6 Ways to Improve Retail Sales

Factors outside of the retail business, a reduction in foot traffic and peaks and troughs according to the time of year are just some of the factors that can result in a decline in sales. Regrettably, it is almost inevitable that businesses will experience times that sales are below an ideal level but there are approaches available to retailers to improve sales and secure the business of both existing and new customers

Attracting new customers is extremely important but too many businesses make the mistake of virtually ignoring existing customers and failing to entice them to buy again. In fact, trying to capture new customers is one of the most difficult ways of going about improving retail sales

The following are ideas for retaining existing customers and increasing sales overall:

Institute a sales incentive program for staff:

Haven’t we all heard about the neighbor, friend or acquaintance that has enjoyed a luxury holiday or suddenly has a brand new state of the art plasma television acquired as a result of sales success at work? Staff responds well to incentives and reasons to push sales through. In many cases staff motivation increases when targets are in place and rewards offered for meeting and surpassing these levels. Consider ways for staff to track their sales progress, perhaps through the Point of Sale technology used by the business

Encourage staff to upsell

Sales staff should be trained and encouraged to suggest additional products that will more effectively meet or satisfy customer needs and provide benefit. For example, when purchasing a pram for a baby, an effective salesperson may show the customer rain and sun protective covers that are especially designed for the model of pram and easy to use. An effective salesperson would also explain the benefits and need for these accessories. Would customers buy these extra items if the salesperson presented them well? Absolutely.

Inform existing customers about upcoming sales and promotions

If you are running a sale or promotion, let your existing customers know! Customers that have had a good experience with your retail business are more than likely to come back and will probably spread the word and bring friends and family with them. Not only that, if items are reduced and offered at exceptional value, it is quite likely that customers will buy multiple items. How can businesses let existing customers know about such promotions? Send them an email or give them a call.

Value your customers

Everyone likes to be acknowledged and made to feel special and this certainly applies to customers who are loyal to a business and return to make purchases beyond their first transaction. Loyalty will result from treating customers with respect and attention, rather than just ‘another person lined up at the till’. This respect can be shown by greeting customers by name or even offering regular customers extended credit or discounts

Customer rewards program

No matter what the size of the business, a customer reward program can be set up. It may be as simple as offering additional discount on a customer’s birthday or as involved as accruing points and earning rewards in the form of discounts or merchandise. Correctly developed to suit the nature and type of business, a rewards program can help to build customer loyalty and increase sales

Offer free samples

Providing free samples when purchases are made is an effective technique used by many businesses. Obviously, the customer who purchased the original product may try and like the sample and purchase it too. Alternatively, the customer may give the sample to someone else who may then buy the product and possibly others from the company. Even if no purchases are made, the customer is more than likely to be grateful for having received something at no cost.

Moving the sales focus of the business to enticing current customers to purchase from you again can make increasing sales easier and increase customer loyalty. However, it is also natural for retail businesses to want to attract new customers and bolster sales. To do this, businesses ranging from small local supermarkets to national department stores may consider:

• Advertising more and advertising strategically to appeal to the target market
• Contacting the media about anything noteworthy that happens within the business and seizing as much free coverage as possible
• Being involved with community events
• Holding a promotional event within the store
• Using techniques such as entertainment, lighting and creative displays to attract customers
• Making prices competitive while ensuring they are still profitable
• Excellent customer service, including a commitment to listening to the customer and positioning them as they expert on their needs and wants
• Offering accurate and detailed information about products
• Demonstrating appreciation for customers and their business
• Effectively managing the money of the business, including: cash flow and stock levels

In the competitive world of retail, Businesses should be committed to attracting new customers but must also ensure that existing customers are valued and enticed to make additional purchases

Subscribe to Our RSS Feeds for regular updates or follow us Twitter or become a fan on Facebook