The retail market is all set to touch a milestone of (approx) 31 billion in 2024. There is a huge potential that can be leveraged by the retail store owners and converted into profitability. However, running a retail business can be equally challenging at times.
These challenges usually include offering a world-class customer experience, maintaining customer loyalty, choosing the right technology, and even securing a healthy cash flow in business. And a single retail store owner may need help to achieve the right balance of this mix.
Understanding Customer Psychology: Needs vs. Wants
As the very first step, any retail store owner needs to understand the basics of customer psychology. We are talking about the fundamental difference between the needs and wants of a consumer. Needs, as the name implies are the essential items that we cannot live without. On the other hand, wants are what we desire. An iPhone cannot be a need of a person while milk, water, and electricity are the basic needs that one needs to thrive.
Understanding the Movement of Your Customers
Understanding the movement of your customers seems like a small move but it can make a difference to your sales. Track the path that the customers usually take in your store and accordingly make any adjustments (if required). Because if your customers cannot easily find what they are looking for in the first place then, what is the point of having a good amount of inventory? Secondly, take regular feedback from your customers. It will help you make the right changes in terms of the physical placement of your goods. This will eventually help you figure out how to increase sales of your retail store.
Implementing Irresistible Offers
A great hack to increase the sales of your retail store is to introduce offers that your customers won’t be able to ignore. BOGO (Buy one get one) are the classic and evergreen examples of the same. With such an offer you are not just giving the customers a chance to save but also helping them make smarter choices. This simple yet effective move will undoubtedly help you increase the sales of your retail store. Needless to say, so many big names in the retail sector are practising this hack all the time.
A Real-Life Example: The Shopping Mall Strategy
Let’s paint a picture to illustrate this strategy in action. Imagine walking into a high-end shopping mall, drawn in by the allure of a massive “Sale” sign. You find a pair of jeans originally priced at $100, now part of a “Buy 2, Get 50% Off” offer. Intrigued by the deal and the perceived high quality of the jeans, you decide to purchase two pairs. The store just made a sale of $150 instead of the $100 you might have spent on a single pair at a lower initial price. This scenario plays out every day in retail environments across the globe, proving that when done correctly, this strategy can significantly increase sales in your retail store.
Stock Up Your Best-Seller Items and Encourage Recommendations
Stocking up on your best-selling products will increase your sales. This could mean that you have different sizes, colours or models of that product well-stocked up in advance. Apart from that, you can also start referral or loyalty programs. Customers love referral programs and loyalty programs as these give them the leverage to shop more or get better discounts over time. Needless to say, both of these hacks are a great way to generate more sales for your retail store in the long run.
In a Nutshell
Understanding customer psychology is the key to excelling in your business. It doesn’t matter which sector or industry you are operating in. Taking regular feedback, optimising your store’s area, stocking up timely on your best-seller items, encouraging recommendations, having a good retail billing software are some basic yet very effective strategies that will answer the question – how to increase sales in your retail store. Hope it helped.