Increasing footfall

In his first article in a series addressing how retailers can build a more profitable business, Mike Court, managing director of business growth specialist Conexus International, looks at increasing footfall

 Iregularly visit independent electrical retailers nationwide and many tell me that declining footfall is a serious issue – people just don’t seem to be around any more. There are a number of reasons for this such as increased local council car parking charges and burdensome restrictions that deter people from coming to the high street.

At the same time, independents face competitive market pressures from multiples, supermarkets and e-retailers, and are fighting for disposable income against the likes of DIY retailers, leisure and motoring.

However, retailers can take productive actions that will attract footfall – people coming to your store, creating purchasing opportunities. So are you active or passive?

Retailers must keep trying various marketing initiatives to attract people to their stores. Some will work and some won’t and you must measure every tactic for impact.

Before spending time/money, ask yourself: What’s my footfall today? How many people visit my shop right now?

First, establish the benchmark – yes, that means counting the people coming through your doors – so that you can then measure an initiative’s impact on the sales opportunities from store traffic. Here are some examples.

Take that nearby housing development. Built seven years ago, the households’ white goods are likely just as old.

Consider the changes to washing machines in that time. Using less water, they’re more energy-efficient. What was once standard – a 5kg load – now grown to 7·5kg. That’s a 50 per cent increase in capacity.

With fewer washes, people could claim back their Sunday mornings. But tell them in a way that motivates a purchase because of ‘want’ rather than ‘need’.

Your marketing initiative must be in tune with your potential purchaser’s requirements and you must motivate customers to visit your store – not elsewhere. Remember, as an independent, you offer service and ’know how’ in abundance.

HDTV and DAB radio are currently the products getting people excited. Are you motivating them to see this technology at your place? If you are not, they will be looking elsewhere.

Who were your first customers to buy the last ‘big thing’? Use your customer database to pinpoint these people and then invite them to your store to experience the latest ‘big thing’.

If you’re using your database for this – fantastic. If you haven’t got a database, get one fast.

Remember, you can use your early adopters to sell for you so consider how you could incentivise them as an ‘outside’ sale staff for your business.

If people are not coming to you, go to the people. Use business network clubs – including the local WI meeting – to update them on the impact of technology and always measure results.