Successful marketing is essential to running a store.
Store marketing refers to a series of flows to maximize sales.
However, the definition of store marketing is too broad, and there are probably many people in charge who do not know what marketing should be done now.
It is true that the contents of store marketing and the marketing examples that each store is doing are often different, but if you use the issues of the store as the standard, it will be clear what kind of measures should be taken.
In this article, store marketing is broken down into the components of sales: sales = customers x purchase rate x average customer unit price, and we introduce the marketing measures that should be taken to increase each element.
By reading this article, you will be able to clarify and practice what kind of marketing activities you should do to increase sales at your store.
Store marketing is a series of processes aimed at increasing sales.
Store marketing refers to a series of processes such as surveys, product planning, advertising activities, and sales promotions to maximize sales .
It goes without saying that simply selling a product or service does not make a profit.
You can expect sales for the first time by establishing a detailed marketing strategy and acting on “what target, what kind of product value, and what route to provide”.
In addition, store marketing is often regarded as sales promotion, but it is correct to classify sales promotion as part of marketing activities.
Analysis and research for selling products, product planning to attracting customers are all included in store marketing, so it is necessary to practice based on that.
Read Also: What Is Community Marketing?
Sales components to consider in store marketing
In order to carry out store marketing, it is first necessary to break down sales into sales components: “sales = number of customers x purchase rate x average customer unit price” .
- number of visitors
- purchase rate
- Average spend per customer
The above three KPIs are very important factors for making sales.
By focusing on the numerical values of each KPI, it becomes easier to think about how to conduct store marketing activities.
I will explain these three KPIs again.
number of visitors
Visitor count is the number of people visiting the store.
The number of customers visiting a store is a very important KPI among the components of sales.
In addition, the number of visitors can be divided into two elements: new customers and repeat customers.
If it is a new store, you should take measures to acquire new customers, but if it has been open for several years, you need to focus on acquiring repeat customers.
purchase rate
The purchase rate is the percentage of the number of visitors who purchase a product or service.
Purchasing rate = number of purchasers / number of visitors can be used to calculate the ratio.
For example, if 1,000 customers visit your site and 100 customers purchase products, you can determine that the purchase rate is 10% from the following formula.
10% (purchasing rate) = 100 (number of customers purchasing) ÷ 1,000 (number of customers visiting the store)
The purchase rate is an indicator that represents the sales results of the store, so it is an indispensable number for marketing.
First of all, let’s calculate the purchase rate with the formula and judge whether it is large or small.
Average spend per customer
Average price per customer is the average amount a customer pays for a single order.
Average unit price per customer = store sales / number of purchasers.
For example, if the store’s monthly sales are 5 million yen and the number of purchasers is 1,000, it can be determined that the average spend per customer is 5,000 yen.
¥5,000 (average spend per customer) = ¥5,000,000 (sales) / 1,000 (number of customers)
In order to increase sales, the top priority is to increase the number of customers visiting the store and the number of purchasing customers.
First of all, let’s calculate the average customer unit price and see how much unit price is necessary to reach the target sales.
Research is key to store marketing success
Prior research is essential for successful store marketing.
Too many companies are willing to spend enough money to get the information they need to be involved in the success of their marketing efforts.
There are three reasons why research is important in marketing.
- Avoid gaps in needs with target customers
- You can create strategies that match the purchasing behavior of your target customers
- Risk can be avoided in advance
Reason 1: Prevent gaps in needs with target customers
Research is necessary to check if there is a gap between the value provided by the store and the needs of the target customer, and to prevent it.
If you don’t do enough research, you risk devaluing your store by not realizing that your customers’ needs aren’t met.
In fact, there are cases where businesses have become deficit due to lack of research.
In 2002, a subsidiary of Fast Retailing, a well-known UNIQLO company, launched a vegetable mail-order business.
However, not only did the lack of research on the needs of vegetable buyers cause a gap in needs, but also the lack of market analysis due to the lack of distribution know-how in the vegetable industry led to a loss of 3 billion yen and withdrawal from the business. became.
Such gaps in needs can be prevented with sufficient research in advance.
Reason 2: You can create a strategy that matches the purchasing behavior of your target customers
Research is necessary in order to create a marketing strategy that matches the store’s target customer base.
For example, if your target demographic is women in their 30s and 40s, research has shown that customers with that demographic are most likely to visit your store between 5pm and 6pm.
By holding time sales and campaigns at that time, you will be able to attract more target customers and expect an increase in sales.
In this way, it is important to research the consumer behavior of the target group in order to succeed in marketing activities.
Reason 3: Risk can be avoided in advance
By conducting research, you can avoid possible risks in marketing activities in advance .
For example, if a product is produced in a bad condition, if this situation continues, production-related costs including factory lines and sales promotion-related costs will occur, and there is the possibility of generating billions of yen in losses. increase.
If we can detect such problems in advance through product research, we can stop production at an early stage and prevent huge losses.
By being able to predict risks, it is possible to take measures to avoid them at an early stage and prevent future losses and sales declines.
Introducing the research methods necessary for successful marketing activities
In order to succeed in marketing activities, it is necessary to conduct research to achieve the three KPIs that constitute sales: the number of visitors, the purchase rate, and the average spend per customer.
Research methods necessary to increase the number of visitors
In order to increase the number of customers visiting the store, information from trade area analysis is necessary.
Trade area analysis is an analysis method that aims to understand the market environment and regional characteristics by using statistics from national census and customer data.
If it is possible to understand the attributes (age and gender) of people who live or shop in the vicinity of a store, measures can be taken according to those attributes to increase the number of customers visiting the store. increase.
Information such as the following can help you understand the attributes of people who live or shop near your store.
- Composition ratio by attribute such as age and gender ratio in the target area
- Consumption trends and lifestyles in target regions
- Customs of the target area
In order to obtain such information, it is recommended to use the census data published by the Statistics Bureau of the Ministry of Internal Affairs and Communications and trade area analysis tools and software.
Research methods necessary to increase the purchase rate
In order to increase the purchase rate, information from the following two researches is necessary.
- ABC analysis
- positioning map
ABC analysis
ABC analysis is an analysis method that decides which indicators to focus on, such as product sales, costs, and inventories, and sorts and manages them by arranging them in descending order of weight (A, B, C).
By ranking each product, it is possible to line up and order products that meet customer needs, and improve the purchase rate.
For example, let’s say that we have analyzed sales as an important index and ranked each product as A, B, or C.
- Product A: Highly popular with customers and a hot seller
- Product B: Not as high as A, but demand is not low
- Product C: Not very valuable to the customer
Since it can be estimated as described above, it can be used for sales promotion activities that match customer needs.
positioning map
A positioning map is a map that aims to “clarify the points of differentiation or appeal of your company’s products when compared with the competition for the target.”
By visualizing your company’s standing position when compared to other companies, you can clarify what kind of sales promotion activities you should do.
If you can use this positioning map to find out if the price and product quality are balanced and make improvements, you can increase the purchase rate.
As a method, set the vertical axis as the price range and the horizontal axis as the customer’s purchasing decision (functionality, design, quality, etc.).
Place the competitor store and your company in the positions where they are likely to fit, and visualize the position.
Research methods necessary to increase average customer spend
Information from basket analysis is necessary in order to raise the average spend per customer.
Basket analysis is a method of analyzing combinations of products that are likely to be purchased together.
If you can understand the combination of these products, you can use it for measures to increase the average customer spend.
For example, by finding pairs of products that are often purchased together from POS data and displaying those products next to each other, it is possible to increase the number of customers who purchase together and increase the average spend per customer.
Four measures to increase the number of customers (new customers)
There are four main measures to increase new customers and increase the number of customers.
- store change
- Ad placement
- Diffusion by SNS
- Local SEO measures
In order to increase new customers, it is important how many people recognize the store and brand.
We’ll show you four ways to do that.
store change
Storefronts create an opportunity for passers-by to enter the store, so you can increase the number of customers by simply changing to an attractive storefront.
The store front refers to the area near the entrance of the store and the appearance of the store.
For example, you can take various measures, such as installing a stand signboard that displays product information at the entrance, or installing a large window so that you can see the inside of the store without going inside.
It is also effective to change the exterior design so that people who are far from the store can easily see it.
Ad placement
Advertising is an effective way to get as many people as possible to recognize your store/brand.
Advertising includes both analog and digital.
Typical types of advertisements are as follows.
- Online advertising (listing advertising, display advertising)
- Flyers (folders, posting flyers)
- direct mail
- free paper
- station poster advertisement
In order to select the most suitable advertisement for the store from among these, we will refer to the regional attributes found in the trade area analysis.
For example, if there are many young people in their 20s and 30s, choose online ads or direct mail.
Diffusion by SNS
By disseminating posts about the store on SNS, you can increase the recognition of more people.
Since there are various SNS such as Twitter, Instagram, Facebook, and YouTube, it is recommended to use them as a means of attracting customers.
For example, upload information that is easy for users to see, such as product introductions, store exteriors, interior photos, and deals such as campaigns and sales.
SNS is a very effective means for modern store marketing, so if you haven’t been able to use it yet, let’s get started right away.
Local SEO measures
Local SEO measures refer to measures to display store information at the top when searching for keywords such as region names and genres on the Internet.
For example, if the store is located in Roppongi, it will be easier for many users to recognize it if it appears at the top when searching for “Roppongi cafe” on the Internet.
In order to take local SEO measures, it is necessary to register a Google Business Profile (former: Google My Business).
If you haven’t registered yet, refer to the article below to take local SEO measures.
Reference: What is Local SEO? 4 points to be aware of in order to achieve high ranking | LISKUL
If you want to consider measures other than the above four, the following article will be helpful.
Two measures to increase the number of customers (repeaters)
There are two main ways to increase repeat customers and increase the number of visitors.
- Grant of coupon
- Encouragement to sign up for e-mail newsletters and apps
In order to increase the number of repeat customers, it is important to create an opportunity to visit the store next time.
I’ll show you two ways to do that.
Grant of coupon
By presenting coupons that can be used from the next time onwards to customers who have made a purchase, you can create an opportunity to visit the store next time.
For example, if you use the service within 30 days from the last day of use, you can get 0% off the bill, or if you show the coupon the next time you use the service, you will receive a free drink.
However, if you don’t put an expiration date on the coupon, no matter how good the content is, it’s hard to motivate customers to visit the store again.
If there is no deadline, customers are likely to put off coming to the store, feeling relieved that they can go anytime, and forget about the store in the meantime.
If you want to increase repeat customers, issue a coupon with a time limit.
Encouragement to sign up for e-mail newsletters and apps
In order to always have a point of contact with users, it is recommended to induce them to register as members of e-mail magazines and apps.
If you only shop once, your impression of the store will gradually fade and there is a high possibility that you will go to another store.
In order to prevent such a thing, let’s always have contacts by having them register for e-mail magazines and apps.
However, e-mail magazines and apps cannot be registered in the middle of the day if there is no merit on the customer side.
Therefore, let’s add benefits that will make you feel the benefits, such as adding points and coupons only for registered users.
Three measures to be taken to increase the purchase rate
There are three main measures to increase the purchase rate.
- Review of store layout and displays
- Review of product lineup
- Appropriate product prices
In order to increase the purchase rate, it is important to thoroughly eliminate the reasons why customers do not buy products.
Here are 3 ways to do that.
Review of store layout and displays
If you can change the layout so that customers can walk around the store, it will be easier for customers to find the products they want, and you can increase the purchase rate.
If the layout makes it difficult for customers to move around, there is a high possibility that they will leave the store before finding the desired product.
For example, change the layout according to the customer’s point of view, such as widening the aisles or displaying products according to the lines of the cash register.
It is also effective to display A-ranked products with high key index values in prominent positions based on ABC analysis information.
Review of product lineup
You can increase the purchase rate by changing the product lineup according to the customer needs identified by the ABC analysis.
For example, instead of ordering and selling many A-ranked products with high key index values, take measures such as removing C-ranked products from the lineup.
In this way, by arranging products that are in high demand among customers, you can increase the number of people who pick up and purchase the products.
Appropriate product prices
Based on the results of the positioning map, you can improve the purchase rate by revising the balance between product quality and price range.
For example, in order to differentiate ourselves from other stores with high quality products in the same price range, we will differentiate ourselves by lowering the price range.
Also, if your pricing is not commensurate with the quality, you may need to lower the price of some products to see if the purchase rate increases.
Two measures to increase the average spend per customer
There are two main measures to increase the average spending per customer.
- Sales of cross-selling products
- Sales of upsell products
In order to increase the average spend per customer, it is important to get customers to buy as many products as possible, or to buy products at a higher price than usual.
We’ll show you two ways to do that.
Sales of cross-selling products
By actively selling cross-selling products, you can increase the average spend per customer.
Cross-selling refers to selling related products together.
Based on basket analysis, by arranging highly related products close to each other and encouraging customers to “buy afterward”, the effect of increasing the number of purchases per person and the average spend per customer can be expected.
In addition, if the store staff asks customers who have purchased the product, “Would you like to try the XX product as well?”, you can increase the number of customers who purchase cross-selling products.
Sales of upsell products
By actively selling not only cross-selling products but also up-selling products, you can increase the average spend per customer.
Upselling refers to offering a higher-priced product to a customer who is about to buy the product.
For example, let’s say you have an upsell product that is a substitute for a customer’s favorite product, but at a slightly higher price point.
If there is a customer who wants to buy a popular product, the store staff can offer an up-sell product to the customer, which can increase the unit price per customer.
Three points for successful store marketing
To succeed in store marketing, you need to hold down three points.
Even if you try to practice store marketing according to the formula, you may not feel the cost-effectiveness in the middle of the day, or you may end up in failure.
In order to get the best results possible, let’s hold down three important points that are common to any store marketing.
make a hypothesis
By making a hypothesis in advance, you can make it clearer what kind of marketing measures you should take.
For example, if there is a problem that the number of customers does not increase, it may not be effective even if you try to implement every measure that seems to be effective.
However, if we identify factors such as “difficult to enter the store entrance,” “insufficient store advertising,” and “mismatch of area attributes and store target attributes,” what kind of factors can be considered? It will be easier to understand if the measures should be taken step by step.
In order to make a meaningful marketing measure, make a hypothesis in advance.
Incorporate online measures
In order to achieve results in store marketing, it is important to incorporate online measures.
When conducting marketing for physical stores, we tend to focus only on offline measures, but in the modern era, marketing activities in the online domain are very important.
In particular, online measures such as the use of SNS, Internet advertising, and SEO measures are effective in increasing recognition of the store to customers outside the trade area.
Regardless of the business type of the store, let’s incorporate online measures wherever possible.
Collect and analyze data to measure marketing effectiveness
Data collection and analysis are necessary to measure the effectiveness of store marketing.
If you can confirm whether the marketing measures were effective, you can use them for the next measures, and as a result, you can succeed in marketing.
For example, when implementing measures to increase the number of customers visiting the store, it is necessary to understand the number of customers before and after the measure.
Since it is difficult to manually count the number of visitors, it is recommended to install a traffic counter or AI camera that automatically counts.
In addition, the information accumulated in the POS register can also be used to measure effectiveness, so save it as data and analyze it regularly.
summary
In this article, we talked about an overview of store marketing, important ideas, and specific methods.
Store marketing refers to a series of flows aimed at increasing sales.
Store marketing includes not only sales promotion activities, but also preliminary surveys, product planning, and attracting customers.
It is difficult to refer to examples of store marketing in the world because the contents are different, but by breaking it down into each sales component of “sales = number of customers x purchase rate x average customer unit price”, You can decide what the best marketing strategy is.
In addition, prior research is important to implement effective marketing measures.
Research is important for three reasons:
- Avoid gaps in needs with target customers
- You can create strategies that match the purchasing behavior of your target customers
- Risk can be avoided in advance
Let’s conduct sufficient research to increase the number of customers, which are the components of sales, the purchase rate, and the average spend per customer, and conduct store marketing based on that information.
