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ENHANCING RETAIL SALES

Vijay Kumar

Increase traffic in the stores Track prospect traffic. . If you can’t calculate conversion rate. • As you can see. you can’t actually calculate conversion rate.e. Lots of retailers are confused about this. 200/500). traffic counts represent the total number of people who came to the store including buyers and non-buyers. your conversion rate would be 40% (i. you can’t calculate conversion rate. For example. well. The fact is. you can’t improve it. This is not the same as transaction counts. Transaction counts represent the number of people who made a purchase. Conversion rate is simply calculated by dividing sales transactions by gross traffic counts. if you logged 500 traffic counts in your store and there were 200 sales transactions for the day. if you don’t track traffic in your stores. without traffic counts.

 The higher the conversion the more profit and loyalty you get . The staff at the store should know what is on display and what is in the back-end storage area.Focus on Conversion  The inventory must be up to date.  Also. broken stocks should be kept well under control so as to minimize loss of sales.

you may not have influence over footfall.. You can see the incremental sale achieved is 21% more than what is regular. is considered. The average bill value considered is Rs. . 1000/. The challenge is to increase your conversion and average bill value by just 10%. but you can achieve an additional 21% just by team effort. great service and a sharp focus.In the above case sales in one store getting an average footfall of 50 on a daily basis. As a retail store.

At the same time. Most customers will graduate to aspirational products if they believe that the decision was entirely theirs. the decision on choosing should belong to the customer. we also stock aspirational products that are at higher-price-points. . A good salesman should be able to highlight all the necessary elements for sale in a manner that is pleasing.Sell higher-price-point products to customers Customers are price-sensitive no doubt and to address that. honest and convincing. we have a reasonable portfolio of products that can satisfy the needs of the customer. The trick is to create a zone for the customer whereby he feels comfortable with the presence of products at both ends of the price spectrum. Eventually.

The challenge for the salesman is to ensure that the customer is brought up to date about the range in the store and kept fully informed on the brands. if the footfall in a store is 300 customers a month and if the salesman can induce 25% of these customers to buy 1 more garment than what they originally planned. This would induce further buying.Focus on selling the additional product (Collateral-sales) • The advantage of sporting a reasonable width in product line also empowers the sales man to sell co-ordinates. • Thus. a salesman can achieve higher sales. an extra sale of 75 pieces is then straight away registered . For example.

At the end of the day. the customer many a time. will not resist.Sell at least one accessory per 5 bills • There has to be a clear focus on accessories eg.. . This is typical of a customer not ‘sweating the small stuff’ in his purchase. it is a ‘win win’ situation for both sides. if you do suggest any accessories to him. belts. etc. However. say handkerchiefs. caps. Accessories are presently the least focused-on by many of the stores and it is curious that even customers do not give them much importance. handkerchiefs. undergarments etc. ties. belts. caps. flip-flops.

3. When traffic levels are low. It’s not hard to understand why this happens. 1. There are reasons why people visit your store and don’t buy and you need to understand it. Pay particular attention to lunchtime. Align your staff to traffic not transactions Sounds simple enough. look for Conversion Leaks and Plug the Holes Traffic volume and conversion rates tend to be inversely related. Associates need to eat. but customers need to be served. but aligning your staff resources to when prospects are in your store will help you maximize your chances of converting more of them into buyers. the list goes on. till lines are longer and it’s harder to get help from an associate. Every store manager should spend some time observing visitors in his/her store. and it won’t take long for you to identify some actions you can take to turn more visitors into buyers. Long till line ups. when traffic is high. The opposite is true when . Matching staff schedules to traffic volume and timing in your store will help improve your chances of converting more. When the store is busy. out-of-stocks. conversion rates tend to go up. but staff lunch breaks can seriously drag down conversion rates.Here are five ways you can improve conversion rates in your stores. just observe the behaviors. but is something many retailers overlook. conversion tends to go down or sag. Staff scheduling is tricky at the best of times. can’t find sales help. 2. poor merchandising. when store traffic can be way up. Resist the temptation to help. That is. Watch customers as they move through your store. Understand why people don’t buy One of the most important things a retailer can do to improve conversion rates is to understand why people don’t buy.

you need to set one. but leave without making a purchase. Getting your store to capture even a few more of these lost sales can have a significant impact on overall sales results. It’s important to remember that every store is unique and conversion targets should be set uniquely by store. Ask your staff about why they think people don’t buy and what the store can do to improve conversion rate. simply put. From the cashiers and sales associates to the merchandisers – everyone in the store plays a role. The retailers who are focused on driving conversion rate have a significant advantage over those who do not. A good way to help improve conversion is to ensure all your staff understands what conversion is and that each of them helps influence it. Make Conversion a Team Sport It takes the collective effort of all staff to help turn prospects into buyers. The trick is to move your own conversion rate up relative to your store’s performance. Everyday prospects visit your stores with the intent to buy. Improving your in-store conversion rate is not hard to do. .Set Conversion Targets by Store Having goals and targets are important if you want to improve results. So don’t think of conversion as merely some business metric. One store might be doing well with a 15% conversion rate while another may be underperforming even though it has a 30% conversion rate. If you don’t have a conversion target for your store. Discuss targets. but rather a simple measure of how well the whole store is doing at helping people buy. Get them excited about moving the conversion needle and you will significantly improve your chances of actually doing it. you are missing out on an entirely new way to drive sales. If you don’t track traffic or measure conversion rate in all your stores today. get them to buy-in and share results. You can’t improve conversion if you don’t measure it. but it does take focus and attention—the suggestions above will help you drive conversion in your stores.

3. Sales From Other Business Units: Influence your customers to visit and buy from your other departments or brands during their visit. Secondary Shoppers: Influence those who accompany your primary shoppers. 2. Increase conversion by breaking down the barriers to making a purchase. 4. Circle of Influence: Influence customers to invite their circle of friends to your brand. .four customer conversion strategies: 1. More Buying Customers: They already visit the store and many even consider buying from you.