How to Grow: A Timeless Formula to Grow Retail Sales
Written for CHNR Jan/Feb 2023 issue, By: Matt Taylor, Director of Insights
“There are three constants in life – change, choice and principles.”
Stephen Covey, Author of 7 Habits of Highly Effective People
Life is in a constant state of change. New technologies, trends, events, competitors; the list goes on. But amidst all the changes and challenges lie our choices: how we respond and adapt. And what best to inform those tough choices than principles of how it all works!
As a Natural Retailer seeking growth, one such principle is a timeless formula: SALES = TRIPS X SPEND.
Let’s take a deeper look.
TRIPS = all the individual times your customers visit within a set time.
You can:
- Increase penetration by attracting new customers, or
- Increase frequency by giving existing customers reasons to return more often.
SPEND = how much the average customer spends each time they visit.
You can:
- Increase the average number of items they buy, or
- Increase the average price of each item (through more than inflation!).
Your 3 Big Levers
So, how do you increase one or more of these areas? I believe the answer lives in three foundational pillars:
- BRAND: Who you are, why you matter and when you come to mind. Building a stronger brand increases awareness, salience (how easily you come to mind for different needs), likeability, quality perceptions and much more.
- PHYSICAL AVAILABILITY: Where you are (location) and what you sell (offering). It’s your address as well as the categories, brands, product types, sizes, formats and flavours you sell.
- SALES ACTIVATIONS: The prices, promotions and communications you use to influence shopper behaviour.
Here’s how it all works together.
How Will You Grow?
These are just a few of the many ways you can use your brand, availability and activations to drive growth this year. Where will you focus your energy?
About the author:
Matt Taylor
Matt Taylor is the Director of Insights for Jamieson Wellness and has been in the natural products industry since 2005. The opinions expressed are his own and not necessarily those of the company. You can reach Matt at mtaylor@jamiesonlabs.com
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