The key to retail success is having a plan you can implement, reducing the variables and executing the plan to perfection! Ok So you knew that already, but how do you go about doing that.

Since you are reading this, I will assume you are part of the 20% of retailers that have put processes in place to monitor your expenses, manage your inventory levels and are reviewing your product mix and performance.  

You might even be part of the 20% of the 20% that has implemented a CRM that tracks customer preferences and is aware of slippage activity; if you are just doing loyalty that’s not good enough.

So you are now part of the 20% of the 20%, now what – how do you get to be 20% of the 20% of the 20% that is executing to perfection. Let’s look at one of the simplest ways to get there.

Put another way :

80% of all small business are content with opening the doors and waiting for customers to come in – when they do they focus on selling them what they have and meeting whatever needs they ca,

20% of them are looking at their product mix and managing their costs and inventory levels on a regular basis – They are aware of a key KPI’s and are looking for ways to increase margin and ROI.

20% of that 20% (4% of all merchants) are taking it a step further they have implemented a CRM and have launched an online commerce store – they  work hard at trying to increase their foot traffic, focusing on marketing, making their inventory visible and doing what they can to match their stock levels to customer preference.

The difference makers – the ones who seem to have all the luck the 20% of the 20% of the 20% (thats .8% or 80 out of a 1000 businesses) are focused on doing more with what they have – seems simple but often misunderstood it’s focusing your energy and efforts on where they make a difference. Make every action count! What does that mean.

3 Tips to improve retail performance

1. Monitor your conversion rate 

How many customers come in and how many are buying –  if for example 10 out of every 50 customers who come in buy something, focus on what it takes to get that to 11 – that immediately reflects a 20% increase in sales.   Are they looking for sizes, color or product you don’t have – can you meet those needs using retailcloud’s endless aisle or predictive reordering to ensure you have the right mix? Does your clienteling system allow you to suggest substitute products?

 

2. Monitor your Units per Transaction

Yes again you are right everyone says that , but what kind of insight does your POS system give you on similar customers, are you using machine intelligence to recommend items based on what customers have selected as well as what that customer has previously purchased? If your average units per transaction are 1.67 and you get 1 out of every 5 customers to buy one more item this could result in a 12% increase in sales.

3.What’s your customer retention like 

Look at what how many customers are coming back and how often, does your POS system allow you to reach out to them with targeted offers (promos or experiences) to drive them back – the better you know your customers the more effective experience based marketing is; say for instance you know they love UnderArmour shoes, invite them back for an early preview of the new shoe line; or if they like a certain wine – allow them to reserve part of that allocation before it comes in – (use the retailcloud prepaid feature). Utilize the valuable information in your customer preference profiles. If you can increase your customer retention by 10% this again would have a huge impact on your bottom line.

So what does it take to be the 20% of the 20% of the 20% – it’s the little details; while your competition is using a scrambling approach you can focus on the details and successfully execute a winning strategy. 

retail Key performance Indicators ( KPI ) in combination of recommendation & pragmatics analytics are key to solve sales challenges retail companies are facing. If you would like to learn more about the how you can improve your retail performance bookmark our blog and keep watching this space.

In retail location matters, and brick and mortar retailers spend a lot of time and resources in getting new customers to walk in their stores,  but that is just the beginning; keeping customers coming back is the key to operating a successful retail operation. Here are some tips on how to do that

Brand awareness

Let’s start here,  keep reminding them where they are – have associates greet them by using your store name “ Welcome to (store name);  Can I help you find something?” Remind them where they are whenever possible – Thank you for shopping at (store name); try to use shopping bags, digital receipts where your store name is prominently displayed. Whenever possible use preprinted hangtags or if you don’t want to invest in them – try a stamp or sticker with your name and logo.

Exceed expectations

Here is a low-cost value add for your customers, have associates be aware of surprising customers with random acts of kindness (I don’t mean give away free product or discounts) – taking time to carefully package items, spending a little more time to make sure the customer experience is curated for the customer.

Inventory transparency

Provide accurate information to the customer or product availability. Give associates the tools to know what’s in stock, what’s on the way in and when it can be expected.  Pay particular attention to your product mix and train your associates on complimentary and replacement product.

Value your relationships

Loyalty and club programs (especially experienced based ones) are the cornerstone of retail – Club programs can range from simple pricing discounts like grocery stores offer or experience-based ones that many airlines focus on. One of my favorite example of a club program is a neighborhood restaurant who has a point system for visits and once you get to a certain level – they guarantee you a table anytime – I’ve seen them set up temporarily set up tables for their top customers even when fully sold out – I’m sure that those customers feel the restaurant always value their relationship.

Last but by no means least

Get online

Consumers want easy access to their favorite stores, have an online site that has accurate information on products and inventory levels (ideally connected to your inventory system) and tied to your POS (so customers have one view into all their activity). This allows customers to view product, make purchases and even process returns at their convenience.

Keep the shopping process simple yet enriching is what will keep them coming back. Keep reminding the customer where they are (frequency of impression is real) and have your associates stay focused on providing a quality experience. These are some simple yet inexpensive ways in driving return activity.

Increasing your units per transaction is often what determines success versus failure for the small to mid size retailer. How best to do this hinges primarily on understanding and engaging with your customers. This article identifies key practices to increase your units per transaction covering different aspects of your interaction with your customers.

Selling more is a direct reflection of you and your staff. Placement and signage are only so effective. The key is engaging with your customers starting with the interaction from your sales personnel on the floor. They are the first point of interaction a customer will have with your business. Besides hiring sales associates with experience and providing training, now they need the tools to build relationships with the customers. This not only will build the trust and result in additional add ons being purchased but also increase return visits.

How to Recommend Add Ons

Drop the “Would you like a … (scarf to go with your sweater)”, customer are so tuned to this that they have the “No thanks” formed before you have completed the sentence.

Try suggesting

• Have you tried pairing your ivory cashmere sweater with our new shipment of  teal French silk scarves.
• Did you notice our new arrival of teal French silk scarves? We are having a special on them this week
• Has anyone told you about our amazing special going on today?

Notice that these techniques do not ask the customer to buy the product but instead the sales associate is asking if they have tried, noticed, or been told about the item. The phases are conversational and encourage the customer to consider the option brought forth by the sales associate.

The Point of Sale

This is a prime opportunity to solidify your relationship with the customers. It’s no longer enough to complete the transaction, bag the merchandise and politely say good bye. You have a captive audience from your customer and one final opportunity to increase your units per transaction and ensure a repeat customer.

The customer is generally relaxed and impulse items are easier to sell. Your POS may have custom tailored recommended items prompts, similar to your Amazon on line purchasing experience. Ask your POS provider to add this vital feature, if available.

Does your POS has customer history, this provides another opportunity to reach your customer on a personal level.  By mentioning recent purchases, the sales associate can remind the customer that they may need to replenish the purchase or have a related product that enhances their experience with the original purchase. This type of personal interaction is reminds customers as to why they still shop in the traditional brick and mortar shops.

Create Sales Challenges

Focusing on a particular product line, or area for a week or a month can also help generate add on business. Sales Associates are motivated to recommend these items and the internal contest keeps it fun for the employees. You POS System should be able to track sales by employee so you can update your employees as the contest runs.

Retail Key Performance Indicators 

This blog covers a number of techniques to improve your UPT, but wouldn’t it be great to tie it all together with matrix so that you can see how effective these improvements are to your success. Focus on Key Performance Indicators (KPI) to track from a retail store perspective. Your POS System will provide reports and/or a mobile app so that you have immediate access and can tweak your approach to get the desired effect.

These positive sales experiences all hinge on your salespeople being able to build solid customer relationships built on authenticity. Your goal is for your sales associates to be seen as trusted advisors to your customers. Sales isn’t an art, it’s a science. Teach your sales associates the basics and with continued mentoring will tweak and develop their authentic approach. Use the tool provided by your POS system to give your employees access to the knowledge about your customers to further build that relationship.

A customer who is enjoying their experience in your brick and mortar store is easier to upsell and more likely to buy add-ons. That’s what raises your UPT – not promotions and discounts that might increase units sold but destroy overall profitability.