If footfall is down but conversions are up, perhaps it’s time to consider a few novel ideas to drive store traffic this summer, suggests our US correspondent Gordon Hecht, business growth and development consultant to the retail home furnishings industry …
The number-one comment that I hear from those of us in the retail world is that store foot traffic is down – perhaps as much at -30-50% less than a few years ago. Conversely, closing rates are up – over +50% at most retailers.
There’s a couple of reasons for the drop in traffic. People are researching products and shops online before they drive the family truckster around town. Previously, shoppers visited two to four stores before purchasing. Now they buy in the first or second shop they go to.
The second reason is the economy. Let’s face it – things are rough out there. Everything from gas to groceries costs more. Here at my la boca vista (phase III) home, the cost of living has gone up two dollars a 12-pack.
A third reason is the season. It’s the summer, and there’s plenty to do besides buying a mattress. Vacations, beach time and barbeques are more fun than shopping.
The great philosopher Eddie Cochran said, “There ain’t no cure for the summertime blues.” We can complain about the dearth of traffic, or wait for summer to end.
But our retail world doesn’t have to wait for something to happen. Another great philosopher, Timothy Adams, wrote, “Opportunities are seeking out problem solvers, not complainers.” If shoppers aren’t coming to us, we can go to them.
Start with this premise. It costs about $50 to bring a shopper into your store. If you don’t believe me, add up your monthly marketing and advertising investments and divide by the number of ‘ups’ that visit your shop each month. If you invest $300-500 in bringing shoppers to your store and 6-10 people show up, you’re at average.
Check out these ideas to draw people to your door or create revenue in other ways …
Centre on your centre
Many retailers are located in strip centres or around other stores. How about stepping outside your door and meeting your neighbours? Offer their employees a friends-and-family discount of $100 off a $399 purchase. Or offer them a $100-200 store credit for every referral that buys from you. If they send you five buyers, your neighbour can get a $500-1000 product from you. Print a flyer and drop it off at your neighbour’s.
And, when you visit neighbours, bring a gift. A dozen cookies or a cute plushie toy goes a long way.
Grow your sales at the traffic farm
Many towns sponsor weekly farmers markets. We have one in one in our town. There are fruit and veggie booths, but also clothing, handbags, jewellery, and more. And about 500 people walk through weekly.
Consider taking a booth. Grab up all the excess inventory of pillows, sheets and protectors, and peddle them at a deep discount. The revenue will pay for the booth and clear space. You will also develop a reputation as a place to put on the shopping list.
BTW, you need to shlep out a queen mattress on an adjustable base. Price the whole combo as a show special (under a thousand bucks). One demo on that, and people will flock to your store. And, if your town doesn’t have a farmers’ market, look for a swap meet.
Don’t forget, you can sign up for certain apps and collect bank card payments on your cellphone.
The 800lb griller
Summer means cook-outs. We love food, and we love free food better. What better way to draw traffic than to light up the barbecue and give away some hot dogs? Five hundred smackers buys a lot of ‘tube steaks’.
Promote it on social media, and post a sign on your delivery truck in the parking lot. Invite the neighbours.
Be extra sharp on this event. Invite your local outdoor retailer to provide the grill and help with the cooking. You provide the food. Co-brand the marketing effort, and it’s a triple win for you, the grill guy, and your shoppers. And make sure you have bottled water on hand to wash down the franks.
The tipping point
Barbers and hairdressers. Waiters, waitresses, and busboys. Valet parkers and caddies. These are people that depend on tips for their income. They also interact with lots of people every day.
Try this out. Start doubling the tips you give. If you tip $10 on a $50 meal cheque, start making it $20. A five spot to your barber becomes a sawbuck. And add in a little extra. Drop in five or 10 business cards with a $50-off coupon to your store. Chances are good that your tonsorial expert or server knows someone shopping for your product right now.
Why not get special business cards printed, with the coupon on the back? Be sure to add in an expiration date and limit of one coupon per purchase.
It’s an everyday thing
You can draw traffic to your store in other ways. The effect may not be immediate, but it can be long lasting: join your local chamber of commerce – there are influential people in the chamber, and they touch hundreds of people monthly; sponsor the local ball team or kid’s league – a lot of moms and pops need beds; or visit local apartment complexes and meet the managers, then provide a one-pager about who you are and what you do.
The key to marketing is repetition. It takes several advertisements to catch a shopper’s attention. It’s the same with these events – they will snowball, even in the summer. Plan to repeat the action four or more times for effectiveness.
And save a couple of hot dogs for me.
Gordon can be reached at [email protected]
