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    

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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.   

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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.   

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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.  

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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 

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Caption: : Doug Stephens, Founder of Retail Prophet