Many businesses and organizations make the mistake of managing the measurements of their business and not the outcomes. They seek to manage “sales” or their “profits” and frustrate themselves, their employees and their customers in the process.
Sales and Profits are measurements. They are part of the basic scorecard. Imagine, for example, an NFL quarterback who “managed the touchdowns.” He enters the game desiring touchdowns, but he has a plan to win the game. He gains yardage to achieve his end goal. If he managed touchdowns, he’d throw long bombs on every play. It doesn’t work that way. He manages what he can manage and touchdowns come as a result of the plan and the thousands of steps it takes to gain yardage and score.
In business, sales is the accumulated total of a number of things happening. In specifically retail, its’ the accumulation of not just the final transaction, but merchandising, display, customer service, etc.
You can’t manage the measurements, but you can manage the process to get better sales and more profits:
Examine each product. Take a look at every product you carry. Do you have the right level of inventory? Should you promote it? Does it create something unique when combined with other products you carry? Should you stop carrying it based on customer demand? These are just a few questions you need to ask to maximize every product.
Examine each sign. Do your signs clearly help customers find their way? Can customers read them? Do they help sell merchandise? Are they dated? Do end cap and feature table signs clearly speak of product benefits and value? Do your signs maximize the customer’s visit and encourage them to shop?
Examine each display. Do they clearly help the customer make a buying decision? Do they create sales? Do you have complimentary products nearby? Are the signs professional and do they communicate? Do you monitor sales from displays so you know if they are working? What do you need to do to maximize every display in your store? It’s expensive real estate that needs to deliver outrageous sales.
Examine every customer communication. Are you sure ever word communicates? Do you know your customer and how they think? How will they receive the message? OR are you writing to them from your frame of mind and temperament?
Examine every employee. Do they know your vision and mission? Do they treat every customer as a guest? Are they trained on your products so they can serve customers? Do they hassle customers or listen to them? Are they excited when customers are in the store? They are your front lines. To maximize sales, you need them to be the very best with customers.
Everything in your business contributes to sales and profits. Even customers who don’t purchase today are part of the equation and need special attention. Every aspect significantly contributes and making sure you are maximizing your opportunities in each area will help you to to maximize the measurements.