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7 Ways to Magnify Your Retail Profits
by Debbie Allen, CSP

  1. Segment Customer Lists
    Carefully analyze past buying behavior or your customers and categorize by their buying habits. Basically you will be slicing and dicing your database list. Discounts may motivate your customers better than premiums, vice versa for others. Study your list and break it down to create special offers for different customer groups.
  2. Isolate Your Biggest Spenders & Build BIG-ticket Offers for Them
    These are the customers that do not want to shop the sales and always purchase your most expensive items. Make it easy for them by packaging products together.
  3. Identify Your Top 20% & Invest More on These VIP Customers
    Make more contacts with them and spend more marketing dollars on them. Consider gifts delivered during the holidays, costlier direct mail, etc. Go where the money is! Your best buyer is your BEST buyer.
  4. Create UP Sells
    Whether selling in the store, on the phone, on the web, by mail or at the cash register, you should engineer upsells. Suggest companion items or deluxe options for just about everything.
  5. Develop Special Events
    Offer many special events throughout the year such as garden classes, children’s classes, flower arranging, special VIP night, closed-door sale for preferred customers, etc.
  6. Offer Premiums and Gifts
    Premiums give you better leverage than discounts. Premiums that can be used as gifts give your customers more leverage for their dollar. For example, a R75 gift certificate with every R775 in purchases is better than a R75 discount. It costs you less, therefore will be a percentage never redeemed, and some will bring in new customers who will spend more than the certificate amount. And best of all you get more repeat business.
  7. Do not buy into Recession Thinking
    Do not let whatever the media, your peers, your competitors and even your customers have to say about Things Being Tough. People find money for what they really want, period.

Bio: Debbie Allen is one of the world’s leading authorities on sales and marketing. She is the author of five books including Confessions of Shameless Self Promoters and Skyrocketing Sales. Debbie has helped thousands of people around the world attract customers like crazy with her innovative, no-cost marketing strategies and secrets to sales success. Her expertise has been featured in Entrepreneur, Selling Power and Sales & Marketing Excellence.

Copyright Debbie Allen. All Rights Reserved.

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