When it comes to increasing retail sales, ‘one’ percent can be a very powerful change. Big increases in sales are exciting, but those increases are difficult to sustain over the long term, and they are not necessarily more effective than a small, steady improvement in sales. Increasing in-store sales by one percent compounded annually is much more achievable than a 25 or 30 percent leap all at once—and can still lead to significant gains in revenue and profit.
Four Ways To Increase In-Store Sales
Every retailer is unique, and the perfect recipe for increasing sales will be different for every store, and perhaps every location. The beauty of a one percent increase is that it only takes small steps to get there. Here are some actionable ideas that retailers can use to increase in-store sales this year:
1. Strategically Raise Prices at the Right Time.
Responding quickly to changing conditions is essential when it comes to effective pricing. A price change can quickly increase revenue and profit, as long as that increase does not negatively impact in-store sales. Retailers must time price increases correctly to minimize impact on customer satisfaction. Small, incremental increases in prices implemented at just the right time can have a significant effect on the bottom line—your data can tell you when that right time is.
2. Create Product Bundles.
Pairing complimentary products is not only an effective strategy for increasing in-store sales, but it can also improve the customer experience and strengthen customer loyalty. Women often like to pair their shoes with a matching handbag, for example, and many men like to pair neckties with matching socks. Offer a discount when complimentary products like these are purchased together in order to give the customer an incentive to buy more.
3. Develop a Personalized Rewards Program.
Thanks to the rise in smartphone use, rewards programs have never been easier for retailers to implement and manage. When retailers use analytics to personalize rewards programs for their customers, it strengthens customer loyalty and encourages shoppers to increase spending at their favorite stores.
4. Motivate Sales Associates to Provide the Best Customer Experience.
Most floor associates are trained to say hello to customers and provide assistance. Unfortunately, in many cases, that is as far as their sales training goes. Set sales goals for everyone on the floor, and train the associates on ways to engage customers in meaningful interactions that will help them match products to a customer’s needs and create the best possible customer experience. Implement a rewards program to recognize employees when they hit their goals, which will give them added incentive to perform well.
What could a one-percent increase in sales mean to a retailer? “One” doesn’t sound like a lot, but when the math is parsed out, it could mean hundreds of thousands—if not millions—of dollars, all going toward the bottom line. These four tips can help retailers, both large and small, successfully harness the Power of One.