I am surprised at how many Salted Retailers do not work with the most basic data at their disposal.
Not all Retailers mind you, but by far the majority, do not drive their Sales by managing their lead indicators.
- Traffic into your store (Feet count)
- Customers served (Transactions done)
- Numbers of items per basket (Basket size)
- Average value of time
To increase any of these Sales Drivers there are several Critical actions that has to be correct in store across all the activities that drives Customer satisfaction and retention.
Most retailers know what their end of day sales are, but can you do anything at that point to change or improve it– absolutely not! By managing your AVERAGE TRANSACTION VALUE throughout the day, you can change sales volumes in the present by driving:
Conversion Rates – (Transactions done) and ATV (more items per basket at higher values) This exponentially increases sales for example:
Adding a 5% increase across all drivers does not equate to a 5 % increase in Sales but a 21.55% INCREASE in sales!!!
- Drive more Feet through the door (Focused and effective Marketing)
- Drive Conversion Rate (Transaction completed compared to Feet thru the door) – Selling Skills and Customer Service)
- Drive basket size –(Merchandising)
- Drive Item value– (Product Knowledge)
You’ll be amazed at the results
Want to enjoy exponential sales growth????
Article by Ilanga Retail Consultants
Ilanga Retail Consultants’ specific purpose is to provide services to independently owned small – to medium/large businesses in the hardware industry. Our team consists of former store owners, directors, senior executives of retail groups and internationally experienced consultants.
To access the suite of Training webinars designed exclusively for the Essential group please contact your Essential BDM who will provide you with full details of the program.