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> Living on the Top Line - The Book > Joe's Blog > Are you getting more revenue out of fewer customer opportunities?
Are you getting more revenue out of fewer customer opportunities? I've been visiting a lot of furniture stores over the last month or so, and I can report that, with rare exception, the demeanor of salespeople in stores is less than appealing. They can't tell who I am because I arrive unannounced and somewhat incognito (though not disguised). I see them sitting around near the front or wherever their "point" station is, and when I'm approached I usually get a weak attempt at a smile and a "How are you today?" greeting - which is the emptiest of all possible greetings except maybe "Howya doin?"
I think I know why this is happening. I think that there are far fewer customer opportunities, and the ones there are seem to be very selective and looking for "the deal." Therefore, there are fewer sales being closed - particularly to first-time shoppers (on a project) - so, salespeople's sales and income are down, as are the owner's revenue.
If it's now more about price for the customer than ever before, and you've lowered your prices, this doubles the impact of diminishing revenues and gross profit dollars.
So, if that's all you've done in response to the terrible economy - lower prices, more promotions - your in good company because so has everyone else.
Have you changed anything else? How about your strategy and methods of engaging customers? How about the way your salespeople go about learning what they need to know to truly help a customer? How about instead of just cutting your prices, you also raise the levels of service you provide to customers to make their experience in your store better than they'll have anywhere else?
What happens to those shoppers who don't buy? Do you have a solid strategy and system to get them back again? You should, because second-time customers on the same project buy over 60% of the time.
Or, do your salespeople have this attitude about non-buyers: "If they could be sold, I would have sold them, but once they leave, they're dead to me!"
For what to do to fix all this, and how to do it, go to www.amazon.com/joecapillo, and buy a copy of Living on the Top Line. If you pay attention, you'll be very glad you did.
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