Three Ways For A Retail Business To Boost Profits

Adjust The Queuing System

The queue is a vital aspect of a retail business. Get it right and you will make more money and retain more customers and get it wrong and not only will profits be lower than they could be, but a high volume of customers may get aggravated and leave, unlikely to return on another occasion.

The most profitable system of queuing in a retail environment is the ‘single line queue’. The main reason for this is that it is by far the fairest queuing system available. The single line queue ensures that all customers are served in the order that they arrived, making sure that no one feels unfairly or unequally treated, therefore improving customer relations.

The single line queue also gives the appearance of a queue that is moving at a quick pace. This can reduce the amount of customers that leave a shop without making a purchase, since they are quickly moving towards the till as opposed to standing in a short but stationary queue (as is so common with more traditional methods of queuing).

Employ In Queue Merchandising

In queue merchandising entails displaying products alongside the queuing area for customers to browse while they wait to be served. Companies who have effectively employed this method of merchandising have reported up to a 30% boost in profits, as well as a 400% increase in impulse purchases.

In order to get the most out of in queue merchandising it is recommended that retailers display items of a low cost that will also attract a wide range of consumers. This is because low cost items are more likely to be picked up as impulse purchases.

In regards to in queue merchandising this is one way to boost profits in a retail environment that should be employed by all merchants. The set up cost is very cheap, and it is perfectly possible to display items that are available elsewhere in the store. Alternatively, in queue merchandising offers a fantastic way for businesses to increase the range of goods they sell without having to look at extending the floor space.

Don’t Forget About Customer Service

Customer service is a vital aspect of a retail business, yet it is often forgotten in the mission to make money. However in order to make the most money companies need to retain customers – any business which bases their strategy on a succession of new customers will eventually fail.

Customer service can manifest itself in a variety of ways – even a single line queue can be perceived as offering a better level of customer service than is offered by the use of other queuing methods. However customer service is most apparent when a customer and staff member are in conversation together.

In order to ensure that this one-on-one customer service is as best it can be staff should be trained properly not only in customer service, but in product knowledge also. This means that should a customer ask where to find a particular product the staff member is able to take them straight there.

One of the most important situations in relation to customer service is the moment when the customer reaches the till in order to complete their purchases. This is most likely the last interaction they will have with a staff member before leaving the shop and will therefore leave a lasting impression on the customer – whether positive or negative.

At an absolute minimum the till assistant should say hello, goodbye and thank you, yet other pleasantries are in most cases highly beneficial to the overall level of customer service as well.

This article was written by James Harper on behalf of Lawrence Metal. James writes on a number of subjects including business and retail.

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