Whether you’re selling fashion, furniture, or cars, there are a few savvy business practices that can help your business reach its goals. To get you started, here are three habits of successful merchants that will take your profits to the next level.
Step 1: Make Data-Driven Decisions
Make sure to pay close attention to the products your customers are actually buying. Stock too much of a single product that doesn’t sell, and you’ll be stuck with a storeroom full of stock that you won’t be able to move. If you’re already closely monitoring your inventory, introducing a hot new item can increase sales of all your products.
To be a successful entrepreneur, you need to analyze data from many sources. This will help you not only attract customers, but also meet sales goals and control inventory effectively. These data sources include:
- Point-of-sale (POS) data
- Customer Relationship Management (CRM) data
- Supply Chain Management (SCM) data
- Google Analytics data
- Direct feedback from customers
Merchants who make consistent profits focus on what their customers want when stocking a store. A good point-of-sale system can help collect information from a variety of platforms, aggregate that data, and help entrepreneurs make informed decisions.
Step 2: Invest in Staff Training
You already know that your retail staff is the front line of your business and the face of your brand. But, are you thinking of your employees as partners in the success of your store? Your sales staff is your most valuable asset and has significant influence over customer buying decisions. Proper training of all team members — from using point-of-sale software to engaging with customers — is one of the most important investments you can make for your business. A knowledgeable staff will not only help increase sales but will also elevates your company’s brand.
Step 3: Size Up the Competition
To be successful in any retail venture, you need to be familiar with your competition. While you can glean a lot of information about competitors online, an even better way to check out your competition is to visit stores in person. Take note of your competitors’ products, merchandising, visual displays, staff uniforms, and customer service experience. Combining knowledge of what your competitors are doing with data from a good point-of-sale system can give you valuable insight into new trends, strategies, and opportunities for improving sales.