Retail Intel – April 2018

Calculating OIL-web

Calculating your OIL

Your store’s Optimum Inventory Level (OIL) is the level of inventory needed to give your customers the best possible choice while giving you the best possible return on your investment.

Consider the following when calculating your OIL:

  1. Is your business growing, static or declining?
  2. Are you intending to include new product ranges in your ‘buying plan’ to boost certain areas of your business?
  3. Are you planning to drop certain product lines that no longer fit your store’s business model or market position?
  4. Can you identify categories which may show a below average gross margin return on investment but deliver a high return on effort?
  5. What percentage of your total sales volume comes from custom work, special orders and repairs?
  6. How quickly can you replace your fast sellers?
Source: SnapRetail!

Sell smarter, sell more

Studies show 70% of your shoppers leave because of an action (or lack thereof) with your staff. Here’s how to make those interactions better:

Keep everyone informed with quick daily meetings before the store opens or shifts change.

Know where the product is by walking the store daily to see where new product’s come in and old product’s been moved.

Body language is key. Is a staff member crossing her arms? Is another invading a shopper’s personal space? Are others having a conversation on the sales floor–warranted or not–that excludes the customer?

Demonstrate the product. Then step back and let her try. Interactive experiences build value. And sell furniture.

Source: Kizer & Bender Retail Adventures Blog

That’s what I like about you!

Vend HQ polled shoppers asking them one question: Who is your favorite retailer and why? The who isn’t as important as the why. Here are some whys:

  • The majority of shoppers said their favorite retailers offer exceptional customer service from non-pushy salespeople.
  • Price matters, but most respondents didn’t mention price as their top reason for loving a retailer.
  • In fact, merchandising, store layout, and product quality are just as important as price.
  • Stand for something! People want to shop with retailers who share the same values.
  • Oh, and having a great return policy always helps!
Source: Vend HQ

Why local SEO is so important

When consumers shop for furniture, they search online for the local furniture store that offers what they’re looking for. Will they find your store when they begin their search?

When updating your local SEO game plan consider:

  • 18% of local mobile searches result in a sale within one day
  • 60% of American adults use smartphones and tablets to look for local product
  • 50% of local-mobile searches are for business information like a local address
  • 78% of local-mobile searches result in purchases offline
  • 46% of all Google searches are local
  • 76% of local searches result in a phone call
Source: Rainpos

Turn that frown…well, you know

No furniture store is immune from angry customers. Here are four tips for coming out the other side unscathed. How many are practiced at your store?

Active Listening focuses the attention on the speaker. Your sales associate must listen to the speaker before repeating the problem in the listener’s own words. You don’t have to agree with the customer, but she needs to know you understand her problem.

Stay Calm You’re the professional. It’s your reputation on the line. Stooping to their level will only make you and your store look worse.

Be Humble Stop justifying what happened and be willing to realize it could be your store’s fault.

Apologize (Carefully) Sometimes an apology is the best way to appease a customer. Just don’t back yourself into a corner by saying something you don’t really mean. Don’t be afraid to step up and accept responsibility.

Source: Retail Next

CA$H in on video

Did you know 60% of Facebook users say they view at least one branded video a day, and 64% say watching a marketing video on Facebook has influenced a purchase decision in the last month? It’s time to jump on the video bandwagon. Ninety-two percent of marketers make videos (using content they already have) and most are optimizing those for mobile viewing. Interestingly enough—85% of Facebook video is watched with the sound off and 39% of consumers are more likely to finish a video if it has subtitles.

Source: Animoto