Have you ever noticed customers walk into your retail store, take a look at some products, and then walk right out?
Alas! The store’s conversion rate just dropped down.
That’s a sign for a retail promoter to scale up and boost the effectiveness of any sale strategy!
You can now solve your low conversion rate by employing specific strategies such as retail promotion ideas (in-store merchandising, discounts and offers, etc.). Once you’ve strategized and executed your retail sales promotion ideas- you can calculate the conversion rate and keep track of your performance.
How does one calculate the conversion rate in a retail scenario?
When you divide the number of purchases by the number of people who came into your store- the percentage you get is your conversion rate. So, the formula to calculate the conversion rate is: (Number of purchases/Number of store entries) x 100
In addition, estimating these numbers and executing the strategies requires retail store owners to install a counter at the store’s door.
It is also advisable to calculate the conversion rate at your retail store before and after using the retail sales promotion strategies to understand which one works best.
Here are some of the best ways to drive conversions at your retail store:
Suggestive selling
Suggestive selling is a great sales promotion idea for retail stores to increase the conversion rate. This form of retail promotion drives sales and allows customers to get their hands on the perfect products to meet their needs or discover newer and better alternatives to the products they were looking for or regularly use. In addition, such a strategy can also increase customer satisfaction.
This strategy also helps in retaining customers by building trust through interactions. But, it is best to ensure that the staff possesses knowledge about the product and the industry. On the other hand, such a sales technique should not feel forced. For instance, the best time to execute this strategy is when the customer is holding the product and not while entering the store.
Upsell to maximize profit
When a salesperson offers a premium version of a product and an upgrade or add-on, it refers to upselling. Upselling aids in maximizing sales and profit by understanding the customer’s needs through effective communication.
This strategy helps build a relationship with the customers by providing the best of what you can and helping them enjoy a seamless shopping experience at the store. In addition, upselling need not always be an immediate process. Instead, you can do so through follow-ups, direct mails, email newsletters, etc.
For carrying out an upselling technique, the retail promoter must have complete knowledge of the inventory and a deep understanding of the customer requirements.
Shopping should not feel like work
Make customers’ shopping experience seamless by helping them find the right products for themselves. How do you do that? Analyze the customer’s behavior.
For example, when a customer is looking for something on a full rack or searching for a product on the shelf, you can have a staff member approach them and ask if they need any help. If you find customers frantically searching for their preferred size or product, a staff member could offer to find it.
Even when you see a shopper who has too many products in their hand, offer a basket. Little things like these can make customers feel welcomed, and they will continue to shop comfortably at such a store and come back in the future.
Inventory checklist
Retail stores should be inventoried regularly to keep a check on the current stock. You can also have a few employees perform a visual inventory check and supply the items out of the shelf. In addition, it is best to analyze which products are performing well and those that are not. Such a technique will help in setting up the products efficiently to drive more sales.
Moreover, it is vital that the shelves are well-stocked and a customer does not walk out of your store because of inefficient inventory management. As a result, it is advisable to ensure that the products on display are fresh and tidy and not damaged or stale.
Cut down on the chaos
When customers see a long queue at the checkout counter, they will immediately feel like leaving the store. No one likes to wait. In such cases, manage the traffic at the checkout counters by directing the customer to use a different one. It leads to a streamlined checkout experience and allows a cashier adequate time for upselling or suggestive selling.
Too many staff working at the same time can also lead to a chaotic situation. When the team is busy moving about, stocking and restocking shelves, or dealing with customers, the employees need to be mindful of other customers. Therefore, it would be ideal to ensure minimum staff traffic in the store.
The five strategies to increase conversions in retail stores will help you retain your customers and maximize profits. Furthermore, aiming to invite more customers to the store is a good enough strategy. But, it is equally important to focus on making the most out of those who enter your store.