Ecommerce is not the only way to make more money in retail. Ecommerce sales only accounted for 8.9% of total retail sales in 2017, up from 8% of total sales in 2016 (U.S. Department of Commerce).
There’s still a lot of opportunity for brick-and-mortar retailers. That’s because in-store shopping is all about the experience. An experience you simply can’t recreate online. Retailers that consistently deliver extraordinary in-store experiences will continue to profit, despite the growth of ecommerce.
Investing in your people is just as important as investing in your inventory.
There are many ways to enhance the in-store experience. Investing in your people is one of the best because people are one of the biggest differentiating factors between online and in-store shopping.
Our recent #PeoplePolicy webinar, Maintaining Profitability in the Digital Age: Why Ecommerce is Only Part of the Answer, focused on
- Setting higher standards for hiring, to find the right people
- Using data to engage employees and incentivize performance
Making your team feel valued is critical to their engagement with your business. Unfortunately, RICS can’t help you hire better people. But we can help you engage and incentivize them!
RICS Salesperson Analysis Report, for example, is ideal for identifying opportunities to reward your staff for outstanding performance. You can review and compare individual sales performance for up to 4 sales periods.
Run a Salesperson Analysis Report weekly, monthly, quarterly, and yearly.
Look at Sales per Hour to identify gaps in performance. The higher, the better. Employees working similar hours should have similar sales per hour.
Average Item per Ticket and % Multiple Sales can help you identify team members that need training in upselling. Items per ticket are controllable. So if multi-item transactions are low across the board, consider trying new, often smaller products that complement your primary inventory well (e.g. accessories to apparel, socks to footwear).
The Salesperson Summary Report is perfect for identifying brand- and class-specific training opportunities. It breaks down sales (staff) performance by suppliers and class, making it easy for you to empower your staff with industry and product knowledge that can boost sales!
Run a Salesperson Summary Report grouped by Supplier monthly, quarterly, and yearly.
If a salesperson isn’t selling any product within one brand, he/she probably needs additional training on that brand and its individual products. Remember, it’s about the experience. What is unique about this brand? How does this brand’s sizing compare to others?
Run a Salesperson Summary Report grouped by Class weekly, monthly, quarterly, and yearly.
If a salesperson isn’t selling a particular class of inventory, he/she probably needs additional training on that class. Which brands fall within the class? Which products within that class are most popular?
Retail sales and customer service training must be ongoing to be truly effective.
But training doesn’t have to be expensive! For example, peer employee training programs are a cost-effective way to get the job done. Partner team members with opposing strengths. Take advantage of downtime on the sales floor too. Modular, interactive training is often preferred to traditional training sessions anyway.
So invest in human experiences! Invest in your team. You’ll notice immediate results in the store and lasting results for your profitability.
You’re likely to sell more—employees with extensive product and industry knowledge are more engaged in your organization, more confident in selling, and more likely to delight your customers. Happy customers are more likely to become regulars.
You’re likely to spend less, too. Employees that are engaged and feel valued are less likely to leave. Turnover is inevitable, but any increase in retention can result in big savings for hiring and onboarding.