries, keep clients informed on their projects’ progress and follow up after every delivery to gauge satisfaction. Again, you want the word-of-mouth that your business generates to be as positive as possible. The good news is in the event you receive any kind of negative feedback, the way in which you respond can be a great way of showing how much you care by doing everything you reasonably can to fix the situation.
Customer Loyalty and Affiliate Programs
Again, small businesses, especially, thrive on customer loyalty. With this in mind, offering programs that reward and engage these same customers can be a powerful growth tool.
Loyalty rewards programs, in particular, encourage repeat business by offering clients a variety of different reasons for coming back. Examples include discounts, freebies or exclusive offers your more frequent customers can take advantage of.
Best practices for loyalty programs:
- Feature your loyalty program prominently on your website and via social media.
- Use email campaigns to invite existing customers to join.
- Introduce rewards tiers to encourage repeat engagement.
Affiliate programs can be another great way to grow your business by encouraging satisfied customers to help promote your services. Be transparent in terms of your expectations and the benefits of being an affiliate. Provide clear email templates and regular commission updates to help build trust. Personalized appreciation messages, rewards or sneak peeks of new products will help nurture any and all the relationships that may exist within your affiliate network as well.
Finding Your Embroidery Business’s Niche
One of the most effective ways of transforming your business is by finding and focusing on a particular niche. Sometimes this can mean having to say, no, to business that doesn’t fall within your area of expertise, that or suggesting a customer take its business to a competitor better positioned to handle their needs. Granted, doing so can hurt, especially when you’re just starting out. However, it can also be a great way of building goodwill—both with the customer in question and within the decorated-apparel industry as a whole. Businesses that find and dominate niche markets excel due to a number of reasons, including the fact that:
- A narrower focus allows them to stand out and differentiate their services. It’s only natural the more work you do in a particular area, the better you’re going to become at it. Sports teams are an obvious example. The uniforms and gear used by a lacrosse team are a lot different than the uniforms and gear used by, say, synchronized swimmers.
- Specialized knowledge makes it easier to connect with and serve loyal customers. Become proficient at whatever type of decorating it is that you’ve decided to focus on, and word will naturally get around. You’ll also be better equipped to pitch your products and services to individuals and organization in the space you’ve chosen to focus on.
If a possible niche doesn’t immediately come to mind, don’t worry! Start with your natural surroundings. Consider your community’s needs and interests. Could you cater to local schools, church groups, sports teams, local hobbyists? If you’re already interested in or involved in any of these types of groups, you’re already halfway there.
Note, the fact that you don’t yet have much in the way of any kind of personal experience in a particular niche doesn’t mean it can’t still become a specialty of yours. Sometimes, niches come naturally, accidently even. If, for example, a customer within a particular field ever starts referring you to their fellow enthusiasts, you may end up discovering a market you never even knew existed before. Finding a niche, or expanding into other niches is often a matter of simply keeping your eyes and ears open and then taking advantage of opportunities as they arise.
Of course, targeting a market connected to any hobbies you already participate in will only make the work that much more enjoyable. Whether it’s embroidery for wine enthusiasts or monogrammed nautical gear for sailors, your passion will translate into personalized, high-quality products that resonate with customers.
Wherever and however your company ends up specializing, make a point of keeping up with changes in the industry to ensure your business doesn’t stagnate. Don’t be afraid to innovate. Leverage the latest technologies, apparel types and/or latest embroidery techniques to keep your products fresh and exciting. Haven’t had a chance to try working with 3-D puff yet? Now’s your chance! Specialty threads? Same thing. Your ability to adapt will make your business that much more appealing to customers in a rapidly evolving marketplace.
While you’re at it, make a point of personalizing your marketing and social media efforts in order to put a face to not only your products and services, but your company as a whole. In this age of media overload, e-marketing consumers love being able to connect with individuals.
On a side note, this is an area in which being a smaller company or even startup can actually be to your advantage. Today’s consumers love the idea of going with a product or company that feels “real,” as opposed to having to deal with a faceless multi-national.
Establishing a Solid Business Foundation
Whether you’re just starting or seeking to scale up an existing embroidery business, the strategies above will help provide a strong foundation for success. By focusing on delivering exceptional customer service, identifying unique niches, fine tuning your production processes and fostering loyalty programs, you’ll set yourself up for long-term growth.
Success in embroidery isn’t just about stitching logos or monograms. It’s about putting thoughtful effort into every stitch, surprising customers with unique solutions to their needs, and creating a brand known for quality and care. Take these steps, and you’ll not only grow your embroidery business but create a vibrant and trusted name within your community. The future of your success is already in the works!
