The retail sector has experienced a slump which has persisted for quite some time now. The 3.3% drop in UK retail sales volume can be largely attributed to high interest rates and the cost-of-living crisis. Lagging numbers not only impact a retailer’s finances but can also impact staff morale, sparking further concerns for the business.
Despite these challenges, you should not lose hope, as many effective strategies are available to increase sales. From launching loyalty programmes and special promotions to leveraging technology, opportunities to improve sales are within your reach.
Here are the 7 tips to boost sales in retail:
1. Enhance your brand visibility
How can customers buy from you if they aren’t aware of your business? That’s why brand awareness is vital.
By actively promoting your brand and improving its visibility, you can lure new customers and ensure your brand stays fresh in their minds. This increases the likelihood of your brand being remembered when they need the products or services you offer, influencing their decisions in your favour.
You can enhance brand visibility by:
Advertising
Whether you’re a small store or a large chain, there are advertising options for every business and budget. Companies should not restrict themselves to just traditional or digital methods; a balanced mix can be highly effective. Today, ads can be tailored to specific customer demographics, improving their impact and cost-efficiency.
Leveraging social media
To connect with your customers, you need to be where they are—on social media. As of July 2024, over 5.17 billion people, or approximately 63.7% of the global population, use social media platforms, making them perfect for tapping into new and larger audiences.
Social media allows for direct communication with customers, helping you connect and strengthen relationships through comments, messages, and posts. It’s a cost-effective marketing channel, allowing brand promotion through diverse initiatives such as:
- Creating shareable content that is entertaining or informative, like tips and hacks.
- Sharing and tagging customer-generated content, including photos and reviews.
- Hosting giveaway contests that encourage users to follow, share, or tag friends.
- Collaborating with influencers through barter partnerships.
- Teaming up with complementary brands for joint promotions.
Optimise search visibility
Customers often look up businesses online to discover and evaluate them, so being listed on search engines and directories is essential. Since Google is the leading search engine, you should create a Google business profile to enhance your visibility there.
You also need to ensure all business information on your profile is up to date and optimised for local SEO so the right people can find you. Furthermore, maintain good Google reviews, as they influence purchasing decisions.
Sponsor events
Sponsoring events is an effective method to enhance brand visibility. You don’t need to always sponsor major gatherings if you don’t have the budget for that. Instead, you could sponsor local community events, like a football match, to reach your actual customers, residents within your area.
However, you must also consider your customer demographic when selecting events. For example, a children’s clothing store could sponsor a local children’s talent show, aligning with their target audience’s interests.
2. Optimise and leverage staff skills
How your staff interacts with customers directly influences their purchasing decisions, increasing sales, up-sells, and cross-sells. Thus, you should leverage their talents to boost sales by:
Being strategic in scheduling sales associates
Maximise the potential of your star employees by ensuring their availability when the foot traffic is the highest. Additionally, ensure that at least one top associate or an experienced employee is always on duty, even during low footfall periods, so they can efficiently troubleshoot. Be mindful not to overload them, as this can adversely affect their productivity.
To optimise your staff’s skills, consider using Time & Attendance, our workforce management software. Its time tracking and automated rostering features can help you align schedules with peak customer traffic.
Empowering staff with effective training
Employee interactions significantly influence customer perceptions; positive experiences encourage repeat visits, while negative ones may deter customers. Thus, retail employee training is essential to equip staff with the product knowledge and skills needed to assist customers effectively and deliver exceptional experiences.
For effective training, assessment is essential, and our Performance & Talent software can help you achieve this. It allows you to effortlessly monitor employee progress and provide immediate feedback. By identifying skill gaps and challenges, it enables you to offer underperforming employees the motivation and guidance they need to improve.
3. Foster customer loyalty
Returning customers often bring in more revenue than new ones. These customers typically have reduced customer acquisition costs (CAC) and a higher chance of making future purchases, especially if they are satisfied with your offerings. You can encourage customer loyalty by:
Providing exceptional customer service
No one prefers to return to a place where they had a bad experience, hence exceptional customer service is imperative. Great service includes a warm welcome, a friendly and inviting atmosphere, high-quality products and services, and knowledgeable staff ready to assist and resolve queries with a smile.
Implementing a loyalty programme
Appreciate loyal customers and keep them engaged through a loyalty programme, offering benefits like annual rewards, redeemable points, coupons, exclusive discounts, and special perks such as early access to new releases. These programmes help attract new clientele and promote repeat sales, making them a strong tool for customer retention.
Build customer relationships beyond transactions
Your loyal customers deserve more than just points and discounts. Thoughtful actions, such as addressing them by name, sending them personalised holiday wishes, or acknowledging their birthdays, make them feel truly appreciated. By providing tailored suggestions and exclusive discounts that reflect their preferences, you show genuine care for their needs.
Seek and act on feedback
Regularly obtaining feedback and suggestions from customers identifies improvement areas and assures them that their opinions are valued. This shows that you are proactive in your efforts to enhance your business and respond to their needs.
4. Draw customers in with exciting promotions and events
Here’s how to do that:
Launch sales and attention-grabbing promotions
Who doesn’t love a bargain? Stock clearance sales, for example, draw in a large number of customers while helping you free up storage space. To amplify sales, you can create urgency and motivate buyers to act quickly by incorporating time-sensitive promotions like limited-time offers, flash sales, or “while supplies last” deals.
Special deals during occasions like Christmas can help boost cart value, and popular promotions like buy one, get one free generate excitement and drive sales. In addition, offering discounts for referrals can help expand your customer base through word-of-mouth.
Organise special events
Hosting events that align with your products and services could draw the right potential customers. For example, a bookstore could host a meet-and-greet or book signing with a well-known author, ensuring the audience consists of readers likely to make purchases. Similarly, art supply stores can offer painting classes, while beauty retailers might host makeup tutorials or skincare sessions, all tailored to your customer demographics.
Launch a pop-up store
Consider launching a pop-up store at a public location, or hosting one within your retail space to showcase local small businesses and artists. In both cases, pop-ups generate excitement and boost brand awareness, while the in-store option provides an added reason for customers to visit your store.
Revamp your store layout and visual appeal
Effective visual merchandising can entice customers to visit your store and purchase your products. It could be worth investing in creating striking displays, particularly during special events like Christmas and New Year. Bold setups can become the talk of the town, driving foot traffic as people come specifically to check them out.
Offer free samples and gifts
People enjoy receiving free samples. It is an effective method for introducing new products and boosting sales. Similarly, providing gifts with purchases over a certain value can inspire customers to spend more and encourage repeat visits.
5. Differentiate yourself with value-added services
Offering unique complementary services can set you apart from competitors, giving customers more reasons to choose you and encouraging additional spending. Potential offerings might include:
Free home delivery
Home delivery is not limited to e-commerce, and people appreciate the convenience it offers. Even better is when delivery is free, as customers prefer businesses that provide free shipping. While delivery costs can be a financial burden, they can be offset by higher cart values. You can set a minimum purchase threshold to qualify for free delivery, and studies show that 8 in 10 shoppers are willing to meet this requirement.
Order and pick-up in store
Provide convenience for busy shoppers by allowing them to place orders online through your website, app, or phone. Store staff can prepare the items, so customers only need to come in, pay, and take their purchases, avoiding queues and saving time.
Personal shopping service
Modern shoppers place a premium on convenience. Although personal shoppers are recognised in fashion retail, this service can be adapted to any niche. This could include someone who takes care of your grocery shopping and delivers it to your door or an assistant who supports you throughout your shopping experience, making product recommendations tailored to your previous purchases and preferences.
In-store service
There are numerous complementary services you can implement by finding the right fit for your business. A fashion retailer might offer alteration services, and an electronics store could provide installation and repair. These services can bring in additional revenue and don’t have to be free.
Providing additional services like free delivery or personal shopping involves extra human resources and efficient management. Explore our Field Service Management solutions to ease scheduling difficulties and optimise workforce management.
6. Adopt advanced sales and marketing strategies
You can increase the sale value per customer by adopting time-tested sale practices, such as:
Upselling
Upselling is the practice of guiding customers to select a product with more value than they first considered. This is possible by spotlighting premium offerings and their unique characteristics. For instance, if a customer wants a basic smartphone, you can propose a more feature-rich model by illustrating its extra advantages.
Cross-selling
Encourage customers to consider complementary products alongside their purchases. For instance, if someone buys a laptop, recommend related accessories like a wireless mouse, laptop bag, or headphones. This approach increases the likelihood of additional sales.
Bundling
Bundling combines complementary products into a single package at a special price, enticing customers to make a purchase. For example, you might bundle a set of paints with canvas or offer a breakfast set that includes coffee and a mug.
Anchoring and framing
This strategy involves displaying a higher-priced item next to a lower-priced alternative, which makes the latter appear more attractive. This tactic can effectively motivate customers to buy the lower-priced item.
Loop or racetrack layout
Design your store layout so that customers follow a route that requires them to navigate the entire floor. This approach maximises product visibility, ensuring they pass by as many items as possible from entry to checkout.
Optimise pricing
Striking the right pricing balance is necessary. Discounts should be appealing but not detrimental to profits. Use value-based pricing for premium products justified by their value and consider dynamic pricing to adjust prices based on demand, season, and availability.
7. Harness technology to refine business processes and boost sales
Numerous modern tools can be integrated into retail, improving efficiency and contributing to better performance. Some key examples include:
Point of Sale (POS) technology
POS technology efficiently handles tasks like recording customer information, tallying bills, issuing invoices, and processing payments. It accommodates numerous payment methods, including cash, credit cards, and mobile payments, and facilitates self-checkout for a faster, smoother customer journey. Furthermore, it integrates with loyalty schemes, buy online, pick up in store (BOPIS) services, and efficiently manages returns and pricing.
Inventory management and optimisation
Modern Inventory management software offers critical insights into stock levels, enabling retailers to maintain the right quantities while reducing surplus or obsolete stock. This helps minimise stockouts, complete orders effectively, and boost sales.
With our Cloud-based solution, Financials, you can streamline inventory management by leveraging its sophisticated inventory management functionality, which provides clear visibility of stock across multiple sites, automates replenishment, and simplifies stock forecasting.
Data analytics
Data from POS systems can track best-selling products, peak hours, and most returned items, providing insights that inform inventory management and promotions.
Customer data, including purchase history and loyalty programme details, enables personalised services and targeted marketing. Additionally, data analysis reveals sales trends, seasonal patterns, and market dynamics, helping to optimise product offerings, pricing, and inventory management.
Online store
If you are a physical-only retailer, consider expanding into an online store. You can manage it in tandem with your offline store, expanding your reach and increasing sales. Moreover, you can advertise in-store exclusive deals, sales, and offers online to drive customers to your physical location. An online store also provides access to important customer data that can inform your offline business strategies.
Factors affecting sales in retail – What causes the slump
Retail sector slumps can arise from various factors, some beyond control and others manageable. Here’s an overview of these influences:
External factors
Changes in demand due to factors like better options, supply levels, seasonality, or socio-political shifts can contribute to declining sales.
During financial crises and recessions, inflation and reduced purchasing power can emerge, causing a drop in consumer spending, especially regarding non-essential items.
Shifts in customer demographics, such as age or income, can influence buying behaviour and reduce spending in specific areas.
New entrants and e-commerce platforms can capture market share, dampening sales.
While supply chain disruptions may stem from internal mismanagement, they are often influenced by external factors such as unreliable suppliers or unforeseen issues. These disruptions can lead to delays or shortages in stock availability, often as a trickle-down effect of macroeconomic conditions, as seen in the global semiconductor chip shortage.
Factors that you control
Poor marketing efforts can diminish brand relevance and awareness, making it difficult to attract new customers to the store.
Skilled and motivated staff are essential for delivering excellent customer service and driving sales. Untrained or disinterested employees can result in missed sales opportunities and decreased customer satisfaction.
Negative in-store experiences or inadequate post-purchase support can erode customer trust in your brand, leading to negative publicity, reduced foot traffic, and declining sales.
Failing to stock the right items during peak demand can lead to missed sales opportunities, while overstocking low-demand products can create excess inventory that requires markdowns. Both scenarios can significantly impact sales numbers and profitability.
Overly high prices may push customers away, while prices that are too low can create a perception of lower quality, reducing overall consumer interest.
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Failure to adapt to trends
This applies to many business areas, such as consumer behaviour, market demand shifts, seasonality, and the incorporation of new technologies in functions like finance, procurement, HR, and operations. Failing to adjust can lead to losing relevance, missed chances, and falling behind competitors.
Software to help increase sales for your retail business
At OneAdvanced, we offer tailored solutions to support your retail business’s growth and address key factors impacting sales. From budgeting and forecasting to managing your workforce and training a skilled team, we aim to support you at every step.
Our sourcing management solution helps with sourcing planning, cost control, and guided buying, while our supplier management solution streamlines collaboration with suppliers, covering risk assessment, evaluation, and performance monitoring.
Our purchasing solution simplify the acquisition of goods and services, offering spend monitoring and ensuring purchases align with your ESG initiatives. Together, these tools enhance effective procurement, supply chain management, and inventory management, reducing both stockouts and excess stock levels that lead to losses.
Providing data insights at your fingertips, our solutions prepare you to adapt and thrive in the evolving retail landscape. Discover more about our comprehensive retail solutions today.
FAQ
How to increase average sales in retail?
Sales strategies such as upselling, cross-selling, bundling products, and encouraging customers to purchase higher-value items can help increase average sales in retail. Discounts, limited-time offers, flash sales, and loyalty programs are additional techniques to help raise the average sale per transaction.
How to increase sales volume in retail?
Increasing sales volume in retail is achievable through marketing efforts that attract new customers and encourage existing ones to buy more. Loyalty programmes, memberships, special events, eye-catching displays, brand awareness campaigns, contests, and sales offers are effective ways to draw customers to the store. Providing high-quality products and excellent customer service is crucial for retaining these customers.
