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With the easy penetration of the Internet people now are better informed about products available in the market and also products that the list of convenience stores closest to them are likely to hold. It is rare for people to visit a convenience store in a relaxed manner and browse around for new additions to the store shelves or to generally chat up with the cashier or sales person. Since people have a tendency to try and pick up all products they require for home at one place it is important for the convenience store to gauge frequently demanded products and store them to have regular clientele.
The chances of you walking into a convenience store or grocery store you frequented as a child is rare as they have now given way to larger c-store ones. Have you wondered why small grocery store chains or even large c-store chains are unable to sustain business and close down? Is it due to lack of customers or lack of diversity in merchandise or overconfidence in the store owner that they will never go out of business? Much has been written about store layout, merchandising, advertising, customer analysis, market analysis but one solution does not fit everyone. Whether you are a single store operator or a statewide chain of c-stores or even a nationwide chain of grocery stores you have to keep your finger on market pulse to exist and survive in this fiercely competitive business.
Boosting sales and growing clientele
To run your convenience store business on profit you need not expand it into a national wide chain but have definite goals for expansion and growth over a period of time. The following tips can help boost your c-store sales and manage competition from other c-stores in the area.
Create of loyal clientele
Develop your relationship with regular clients in such a manner that they come to you for all their requirements instead of stopping en route on their way back home. This will increase your foot traffic as whenever your clients are in the vicinity of your store they will casually drop in with friends or family members to browse around and pick up whatever they desire. You can develop a rapport with clients by having general chat at the counter if they got what they wanted and what other products they feel should be an ideal part of your merchandise.
A great way to attract new customers and up sell new products is to build a relationship with them by promoting goods through personalized marketing tools like email and royalty points. With advancement in technology you can now keep track of customers’ buying patterns and use simple data mining techniques to differentiate the regular big spenders from casual shoppers. Maintain continuous correspondence with regular big spenders by inviting them to promotions and new launches with complimentary samples. Attract new customers with targeted promotions during festivals and digital signage at prominent locations.
Happy employees provide excellent customer service
How many times have you been to convenience stores once and then never stepped into it again just because the sales person refused to help you or cash clerk was rude? The same can happen to your store too if your staff is not happy and are paid below market rate or are treated shabbily.
Remember that sales and cash staff are the face of your organization and you cannot be everywhere at all times and happy employees will generate happy customers. Have achievable reward systems and sales goals to measure employee performance and show your appreciation in public for innovation. Have an incentive plan for sales people and reward them for meeting milestones. Celebrate anniversaries and birthdays by sending out customized gifts or gift certificates to them and their family members to show your care.
Promotion and Innovation
In the fast changing business of convenience stores continuous innovation is the only way to stay in business and keep ahead of competitors. Have sales promotion events along with price cuts during summer and winter holidays to attract foot traffic. Work with your sales teams to develop innovative sales plans to attract new customers and to induce existing customers to buy more. Have brainstorming sessions to find out why a particular product is selling fast and if it would help to stock more or have a promotional scheme to sell more.
Look at the competition to find how their innovative ideas can work for your convenience store model. Take the opinion of customers and sales staff after making display changes to see if they like it. You can also employ the services of an experienced merchandiser to display your products attractively so customers can find their products easily. Placing complementary products next to each other also helps boost sales as people tend to remember necessary products only after viewing them.
Expand only if you can manage
Keep your eye on a bigger goal if you get into convenience store business as only that can help you stay competitive. Successful store owners are always looking to expand and not necessarily across a large geographical area but rather to retain a profitable business. Identify need and study local competition before you start a new branch in a new location. You can also expand your existing convenience store to include new products and services. With growing demand for fresh food products several convenience stores have expanded their operations to start ready to eat food items like sandwiches, burgers, salads, soups as takeaway items. If you have the reliable and experienced staff then expanding your single convenience store into a statewide chain can be a step in the right direction.
If you have a few years of experience in managing a convenience store you many think that setting up a convenience store chain will be easy with right kind of investors and identification of a good location. But that is not always the case as sometimes external unplanned situations can play havoc with a store opening and put a stop to the best laid plans. Take the help of experts and evaluate possible mishaps that can happen before investing time and money into a convenience store and when it is done invest all your energy and expertise to run it in a profitable manner.
With the easy penetration of the Internet people now are better informed about products available in the market and also products that the list of convenience stores closest to them are likely to hold. It is rare for people to visit a convenience store in a relaxed manner and browse around for new additions to the store shelves or to generally chat up with the cashier or sales person. Since people have a tendency to try and pick up all products they require for home at one place it is important for the convenience store to gauge frequently demanded products and store them to have regular clientele.
The chances of you walking into a convenience store or grocery store you frequented as a child is rare as they have now given way to larger c-store ones. Have you wondered why small grocery store chains or even large c-store chains are unable to sustain business and close down? Is it due to lack of customers or lack of diversity in merchandise or overconfidence in the store owner that they will never go out of business? Much has been written about store layout, merchandising, advertising, customer analysis, market analysis but one solution does not fit everyone. Whether you are a single store operator or a statewide chain of c-stores or even a nationwide chain of grocery stores you have to keep your finger on market pulse to exist and survive in this fiercely competitive business.
Boosting sales and growing clientele
To run your convenience store business on profit you need not expand it into a national wide chain but have definite goals for expansion and growth over a period of time. The following tips can help boost your c-store sales and manage competition from other c-stores in the area.
Create of loyal clientele
Develop your relationship with regular clients in such a manner that they come to you for all their requirements instead of stopping en route on their way back home. This will increase your foot traffic as whenever your clients are in the vicinity of your store they will casually drop in with friends or family members to browse around and pick up whatever they desire. You can develop a rapport with clients by having general chat at the counter if they got what they wanted and what other products they feel should be an ideal part of your merchandise.
A great way to attract new customers and up sell new products is to build a relationship with them by promoting goods through personalized marketing tools like email and royalty points. With advancement in technology you can now keep track of customers’ buying patterns and use simple data mining techniques to differentiate the regular big spenders from casual shoppers. Maintain continuous correspondence with regular big spenders by inviting them to promotions and new launches with complimentary samples. Attract new customers with targeted promotions during festivals and digital signage at prominent locations.
Happy employees provide excellent customer service
How many times have you been to convenience stores once and then never stepped into it again just because the sales person refused to help you or cash clerk was rude? The same can happen to your store too if your staff is not happy and are paid below market rate or are treated shabbily.
Remember that sales and cash staff are the face of your organization and you cannot be everywhere at all times and happy employees will generate happy customers. Have achievable reward systems and sales goals to measure employee performance and show your appreciation in public for innovation. Have an incentive plan for sales people and reward them for meeting milestones. Celebrate anniversaries and birthdays by sending out customized gifts or gift certificates to them and their family members to show your care.
Promotion and Innovation
In the fast changing business of convenience stores continuous innovation is the only way to stay in business and keep ahead of competitors. Have sales promotion events along with price cuts during summer and winter holidays to attract foot traffic. Work with your sales teams to develop innovative sales plans to attract new customers and to induce existing customers to buy more. Have brainstorming sessions to find out why a particular product is selling fast and if it would help to stock more or have a promotional scheme to sell more.
Look at the competition to find how their innovative ideas can work for your convenience store model. Take the opinion of customers and sales staff after making display changes to see if they like it. You can also employ the services of an experienced merchandiser to display your products attractively so customers can find their products easily. Placing complementary products next to each other also helps boost sales as people tend to remember necessary products only after viewing them.
Expand only if you can manage
Keep your eye on a bigger goal if you get into convenience store business as only that can help you stay competitive. Successful store owners are always looking to expand and not necessarily across a large geographical area but rather to retain a profitable business. Identify need and study local competition before you start a new branch in a new location. You can also expand your existing convenience store to include new products and services. With growing demand for fresh food products several convenience stores have expanded their operations to start ready to eat food items like sandwiches, burgers, salads, soups as takeaway items. If you have the reliable and experienced staff then expanding your single convenience store into a statewide chain can be a step in the right direction.
If you have a few years of experience in managing a convenience store you many think that setting up a convenience store chain will be easy with right kind of investors and identification of a good location. But that is not always the case as sometimes external unplanned situations can play havoc with a store opening and put a stop to the best laid plans. Take the help of experts and evaluate possible mishaps that can happen before investing time and money into a convenience store and when it is done invest all your energy and expertise to run it in a profitable manner.