As a retailer, growing your business involves getting more sales, which you can only do from your existing customers or by attracting new customers.
Now, if you talk to a banker, they speak about the four key strategies you can use to expand your business in your shop.
1. Increase Penetration of Your Existing Market
This involves trying to sell more of your current products to your existing customers. Some tactics include:
- Offering discounts or promotions: Run special deals or loyalty programs to incentivize customers to buy more.
- Optimizing inventory and displays: Carefully manage which products you stock and how you showcase them in-store to promote more sales.
- Improving in-store presence: Use better displays, signage, etc., to make your products more visible and prompt purchases.
For example, a newsagent could increase the variety of greeting cards or improve their card display area to catch more eyes.
Finding small but impactful ways to get your current customers to spend more with you is critical. Analyse what draws them in already, and build on that. With creativity, you can often boost sales from your existing base without dramatic changes.
2. Develop Your Market by Reaching New Customers
Look for new customer segments that could be interested in your current products. Some ideas:
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Target nearby businesses: If you run a retail store, connect with local companies to sell your products to them. Set up meetings and introduce your offerings.
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Sell online: Create a website or list your products on online marketplaces to reach new geographic areas and demographics.
The goal is to identify pockets of potential new customers in your local area. Think about who else could benefit from or appreciate your products. Get creative with connecting with them through outreach, digital channels, or specialty offerings. The easiest wins often come from expanding to adjacent groups with a reason to buy what you sell.
3. Expand Your Product Lines for Existing Customers
Continuously evaluate opportunities to introduce new products or services that complement your current offerings and appeal to existing customers. Continually test and introduce new complementary products to its existing range.
Examples:
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A newsagent could begin selling party supplies like invitations, napkins, and plates.
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A clothing shop could add accessories like handbags and jewellery.
4. Diversify into New Markets and Products
This higher-risk strategy moves your business into entirely new spaces.
Example:
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A newsagent is expanding into selling luxury cosmetics and toiletries.
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A client of mine in his newsagency added alcohol.
Ensure ample research before diving into unknown territory and have an exit strategy.
Conclusion
A strategic mix of these four approaches can help small retailers expand their customer base and offerings for sustainable growth. Knowing your strengths and limitations and making incremental moves rather than giant leaps into the unknown is key.
