Creating an action plan to increase sales in retail

Set your Sales Targets.

Your growth rate is the percentage change in your turnover each year - one of the biggest mistakes business owners make is setting unrealistic growth rates for their business.  However, not having a target to focus on can have even more dire an effect.  While substantial growth is possible, what’s going to get you there? More sales staff? A merger with another business? A new contract? Better facilities or more warehouse space?  Know what growth you want, and what actions are going to assist you to achieve your aspirations.

Define your break-even point.

Unless you know your break-even point you can easily lose money in sales.  Sales Revenue alone does not guarantee a profit!  Gross Profit (which is calculated by subtracting Cost of Goods Sold from the Sell Price) needs to be the same amount as Expenses (the costs of running the business) just to Break-Even.  Never use Sales Revenue as a way to estimate your Profit!

Up-Selling and Retention Strategy.

Each sale we make has a transaction cost.  The more revenue that is part of this transaction, the lesser the percentage of the cost to do the transaction becomes.  Upselling and value-add options allow for additional revenue and gross profit generation, with an overall lesser transaction cost. Your current customers are also a valued source of extra income and should be treated as such. Create clear plans for staff around customer service and how to provide your customers with the best experience when they are in your store.

You may find its worth starting to capturing more data and feedback from your customers so that you can understand and engage them better.

Customer Engagement Plan.

“Can I help you” just doesn’t cut it.  Find engaging ways to interact with visitors to your store.  They came in for a reason, help them, but don’t make it purely transactional.  Learn the art of conversation and you will have customers who come in for a chat, and will buy more! Develope scripts and prompts for your team as part of your Customer Engagement Plan.

Merchandising Planning - Use your window!

Retail windows are expensive real estate but are fantastic when they are utilised to sell your product.  They need to reflect your brand, your personality, and drag potential customers inside where you can work your magic on them.  If they change regularly and appeal to your target audience, they will be reviewed regularly by the passer by who will then make an impulse decision to enter. Once they enter, the display of the products in store should stimulate interest and entice customers to make a purchase.

Make a plan to move old stock

Some products may be hard to move.  See through the eyes of a potential customer and come up with ways that may entice them to buy.  Remember that you are not a customer of your own store, so it doesnt have to appeal to you!  Ask yourself  "What other ways can I present or package these products?"

Make your plan today.

To increase retail sales, you need a plan.  Get clear about what you want to sell, who to, and in what quantities then ensure your marketing and sales strategies align to make this happen!