INDUSTRY INSIGHT
Growing the business T
Andy Campbell, independent business development consultant, specialising in the DIY sector, provides some advice on how to build a retail business and benefit from sustainable growth.
Andy Campbell, independent business development consultant, specialising in the DIY sector, provides some advice on how to build a retail business and benefit from sustainable growth.
here are five main ways to build a retail business in terms of turnover and more importantly, profit, These are:
• Attract more first-time visitors • Convert them into customers • Encourage them to visit more often • Entice them to spend more every visit • Build loyalty, keep them coming back Attracting more first-time visitors involves not only understanding why those customers who already shop with you, do so; but more importantly understanding why those who don’t, don’t. It may involve some market research to get to the bottom of this, but at least it gives you the starting point to do something about it. The process might also tell you if you are not securing all your customers spend on this category; in essence where it is going to your competitors and why. It may well tell you that you need to make some changes to your offer in terms of choice, quality, service or
here are five main ways to build a retail business in terms of turnover and more importantly, profit, These are:
• Attract more first-time visitors • Convert them into customers • Encourage them to visit more often • Entice them to spend more every visit • Build loyalty, keep them coming back Attracting more first-time visitors involves not only understanding why those customers who already shop with you, do so; but more importantly understanding why those who don’t, don’t. It may involve some market research to get to the bottom of this, but at least it gives you the starting point to do something about it. The process might also tell you if you are not securing all your customers spend on this category; in essence where it is going to your competitors and why. It may well tell you that you need to make some changes to your offer in terms of choice, quality, service or
price; for example, broadening the offer to appeal to a wider or different audience. Equally, it may tell you that the reality is fine but you need to work on changing perceptions and this is where marketing comes into its own. Converting visitors into customers
price; for example, broadening the offer to appeal to a wider or different audience. Equally, it may tell you that the reality is fine but you need to work on changing perceptions and this is where marketing comes into its own. Converting visitors into customers
displays, somewhere to go and spend time is the key. The three main elements to
is all about ensuring they find everything they are looking for as well as impulse sales lines on their journey around your retail outlet. Known as conversion rate this is the true measure of how effective you are at converting interest into purchasing decisions.
is all about ensuring they find everything they are looking for as well as impulse sales lines on their journey around your retail outlet. Known as conversion rate this is the true measure of how effective you are at converting interest into purchasing decisions.
displays, somewhere to go and spend time is the key. The three main elements to
DIYWK-30MAR21-Scala_Layout 1 22/03/2021 14:32 Page 1
Innovative & interesting Encouraging visit frequency is largely about providing more reasons to visit. A wider offer, better shopping environment, product ranges that drive repeat business, improved leisure facilities, activities and events that stimulate customers to return more often. Developing the business as more of a destination shopping experience to showcase what is new and different, constantly changing
Innovative & interesting Encouraging visit frequency is largely about providing more reasons to visit. A wider offer, better shopping environment, product ranges that drive repeat business, improved leisure facilities, activities and events that stimulate customers to return more often. Developing the business as more of a destination shopping experience to showcase what is new and different, constantly changing
increasing items per basket and average transaction values are encouraging customers to spend more time with you once they are there, increasing their exposure to your offer by careful customer flow planning and maximising the value of their transaction by good trading up, impulse displays and linked selling. Innovative and interesting displays; a pleasant overall ambience and relaxed shopping environment encouraging browsing; and facilities such as a café or restaurant all make it easy for the customer to spend more time and increase the likelihood of them spending more money.
increasing items per basket and average transaction values are encouraging customers to spend more time with you once they are there, increasing their exposure to your offer by careful customer flow planning and maximising the value of their transaction by good trading up, impulse displays and linked selling. Innovative and interesting displays; a pleasant overall ambience and relaxed shopping environment encouraging browsing; and facilities such as a café or restaurant all make it easy for the customer to spend more time and increase the likelihood of them spending more money.
Good customer flow Good customer flow simply increases the probability of bringing the right customer in front of the right product. Clever range and merchandise planning maximise the chances of making additional higher value sales.
Good customer flow Good customer flow simply increases the probability of bringing the right customer in front of the right product. Clever range and merchandise planning maximise the chances of making additional higher value sales.
Growing the business T
The art behind building loyalty
is to engage your customer so that you are the obvious, automatic choice they make without thinking. It involves establishing some form of relationship with them such that an emotional bond is developed. Loyalty schemes don’t really make people loyal; customer service excellence does. They do, however, enable you to build a database for direct marketing purposes. The most important aspect of this is not giving your customers any reason to go elsewhere and every reason to tell all their family and friends what a great place yours is to shop.
The art behind building loyalty
is to engage your customer so that you are the obvious, automatic choice they make without thinking. It involves establishing some form of relationship with them such that an emotional bond is developed. Loyalty schemes don’t really make people loyal; customer service excellence does. They do, however, enable you to build a database for direct marketing purposes. The most important aspect of this is not giving your customers any reason to go elsewhere and every reason to tell all their family and friends what a great place yours is to shop.
Andy Campbell is an independent business development consultant, at both the retail and production ends of the supply chain. If you’d like to get in touch with Andy, please call 01225 864331, e-mail: andy@andycampbellconsulting.
co.uk or visit his website at: www.
andycampbellconsulting.co.uk
Andy Campbell is an independent business development consultant, at both the retail and production ends of the supply chain. If you’d like to get in touch with Andy, please call 01225 864331, e-mail: andy@andycampbellconsulting.
co.uk or visit his website at: www.
andycampbellconsulting.co.uk
www.diyweek.net
MARCH 2021 DIY WEEK 23
www.diyweek.net
MARCH 2021 DIY WEEK 23
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