Why do entrepreneurs do retail trade y? With rare exceptions, such activities pursue one goal - obtaining maximum profit. At the same time, you don’t need to carry out complex calculations to understand: any income point of sale directly depends on the volume of sales of goods.
It is quite difficult to develop a universal recipe for how to increase sales in retail store: in each specific case, the specifics of the business, the characteristics of the local market and the habits of the audience should be considered. However, there are four ways to get a positive result in any situation:
- Increase the total number of visitors to the outlet. Obviously, the number of buyers will increase proportionally;
- Increase store conversion. This coefficient allows you to understand how many guests are simply looking at products, and how many are making real purchases;
- Increase the average check amount. If every customer starts spending in the store more money, the entrepreneur’s profit will increase;
- Increase the number of repeat sales. If a person has become a regular customer, then advertising is no longer needed to attract him.
Why are sales declining?
Quite often you can hear from beginning entrepreneurs: “We want to increase sales, but we can’t do anything.” Sometimes failures are caused external factors, which the business owner cannot influence - the state of the economy, legislative framework, the mentality of people, the political situation, the level of technology development. But often sales decline for reasons arising from erroneous actions or inaction of the businessman himself:- Uncomfortable atmosphere. Buyers may simply not like the atmosphere in the hall - weak flickering lighting, unpleasant odors, cramped aisles;
- Modest assortment. If a person comes to the store for the first time and does not find it here the desired product, then he is unlikely to return again;
- Wrong assortment. Perhaps the presented product is not in demand in the area. In a neighborhood populated by pensioners, you can’t sell red caviar;
- Excessive assortment. If there are more than eight brands for each product item, the client may simply get confused;
- Incorrect layout. No one likes a store where you have to spend hours wandering between shelves looking for the little things you need;
- Overpriced. With active competition in trade, even a price increase of 2–5% compared to other points must be justified by something;
- Bad looking product. There's no point in thinking about how to increase sales in a clothing retail store if all the products are wrinkled or piled up;
- Poor location hot commodity. If a person, entering the hall, immediately sees everything he needs, then he will not notice other products and will not buy anything else;
- Incorrect advertising or lack thereof. Don’t think that a store will attract customers just by existing. Any business needs to be promoted;
- Poor quality of service. The modern consumer respects himself too much to tolerate the arrogant or indifferent attitude of salespeople.
Increasing the client base
It is not without reason that entrepreneurs are looking for a place with maximum traffic to locate a store. The mathematics is simple: if twenty out of a thousand visitors become clients, then two thousand people will already bring forty transactions. There are many ways to attract people to a retail outlet, but all of them, one way or another, come down to advertising. How to increase your sales:
- Determine the portrait of the target consumer;
- Make the store visible to passersby;
- Conduct an advertising campaign;
- Present your business on the Internet.
Determining the target audience
It is difficult to determine if you do not know who exactly the product is intended for. Isolating an interested group of potential clients from the general mass of citizens allows an entrepreneur to:
- Select product required quality and set the right price for it;
- Increase the effectiveness of marketing activities;
- Identify ways to increase customer loyalty;
- Save money on attracting new consumers;
- Develop an offer that meets customer expectations.
Audience segmentation is carried out according to characteristics characteristic of the average image of an ideal client. When sampling, the key ones are:
- Gender and age group;
- Interests, hobbies, hobbies;
- The ways in which the product solves customer problems;
- The emotions that the product evokes in the consumer;
- Reasons why a person chooses this store over another.
Exterior design
By designing the exterior of a retail outlet, an entrepreneur solves two problems: firstly, he helps passers-by understand what exactly is being sold here, and secondly, he makes the establishment stand out from the rest. How to increase sales in your store:- The outlet cannot be nameless. The name must be sonorous, otherwise how will customers remember it and tell their friends about the store?
- The sign must look perfect. If it is faded or outdated, a new one should be made. The scoreboard must be equipped with backlighting;
- A sign is a tool for attracting the attention of passers-by who do not look up at the signs. It should stand close to the porch;
- If the budget allows, it is worth installing an installation at the entrance - an inflatable figure, a product model. One coffee shop hung colorful birdhouses on a nearby tree;
- It is not necessary to design a bright and colorful showcase. The main condition is that it should stand out against the background of the facades of nearby retail outlets.
Regular advertising
If the store does not sell a unique product for which people will travel across the city, then you should not buy expensive TV commercials and strips in glossy magazines. It is better to focus on the main zone of influence of the point, which is determined by walking distance and is a circle with a radius of 1.0–1.3 km. How to increase retail sales using traditional advertising:
- Flyers should be placed in the mailboxes of surrounding homes. To prevent advertising from being thrown away, you need to offer its bearer some kind of bonus;
- Leaflets with short text indicating some benefit for the client can be distributed at intersections or near shopping centers;
- For radio advertising, they create a short and energetic message that motivates the listener to visit the store;
- There are two types of advertisements posted on billboards: the first simply reminds people about the store, and the second informs about some kind of promotion;
- The shortest text is used for banners. The message should be read in seconds, while a person is standing at a traffic light or passing by.
Internet advertising
Of course, regular advertising works well. However, if an entrepreneur wants more, then he must present his business where the target audience is. For a store whose customers are not only people retirement age, this environment is virtual space. How to increase sales online:
- The website of a store selling piece goods must contain price lists. With a wide assortment, it is enough to write about promotions and new products, indicate opening hours;
- Information about the retail outlet must be indicated on electronic maps and entered into various databases such as 2GIS;
- You can periodically remind people about the store using email newsletters and Viber, WhatsApp, Skype, Telegram applications;
- Lead the group to social network difficult: here you can encounter negativity. But if you learn how to manage your reputation, this tool will be useful;
- For a store selling a specific product (wedding dresses, furniture, household appliances), it is worth attracting consumers through contextual advertising.
Increased conversion
Of course, successful advertising can attract a huge audience to a retail outlet. People will start to come into the store in a continuous stream, but if they don’t find anything interesting here or feel unwelcome guests, they will simply leave. Therefore, you need to work to ensure that every visitor feels the desire to make a purchase. There are several ways to increase sales:
- Create comfortable conditions for visitors;
- Train staff in sales techniques;
- Create an assortment that is interesting to the audience;
- Set your store apart from competitors.
Store interior
The visitor will spend more time in the sales area and purchase more products, if you feel comfortable and confident here. But at the same time, nothing should distract him from the main task - shopping. So how can you increase sales by creating the appropriate environment? You need to do the following:
- The room should be maintained at a temperature that is pleasant for visitors. This is especially true in winter: warmly dressed people quickly become hot;
- Stale and musty odors in the store are unacceptable. At the same time, the aromas of coffee, fresh baked goods or vanilla lead to an increase in sales by 20%;
- Too energetic music makes people fill their baskets faster and leave, while slow music slows them down. You need to look for a middle ground;
- You should not use cold light lamps in the store, which distort the gamma. In addition, all lighting devices must be in working order;
- A thoughtful layout will force the guest to walk through the entire store and see more products. To do this, popular products are often laid out at the back of the room;
- Access to the goods should be limited by fences, counters, and pallets. In cramped aisles, people often interfere with each other's exploration of products.
Personnel training
It is clear that an entrepreneur’s profit directly depends on how quickly and successfully his sellers close deals. However, some businessmen do not understand that an employee will not be able to sell more if he does not know how to do it correctly. Therefore, the issue of personnel training must be taken seriously:
- The appearance and behavior of the employee must correspond to the image of the establishment and the product offered. Men are perceived poorly in lingerie stores;
- The seller should under no circumstances impose himself. Each visiting guest should be given time to familiarize themselves with the assortment;
- Main goal communication with the client - to identify his needs, find out about the problem, and then offer an appropriate product;
- Despite the negative attitude of most sellers, scripts should still be implemented. This way, the employee will not forget to tell you about the promotion or offer a new product;
- The employee must perfectly know the presented assortment in order to answer any customer questions regarding the products without hesitation;
- How to increase sales in a retail store of building materials or spare parts? The seller must be able to talk about how to use the product.
It is not surprising that employees at headquarters do not want to try. To motivate them, you need to tie their salary to sales volume. For this use:
- Bonus for fulfilling the plan;
- Individual rewards for achievements;
- Progressive accrual of bonuses in the form of a percentage of sales.
Store assortment
When compiling a store’s assortment, an entrepreneur most often proceeds from a personal understanding of the situation. As a result, shelves often end up with products that are of no interest to the target group at all and only take up space. Therefore, when developing a product matrix, you need to take into account the age, social status and income level of potential customers. Here are some examples of how to increase sales in a grocery retail store:
- The point must have a product for advertising, showing its price category for citizens. They set a minimum markup on it and promote it as the main one;
- If there are educational institutions nearby, the emphasis is on products that children love. These are chocolates, chips, carbonated drinks, sweets;
- Counting on higher educational institutions, you need to include in the assortment beer and low-alcohol drinks, as well as pies, shawarma, pastries, pasties;
- Workers of offices and institutions will like ready-to-eat products - packaged coffee and tea, cuttings, confectionery, noodles and porridges;
- A store located in an elite area should sell healthy food and good semi-finished products that do not require time to prepare;
- Pensioners, on the contrary, will be interested in budget products - inexpensive milk, eggs, soup sets, regular bread, chicken legs.
Unique Selling Proposition
The product presented in the store may be much better and of higher quality than that of competitors, but this will not help the entrepreneur make a profit if the consumer does not understand his benefit. Therefore, a point needs a unique trade offer- some interesting feature for the audience that will distinguish the store from the general background. How to increase product sales and attract customers:
- You need to understand what characteristics set the store apart from its competitors. This could be a special product, a special service, the availability of delivery or returns;
- Often, what can be offered as a USP is not even a product, but the ability of a retail outlet to solve customer problems;
- The average viewing time for an advertisement is ten seconds. This means that the USP should be simple and understandable so that the client has time to understand it;
- A good sentence focuses on something specific and evokes emotion. You also cannot promise something that the store cannot deliver.
Increase in average check amount
When thinking about how to increase sales in a business, it is not enough to simply increase the number of visitors to the store. The number of customers may increase a hundred times, but if each of them buys some little thing, then the efforts invested in attracting them simply will not be worth it. Therefore, it is so important to work to ensure that each person purchases as many goods as possible and leaves more money in the cash register. How to do it:
- Conduct merchandising activities;
- Offer more expensive products;
- Sell cheaper products;
- Sell related products.
Merchandising
Merchandising is the art of laying out a product so that a visitor who was not initially going to buy it becomes interested and thinks about the need to buy. This stimulation of purchasing activity is achieved in many ways:
- Advertising should be placed not only outside, but also inside the store. Stickers, posters, signs and stands will indicate new products and help the client navigate;
- Placing impulse items in the checkout area increases sales by 10%. Here you can put chocolates, cigarettes, sweets for children;
- Products should be laid out taking into account their compatibility. For example, in hardware store brushes and solvents can be placed next to the paints;
- People often look at the shelves to their right as they walk around the room counterclockwise. Here you should place the goods that give the greatest profit;
- Products of the same category are located in one place. Even if there is water or juice in the refrigerator, they are duplicated on the shelves in the main department;
- The most successful shelves are at levels from the chest to the eyes of a person. In some cases, sales for a product located here can be doubled;
- Large packages and cheap goods are displayed on the lower shelves. People usually look for them purposefully, and therefore find them regardless of location;
- Products on the top shelves sell poorly. It is better to lay out piece goods on them, which have little effect on the opposite point;
- The shelves must be filled to capacity with goods. Empties on them are unacceptable: in place of the dropped item, you need to duplicate the neighboring product;
- Price tags should be clearly readable and facing the buyer. They also cannot cover up the packaging: people often search for a product based on its appearance.
Selling more expensive goods
When making a purchase, each person sets a certain upper price limit for himself: more expensive offers, as a rule, remain outside his area of attention. However, practice shows that the seller can successfully try to convince him if he offers fairly compelling arguments about the benefits of purchasing a product located above the designated price category. A similar sales promotion technique is called Up-Selling. Its meaning is to sell:
- Additional units of the same product;
- Products in larger packaging;
- Extended warranty or service period;
- Additional functions or services;
- More expensive analogues of goods.
Selling cheaper goods
The opposite situation is also possible: the visitor wants an expensive product, for which he does not have enough money. In most cases, he simply turns around and leaves if the seller does not offer him a cheaper analogue at that moment.
This may seem like it's not profitable for the store. But what is better: to sell at least something, or not to sell anything at all? If the shopping experience is positive, then the person will probably return to the outlet more than once and become a regular customer. Finally, Down-Selling is a good opportunity to add an accessory to your purchase that is sold at a huge markup.
However, offer more cheap goods should be done with caution after the client has examined the assortment and realizes that the prices are too high for him. If you rush to present a simplified analogue, the visitor may think that the seller:
- Doubts his solvency;
- Tries to sell him a cheap, low-quality counterfeit or faulty product;
- Offers a different model because the one initially considered is bad.
Cross selling
Cross-Selling is a technology for increasing the average bill by adding related accessories or options to the order. For example, they offer cases or settings for smartphones, a set of tires for cars, gloves or a handbag for a dress. How you can increase sales:
- It is permissible to offer a related product if the client has already chosen the main one and made a purchase decision. Doubters may be put off by this;
- Two or three options should be shown. One leaves the buyer no choice, but four or five can confuse him;
- In order to more accurately select a related product, it is necessary to ask the client clarifying questions and find out his needs;
- An additional product cannot be more expensive than the main one. For example, how to increase clothing sales? A tie or belt should be offered with a suit, and not vice versa.
Increasing repeat sales
Why is repeat sales important for an entrepreneur? The fact is that selling something to a client who is already familiar with the store is much cheaper than selling something to a new one: in this case, you don’t need to spend money on advertising. In addition, citizens with a positive shopping experience at a given point feel more confident and have a better idea of what exactly they need. There are several ways to increase sales of services and goods by stimulating repeat business:
- Organize work with the customer base;
- Offer discounts regularly;
- Carry out various promotions;
- Implement a loyalty program.
Working with the client base
Unfortunately, most clients have short memories. If they haven't bought anything from a store for several months, they will probably start exploring all the offers available on the market all over again. However, there is no guarantee that they will not go to competitors. Therefore, consumers should be regularly reminded of the benefits and advantages of working with this particular point. How to increase trade sales:
- You need to come up with an unobtrusive way to receive client contacts. A person can indicate this data to participate in a promotion, issue a guarantee or discount;
- Based on the collected database, it is necessary to conduct mailings at least once every couple of months, informing about new products, promotions or discounts;
- If a person buys an expensive item or equipment, you need to call him after a while and find out whether you managed to connect the equipment, whether there are any comments on its operation;
- You definitely need to look through the database to see which customers haven’t been to the store for a long time. You should contact such people to remind them of yourself and inform them about the promotion;
- If a store has a group on social networks, it should be used to conduct a dialogue with customers and answer their questions.
Discount system
Most stores operating in the same niche sell approximately the same range of products. Therefore, when choosing a place to buy a specific product, the main criterion for a person is the price. But you need to reduce the price correctly: the result of such an action should be an increase in turnover, compensating for the lost profit. In practice, the following methods of sales promotion are used:
- Regular discounts are established on any category of goods for up to two weeks. Then they stimulate sales of related products;
- An interesting idea is to provide a special price to a certain category of customers: for example, students, drivers, pet owners;
- Here's another option: reducing the price in the evening. For example, after 21:00 all culinary products become cheaper by 20%;
- A discount “for a friend” can be provided in clothing, footwear, and equipment stores. It is clear that both buyers should receive the product at a reduced price;
- It is necessary to conduct seasonal sales to get rid of stuck goods. For example, in winter you should give away autumn shoes at a discount;
- Discounts will help sell a product that is outdated or going out of fashion. In the same supermarkets, goods with expiring dates are sold cheaper;
- To increase wholesale sales, as a rule, set special prices, which decrease as the order volume increases.
Price and product promotions
Despite its importance, money in any case remains an abstract concept. It is much more pleasant for the client to receive something free of charge, a gift. But here, too, the entrepreneur must think about his own benefit: he should not give out prizes without a good reason. How to increase sales in trade:
- For a purchase for a specified amount, you can give a souvenir or a product sample. This amount should be 25–30% more than the average check;
- In supermarkets, to stimulate customers, maybe a daily or weekly lottery with a fairly valuable prize;
- Can be arranged marketing campaign. For example, the bearer of 20 stickers or checks for a total amount of 5,000 rubles receives a set of knives as a gift;
- To increase turnover, promotions using the “2+1” or “3+1” schemes work well. If the client takes the specified quantity of goods, then he receives one more piece for free;
- Products can be combined with each other or with services. For example, when buying trousers, you get a belt as a gift. Or to a washing machine - free connection;
- When thinking about how to increase product sales, you should conduct a tasting. Customers usually buy not only the product being presented, but also something additional;
- Household appliances and furniture stores often practice installment plans for products. True, the price increases by the amount of bank interest.
Video on the topic
Loyalty program
According to the well-known rule, 20% of customers bring 80% of the profit to a retail outlet. These consumers need to be retained, encouraged and encouraged by any means to visit the store more often. As a rule, for this purpose they use a price incentive system expressed in the form of discounts and bonuses:
- A discount card significantly influences customer loyalty. The amount of the discount can be constant or depend on the amount of purchases for the previous period;
- When making a purchase, a well-known bonus of 1-2% is credited to the buyer’s membership card, which can be used to pay for future orders;
- Bonuses and discounts can be given to customers on a specific date - for example, a birthday or some holiday;
- Merchant gift certificates can also be used as a payment method. Clients often give them to friends and acquaintances;
- Some stores and banks practice cashback when paying with cards - returning a certain percentage of the purchase amount to the buyer’s account.
Non-standard methods
There are many recommendations on how to increase sales in manufacturing or retail. They are usually followed by the majority trading enterprises, which somewhat reduces the effect of using these techniques. It is quite difficult to stand out against this background: to do this, a businessman has to show creative thinking and look for non-standard ways to stimulate sales. Here are some tricks that work:
- The customer should be provided with service that exceeds their expectations. For example, with a stated delivery time of a week, deliver the order in three days;
- You can increase the convenience of the buyer’s stay in the hall. Some install chairs for visitors, place water coolers, open children's areas;
- Buyers like it if the product can be tried in use. Equipment stores, for example, leave tablets and TVs turned on in their windows;
- The price can be limited by time. If the offer only lasts for a short period of time, it will motivate people to make a purchase. A famous example is Black Friday;
- The possibility of a return is in any case stipulated by law, but with the right emphasis it turns into a bonus;
- A clothing store was giving away free socks in exchange for a questionnaire. The trick here is that getting contacts any other way would cost twice as much;
- To attract the attention of your audience, you can organize a themed sale. One gas station filled up gasoline free of charge for women who arrived in swimsuits;
- Charity makes a great impression on the conscious audience. You can announce that from each purchase a certain amount will go to help children.
The talent of an entrepreneur is not only the ability to produce or correctly build relationships with tax office; First of all, this is the ability to find common ground with the buyer, and then to convince him to purchase this or that product. And, of course, increase sales in a retail store - in every possible way, involving your own salespeople and third-party specialists in solving the problem. Fortunately, there is no upper limit in this case: people will always buy something, and it is the businessman’s job to react in time to changes in demand.
Increasing sales in retail trade should begin with studying the issue, looking for what is useful and cutting off what is unimportant. As a result, the entrepreneur will choose several key strategies to improve performance. Below are eight of the most obvious ways to increase sales in a retail store - they work well together, but can also be used separately.
Reasons for the fall in retail sales
The main reason for the drop in sales is a decrease in purchasing activity, in other words, demand. Some factors influencing demand are independent of the will of the store owner; These include a general deterioration in the economic situation in the country, the discovery of critical defects in products being sold, and the entry into the market of completely new products replacing those already on sale. Improve in such a situation without replacing most of assortment for a more modern or “budget” one is unrealistic; this will be the only possible solution for an entrepreneur who wants to stay afloat.
Other reasons for the drop in demand in retail sales (not so global and easily corrected) include:
- Lack of product updates. No one forces the store owner to replace all the goods every month: some items have been in constant demand for decades, while others will be purchased sooner or later. But the buyer wants to know that on his next visit he will be able to find something new at his favorite retail outlet - even if he doesn’t like it in the end. To increase sales, it is enough to change at least 5% of the assortment every month - more is possible, but a smaller figure will cause a feeling of stagnation among regular visitors.
- Sellers' mistakes. There is a simple rule: a person does not buy from a company or retail store, but from a person. And if this person is not interested in sales, does not know how to explain the advantages of the product being sold and cannot answer basic questions regarding it, the number of products sold will increasingly decline to zero. Even if there is one such unprofessional in a healthy team, there are guaranteed to be fewer visitors, and nothing will save the situation.
- Incorrectly selected marketing policy . Under no circumstances should the owner of a retail store mislead the buyer or make him feel awkward: this will certainly not help increase sales, but it will scare away the last visitors by displaying one price on the shelves, and punching another on the receipt, or not removing the sign for years ended promotion, very easy. Another example is provoking competition: if possible, a product at a point of sale without indicating its “original source”; otherwise, it is quite logical for the buyer to turn there next time.
- Opening of new stores and shopping centers nearby. In many cities, especially small and medium-sized ones, the number potential buyers practically does not grow, remaining at the same level for many years or increasing by a percentage or two, while the number of retail outlets per capita increases. This causes not only natural economic processes such as price equalization, but also paradoxical - in particular, in the eyes of the consumer, more and less quality goods from the same category become equally valuable, and the “equalizing” line runs along the lower border. To combat this, you need, as in the first point, to surprise the buyer with variety - there is no other way to break out of the routine decline in profits.
Important: For a retail store, a great way to increase performance is to establish relationships with craftsmen who can do something unique. This will help achieve the required variety; about other ways to increase the profitability of a retail outlet - in the next section.
How to increase sales in a retail store?
Before implementing any of the methods described below, the store owner must prepare staff for innovations: if necessary, conduct training or at least briefly tell what he expects from employees. The implementation of any item will take from a week to a month, or even more; therefore, the sooner the merchant gets acquainted with them and begins work, the more satisfactory the result will be.
Bonus programs
The first way to improve in-store retail sales is to introduce point-of-care programs:
- bonus;
- accumulative;
- discount
The main condition for the buyer’s participation in any of them should be loyalty: the more often a person visits a retail outlet and the more money he leaves there, the more likely he is to receive a branded card that gives him “special rights.”
In the first case, the subject of the program is bonuses - points, calculated as a percentage (less often - fixed) of each purchase and, upon reaching a certain amount, giving the client the opportunity to pay part of the purchase or all of it with a bonus card.
Important: the second option is preferable. People regard the restriction of the right to use bonus points as another deception and, as practice shows, they avoid entering such a retail store in the future; the reputation of both the entrepreneur and the outlet he owns, accordingly, falls. A typical example is the famous Russian network stores of sportswear and accessories, limiting the possibility of using bonus points to 30% of total cost goods and over the past two years has lost about 15% of regular customers.
The savings program is not much different from the bonus program; the only difference is in the form of accrual of funds: if bonuses can be calculated according to absolutely any formula, then interest from the next purchase is “added” to the savings card - or a fixed reward for the buyer. Otherwise, everything is the same: the consumer can at will spend the bonus money at his disposal to purchase a product he likes or pay for services.
Example: the retail store has a bonus program; bonuses are calculated using the formula: purchase amount in rubles / 100). Thus, for purchasing a jacket worth 5 thousand rubles, the buyer will receive 50 bonuses on a branded card. Certain categories of goods are available for purchase with bonuses, in particular the same jacket (costs 50 bonuses); There are no restrictions on the use of savings. Having made purchases for a total of 50 thousand rubles, the visitor will be able to pick up another such jacket or choose any other product from the list. Another retail store has introduced a savings system: for each purchase, the client receives 1% of its value on a branded card. He can spend the accumulated amount on partial or full payment for any product from the assortment. Thus, for the purchase of a similar jacket he will receive 50 rubles back; Having made purchases totaling 500 thousand rubles, the client will be able to spend the accumulated funds on any product worth 5 thousand rubles - including another jacket of the same type.
WITH discount programs everything is different: in this case, a regular customer receives a discount on part of the goods or the entire assortment; To receive the service, he will need to present a company card or give his name and phone number. The discount can be fixed or grow as the buyer's investment in the retail store increases; the latter option is more attractive for the consumer, and therefore preferable for the seller.
The introduction of a bonus program, even on minimal terms, is an ideal way to increase customer loyalty and increase sales; a branded card (bonus, savings or discount) not only creates in the consumer a sense of belonging to the “favorites”, but also motivates him to make purchases in this particular retail store, which ultimately is the goal of the entrepreneur.
Advice: although under standard conditions cards should be issued only to regular customers, when opening a new retail outlet or after a deep rebranding, it makes sense to organize their distribution to the first 20–100 visitors, regardless of their “experience”. This will not only motivate them to continue coming to the retail store, but will also help improve the reputation of the retail chain.
Merchandising
The next most popular and no less easy to implement way to increase sales is the use of merchandising techniques, that is, the proper organization of space inside a retail store.
Merchandising involves:
- ergonomic and attractive arrangement of goods for the client;
- use of informative and stimulating signs and plates;
- the use of music that creates a “shopping” mood.
First point- the most important. Initially, most buyers come to retail stores with specific purpose- find any item, compare prices or find out whether it is possible to bring the product to order. Consequently, the easier it is for a visitor to navigate inside a retail outlet, the more likely he is to continue communicating with the seller and want to come here again. It's simple: the choice of stores is great, really. unique products as the industry grows there are fewer and fewer, and the potential client will go where he is more comfortable.
And the most important condition for this comfort is the correct placement of the goods. The visitor should not have the task of going around the entire store three times to find the sneakers he needs in the niche between fur coats and baseball caps; shoes should be in one place, outerwear in another. Such accuracy immediately adds points to the retail store in the eyes of a potential buyer - and, without experiencing irritation from having to look for a product for too long, he is more likely to enter into a dialogue with the seller and agree to buy something else.
The aesthetics of the display is also of great importance: homogeneous or closely related products should be selected not only by category, but also by color. It’s not enough for T-shirts to be on one shelf; They also need to be sorted by shade - for example, from blue to red or from white to black with all the available gradations. It is strictly not recommended to lump everything into one pile: such carelessness does not bring adequate income to even the most “budget” retail stores, focused not on quality, but on minimum prices.
Second point(the use of signs and signage) is especially relevant in large retail stores that include several adjacent rooms, but it will also come in handy in small retail outlets. The easiest way to increase sales is to show the buyer where the product he needs is located; not all visitors want to communicate with sellers, which means they need signs - how to separate groups goods (jeans/shirts/jackets, cereals/canned food/cheeses), as well as for certain types of products that are in special demand (salt/matches/candles).
By reading such signs and signs, the visitor, following his internal logic, will move from display case to display case without experiencing difficulties and, therefore, maintaining the mood for new purchases; and it will be stimulated by various advertising signs near the goods, telling about promotions, unique properties of the product or its limited edition; Unlike advertising on TV or the Internet, such information is not annoying, but, on the contrary, is unconditionally approved (or at least neutrally perceived) by the majority of customers.
Sales are one of the first indicators of a store’s performance. If you want to increase sales in a store, then your actions will be aimed at attracting customers to the store or how to increase average bill.
How to choose the most effective way to increase sales in your store
Which method should you choose to get the fastest results? To understand how you can increase sales in a store, you need to determine what format it belongs to. What buyer is it aimed at? Is it a supermarket with an area of more than 1000 m2 or a “convenience store”? Azbuka Vkusa and Pyaterochka have two completely different customers and two different approaches to increasing sales.
Some stores are aimed at budget-conscious shoppers who want to get the lowest price possible. In others, customers value service more.
If you have a discounter, then service is not important to it. People will put up with pallet display and goods in boxes. But they will strive to get favorable prices. Increasing sales for the thrifty is, first of all, increase in average check.
If you have a supermarket or “convenience store”, then prices will not play such an important role. The buyer comes to it wanting to get a certain service level. Such a buyer does not want to stand in lines and waste his valuable time. An increase in sales in it means an increase in the frequency of purchases.
How to increase the average check in a grocery store
If you urgently need to increase sales in a store, then the simplest method is to increase the average check of the store. The goods are displayed in additional display areas, impulse goods are placed everywhere. The availability of goods is ensured, and people begin to purchase more and more.
The buyer came for milk, but at the entrance he saw a mountain of fruit, along the way he noticed his favorite sausage, and at the exit the child took a toy. And now, along with the milk, the buyer already has a full basket of products.
goods
This is the first thing you should pay attention to if there is a negative trend and you need to increase sales in the store. If a product is not on the shelf, no one will buy it. The buyer should know that here he will always find the cottage cheese or favorite sausage he needs. To ensure the availability of goods you need:
- Correct work with . The buyer must be satisfied wide range in the store. All the goods he needs must be in stock.
- Timely removal of goods to the sales floor. Proper organization work, lack of deposits in the warehouse.
- Control of the availability and display of product groups aimed at creating a price image. Presence , , Generate daily reporting to ensure that the most important groups There are always sufficient quantities of goods.
- Pallet and seasonal displays.
- Working with the product assortment, making changes to the assortment matrix.
Stimulating impulse purchases
Stimulating impulse purchases allows you to effectively and quickly increase your average bill. This is the purchase of goods that the buyer did not initially plan to take. How often have you walked into a store with the idea of buying the items on the list, only to discover at the checkout that your cart was full of unplanned items? These are all impulse purchases that help increase in-store sales.
- Neat display in the checkout area. Tempting display of goods in the waiting area. Availability of sweets for children.
- Cross-merchandising - cross-selling, when the purchase of one product is purchased together with another - related product. Therefore, we list products taking into account the comparability of products. Chips for beer, sauces for pasta.
- Constant availability , The buyer may not have planned to purchase the product, but after seeing a good offer, he decided to buy.
- Training in “sincere service”. When you don’t know what to buy, and the seller unobtrusively helps you make a choice.
- Conducting tastings. Particularly effective for new products.
- Attractive by aroma. Aroma is the strongest stimulus influencing the subconscious of the buyer. Remember the smell of fragrant bread or fresh pastries. But the aroma can also repel with its intrusiveness. As a result, pleasant smells can increase store sales, while unpleasant smells can decrease them.
Quality and product presentation
You come into the store and feel comfortable. As a result, you spend more time in the store and buy more products.
- A neat display of goods allows the buyer to easily find what he needs.
- Clean equipment and goods. Lighting and feeling of freshness. If you place discounted rotten fruit at the entrance, sales of the entire store may decrease. The feeling of cleanliness and light is not always perceptible, but it affects the subconscious of buyers.
- Timely registration
- Compliance with storage conditions of goods.
Increasing purchase volume
The goods are purchased in a larger volume than originally planned. Often the buyer is ready to buy a larger volume if the offer is favorable. Promotions are used for this, for example When two or more products are sold for more favorable price than one. Or promotions, when related products stimulate the sale of each other (“buy a grill and get firewood as a gift”)
It is more difficult to increase the receipt than to increase the number of goods and their volumes. In this case, the buyer must give preference to a more expensive product than he usually purchases. This is possible if the buyer perceives that the value of the product is higher than its price. Sincere service for buyers. Explanation of product values, incentives to purchase new products.
Attracting customers to the store
Attracting customers to the store is possible if our regular customers begin to visit us more often or by attracting new customers.
Increased frequency of purchases
Buyers-players - people's dependence on promotions
There is a segment of buyers who track promotions. They are waiting for a promotion and expect to purchase a product with additional benefits. If the product is not displayed on the day the promotion starts, then this angers buyers.
A buyer may come specifically for some advantageous offer, and, not finding it in the store, he will leave and may never return. “You printed a catalog, here is my favorite sausage at a discount, but you simply don’t have it!” At the start of the promotion, all promotional items must be on display in the store. Product availability must be checked on a regular basis during the promotion. The night before the start of the promotion, an additional shift of employees is sent out to display promotional goods.
Timely replacement of price tags
Every day, about 10% of price tags in stores are displayed incorrectly. If a customer discovers an inaccurate price on a receipt, he loses confidence in the store and may stop visiting it. This problem much larger than it might seem at first.
For example, there are about 250-300 promotional products in the store’s promotional catalog. For all these products you need to print price tags, cut them out and post them. Employees trading floor spend about four hours changing price tags on the day the promotion starts. It turns out that the store spends half a day only changing price tags. It is necessary to change the price of the outgoing promo and the upcoming promo. But an incorrect price may turn off the buyer, and next time he will go to your competitor. Deployment of an additional team of employees on the day the promotion starts to change price tags. Appointment of someone responsible for changing price tags.
Purchasing a product is a process that is subject to certain psychological stereotypes of customers. Some things are bought spontaneously (here a sudden inner impulse plays the dominant role), and some are bought only after a scrupulous analysis of the available information about the product.
Making plans
How to increase sales in a retail store? This is a question that worries most retail managers. Unfortunately, a miracle cure has not yet been invented that will quickly and effectively raise revenue to the skies. On the path to increasing well-being, many difficulties will have to be overcome. And only you can decide whether you are able to carry out your plans.
Real steps
According to experienced experts in this field, there are the following ways to increase sales:
Ensuring a stable flow of customers and frequency of purchases.
Increasing the average bill, that is, selling goods for a larger amount.
Which path is better to follow? How to increase sales volumes as efficiently as possible? To answer these questions, we will consider each method separately.
Increase in the number of buyers
To make as few mistakes as possible when deciding to stick to this plan, you need to be a competent marketer. Special knowledge will help answer the question of how to increase sales volumes compared to the previous reporting period.
According to retail statistics, at least one in ten visitors will definitely buy something. Therefore, the more visitors, the more buyers. How to increase sales in a retail store?
The most effective options
- Place all kinds of advertising materials on the so-called shopping path next to the outlet. To do this, it is necessary to determine where exactly the customer flow passes near the store. Promotional materials are designed to make people remember the existence of the outlet and visit it.
- Distribute advertising information of an informational and stimulating nature. Decide which channel will be most suitable for disseminating information about your store - glossy magazines, radio, television, directories, advertising on the Internet, leaflets in mailboxes, etc.
- The most advantageous option is considered to be the so-called cross-events. They are joint promotions with other companies. The main goal is to attract as many more clients with the help of partner companies. As an example, we can cite the following event: a store selling perfumes and cosmetics distributes discount coupons in a nearby office center. The people who come to the store are the partner’s attracted clients. Another option is an event aimed at sharing streams. Thus, in a clothing store, customers are provided with bonuses for jewelry, and in a jewelry store, the opposite is true. Such cross-promotions make it possible to increase sales in a retail store while spending a minimum amount of money on these purposes. At the same time, the most loyal audience is reached.
- Place advertising at the boundaries of the outlet's coverage. It is no secret that each store has its own reach of customers, that is, people who are ready to go or go there to purchase the necessary goods. For example, a grocery mini-market has a shopping area limited to a couple of residential buildings, since few people would dare to take a half-hour walk to buy matches or salt. If we consider large store household appliances, then we can talk about the whole area. The “warmest” circle will be made up of customers living closest to a given retail outlet. The working coverage is average in terms of “warmth”, located a few stops from the store. This is where the bulk of potential buyers are concentrated. It is on the border of this circle that advertising of the outlet should be placed. This option will allow you to expand the coverage of territories step by step.
Increased number of purchases
Here, thoughtful work with the existing customer base comes first. This entire array can be divided into regulars, the bulk and the so-called ballast. Let's take a closer look at these types:
Regulars are active and extremely loyal customers. The share of such clients should ideally be from 20 to 40% of the total audience.
The bulk. These people visit the store from time to time; they are capable of “treason” if, for example, there is a sale at another outlet.
- “Ballast”. Customers who are outside the store’s target audience or visitors make up this layer.
If you are wondering how to increase sales in a retail store, you should work most closely with the second type of customers. Professionals know that it costs less to retain customers than to attract new customers. It's time to launch a loyalty program, which is a system of events aimed at encouraging and retaining customers. An important rule: 80% of profits come from 20% of buyers.
The loyalty program has several strategic goals:
Stimulation of regular customer requests;
Increasing the amount and frequency of purchases;
Construction client base data;
Formation solid reputation companies in the eyes of clients;
Attracting new customers.
The mechanisms of cumulative discounts and bonuses work very effectively.
Increasing point of sale conversion
How to increase sales in a retail store, taking this indicator into account? Firstly, we note that conversion refers to the ratio of those who purchased to those who visited. It is quite natural to strive to ensure 100% conversion. However, even 50% will be acceptable.
There are two most common reasons for low conversion. This is unsatisfactory merchandising and unproductive staff work.
Increasing the average amount per check
To increase this indicator, you can sell either an expensive product or more units of a cheap product. The second option is considered the simplest. What steps to take in this case?
Proper duplication of the most popular products at additional points, filling the checkout area with useful little things, and displaying them in sets will help achieve the goal. No less important permanent job with staff: trainings, seminars, lectures, etc.
Above was presented general information. Now let's look at how to apply the acquired knowledge in certain areas.
Simple tricks will help you understand how to increase your wholesale sales or succeed in retail. Strive to ensure that every step you take is aimed at improving the quality of services and creating a good image of the company.
Floristic business
How to increase flower sales? To do this, here are examples of some effective tricks:
- Building an upsell system. Did the client purchase a bouquet? Great! Ask him which ribbon is better to wrap the flowers (at the same time, offer the most profitable option for you), what toy he will choose to go with the bouquet (“They usually take a teddy bear with these flowers...”), what kind of chocolate does the recipient prefer - black or white?
- Formation of a client base. Try to get contact information for each buyer. Hold lotteries. For example, every person who buys a bouquet before a certain date gets a chance to win ten thousand rubles towards the purchase of flowers.
- Incentives for sellers. An employee who sells bouquets for a large amount receives, for example, a certificate for spa services. By holding such competitions regularly, you will think less and less about how to increase the sale of flowers: your employees will do everything for you.
- Anticipating customer expectations. Presenting cute trinkets with purchases is very effective in this regard. Successful example one of flower salons: on Valentine's Day, store employees launched butterflies, which delighted all customers.
Second hand
In order to succeed in this business, it is very important to choose the right location for the outlet. To sell used items, it is not at all necessary to rent space in elite business centers. A place in a residential area or near a market is quite suitable.
How to increase second-hand sales by using an air freshener? In fact this is a remedy household chemicals can help in creating a positive image of the company. The fact is that all second-hand goods are disinfected with a special gas before being sent from Europe. Such chemicals have an extremely unpleasant odor. That's why a couple of cans of air freshener will come in handy. In addition, it is important to ensure natural ventilation of the room.