There are a thousand reasons for sales dwindling in a physical store, from heavy competition to wrong marketing strategies. Finding the right reason for sales declining and fixing it is essential to stay in the market.
There are various ways to do it, from upgrading the shop’s look to hiring experts to increase sales. Here are five easy ways to determine why the sales are dwindling and eliminate them to earn more profits.
Stiff competition
Heavy competition from online stores and other huge physical stores springing up in the area is the first and foremost reason for sales dwindling. The new stores share the old customers and offer discounts and fresh interiors to attract them. Finding out what the new stores offer and differentiating the products from the other stores will increase sales.
Changing the shop’s interior or installing new attractive signage in the front will help. Mandoemedia.com software enables you to design and create custom digital signage content for your physical store to attract more customers. The modern, chic signage with stunning animations and pleasant ads will lure several passersby into the shop.
Low diversification of products
The major mistake most physical shops make is failing to diversify their product options. Though one shop cannot satisfy everyone’s needs, selling unique and less known brands in the market will increase the customer’s curiosity.
For example, lots of the shops sell mobile covers and mobile accessories in their store. Diversifying them into eco-friendly mobile covers, biodegradable mobile covers, and customized mobile covers will attract customers’ interest.
This strategy must be applied to all the main products sold in the physical store to attract the target customers, who do not mind paying a little extra for superior, unique products.
Insufficient marketing
Insufficient marketing is the second main reason most physical stores lose their business to online stores or other stores. Concentrate on marketing effectively to the locals through promotional events and discount days by advertising in the local listings, newspapers, and television and radio channels.
Target (News - Alert) the large chunk of loyal locals who frequent the store and design the marketing campaigns based on their taste and requirements.
The concept of aligned promotions followed by huge companies emphasizes solving a customer’s problem like getting old clothes in exchange for new clothes. Ask the customers for ideas, conduct contests, and rectify their complaints, marketing everything efficiently.
No additional value
Most physical stores do not give additional value for the purchase, like online stores. For example, there is a free shipping option in online stores if a customer purchases more than a particular amount. Offer free home delivery for customers who agree to join the loyalty program and purchase their entire month of grocery in the store.
Offer special discounts if they are buying for more than a particular amount or give them gifts. The customers should start feeling the additional value provided in the physical store is more valuable than their online or other offline competitive shops to make them regulars.
Lack of modern technology usage
Most physical shops do not use advanced technology to leverage their customer’s buying choices. Hire a data analyst and map what products are in high demand among the target customers and monitor their purchasing habits. Use email marketing to give special discounts if the customer purchases enormous amounts of the items they like.
For example, a pet shop might offer regular customers who buy a particular brand of dog food a massive discount if they purchase it in bulk.
Such acts will prompt the customer to share it with their friends or purchase together without wasting the offer. Use data analytics and data mining to study the customer buying pattern and persuade them into buying more by giving them attractive offers.
