There is an old myth that says we only use 10% of our brain and while this myth has been debunked by many neurologists, there may still be some truth there…
As a 30-year-old POS company we know that retailers do in fact fail when it comes to using the full power of their POS system, the brain behind their business.
In this week’s podcast, Dan shares 3 strategies to better utilizing that brain to mine the diamonds buried in your point of sale system and turn them into cold hard CASH!
#1 – Markdown merchandise is purchased by only a select percentage of your audience; 30% of your customers ONLY buy merchandise that is on sale! Conversely, 30% of your client base never buys clearance merchandise. Here’s how to uncover your Sale Seagulls… Run a sales report by customer and gross margin. The clients that land below your median margin ARE your target markdown/clearance customers. Think about how important this segment of your audience truly is to your business – they buy your junk! More importantly they can help you maintain a clean inventory. A clean, fresh inventory is how we drive growth in your business.
#2 – Size-Drill-Down reporting can uncover HUGE opportunities. Too often your inventory and consequentially your open-to-buy get clogged up with shoulder sizes. Begin with running an on hand report by category and size; identify the excess and then run a report by customer and size and align your excess in sizing to the right customer.
#3 – Customer Win-Back Campaigns drive return purchases. Customers that haven’t purchased from you recently but have in the past represent 30% of your target traffic today!! Think about your in-store traffic (physical or digital) and break it down like this: 30-40% of your traffic comers from brand marketing (these are NEW customers to your business). 20-30% are referral customers (these are new customers that have been referred to your store from one of your existing customers (Ambassadors). 30-40% percent are RETURN customers (meaning, they have purchased from you in the past). The opportunity here is to identify those customers who have been absent from your store for a period of time and invite them back in. This can be done automatically with a simple “we miss you” email. If you are running a Shopify e-store, Privy is one of the best conversion platforms available including cross-selling, email captures, on-screen interactions, and a customer win back module. Each of these components integrate directly with your customer base and your Shopify store.
The Wealthy Retailer is hosted by Dan Holman. Join him as they discuss all important topics in the retail industry. He chats with retail experts, retail owners and more.
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This podcast is brought to you by Canadian Retail Solutions. Since 1991 they have provided comprehensive Point of Sale retail software support and training along with inventory management solutions to empower retailers in Canada and throughout North America. If you are looking for new solutions in your retail environment or are getting ready to launch your new operation, be sure to check out the rest of our website for more information.
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