A retailer once asked this question: “How can you make a small fortune in retailing?” We said, “Start with a large fortune.” Yeah, we know, it’s an old joke, but it got your attention.
But there are truly two ways to grow a business: focusing on improving the bottom line by more stringent control of all expenses, with a hard eye on margin; or focus on growing the top line – sales. We think you have to do both. However, there is one imperative you must add to the equation that can make both goals attainable – and that is develop an insatiable appetite for developing relationships with your customers. Especially in today’s business environment.
It has been said that 80 percent of your business is done on 20 percent of your inventory. Let’s take that a bit further and extend it to customers; it very well could be said that 80 percent of your business is created by 20 percent of your customers, those customers we like to call your store’s 20 Percent Disciples.
Ever wonder why those 20 Percent Disciples do not entice more “new” customers to come to your store? It’s because they lead busy lives and quite frankly just don’t think about it. But your 20 Percent Disciples hold an incredible power when they talk your store but you have to give them a reason to do so. When you do powerful word of mouth advertising is what happens.
We know a craft retailer who gave BMG (Be My Guest) invitations to every customer who registered for certain classes. Customers gave them to their friends and they too join in the classroom fun. This got the word of mouth going, and the 20 percent disciples felt extra special because they got to invite friends to “their” store.
Another retailer hung a chalk board blackboard behind her checkout area, painted across the top was this heading: “Someone bought someone a gift!” On the chalk board were messages similar to these:
Tina bought Kate a sheet of alphabet rub-ons
Alison bought Nancy a packet of mini heart brads
This store is encouraging current customers to buy a friend an inexpensive gift; and the only way the friend can get that gift is to come into the store. Gifters pay for the purchase upfront, then tell their friends to go to the store to pick up their free surprise. What happened next was a classic case of “she told two friends, and she told two friends, and so on and so on and …”
Another derivative of this is our “Introducing My Friend” card; a viral marketing tool that brings new customers to your store. Drop us an e-mail and we’ll send you a free easy-to-customize template and full how-to instructions.
One more tip about attracting new customers: encourage gift card purchases. A wonderful gift from your store is, well wonderful, but it won’t automatically bring the person who receives it to your store. On the other hand, a person must come to your store to redeem a gift card and while they’re there, you know what to do: sell them something! Another plus: studies show that the majority of gift cards are redeemed for more then the face value; and almost half are redeemed for twice the face value.
Right now is the perfect time to put your 20 Percent Disciples to work for you. Don’t abuse them; reward them! Invite them to special events just for them. Feed them while they shop, crop and craft (Food is Good!). Ask for their creative input, and above all, thank them, thank them, thank them for choosing your store!
But there are truly two ways to grow a business: focusing on improving the bottom line by more stringent control of all expenses, with a hard eye on margin; or focus on growing the top line – sales. We think you have to do both. However, there is one imperative you must add to the equation that can make both goals attainable – and that is develop an insatiable appetite for developing relationships with your customers. Especially in today’s business environment.
It has been said that 80 percent of your business is done on 20 percent of your inventory. Let’s take that a bit further and extend it to customers; it very well could be said that 80 percent of your business is created by 20 percent of your customers, those customers we like to call your store’s 20 Percent Disciples.
Ever wonder why those 20 Percent Disciples do not entice more “new” customers to come to your store? It’s because they lead busy lives and quite frankly just don’t think about it. But your 20 Percent Disciples hold an incredible power when they talk your store but you have to give them a reason to do so. When you do powerful word of mouth advertising is what happens.
We know a craft retailer who gave BMG (Be My Guest) invitations to every customer who registered for certain classes. Customers gave them to their friends and they too join in the classroom fun. This got the word of mouth going, and the 20 percent disciples felt extra special because they got to invite friends to “their” store.
Another retailer hung a chalk board blackboard behind her checkout area, painted across the top was this heading: “Someone bought someone a gift!” On the chalk board were messages similar to these:
Tina bought Kate a sheet of alphabet rub-ons
Alison bought Nancy a packet of mini heart brads
This store is encouraging current customers to buy a friend an inexpensive gift; and the only way the friend can get that gift is to come into the store. Gifters pay for the purchase upfront, then tell their friends to go to the store to pick up their free surprise. What happened next was a classic case of “she told two friends, and she told two friends, and so on and so on and …”
Another derivative of this is our “Introducing My Friend” card; a viral marketing tool that brings new customers to your store. Drop us an e-mail and we’ll send you a free easy-to-customize template and full how-to instructions.
One more tip about attracting new customers: encourage gift card purchases. A wonderful gift from your store is, well wonderful, but it won’t automatically bring the person who receives it to your store. On the other hand, a person must come to your store to redeem a gift card and while they’re there, you know what to do: sell them something! Another plus: studies show that the majority of gift cards are redeemed for more then the face value; and almost half are redeemed for twice the face value.
Right now is the perfect time to put your 20 Percent Disciples to work for you. Don’t abuse them; reward them! Invite them to special events just for them. Feed them while they shop, crop and craft (Food is Good!). Ask for their creative input, and above all, thank them, thank them, thank them for choosing your store!
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