Why it matters to know "Why?"
How to pick up the pace even moreMany retailers now are being buoyed by gradual upticks in sales.
If you are one of those, we encourage you to give some thought to "Why?" your business is experiencing sales increases.
You will find that it will be for one of these three fundamental reasons.
- More customers, or
- Higher prices, or
- More items-per-transaction
But, The ROI suggests that, when you analyze your results, you will quickly eliminate reasons 1 and 2.
"More customers"? That's a stretch.Few places are experiencing growth in population. Plus, with the proliferation of online shopping, while your customers don't need to be geographically close, they also have many more choices when they are ready to buy. Your competition may be growing faster than the market of customers.
Higher prices? Just not in the cards these days.This is not an environment where many margins are increasing.
Inflation likely will not be a major factor. Plus, not only are retailers expanding online, so are many vendors, so price pressures continue to be downward.
So, what IS driving sales increases? We think you will find that it is is all about transactions:
- more items-per-transaction; or,
- more transactions
- Shoppers are feeling some more confidence, and have a decided case of "frugal fatigue". Enough already, they're saying. There are things we have not bought for a very long time.
- Shoppers are increasingly purposeful in their shopping. When they go to a store (or a website), they have an intent to purchase. The traffic you do receive should yield higher conversion rates.
- Your sales staff can focus on add-on sales, to increase the items-per-transaction.
- Your buyers can bring in more "impulse items" and more complementary products that lend themselves to add-on sales.
- Your sales staff also can work on improving their conversion rate of "just looking" browsers to actual paying customers.
But by analyzing and discovering "WHY?" sales are increasing, you can make them even better. Jump on this chance; it's unique!