Increased value added per client: Success despite declining footfall

Businesses face major challenges today. Falling footfall and changes in customer behaviour are forcing companies to review their business models and adjust them where appropriate. An important initial situation for this is assessing one’s own capabilities as objectively as possible.

Local footfall has continued to decline over recent years. Even in prime locations in major cities, an increasing number of businesses are complaining of a noticeable drop in the number of customers. One reason for this dramatic trend is the boom in online trade. Journeys into city centres have declined as an increasing number of customers are purchasing online. Jürgen Hanke, Senior Consultant at BBE Handelsberatung: “In view of this situation, it must be an objective for retailers to increase cost-efficiency. In simple terms: Sales must go up and costs must come down”.

Yet what indicators and factors are significant in being able to maintain or even increase sales figures in the face of declining footfall? There are several approaches:

  • Increased average sales per customer
  • Items purchased per till receipt
  • Increased average prices/trading up
  • Marketing of paid-for services
  • Avoidance of price drops
  • Increased cross-selling rate

How can I succeed in increasing and improving these indicators? According to Hanke, specialist retailers have to distinguish themselves from the big chains, major groups and online services in terms of competent consultancy and customer-friendliness.“ The most important success factor however is personnel and the professionalisation of the sales process.

How can businesses get employees to sell higher-quality products and more items per till receipt? It isn’t sufficient simply to tell staff “Just sell more from now on!” The business must give their staff the sales techniques and tools they need to enable them to do just that. This means that the business must provide staff with incentives to change their approach.

Staff will therefore need to go through three phases:

  • Knowing the selling techniques
  • Being familiar with the use of selling techniques
  • Being able to apply the selling techniques

It can therefore be ascertained that in many cases, poor indicators are not a staff problem, but a management problem, triggered by failure to define objectives and to train employees. Employee training should not be a ‘flash in the pan’. Training employees is a continuous process which starts but never finishes, if sustainable results are to be obtained.

Your contact

Jürgen Hanke

BBE Handelsberatung GmbH
Brienner Str. 45
80333 München

Tel: +49 89 55118-165
Fax: +49 89 55118-153
E-Mail: hanke@bbe.de

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