Peter Smith pulls back the curtain on the often misinterpreted, and sometimes maligned, world of sales training.
Squirrel Spotting: So, Foot Traffic is Down in Your Store …
Proactively driving more people through the doors is essential to improving conversion rates, Peter Smith says. Here’s how to do it.
If you are a retailer who uses a door counter, you have likely witnessed a decline in foot traffic in recent months and years. If you do not have a door counter (please get one), you likely have sensed (never as good as actual data) that your traffic count has been in decline for some time.
I have long argued that the easiest way to grow your business is to convert more traffic into sales. If you currently convert one in three, you are walking seven of 10 people. Shifting just one of those seven into the sales column is a 33 percent increase in business.
If you have a two of 10 conversion rate at present and you shift one into the sale column, you will have grown your business by 50 percent.
While there are many factors involved in improving conversion rates--better hiring practices, more effective training, better measurement of current and developing metrics (there’s that door counter again), and clearer communication regarding expectations and progress--the following points address the need to cultivate a culture of proactively driving more people into your stores as an essential strategic initiative.
I will add as a proviso that if you are running a bad marketing program, spending more money on it will not give it the clarity or resonance that it might be lacking. Likewise, if you are not doing an effective job converting the traffic you do have, you are probably going to continue to struggle to convert even if you are successful in creating more foot traffic.
Structured outreach could well be a game-changer in your business. It is borderline criminal to have engaged in relationships with customers over the years only to let those customers stagnate.
If you think that brick-and-mortar retailers are doing an acceptable job in this area, ask yourself: When was the last time you got a thank-you note or a personal invitation to an event or occasion of value from a retail store? I’m talking about something beyond a generic email, postcard, flyer, or even a catalog.
Note that there is no magic number for what constitutes an active customer list. Some might suggest that two to three years is the extent to how far they might go back. My own view on that is that there ought to be
Having multiple lists (and I’m not sure why you would not do so) requires an active management, as the goalposts continually move and as customers respond, positively, negatively or not at all.
Here are my thoughts on some of the questions you may want to discuss with your team if you don’t already have an active and well-managed customer outreach program.
1. Are you strategically working your customer list?
a. How old is the list?
b. At what purchase level are you engaging your past customers?
c. How is the list apportioned across the sales team?
--Do salespeople handle their own customers?
--Where do unassigned customers go?
2. Who manages/updates the customer lists?
a. Someone must own the job of cleaning the list. How often will they do this?
b. Are there different lists, such as current customers (last 12 months), mid-level (12 to 24 months), and older (24 months and above)?
3. Does your team have a daily goal of outgoing calls and/or emails?
a. How do you ensure the calls/emails are happening?
4. Is there a schedule to prepare for the week’s calls and to review results?
a. Is the manager sitting with the employees and discussing the plan?
b. Why are certain customers being targeted that week (special occasions)?
c. Are team members accountable for results?
5. What resources are made available to the salespeople to coach the calls/emails?
a. Is the manager providing good counsel and examples/role play?
b. Are you providing the time and space to get it done in an organized way?
6. What are the consequences for a salesperson who is non-responsive?
a. Is this a requirement of the job or not?
b. What happens to salespeople who don’t take it seriously?
7. Is that outreach interesting enough to entice a customer to visit?
a. Following up on a repair job
b. A reminder about getting prongs checked/cleaning
c. A reminder of an important occasion
d. An introduction to a special event
e. An introduction to a special sale
f. An introduction to a new brand or product launch
g. An invitation to a non-selling event in store (music, book signing, etc.)
8. What is the plan when a customer is non-responsive?
a. Do they get put on a different schedule? Mailings only? Removed?
9. Are successes shared with the team?
a. Success breeds success and it ought to be celebrated.
It is possible that the declining traffic in stores will reverse itself, but I wouldn’t bet on it. Strategically working your lists will improve your foot traffic, deliver a prequalified customer and improve sales conversion. It will also let your customers know that you value their past business and wish to continue to serve them ongoing.
The old adage that we don’t get to complain about our elected officials if we didn’t bother to vote works for customer outreach too. You can’t complain about declining traffic if you are passively waiting for people to walk through your door.
Peter Smith is president of Vibhor, a public speaker and author of “Sell Something” and “Hiring Squirrels.” He spent 30 years building sales teams in retail and wholesale and he can be contacted at dublinsmith@yahoo.com, peter@vibhorgems.com, or on LinkedIn, Facebook or Twitter.
The Latest
Pantone’s 2025 Color of the Year takes the form of jewelry through gemstones and enamel that look just as delicious as mocha mousse.
From raffles to auctions to donations, the industry is working to aid charities in Los Angeles amid the raging wildfires.
The new year feels like a clean slate, inspiring reflection, hope, and the motivation to become better versions of ourselves.
Julia Hackman Chafé and Monica Elias have joined the organization’s board of directors.
The company, which owns Cartier and Van Cleef & Arpels, had a record Q3, with sales topping $6 billion.
The necklace features a sapphire drop weighing more than 9 carats that detaches to transform into a ring.
A Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’
Jameel Mohammed, founder of Afrofuturist brand Khiry, will receive a cash prize and a one-year paid fellowship with Tiffany & Co.
The watches’ dials feature artwork celebrating the vibrant energy and unique landscapes of six of America’s national parks.
Offered by U.K. auction house Woolley & Wallis, the yellow diamond bracelet was a gift from Taylor’s good friend Michael Jackson.
The jewelry trade show returns to The Venetian Expo and The Venetian Resort in Las Vegas from June 6 to 9.
Associate Editor Natalie Francisco highlights her favorite fashion jewelry pieces from the upcoming “Unapologetically Iris” auction.
The closures are part of the retailer’s plan to close 150 locations over a three-year period.
The online guide is available for free and written with the jewelry industry in mind.
The awards honor the late Jose Hess, a founding member of AJDC and an award-winning jewelry designer.
The grading lab said the search for her successor is underway.
In this special op-ed, designer Jules Kim calls on big brands to collaborate with independent creators instead of copying their designs.
A pioneering figure in gemology, he is remembered for his spirit of generosity, curiosity, and joy.
The peak selling days leading up to Christmas did not meet the jewelry retailer’s expectations.
Schneider brings over 20 years of luxury and fashion industry experience to his role as a key member of the brand’s global leadership team.
Gemfields said the Zambian government revoked the 2019 suspension of the tax with no warning.
With versions in 18-karat gold and platinum, the wearables company is blending health technology and fine jewelry.
The executive brings more than two decades of industry experience to the role.
Created by JA and DCA, the fund is collecting money for jewelry businesses damaged by the wildfires in Los Angeles County.
Adrien Brody received his first Golden Globe while wearing the “Mozi” brooch, which depicts a spill of traditional Chinese calligraphy ink.
The pair will work together to support independent retailers in India with marketing assets, training materials, and other tools.