By
Bob Phibbs
The retail strategies that reliably grow sales aren't secret formulas, they're basics like knowing your customer, engaging instead of greeting, and training your team, executed consistently instead of occasionally.
I had been hired in my business consultant role by a man looking to open a new store. After assessing the location and merchandise ideas, I asked the would-be retailer, "Who is your customer, and why is she shopping with you?"
He replied, "I want everyone and everywhere, from old to young, guys, women, straight, gay - all of them."
That sounded familiar, as one of the things no one told you about starting a business was that not everyone is your customer. So many new business owners think they can put their arms around an entire town, region, or state and succeed.
Your arms aren't that wide. You have to narrow your focus...
The best retailers know their target customers and why they shop with them...
If you don't enjoy putting your furniture together or have the wherewithal to buy a couch someone else put together, then IKEA is not interested in courting you.
If you think a cup of coffee should be 50 cents with free refills served from a hot plate that keeps the generic liquid warm all day, then you are not a target for Starbucks.
Whether you are an experienced merchant or brand new, here are retail sales tips to grow your business:
9 proven retail strategies for growing your business
1. Know who your customers are and who they aren't
This is the number one retail sales strategy for your small business's success. Knowing keeps you from overestimating demand and helps you create a vibrant niche for your shop.
2. Court customers who can pay full price
The temptation is to chase the cheapskates - don't do it. You are buying their loyalty with your own lost profits. Yes, you can buy closeouts and last year's items, but there's a reason they are cheap - low demand.
Stores exist to answer shoppers' one question, "What's new?" Good customers will pay for that. When you give care to what you buy for your store – once you really understand who your customers are – they will buy from you.
3. Attract new customers with great windows, an engaging website, a blog, and social media
The logical step when you want to go after full-price customers is to give them a consistently high-quality experience, wherever they might be engaging with your
- That means killer window displays that tempt desire with one grouping rather than hard-selling everything in-store.
- That means paying for a website that mirrors a high-quality experience with your hours, directions, and what customers will get from entering your physical store.
- It means a blog that continues to help your customers do more with the items you carry.
- And it means a compelling social media strategy that includes Facebook, Instagram, YouTube, and more.
4. Pay your employees more
There's a reason many retail businesses stay small - they think small and try to limit every cost.
When you pay your sales staff more, you can expect more. Stores that pay higher wages with more full-timers have lower turnover and higher profitability.
You have to see the hidden costs behind everything. Never compromise your store's ability to create an exceptional customer experience by hiring whoever will work for the lowest wages.
You are known for your compromises more than your successes in business.
5. Train your employees on an ongoing basis
The siren song for many retailers is hiring competitors' former employees because "they're already trained".
I would challenge you that they are trained - probably on the job with little follow-up - to work in that other store. That means they have a "right" way to do something - whether it's your way or not.
You inherit a system often at odds with your own.
Take nothing for granted regarding how your employees answer the phone, greet a customer, sell your merchandise - even take out the trash. Sales training is a must-have in your retail strategy.
This is exactly what I built SalesRX to deliver at scale, not a one-time seminar, but ongoing training your whole team actually uses.
6. Curate your merchandise SKUs
Customers are not looking for more lines, models, or choices. Your customers are looking for the best choice.
That means you want to be a curator who organizes and presents a collection of products customers can clearly see have advantages over competitors. Signage can help you a lot here.
7. Engage the customer in the best way
Notice I didn't say greet the customer. Merchants who station a greeter at the front of the store to parrot, "Hi, how are you today?" are not engaging. They're annoying.
The best retailers, the ones who hire and train better, know the game is to engage the customer in a conversation. That doesn't mean badgering them with 100 questions or directing the customer to a kiosk.
Encourage your sales associate to find a way to engage the customer in a back-and-forth dialogue. To be helpful. To be handy. To be human. To elevate the customer experience.
8. Invite shoppers to return often
The last thing your customers will take with them is how you send them back into their world.
"Thank you" is fine, but the best sales professionals find a way to come around the counter, thank the customer again for their purchase, and invite them to return to your retail store. Being friendly, engaged, and memorable is always what is needed.
9. Livestream on Facebook and Instagram
Social media is for more than offering discounts, coupons, and product shots.
Using a live stream that answers potential customers' questions, teaches existing customers something new, and does it all with an authentic personality brings new eyeballs to your content and new foot traffic to your doors.
See also, How To Increase Units Per Transaction (UPT)
Your retail strategy is the difference between surviving and closing shop
Get these nine proven retail strategies and sales techniques right, and you'll be able to compete with showrooming, big boxes, and a landscape with simply too many places to buy much of the same product.
Fail, and you may be closing the store.
And while you may have fewer customers walking in the door, those who do are motivated to buy, not just shop.
Don't just be nice to them. Sell your merchandise.
Common Questions About Retail Sales Strategy
How do I figure out who my target retail customer actually is?
Ask who your customer is and why she's shopping with you. If you're trying to appeal to everyone, old to young, every style and budget, you likely appeal to no one. Narrow your focus enough that a customer instantly recognizes your store is for them.
Does paying retail employees more actually increase sales?
Yes. Stores that pay higher wages and keep more full-time staff see lower turnover and higher profitability. Cheap labor costs you in service quality and repeat business, even if payroll looks smaller on paper.
What's the difference between greeting a customer and engaging them?
A greeter who parrots "hi, how are you" isn't engaging, they're annoying. Engaging means starting a real back-and-forth conversation instead of a scripted line, being helpful and human instead of running through a routine.
Should I chase customers who only want the lowest price?
No. Chasing discount shoppers buys their loyalty with your own margin. Customers who pay full price are asking "what's new," and they're worth more to court than bargain hunters who'll leave for the next sale anyway."
Should my store have a loyalty program?
If you can run it without discounting your way to a thinner margin, yes. Read the full breakdown on building a loyalty program that actually pays for itself.
How should I lay out my store to drive more sales?
Follow natural traffic patterns, most shoppers in North America turn right on entry, so your best merchandise belongs there, not buried at the back or off to the left. See the full breakdown of store design tips that drive sales.
Common Questions About Retail Sales Strategies
What's the fastest way to increase sales in a retail store?
Know exactly who your customer is and isn't, then stop chasing full-price value from people who only want a deal. The fastest gains come from executing basics consistently, not from chasing new tactics.
Should I discount to compete with bigger retailers?
No. Discounting buys loyalty from cheapskates at the cost of your own profit margins. Court customers who will pay full price for a curated, quality experience instead.
Does paying employees more actually increase retail sales?
Yes. Stores that pay higher wages and keep more full-timers see lower turnover and higher profitability, because trained, invested employees create the experience that makes customers buy and return.
How often should I train my retail sales staff?
On an ongoing basis, not just at hiring. Even experienced hires bring habits from their last store, so retrain them on your greeting, product knowledge, and closing approach specifically.
How do I get customers to come back to my store?
Thank them again after the sale and invite them back specifically, don't just say "have a nice day." Being memorable at the register turns a single purchase into a repeat customer.
