Sales Conversion Techniques in Retail

Converting Sales

• In our previous slide deck we looked at how to attract customers to your store. Now we will examine tactics to help you convert those visitors into paying customers.
• This slide deck explores the following topics:
• Creating Urgency
• Upsell and Cross Sell
• Sales Promotions
• Store Experience
• 

Create Urgency

• Nobody likes a pushy sales person. A sale should be seen as facilitating a customer in meeting their needs.
• However, sometimes we can all get sidetracked and delay purchasing decisions. Creating a sense of urgency helps the customer to focus on the purchase decision and clarifies if they really wish to purchase the product.
• You can do this by letting customers know that they are limited by time and inventory, so they are motivated to take action.
• One of the strongest testimonials to the power of raising the sense of urgency was a study conducted by the University of Alberta. Researchers discovered that consumers were often compelled to buy the next available item when the leading item is sold out.
• Shoppers often do this based on the fear that if the one item sold out, the next is most likely soon to follow.
• 

Upsell & Cross Sell

• Upselling and cross selling can be tricky, as it can be a balance between ensuring your customer is getting value and ensuring you are maximising sales.
• Remember however, that long term customer value should be at the forefront of your mind, so don't forego short term profit for a long term engagement with the customer.
• This is an area where staff training is vital, to maintain a positive customer experience.
• Vend have identified some good pointers to implement in your store:
• Make customers *see* the value or benefit that they’re getting
• Be more vivid with how you sell your products using stories or real-life examples.
• Don’t go overboard with price points
• If a customer buys a $500 blazer, it makes sense to suggest a $50 tie; but if a customer buys a $50 tie, don’t try to sell them a $500 blazer. The suggested item shouldn’t exceed more than a certain percentage of the cost of the original item.
• Reward customers for the added purchase
• Giving away a reward or incentive can increase your upsell/cross-sell conversion rate.
• Remember, it’s not what you say, it’s how you say it
• Avoid presenting an upsell in pure monetary terms. Express it in terms whereby it makes sense to the customer rather than it being another tough decision to make.
• One final tip: use point of sale displays to encourage small impulse purchases that will add to the overall sales value.

Upsell & Cross Sell

Sales Promotions

• A classic sales technique that still delivers. Sales promotions work on the principle of extra value and urgency.
• By regularly offering promotions you give the customer a sense that you offer value, and more importantly, you will keep them coming back to see what other offers they can avail of in the future.
• Traditional methods include:
• - Timed sales promotions (Summer sales, Black Friday, etc)
• - Promoting seasonal goods
• - Loss Leaders
• - Bundle Pricing
• - Loyalty Programs
• This tactics are a staple of any good retailer. The objective should be to plan when to use these to boost sales rather than resorting to last ditch discounts to desperately meet sales targets.
• 

Store Experience

• Don't underestimate the value of the experience a customer has in your store.
• The most important considerations for store design and experience are:
• Counter Position and First Impressions
• Signage and Guiding the Customer Journey
• Customer Service and the ‘Wow’ Moment
• Special Display areas
• Regular Display Changes
• 
• Bildunterschrift: Doug Stephens, Founder of Retail Prophet