Why Do Retailers Ignore Their Basket Size?

In my line of work, I see many bricks and mortar retailers struggling to reach their potential...

Of course, there are a plethora of reasons - but..... one of the main issues I see is that they don't know or understand their basket size - and how it impacts their store.

The Retail Paradox: Why Upselling Often Takes a Back Seat

Despite its proven benefits, many retailers shy away from effective upselling techniques. The reasons can be as varied as the products they sell.

Some retailers might fear that upselling appears pushy and could potentially drive customers away.

Others might not fully grasp the potential gains or lack the right strategies to implement upselling effectively.

However, failing to utilize upselling techniques is a mistake that can have serious consequences.

It means leaving money on the table, plain and simple.

Customers are often open to spending more if they see the value in doing so.

By not tapping into upselling, retailers miss out on boosting their Basket Size, which directly impacts their bottom line.

To bridge this gap, retailers need to understand that effective upselling is not about pushing unnecessary products onto customers. Instead, it's about enhancing their shopping experience by offering valuable suggestions and options. It's a win-win situation where customers get more value from their purchase, and retailers see a significant increase in their profits.

Personalized Customer Engagement: Building Stronger Connections

One-size-fits-all approaches are no longer effective in today's retail landscape.

Customers crave personalized experiences.

Building rapport and understanding their unique needs can lead to higher-value purchases.

Train your staff to engage with customers on a personal level, ask questions about their preferences, and tailor recommendations and offers accordingly.

When customers feel heard and valued, they're more likely to invest in higher-priced items.

But you already know this...

Where retailers fall apart in this area is in the implementation of a sufficient training program to actually train their team.

I see this time and time again. We hire people assuming they already have the skills to provide customer service. This is very rarely the case.

And even if they do, we want to ensure that they do it 'our' way. And we need to provide consistency across our retail floor.

So, figure out what is important to you and your store when it comes to creating a personalised experience, and then, create, schedule and implement a training program for your team.

Loyalty Programs: Encouraging Bigger Transactions

Loyalty programs can be a game-changer for retailers.

They not only encourage repeat business but also often result in larger transactions.

When customers work toward rewards or exclusive discounts, they're incentivized to spend more with each visit.

The long-term value of a loyal customer can far outweigh any initial discounts or rewards offered.

So, why do some retailers hesitate to embrace them fully?

The answer often lies in the way loyalty programs are perceived.

Some retailers might believe that launching a loyalty program is cumbersome or that it only works for larger enterprises.

Others may not fully understand the long-term value a loyal customer can bring.

And it is not just about installing a loyalty program onto your POS....

It's about training the team to ask for their loyalty card every time they shop...

It's about 'signing' people up EVERY time they buy...

And then it's about data integrity...and then regular marketing...

The whole process is often put into the too hard basket for many independent retailers...but....get this right....well, I hope you get the point.... : )

Increasing your Basket Size in retail requires a strategic approach.

By implementing effective upselling techniques, fostering personalized customer engagement, and leveraging loyalty programs, you can boost your sales and create a win-win situation for both your customers and your business.

Remember, it's all about delivering value and enhancing the shopping experience.

And like anything and everything in your store, it is about creating a strategic plan and implementing.

For more ideas on how to increase basket size in your retail store, check out my blog article HERE.

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