Latest posts by Cooper Klein (see all)
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- Pimping The Workplace: How To Set Up Your Company’s Office - January 4, 2019
- 5 Ways You Can Optimize Your Retail Operations - December 3, 2018
For a buyer, an impulse purchase is a bad thing, but for a business in retail, this is one of the most lucrative phenomena out there. Nonetheless, there are so many reasons why people may decide not to buy the product they’ve had their eye on and this can happen at any given second. This is why enabling them to go through this ride effortlessly and without any hiccups should help maximize your sales. To do so, you first have to optimize your retail operations and there are several ways for you to do so. Needless to say, we’ll try to cover both traditional and online retail.
The first thing you need to consider is the issue of inventory management and warehouse planning. On the one hand, running out of a certain supply is bad practice that can hurt your sales, however, having a full inventory, filled with items that don’t sell might be even worse. Sure, in the world of online retail, more and more businesses are going for the drop shipping model. Nevertheless, when it comes to running an actual warehouse, planning the items’ locations can be just as important. Unless they have to be kept in specific conditions, best sellers need to be in the most accessible location.
Improve your upselling strategy
The next thing you should figure out is how to improve your upselling strategy in both physical and digital worlds. When it comes to the digital environment, the key lies in recommended products, consisting of similar or follow-up items from the same category. The “people who bought this also bought…” feature can also be incredibly useful. As for the traditional retail, it all comes down to the prowess of your salespeople. Customers are naturally inclined to question any offer that comes their way and, when they are face-to-face with a merchant, they’re aware that the other party has an agenda. A skilled salesperson can walk past these defense mechanisms by being as subtle as possible.
Signage and wayfinding
In a traditional retail, signage and wayfinding are one of the best ways to guide your buyers from point A to point B. Point A is their current location and point B is the product that they need. By doing this quickly and using the most effective route possible, you’re minimizing the chance of them changing their mind somewhere along the way. For this reason alone, investing in signage design needs to become a priority or, at least, find a way to your budget. Keep in mind that, if the design is good enough, this can also decorate the place, which adds aesthetic alongside pragmatic value.
Consider profit margins by sales channels
In theory, every channel that you own potentially drives sales. However, maintaining all of your channels at the same time can be both expensive and effort-consuming. Unfortunately, this means that you’ll most likely have to prioritize and to learn how and where you need to start reviewing profit margins by the sales channel. This leads to numerous benefits. First, it helps you figure out a thing or two about your audience and their buying preferences. Second, it helps you figure out if you have a problem in a certain area of your retail operations. This latter part is effective in helping you reaching the solution.
This last tip is quite similar to the idea of upselling, seeing as how it consists of offering something that your audience had no intention of buying upon entering the store. To some, it may seem counter-intuitive, due to the fact that it requires you to group the items from different categories and put them all together on a display. This is also quite similar to what we’ve talked about pathing, seeing as how there are some items or sections that can’t be found without your aid. Even though this may depend on your industry and inventory, taking a look at some examples of cross-merchandising in action may help you get some amazing ideas.
These five simple tips can make any store or e-store much more effective. A more effective store means more sales and less effort invested by your team. Considering that introducing these several simple changes doesn’t really transform your business model that much, getting used to these alterations shouldn’t be that hard.
Featured image: Pexels