7 Strategies to Boost Your Q1 Sales
Guest columnist David Bakke has 7 tips to impove your first quarter sales
Overall fourth quarter sales in 2011 revealed signs that the U.S. economy may be getting back on track, as holiday spending increased 4.1% over 2010. However, in spite of last year’s strong finish, it can still be a struggle to generate sales and hit projected targets for the first quarter of a new year.
Consumers recovering from holiday spending can be an elusive target—and in a down economy, garnering their business is especially challenging. However, if you’re willing to be creative and think outside the status quo, there are 7 tactics that can help you reach your first quarter sales goals.
#1 Market Aggressively and Effectively
Advertising your business is key in the first few months of the fiscal year. Distributing door hang-tags and flyers are two good ideas, but rather than just passing out bland marketing materials and hoping for the best, focus on creating strong wording and an attractive layout to make your message stand out. If you’re part of a local small business, you can even utilize one of the free social media marketing sites to help spread the word online.
First of all, marketing materials should be eye-catching, but not visually abrasive. Include your logo, bold colors, uncrowded text and images, and a generous amount of white space.
Next, make your text clear, concise, and specific. Your rate of new customers gained will likely be in the 10% range, but if you put together a highly effective flyer, you may be able to boost that number. Specifically state what you are offering, and don’t crowd the flyer with unnecessary information.
Finally, include an eye-popping discount, and don’t be overly concerned about gross profit. You want to draw new customers and create return business and referrals. Offering a 5% discount is a waste of time—include a discount of at least 25% off one item to get people in the door and drive ancillary sales. These numbers may be different based on your industry and your profit margins.
#2 Review Your Pricing Strategy
If possible, review price points on your inventory, and keep in mind that there is a glut of certain items in the marketplace, such as flat screen TVs. Many major retailers are taking a loss on some of these items in an effort to move them, and you may need to consider a similar measure.
Taking a short-term hit on the gross profit of your sales is not the worst thing in the world, as it can get you “over the hump” in terms of sales goals, and it can help keep inventory levels to a minimum. It’s also important to realize the effect this will have with your customer base. A customer who purchases a plasma TV or laptop at a great price is more likely to tell their friends and return for future purchases. Plus, that same customer may buy other non-sale items that will help recoup a loss on your excess inventory.
#3 Have Theme Sales
Theme-based marketing can significantly increase your sales. For instance, time a sale around the Super Bowl and offer a discount to anyone who comes in wearing an NFL jersey. Or set up a contest in your store: Whoever can throw a football through a hoop receives a discount on any purchase.
#4 Use Word-of-Mouth Marketing
Believe it or not, your employees’ extended networks can be a solid source of revenue. However, you must motivate your staff to tell their friends and family about your great products on a regular basis. Incentives such as bonuses and exclusive “friends and family” discounts can bring in customers when business is otherwise slow.
Also, don’t forget about your regular customers. Offer a discount of at least 10% for customers who bring in a friend who makes a purchase and joins your email list. Not only is word-of-mouth advertising a highly effective tool to promote your business, it’s extremely low-cost compared to other advertising venues.
#5 Train (and Retrain) Your Staff
A well-trained and informed staff will be better able to field customer questions and instill confidence in your store, brand, product, and customer service, which will lead to more sales and return clientele. Also, it’s crucial to keep your staff updated on monthly or quarterly sales goals and progress, as well as on any upcoming promotions or developments.
#6 Motivate Your Staff
A motivated staff is a productive staff. You are their coach, cheerleader, and mentor, so be sure you fill all of those roles adequately. Thank them for their hard work, organize sales contests, and assist them in any way to boost sales and morale. Keep the shelves stocked, market your business so they have customers to sell to, and be willing to discount or reduce prices to reach sales goals.
#7 Emphasize Stellar Customer Service
Excellent customer service should always be top priority. And the first quarter is the best time to hone in on this aspect of your business. Remind your sales staff that the holiday rush is over, and therefore, they can spend additional time with their clients in order to close more sales. Encourage them to get to know their customers on a first name basis. If customers truly feel that their business is valued, they’re more likely to return—even if they can find what they’re looking for elsewhere at a cheaper price.
Rest assured, you can reach your sales goal for the first quarter. As long as you’re diligent and put in the necessary effort to promote your business in creative ways, you will be successful.
What tactics have you used to boost sales in the first quarter? Tell us in Comments.
David Bakke is a small business and personal finance columnist for Money Crashers.