In today’s retail landscape, many businesses unknowingly miss out on significant revenue opportunities, allowing customers to walk away with limited products and sometimes nothing. These customers are more than willing to invest in additional products if retailers follow a few simple yet effective steps. The key is to recognise that selling more to existing customers is not only cost-effective but also advantageous for both parties involved, creating a genuine win-win situation.
So, what are these straightforward steps, you may ask? It all starts with connecting with your customers as soon as they enter your store, but avoiding the clichéd phrase, “Can I help you?” Instead, acknowledge the journey your customers have taken to walk in and appreciate the effort they’ve put in just to be there.
Renowned retail expert, Bob Phibbs, popularly known as the US Retail Doctor, shared insightful research that sheds light on why some customers make purchases while many others don’t. It’s often assumed that most customers have a clear idea of what they want when they enter a store, but the reality is quite different.
Bob’s research uncovered that approximately 60% of potential customers enter a store with a general desire to buy something, without a specific product in mind. Another 30% visit to explore, compare, and get a feel for different products. Only about 10% have a precise item in mind. How you treat this vast majority of customers, the 90% who are uncertain about their purchase, significantly influences your sales success.
This information is crucial because it directly impacts your staffing decisions. Failing to have enough team members available when customers are present can greatly hinder your sales. Gone are the days when your team could simply wait for customers to approach them with their purchases. Today, team members must be proactive, greeting customers with a warm smile and a genuine desire to assist, actively asking questions and offering solutions.
The significance of change rooms cannot be overlooked, particularly for stores that have them. Marge Laney, an esteemed author, conducted research that reveals only 10% of customers who browse end up making a purchase, whereas a whopping 67% of customers who utilise fitting rooms make a purchase. Here’s the most exciting part: customers who receive assistance in the fitting rooms tend to spend three times more than those who merely browse.
So, the question remains: How well-prepared is your team to proactively serve your customers? If they aren’t equipped with the right mindset and tools, you’re leaving substantial amounts of revenue untouched.
Roger Simpson – CEO, The Retail Solution and Author of “The Ultimate Retail Sales Experience” With over 35 years’ industry experience, Roger Simpson is recognized as Australia’s #1 Authority on customer ROI in the retail industry and as a global expert on staff coaching, customer service, and selling skills.
