In an increasingly competitive environment, it is extremely difficult to generate revenue growth from the retail business. However, there are several powerful ways to increase your retail store sales that this article is about.
How to Increase Retail Sales: Basic Ways
For a point of sale to sell more, actions should be taken in one or both of two directions:
- sell goods to more buyers;
- promote an increase in the frequency of purchases;
- sell goods for a large amount.
In the first case, we are talking about how to attract as many customers as possible to the store and motivate them to buy, and in the second – to take measures to increase the average check.
How to increase store sales by attracting customers
It has long been proven that out of 10 visitors to a retail outlet, at least one purchases some product. Depending on the specifics of the institution, this indicator may be higher. In other words, if you are thinking about how to double your sales, then you should try to increase the number of visitors by 5 times.
For this purpose, various methods are used:
1. Installation of a pillar next to the store so that potential buyers know or remember about its existence and want to enter;
2. Conducting an advertising campaign aimed at increasing sales in the media. These can be TV programs, placement of advertisements and articles of an advertising nature in glossy magazines and on the Internet, etc.
3. Inclusion of information about the outlet in directories.
4. Carrying out cross-actions with partners who have a close target audience. For example, a children’s shoe store may offer discount coupons at a children’s clothing store and vice versa. Such events allow you to attract the target audience, which is most likely to make purchases from partners. At the same time, an increase in retail sales is achieved without significant costs.
5. Expansion of the “coverage” of the outlet. As you know, each store, depending on the specifics, has its own audience. For example, at a grocery store, it consists of residents of several neighboring houses, and at a fashion boutique – the population of the area where it is located. To boost retail store sales, you should place catchy banner ads at the edge of your footprint and distribute flyers to residents of nearby buildings.
How to Increase Retail Sales by Increasing Shopping Frequency
To get customers to visit your retail store more often and shop there, you need to work with your customer base. It is conventionally divided into three categories:
- buyers who purchase goods as often as possible;
- the bulk of clients;
The increase in sales, first of all, can be provided by customers belonging to the first category, for whom, when it becomes necessary to buy a specific product, your store is the first to come to mind. According to statistics, the share of such buyers is from 20 to 40% of the audience – they should be given special attention – these are your most loyal customers.
The second category that should be in your focus if you need to increase sales in a retail store is the bulk of customers. These customers make purchases at a particular outlet several times a month, and periodically use the services of your competitors.
The latter group includes customers who happen to be in the store by chance (visitors, residents from an area located on the other side of the city, etc.), or make purchases from you extremely rarely.
When considering how to increase sales in a retail store, marketers recommend organizing various one-time promotions and applying a loyalty program. The latter is a system of measures aimed at converting buyers from the second group into permanent ones, that is, at keeping them. If you do this, you will have a double benefit, as you will be able to increase sales in the retail store and reduce the cost of attracting new customers. After all, retaining customers is much cheaper than attracting new ones. In addition, it is known that 80% of the profit of a retail outlet is accounted for by only 20% of buyers. These customers are the ones who should be encouraged to visit the store more often and shop with an even bigger check.
Loyalty program aimed at increasing sales in a retail store
Actions to increase in-store sales should include:
- an increase in the frequency of purchases and the size of their average check;
- creating an information base for your audience;
- Attraction of new clients;
- encouraging regular customer visits;
- formation of a positive image of the store among the target audience.
Increase in sales can be achieved by using methods such as the introduction of a system of cumulative discounts or bonuses, etc. In this case, you get a competitive advantage and tie customers to your business. Often, the introduction of bonuses contributes to the growth of the average check. A striking example of this is when the seller offers to buy goods up to a certain amount in order to receive increased bonuses!
How to Increase Retail Store Sales by Increasing Conversions
The term “conversion” refers to the ratio of the number of real buyers to visitors. For many stores, this figure of 50% can be considered a good result.
To increase it, you should organize the placement of the assortment in accordance with the rules of merchandising so that it is convenient for customers to find the right thing or product, and, again, work with the staff, teaching them how to increase sales of more expensive goods.
We hope that these tips on how to increase your sales will be useful to you and will help you to succeed in the retail industry.