What is Suggestive Selling? 10 Strategies for Retailers
Suggestive selling, or upselling, is a smart sales tactic used by retailers to boost sales and enhance the customer experience.
It’s all about recommending extra products or services that go well with what the customer is already buying. When done right, it not only increases revenue but also helps customers find useful or enjoyable items they might not have considered.
Let's dive into what suggestive selling is and explore 10 strategies to nail it in your retail store.
What is Suggestive Selling?
At its heart, suggestive selling is about spotting chances to offer customers related products or upgrades. This could be as simple as a cashier suggesting batteries for an electronic gadget or a barista recommending a pastry with your coffee. When done well, suggestive selling creates a win-win situation: customers get more value, and your sales go up.
Why Suggestive Selling Matters?
1. Boosts Average Transaction Value:
By suggesting additional items, you can bump up the average value of each sale.
2. Enhances Customer Experience:
Relevant suggestions are appreciated by customers as they add convenience and personalised service.
3. Builds Customer Loyalty:
Thoughtful recommendations help build a connection with customers, making them more likely to come back.
4. Improves Inventory Turnover:
It helps move slower-selling items by pairing them with popular products.
10 Strategies for Effective Suggestive Selling
1. Know Your Products Inside Out
To make spot-on suggestions, your staff needs to know the products like the back of their hand. Train your team on the features, benefits, and complementary items for each product. Regular product knowledge sessions can keep everyone in the loop about new arrivals and promotions.
Example: In an electronics store, staff should know that a customer buying a new smartphone might also need a screen protector, a case, and a pair of wireless earbuds. With this knowledge, they can confidently recommend these extras.
2. Personalise Your Approach
Customers are more likely to respond to suggestions that feel tailored to their specific needs. Encourage your team to chat with customers, ask open-ended questions, and really listen to what they might need.
Example: In a clothing store, if a customer is trying on a dress for an event, the salesperson could suggest matching shoes, a clutch, and some jewellery to complete the outfit.
3. Leverage Technology
Modern Point of Sale systems like POSApt provide valuable data on customer purchase histories and preferences. Use this info to make personalised recommendations.
Example: In a bookstore, the bookstore POS system might show that a customer often buys mystery novels. The cashier could then suggest the latest release in the mystery genre or a popular author the customer hasn’t read yet.
4. Bundle Products
An effective suggestive selling strategy for your retail store is bundling related products and encouraging customers to purchase complementary items together. Create product bundles that offer a discount when multiple related items are bought together. This not only makes the offer more attractive but also highlights the convenience of getting everything the customer needs in one go. Incorporating product clustering into your strategy can help identify the most effective combinations of items to boost sales.
Example: In a sports equipment store, bundle a tennis racket, a can of tennis balls, and a tennis bag at a special price, encouraging customers to buy all the essentials in one purchase.
5. Use Visual Merchandising
Visual merchandising is crucial. Arrange complementary products together in eye-catching displays. This visually suggests combinations customers might not have thought of.
Example: In a grocery store, place a display of tortilla chips next to jars of salsa and guacamole. This visual cue can inspire customers to buy all three items for their next snack or party.
6. Offer Incentives
Providing incentives like discounts, loyalty points, or free samples can encourage customers to try additional products.
Example: In a beauty store, offer a 10% discount on a related skincare product when a customer buys a moisturiser. You could also provide free samples of a new product to encourage future purchases.
7. Educate Your Customers
Sometimes, customers don’t know about the benefits of extra products. Educate them through demos, workshops, or informative signage. This approach not only adds value for the customer but also supports your suggestive selling efforts, creating a win-win scenario.
Example: In a home improvement store, host a workshop on installing new flooring. During the workshop, suggest the necessary tools and materials, such as underlay, adhesive, and trim pieces, customers will need to complete the job.
8. Train Your Staff in Soft Skills
Soft skills like communication, empathy, and active listening are key for effective suggestive selling. Equip your staff with strong retail skills and train them to engage customers in a friendly, non-pushy manner. Teach them to recognise and respond to both verbal and non-verbal cues effectively.
Example: In a pet store, staff should show genuine interest in the customers’ pets and suggest products like toys, treats, or grooming supplies based on the pet’s breed, age, and needs.
9. Make Checkout Seamless
The checkout area is prime real estate for suggestive selling. Display small, low-cost items that are easy to add to a purchase. Train cashiers to make quick, relevant suggestions based on what the customer is buying.
Example: In a convenience store, place displays of gum, chocolate bars, and travel-sized toiletries near the checkout. Cashiers can suggest these as quick add-ons to the customer's purchase.
10. Measure and Adjust
Regularly monitor how well your suggestive selling strategies are working through sales data and customer feedback. Figure out what works and what doesn’t, and be ready to tweak your approach as needed. Continual improvement is key to keeping your suggestive selling efforts effective.
Example: In a fashion boutique, track the success of suggestive selling by monitoring sales of recommended accessories. Gather customer feedback on their experience and adjust training or product placement based on their responses.
Case Studies: Successful Suggestive Selling in Action
Starbucks:
Known for their baristas suggesting food items to go with drinks, Starbucks has nailed suggestive selling. Their seasonal promos and personalised recommendations based on purchase history have boosted sales significantly.
Amazon:
With its “Frequently Bought Together” and “Customers Who Bought This Item Also Bought” sections, Amazon uses data to suggest complementary products, enhancing the shopping experience and increasing order values.
Apple:
Apple Store employees are trained to suggest complementary products and services, like AppleCare with a new device purchase or accessories like cases and chargers, resulting in higher sales and happier customers.
Common Pitfalls to Avoid
Being Too Pushy:
Customers can be turned off by aggressive sales tactics. Ensure that suggestions are made in a friendly, non-intrusive manner.
Irrelevant Suggestions:
Offering unrelated products can frustrate customers. Train staff to make relevant, thoughtful suggestions based on the customer's needs.
Ignoring Customer Cues:
Failing to recognise when a customer is not interested can lead to a negative experience. Staff should be trained to pick up on verbal and non-verbal cues.
How POSApt Can Help with Suggestive Selling
As a leading POS provider in Australia, POSApt can be a game-changer for suggestive selling. POSApt provides detailed insights into customer purchase histories, preferences, and buying patterns, making it easier to personalise recommendations. For instance, if a customer frequently buys fitness gear, POS can prompt staff to suggest the latest fitness tracker or a special on workout apparel. Additionally, POSApt's intuitive interface makes it simple for staff to quickly add suggested items to the transaction, ensuring a smooth and efficient checkout experience. With POSApt, you can also track the success of your suggestive selling efforts through detailed POS reports and analytics, helping you refine your strategies over time.
Frequently Asked Questions
1. What if customers find suggestive selling annoying?
The key is to ensure recommendations are relevant and presented in a friendly, non-pushy manner. If customers are not interested, train your staff to gracefully accept that and not push further.
2. What types of incentives work best for suggestive selling?
Discounts on additional products, loyalty points, and free samples are effective incentives. They add value for the customer and make the additional purchase more appealing.
3. How can I measure the success of my suggestive selling efforts?
Monitor retail KPIs like average transaction value, add-on sales, and customer feedback. Regularly review these metrics to identify what’s working and where there’s room for improvement.
4. Is suggestive selling only effective in certain types of stores?
No, suggestive selling can be effective in virtually any retail environment, from electronics and fashion to groceries and beauty products. The key is to tailor your approach to your specific customer base and product offerings.
Boost Sales!
Suggestive selling is a powerful tool that can significantly boost retail sales and enhance the customer experience when used effectively. By understanding customer needs, training staff, leveraging technology, and continuously refining your approach, you can master the art of suggestive selling. Implement these strategies in your business to see improved retail customer satisfaction and increased revenue.
More Resources: