We will tell you about the possible reasons for The drop in sales in a retail or wholesale store, how to solve the problem, and how to increase the number of sales by steps.
When the financial results of a business are falling, measures need to be taken promptly. How to increase sales? – the cornerstone of business.
There are several effective ways to increase sales and improve the profitability of the store. A qualitative analysis of the activity will allow to determine effective tools for stabilizing the situation.
1. Features of wholesale and retail trade – sales psychology
Retail sales – the piece-by-item sale of the goods to the end user.
To this category of outlets are:
- Furniture salons;
- women’s clothing stores;
- pharmacies;
- markets;
- fairs of masters, etc.
Wholesale trade is aimed at corporate buyers who purchase products massively. Most often, they are resellers who are engaged in resale. In some cases large lots are needed for the personal purposes of the enterprise.
Example:
The factory produces upholstered furniture – sofas, armchairs and ottomans. For the uninterrupted supply of upholstery material, the enterprise enters into a supply contract with a wholesale producer.
When drawing up a plan to increase profitability, the director of a wholesale enterprise is not oriented toward the end user.
Attention is paid to:
- The search for new counterparts is achieved through presentations, recommendations channel, cold phone calls, personal sales, the study of the psychology of buyers, etc.
- Development of relations with current partners – optimization of logistics, provision of discounts, feedback development, etc.
- Increase customer-oriented and develop professional skills of sellers – conducting trainings, mentoring, motivation, etc.
For the head of the retail outlet, the main goal is to interest and motivate the purchase of a visitor to a representative office or an online store of the company. To increase sales, you will need to analyze the current situation, identify weaknesses, develop and implement measures to improve the situation.
2. Why sales are falling – possible reasons
Economic, political, social and other factors that affect sales volumes are difficult to take into account and predict. Even if they are obvious, it is often almost impossible to influence them.
But there are likely reasons for the decline in retail sales, which need to be identified and eliminated in the first place.
Unsuccessful location of the outlet
Even when choosing a commercial space for a purchase or lease, you need to compare the location of the object and the specifics of the company’s activities.
Example:
The entrepreneur decides to open a clothing store next to a popular business center with the expectation of a large stream of customers. This idea is unsuccessful – visitors come to work, and not to update the wardrobe. It is better to move the outlet to a residential area, and near the business center to open a clerical shop.
Take into account the presence of competitors and their conditions, transport accessibility, ease of access, the population of the area and the daily number of people passing by. If the store will be in the courtyard of the house with a barrier, then only those who live near it will visit it.
Poor window dressing
If the buyer does not like the appearance of the store, he will not enter it.
Showcase, which will encourage the buyer to visit the outlet:
- informative – the consumer understands what the store is selling;
- attractive appearance – bright and noticeable, but not flashy;
- tells about current actions – the data is always relevant and true;
- denotes a price category – it looks like an example of products with an indication of its value.
Want to know the objective opinion about the design of the store – ask the buyers themselves to evaluate this criterion through a survey or check-list.
Small assortment
If the competitor has a wider choice, then the buyer will go to him. Comparison of the assortment of a similar outlet with its own will make it possible to understand what is missing.
Another way to expand the product offer is to take into account the interests of more visitors. In the footwear store, each model is good to have in unpopular proportions, and when selling food in the range, you need to add goods for diabetics.
Poor quality of service
If sellers are careless in communicating with the buyer, he will not want to return to the store. Service should be polite, but not intrusive.
Training's and seminars train the staff of the basics of quality sales, and the secret buyer and feedback from users will help monitor the fulfillment of service requirements.
3. 7 Simple Tools for Increasing Retail Sales
When the manager sees that profitability is falling, he needs effective measures to stabilize the situation.
When developing measures to increase profitability, be sure to take into account the specifics of the company. But there are a number of universal methods that will raise profits from the sale of products.
Method 1. Competent merchandising
Clear and visual placement of goods in the store is a simple and effective way to raise sales at once by tens of percent. But the products should be laid out not only convenient for the visitor, but also beneficial for the seller.
To locate the most profitable goods at the level of the consumer’s eyes, and place the promotional products in the cash-box – these are the main recommendations of specialists in efficiently laying out the assortment.
Pay special attention to the appearance of the goods. Packaging should be neat and whole, and the thing to cause a desire to see it closely.
Method 2: A related sentence
This method is used by McDonald’s – every order is suggested to try a patty or something else. The accompanying purchase of goods is in every store.
Example:
In the furniture salon the buyer acquires a sofa, for upholstery used elite fabric. The consultant suggests taking a cleaning agent that will effectively eliminate the most popular types of contaminants.
Some of the customers will agree to an additional purchase, someone will refuse it. But if you offer each buyer, then the average check will increase.
Method 3. Loyalty program
Discounts on discount cards and bonus points for purchase are powerful tools that increase sales. If the customer chooses between two similar outlets, he will prefer the one in which he has the privileges.
Use the method with caution. It happens that the return from the loyalty program does not cover the costs of its use. This happens if regular customers are given out cards for a discount, and new customers do not appear. In this case, the bonus system is subject to revision or cancellation.
Method 4. Shares and sales
The goal is to motivate the customer to purchase more than he originally planned. The tool is especially popular for increasing sales in a crisis or when you need to get rid of the old assortment.
There are several variants of shares:
We recommend that you hold fair promotions and sales. If customers find a deception, it will not be easy to restore their trust.
Method 5: Social networks
Representation of your store in Instagram, Facebook and VC will significantly increase the number of users. They will learn from public and groups about the range, promotions and discounts. To do this, the manager needs to fill in the accounts with interesting content and relevant information.
An effective way to increase the return from a site or group in social networks is to declare a contest of re-posts with a real prize.
The conditions are approximately the following:
- The user shares with friends a record.
- The message is not deleted within a month.
- By chance, the winner is chosen.
Better as a prize to offer the product or service being sold – the advantages and features of the offer indicated in the re-post text will be read by a large number of users.
Method 6: Feedback
Selective call to customers, questionnaires, surveys in groups in social networks – these tools will identify what the buyers lack. It is better to ask closed questions about the assortment, quality of service, accessibility and design of the store and any other aspects, but detailed answers should also be envisaged.
Proper use of the information obtained will not only increase sales, but will also improve service.
Method 7: Marketing promotions
Distribution of leaflets, competitions and drawings, gifts for purchase, offer free to try products – these and other events will increase customer interest and profitability of the business.
When conducting marketing research, it is important to monitor their effectiveness. If the costs do not pay off, the policy of attracting customers should be reviewed.
4. How to raise sales – step-by-step instruction
The above recommendations are effective. But each method will give more positive results in a particular situation.
To determine which tools to use first, follow these three simple steps.
Step 1. Define the specifics of trade
The problem of each store is unique.
The specificity of the activity depends on:
- product categories – food or non-food products;
- forms of the enterprise – a network, a single point of sale, mobile trade, etc .;
- type of service – online store, distribution of catalogs, placing ads on Avito, self-service point, vending machines, etc.
To understand the reasons for the decline in profit, it is necessary to determine the characteristics of a particular outlet.
Step 2. Looking for weaknesses
Determine which method is more effective and will increase sales, will be obtained after an analysis of the reasons for their decline.
Example:
The customer enters the clothing store and immediately leaves it. There can be several reasons – obsessive greeting, disinterest from the staff, unsuccessful presentation of the goods, etc. From the online store, the buyer will leave sooner because of an incomprehensible menu or a repulsive interface.
Find out why dissatisfaction with the client through surveys and questionnaires.
Step 3. We choose the method of solving the problem and introduce it
After receiving answers to the first two questions, the way to increase sales will be clear.
It is not recommended to use more than 2 tools at a time. So it is difficult to assess which of them led to the correction of the situation. It is better to implement the techniques in stages, constantly monitoring their effectiveness
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