15 Ways to Increase Your Average Sale

By John Stanley As a consultant, retailers are often asking me how they can increase sales. But, when I put my consumers hat on I�m often exposed to what seem obvious ways to grow the business. The life blood of retail is to get existing customers to revisit a store and also to spend more than they anticipated when they walked in the door. Customers generally have a purpose when they visit a store and a good retailer adds value to the offer to ensure the consumer enjoys spending more than they intended. Frequency of visit for purpose shopping will vary depending on the retail offer. Those readers in the food industry may be providing a weekly offer, whilst a clothing store may be working on six offers or less a year. Many retailers invest a great deal of time and money converting shoppers into customers. Advertising, in all its forms, is primarily aimed at getting a first time customer for a business. The real skill of retailing is converting a one time customer into a regular consumer or store advocate. Having spent many hours as a potential customer in this country I�m often amazed at the lost opportunities. I�m not blaming the sales team; it is often due to a weak business culture, lack of training or a store blind retail manager. One thing I love about retailing is that most stores can make a positive difference to the bottom line without an injection of capital. It�s a matter or re-looking at the business with fresh eyes or as the customer sees the business. The following 15 ideas are aimed at encouraging you to look at the culture and strategies in your business with fresh eyes. I hope they help you grow your average sale. 15 Ways to Grow the Average Sale 1. Tell the team the average sale and set a target. It is amazing how many businesses let the sales team work in a �fog�. The golden rule is if you cannot measure it you cannot manage it. Let the team know the average sale and give them a realistic target and you may be amazed by the results. A few years ago, I was working with a retailer who didn�t believe in telling the team the average sale in case they told his opposition. I convinced him that he was worrying unnecessarily and convinced him to have a more open policy. As soon as he told the team the average sale, the sales increased by 10%. The team just needed a target to aim for. 2. Build a Silent Salesperson. Signage is critical to a business success. A lack of signs can cost you the equivalent of a sales person. An excellent signage strategy can be worth an extra salesperson in the team. Work at the University of Michigan by Sonia Larsen has proven that if non known value (non price sensitive) products are promoted with three benefits then the products are more likely to sell quicker. 3. Smile and Greet the Customer I know it sounds obvious and everyone does it, but have you checked your store recently? In a survey we carried out recently 60% of sales people did not greet the customer�� it�s that obvious. 4. Can I help you? While we are looking at your teams interpersonal skills. How many of them are opening up a conversation versus closing a conversation. Approximately 70% of consumers close a conversation down when sales team members try to build a relationship with a closed statement such as �Can I help you?� They are paid to open relationships, not close them. 5. Positioning Sale items Strategically Retailers are becoming increasingly driven by sales to grow the business. I�m not a believer in this being a sound long term strategy. I never understand why retailers put sale products in the prime retail location. Yes, have a sale if you must, but tempt your customers with good gross profit products first. 6. If it�s new, tell them Consumers love to look at and buy new products. But, you need to sign new products. I know, it�s another one of those obvious ideas that should be common sense, but is often rare sense. 7. Identify your Best Sellers Identify, via signage, your best sellers. You�ll find consumers will gravitate towards them. They will then either be tempted, but will often then purchase a more expensive item to stroke their egos. 8. The Point of Sale is a Selling Opportunity I�m a believer in placing impulse items at the cash register to try and get that extra sale. I would take the average sale per customer, divide it by three, and ensure such an item does not exceed a price point that is more than a third of the average sale. 9. Price Points�.get them right Have a look at your price points. Are you giving money back that the customer wants you to keep? Customers have price barriers for a product, but, on non known value items, are happy to pay up to the price point. Why sell it for 18.95 when you can get 19.95? 10. Name badges help the sale I know, it�s another obvious one, research by Shoppers Anonymous in Australia indicates that people who wear name badges are perceived to provide 15% better customer service. But, look around you at all these name-less sales members. 11. Don�t sell what the customer comes in for Consumers come in with a purpose in mind. If you satisfy that purpose and nothing else, you�ve failed. Sales members should be offering other services, linked products and added value products. Sell something then sell something. 12. Newspaper can help In certain retail situations couples can be seen shopping. Often the man is what is termed a hunter and the woman a gatherer. Leave them together and the man will often get bored and stop the woman shopping. (It can happen in reverse as well), if a salesperson identifies this happening, they should relax the agitated party. Imagine how women�s apparel sales would increase if male partners were offered a coffee and newspaper. 13. Give Customers Space As a general rule in most stores consumers like to browse. That means on average, 60% of your floor space should be allocated to the consumer and 40% to product. Put too much product on the floor and the average sale can decline. 14. Have a �We recommend� strategy Consumers want to trust salespeople. Get the team together and decide as a team what you�ll recommend and all believe in the same recommendations. It will give consumers confidence. 15. Smile and Say Thank You I�m back to the obvious. A genuine farewell at the end of a transaction makes a world of difference. It will encourage consumers to come back. John Stanley is a conference speaker and retail consultant with over 25 years experience in 15 countries. John works with retailers around the world assisting them with their merchandising, staff and management training, customer flow, customer service and image. www.johnstanley.cc