Tuesday, May 29, 2012

How To Boost Retail Sales With Suggestive ... - Transworld Business

Dave Seehafer. Photo: Steindler

?by Dave Seehafer, Global Wave Ventures

With today?s challenging retail environment, retailers are asking ?what can I do to increase sales?? There are many solutions to this question; however one of the easiest ways that comes to mind is add-on or suggestive selling.

A great example of this is when a customer comes in to your store to buy a specific item?a pair of boardshorts or sandals, a surfboard, a skate deck, etc. Most retailers will focus only on this particular item, before the customer walks out the door. A savvy retailer will however engage the customer the moment he walks through the door, asking key questions to gain insight. Such a retailer continues to educate and ?stimulate? this customer so that he not only buys the boardshorts, but now has also considered a lycra top, some wax and more?thus add-on selling! Simply put, suggestive selling is a non-threatening way in which a retail salesperson works with a customer to find out their needs, level of knowledge or experience and more. While doing so, the salesperson is showing the customer useful or recommended items related to the target purchase.

Today?s specialty retailer needs to be considered the ?expert? of a particular sport or activity, the ?epicenter? for product information, knowledge, insight, trends, and new products. Specialty retail needs to remain ?special.? In establishing your store as the ?go-to? spot for the latest and greatest products, you have the opportunity to develop and evolve each and every person who walks through the door into a lifelong, loyal customer. If someone is in the market for a new surfboard, perhaps they?ve never considered add-ons such as a leash, traction, extra fins or board bag. Each of these items represent the essence of suggestive selling?added sales with just a little extra effort.

Suggestive selling must be supported within the store itself?at the product merchandising and display level. Do your window displays highlight ?packages??items that are used together in some realistic, understandable way? For example, a display could include a surfboard, along with a colorful assortment of fins, leashes, traction, wax, etc. A similar display in the actual surfboard section of the store allows salespeople to refer, comment and discuss related items. Where appropriate, a third display could be at or near the register so that the customer can see all related items to consider for purchase.

A useful tool for this selling technique is to offer specially-priced ?add-on? packages for purchases of key items. If a customer is buying a skate deck, consider offering a special price on trucks, wheels, grip tape and protective pads. The package price should be significantly discounted from the prices if purchased separately. Another idea is to offer this special package for a limited time after the sale. This creates an opportunity to re-connect with the customer, see how their purchase is working out, and then again offer the special package. This type of selling can be done by the salesperson helping the customer, the person ringing up the purchase, and even the person saying ?thank you? to the customer as they leave the store.

Suggestive selling requires some role playing and preparation with your staff. First, ensure that everyone is aware of the various displays in each section of the store. Fins, board bags, and leashes should be close enough for salespeople to show, touch or grab easily while conversing with the customer. Second, a few key questions must be used by the salespeople to better understand the customer?s needs, wants, background, experience level, etc. These questions might include ?how long have you been surfing?, ?where do you normally surf? and ?what type of board are you currently using?? Third, it is essential that the salespeople have adequate product knowledge and insight, allowing them to make recommendations once they process the answers to their questions. A savvy salesperson would be grabbing two or three different types of wetsuits while the customer is trying on their first suit. A focused skater would have two different sets of wheels and bearings that go well with the intended deck purchase. This is a good time to utilize company samples or demos if applicable. It?s also a great time to showcase new brands or items which could excite the customer even more during their buying experience. Finally, the salesperson needs to ensure that he?s got the customer contact information so that he can follow-up after the purchase.

A short role-playing session once a week with your employees can help strengthen them in these important yet subtle steps. With a little practice and some selling time on the floor, they can each share the phrases or terms that create positive sales results.

This type of selling creates a fantastic opportunity for a sales contest between employees, tracking the number of add-on ?packages? sold during a select time period. Identifying the top seller each week and allowing him/her to share their ?success? stories helps motivate and educate the other salespeople. Using ?real world examples? can go a long way to helping salespeople understand this important sales tool. Through the effective use of add-on selling, sales per employee increase while the cost per sale remains nearly the same. This results in an overall increase in profitability for the store.

This add-on sales technique is just one of the ways to effectively and consistently increase sales. Providing product recommendations and using effective sales techniques will create an environment for customers to spend their hard-earned money every time they walk through your door.

About the author:? Dave Seehafer is an industry analyst for Global Wave Ventures, a San Clemente, CA- and Jacksonville Beach, FL-based brand management and consulting firm for specialty retailers and the action sports industry.? He has held various management roles in the industry during his 20+ years, and ?also produces the Boards & Waves Expo, the East Coast?s ONLY ?consumer expo for surfers?.?

For more information on how to boost your retail sales and profitability, call 949-466-4110 or info@globalwaveventures.com.

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