A successful retailer knows his target group and why it shops there. IKEA is not interested in courting you if you don’t enjoy putting your own furniture together or you have the wherewithal to buy a couch someone else put together for you. You are not Starbucks’ target customer if you think a cup of coffee should be fifty cents with free refills served from a hot plate that keeps the generic liquid warm all day.
You need to know who your customer is and who they aren’t. That is the number one strategy for your store’s success. Knowing that helps you create a vibrant niche for your shop and keeps you from overestimating demand.
Location
Selecting your location is the most important step in making your dream of owning a retail store reality. What use is it of you if you have great staff and goods, but no customers? You should select a location with lots of traffic. A new retail store isn’t going to have customers unless it’s a franchise with a well-known name, so you’ll need all the help you can get if you’re going at it alone.
Ideally, you’ll want to be in the area of non-competitive retail businesses that have a steady stream of customers. The overflow from these retailers will drive your walk-in traffic and bring in new business for you immediately. You’ll need to ask for the demographics of the area if you’re looking into a new shopping plaza. This will make sure that you’re not opening a high-end store in a low-end part of town. Take your time picking a spot and be aware of your surroundings. Don’t choose a location just because it’s close to your house.
Management
Mall management has a job to do – to make sure stores in or coming into the mall are following all the guidelines and policies that pertain to each individual lease. But management has another job too – helping new retailers become more familiar with the mall because malls are run by a strict set of rules, and breaking one of the rules can do damage to your finances. Opening late, for example, is prohibited and the mall will fine you.
Mall management teams are very professional, and it’s best to do your research before attempting a meeting or negotiating with leasing managers.
Court well-paying customers
You’re not interested in those who can’t pay full price. Often, one is tempted to chase the cheapskates. You shouldn’t give in to this temptation. Your lost profit is buying their loyalty. Yes, you can purchase closeouts and the goods of yesteryear, but there’s a reason they are cheap – low demand.
Retailers exist to answer shoppers’ one question, “What’s new?” Good customers will pay for new stuff. When you are careful about what you buy for your store, your clients buy from you – once you really understand who they are.
How to Attract New Customers
Customers are attracted by a good site, great windows, a blog and social media. The logical step when you want to go after well-paying customers is to give them a consistently high-quality experience. That means appealing window displays that attract all at once rather than trying to push everything in-store. It will pay off to invest in a website that mirrors a high-quality experience with your hours, directions and what customers will get from coming to your shop.
It will also pay off to invest in a blog that continues to help your customers do more with the items you carry. Your social media strategy should include all major networks, above all Facebook, Instagram, and YouTube.
Pay your Staff More
Small retailers stay small because they think small and try to reduce every cost. You can expect more when you pay employees more. Stores that pay higher wages with more full-timers have lower turnover and higher profitability. Never compromise your store’s ability to create an exceptional experience for your customer due to hiring who will work for the lowest wages. You have to see the hidden costs behind everything. You are known for your compromises more than your successes in business.
Improve Training
Many retailers make the mistake of hiring competitors’ former employees because they’re already trained. There’s something they don’t realize – they are trained to work in that other store. That means they have a learned way to do something. It might not overlap with yours. Often, you come into a system at odds with your own. Don’t take anything for granted when it comes to how your employees greet a customer, answer the phone, and sell your merchandise.
Retail sales training is imperative
Pick and offer the best stock. Customers aren’t looking for more lines, more models, or more choice. They are looking for the best choice. You need to be a curator that organizes and presents a collection of products customers can clearly see have advantages over the competitors. Good signs will help you a lot.
Engage the customer
Engage the customer in conversation. Retailers who station a greeter at the front of the store to greet people are annoying, not engaging. The best retailers, the ones who make the most opportune hires and offer the best training, know the game is to engage the customer in a conversation. That doesn’t mean directing them to a kiosk or badgering them with thousands of questions, but encouraging employees to find a way to engage the customer in a back-and-forth dialogue.
There are three things to look out for:
- Be helpful
- Be useful
- Be human!
Last Tips
Invite customers back. The last thing your customers will remember is how you sent them back into their own world. Be engaged, friendly, and memorable. Thank you is fine, but the best retailers find a way to come around the counter, thank the customer for shopping at their place and invite them to return.
Thank you for reading our tips. We wish you best of luck with your retail store. If your would like more info check out TopPosSystem.Com
