There are many parts to a successful retail business. Operations, product selection, location, marketing, and personnel are all critical to a successful mix. However, when we ask our clients what their #1 concern is, the answer is invariably “Increasing Sales.”
The solution to increasing sales lies in a formula we use when helping clients with their in-store POP programs. There are really only three different methods for sales growth:
1. Increase your customer count (C)
2. Increase your customer frequency (F) and
3. Increase your average check (AC).
Here is the simple equation: C x F x AC = Sales
We don’t claim that increasing sales is easy, but at least the formula is simple. Change any one of the barstool’s legs and you can change your sales numbers. So, if these elements are constant, you can increase one of them by X%, and you will achieve an X% increase in sales.
Our customers testify that BrandPOP has played an important role in increasing their sales by addressing all three of the “Legs.”
Leg 1: Increase your customer count (C)
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- Increasing Customer Count means increasing new customers (people who have never been in the store).
- One the best methods to increase Customer Count is “Sampling.” Sampling is a small promo that gives people a discount to sample your most popular products. Think of Sampling as putting your “best plate forward.”
- Advertising with signage outside of the store can increase Customer Count.
- Dropping coupons and flyers around your local area is another proven method of increasing Customer Count.
Leg 2: Increase your customer frequency (F)
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- Growing Frequency means increasing the number of times a single customer visits over a period of time.
- Introducing a new aspect of a popular product is a great way to increase Frequency. Is your lettuce wrap a big hit? Invent variations and promote those. Item available is a new color? Invent others.
- Have a lot of lunch traffic? Create a promotion for dinner to bring the same clients back again on another evening.
Leg 3: Increase your average check (AC)
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- Your Average Check is the average individual sales amount for all customers in a certain period.
- One method to increase check size is upselling. Suggest a larger drink or dessert. Add a scarf to that outfit.
- Bundle products in groups, making it easy for your customers to choose a “combo” instead of just going a la carte.
Would you like us to schedule a consultation about how to use your POP program to increase sales?
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