One of the most valuable KPIs for any retail business is the sales index. Yes, getting customers in the door and leaving with your product is important.However, one of the easiest, and often overlooked, ways to increase your sales is to sell more to your current customers – through increasing the number of items acquired with each purchase.

 

After someone is already in your store and making a purchase, you know that they value your brand and product. There’s no more guessing about what they want or need – you already know! Therefore, there’s no reason why you shouldn’t be trying to effectively upsell your current customer base.

There are many successful strategies for increasing sales to current customers – from rewards programs, to coupons, to special promotional deals. But what if you could increase sales without reducing prices or inducing promotions?

As it turns out, you can! By ensuring that your products are easily accessible and available through an effective retail execution process, your sales index will increase.

As it turns out, you can!

By ensuring that your products are easily accessible and available through an effective retail execution process, your sales index will increase.

What is retail execution? Simply put, retail execution involves getting the product to the right place at the right time.

By ensuring that your products are properly stocked and positioned, you can maximize sales from current customers without providing additional discounts or incentives – keeping your brand standard in tact.

If you’re interested in improving your sales index with retail execution, try the following three activities.

Ensure that you have an adequate sample size to measure your sales index

Before you can start evaluating your sales index, you need to ensure that you have an adequate sample size.

Your sales index consists of the number of products that each customer buys. This number will likely vary from store to store, market to market. Therefore it’s essential to ensure that you have an accurate sample before attempting to measure changes in your sales index.

Try to get an accurate reading across the unique store types and locations where your product is available. Make sure that you account for any variances in demographics as well, as this can play a big role on how many additional items your customers may be inclined to purchase.

By validating the integrity of your sample, you are able to accurately measure improvements made to your sales index over time.

By validating the integrity of your sample, you are able to accurately measure improvements made to your sales index over time.

Closely track and monitor merchandising quality and compliance

There’s a reason that companies spend billions of euros every year on advertising – visibility is essential to increasing sales.

And visibility isn’t only important to acquiring new customers, it’s also a critical element for improving the sales index of your current customer base.

Just as advertising improves visibility of a brand outside of the store, merchandising can improve the visibility of a brand or product inside the store.

To start, consider finding a popular planogram that details the layout of retail products that motivates the highest degree of sales. Then, through monitoring merchandising compliance elements such as shelf positioning and imagery, you can build upon the original planogram to create a product positioning diagram that maximizes your product’s sales.

Consider using a tool like Simplifield to make the merchandising experience more effective for your brand as you evaluate and build out your merchandising compliance processes through self monitoring, planogram development, and inventory tracking.

Maintain strong distribution channels

Finally, you won’t be able to increase your sales index if your products have a tendency to sell out before the inventory is replaced.

Therefore, use Simplifield, or a similar tool, to track and replace your inventory before it runs out. Maintaining accurate records around your inventory will keep the shelves stocked with your product – and prevent any shortages.

Furthermore, develop and maintain strong distribution channels – from the factory all the way to the storefront, make sure that the warehouses, trucks, and other infrastructure consistently run smoothly. With an effective supply chain, it becomes far easier to increase your sales index.

The easiest way to increase your sales index is to make sure that your products are at the right place at the right time – using retail execution. By carefully studying your retail market, validating your merchandising process, and tracking inventory, you can be confident that you will continue to see sales growth.

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