Smart Marketing Tactics to Boost Your Retail Sales
You probably saw retailers going crazy during holidays. On Black Friday, and other similar holidays stores are more crowded than churches and football games combined. Retailers need to have strategic approach and use promotional tactics that will direct consumer’s attention to the best and the most expensive goods in the store, which will result in increased sale’s rates and revenue. In this article we reviewed some of the best known marketing tactics that can be used in retail.
Make it urgent
Consumers are life-long hunters. They are constantly hunting for good deals, and although in some cases it doesn’t seem obvious, they hate when one of those slips by. That’s why limited deals regularly boost company’s sales. You need to create sense of urgency, with saying that the product will be out of stock soon or the price will go up in a day or two. Consumers will definitely use the opportunity and ‘jump’ at this offer like a raging tigers.
Some retailers use ‘unethical’ approach that involves increasing the price of the product, so the ‘good deal’ will actually be a normal price. This way they don’t lose a single penny, and can earn much more money if some consumers decide to buy the product outside the promotional period. On the other hand, this practice can also result in decreasing customer loyalty if consumers realized they are being tricked, and find the same product with a lower price tag at some other retailer.
Skilled salesman techniques
Skilled salesmen are known for pouring honey on their customers, and making them feel special. Some psychologists claim that this experience is one of the main reasons why people like shopping so much. Your true friend will always tell you when you are wrong, but nobody likes being wrong about anything. So if your customer wants to buy 2017 Bentley BenTayga for going on a picnic trip to the nearby meadow, you should tell him/her that this is the right thing to do. You should also admire customer’s wisdom and offer him/her some additional off-road gear. Of course you should never overdo it, because then it becomes obvious.
Another very useful tactic salesmen use is making customers feel obliged to buy something. They do it by giving an extra effort and jumping on every customer’s request. After that premium treatment, customers usually feel like they own salesman a favor (for doing his/her job), and in most cases they repay them by buying some of the items they checked.
Experts say that more than 66% of sales are made while customer is wondering around the stores. Out of these 66% more than 53% is driven by impulse. So when customer sees something he/she likes at a first sight, there’s a strong chance they will buy it, although they don’t need that particular item.
That’s why you need to place products you want to sell urgently, at the most visible places, and at places where customers spend most of their time while being in store. In most cases that’s the area around check-out, where customers wait in queues to pay for products they chose.
There are several types of display you can use:
- Speed bumps– these are strategically placed piles of nice looking products, placed on the way to the checkout, or some other usual customer’s routes
- Dump bins– bins with discounted products that require customers to dig in and find the best deals.
- Free samples– this technique is mostly used for new products, if they like it, they will definitely buy it next time they come.
Point-of-Sales tactic became so popular that even the online stores use different programs that allow them to add add retail PoS displays to their websites.
Train your employees
Nothing is more important than gaving properly trained salespersons doing the job they need to do. This will prove to be crucial to your business success. The reason is – when your employees are working as efficiently as possible, when they are knowledgeable and willing to give their maximum – succeeding is almost an inevitable outcome. This will also reflect on your customers because they will leave the shop with satisfaction. Training your staff is one of the essential aspects, so make sure you don’t overlook it. It could be the tipping point in breaking through.
Relationships between your customers and yourself is also one of the make-or-break points. Try to focus your attention on creating new and stabilizing old relationships. A friendly interaction and a smile on salesperson’s face can really go a long way in establishing customer loyalty over the long term. You can even go the extra mile and try sending birthday cards and Christmas cards, whatever you feel would be appropriate. Remember – selling something every moment is not the priority. Building relationships certainly is. A happy customer is a returning customer. Give your maximum to come across as a friendly person and the results will most certainly come.
Everybody knows that customers love discounts. But many retailers have troubles with determining which products to promote this way and which tactics to use during their seasonal sales. These are some of the most popular promotional pricing tactics:
- Markdowns– it includes reducing wide range of prices, and it should be followed by big marketing campaign.
- Loss Leaders– offering discounts on products that are currently on-demand, like parkas just before winter, or iPhones after a new model release.
- Bundle pricing– merging several products in packages or enabling customers to buy one more expensive product and get one or two less expensive ones for free is another grate way to boost sales.
Use of any of these tactics needs to be followed by intelligent analytics. Performance of different sales and promotional actions is a great parameter for determining the most suitable strategy for future promotions. Remember that each audience reacts differently to product promotions and choosing the right mix of tactics can bring bigger sale’s figures and more revenue.