Wondering how to increase profit margins? A lot of attention is being given to online retail growth during the pandemic.
But what if that growth isn't coming entirely from consumer demand and different needs during a pandemic, but employees teaching shoppers how to game the system?
Last year my buddy Matt, who really liked Pottery Barn furniture, was redoing a second bedroom. He went to the store to buy all of the furniture for it and when he approached a helpful retail sales worker, she taught him how to game the system.
She told Matt to go to the Pottery Barn site and add a few items to his cart and wait. “A coupon will arrive for 20 percent off. But don’t do anything with it. Wait for the right offer.”
He was to add some more product, close out his computer and wait. Sure enough, two days later an email arrived offering 25 percent off. He remembered not to do anything but wait. He received a 30 percent off plus free shipping coupon a week later.
The CEO said the focus of their stores is still physical but is aligning more resources for online.
One has to wonder if they are looking at how one is depleting the other.
Sheila, another friend, when looking to purchase a $1500 chandelier from another brick and mortar store, was told something similar by another young salesperson. She was told to put the fixture in her online cart and close out.
She was told to keep checking back to see if the price went down or until she received a coupon. She purchased the chandelier last month for half off the original price – again with free shipping.
Why would a retail employees give away the profit by doing something like that?
Because they are frugal and are drawn to savvy ways to save money.
What is happening is no less than the rewiring of how people buy. But also the seeds of a new culture.
It seems some consumers are willing to do whatever it takes to get a cheaper price.
So what’s the answer?
At its core, there has to be a fundamental education of retail employees, regardless of their age.
Their job on the sales floor is not to find ways for their shoppers to game your system; it is their job to sell the products at the in-store price.
It is their job to enjoy building a sale and seeing it to its close.
It is their job to encourage discovery in the store, not discovery of a discount.
A foundation of how exactly to execute a branded shopping experience must be taught over time with practice and role-play.
Beyond that, managers must inspect what they expect and know what their employees are actually saying to shoppers.
And those marketing managers who have created those online incentives that take people from your store to your site need to stop patting themselves on the back for how smart they are.
Your Retail Sales Strategy needs to understand that those offers are not only taking away your profits but they are teaching your current brick and mortar shoppers to bypass your store and game the system on your website.
The 5 Shifts Brick-and-Mortar Retailers Are Making to Generate Up to 20% Higher Profits Every Month
Are you a hungry brick-and-mortar store owner who’s ready for a fresh, people-obsessed strategy? This training is for you if you want to grow your business using a powerful customer experience formula proven to make your cash register chirp.