Introduction
Looking for strategies to increase sales and profitability for your furniture retail store? With the furniture market growing at an exponential rate – with recent statistical data showing 11.9% year-over-year growth since 2012 – the sale of furniture is becoming increasingly competitive. This article provides several strategies you can use to increase your sales and profitability.
Here are some of the strategies you can use to increase sales and profitability for your furniture retail store:
Develop an omnichannel strategy
An omnichannel strategy is one of the most effective strategies a furniture retailer can use to increase sales and profitability. An omnichannel experience provides customers with a unified shopping experience whether they shop online or in-store. An omnichannel approach allows customers to seamlessly switch between channels for search, browse, purchase, and post-purchase support while providing an integrated brand experience.
A well-developed omnichannel plan should include a unified inventory and pricing system with stock available in-store and online. In addition, furniture retailers should provide customers with multi-channel payment services such as buy online and pick up in store (BOPIS). Any channel chosen by the customer should lead to the same brand image, attracting customers to continue shopping. Using a mix of channels is especially beneficial for connecting customers to physical stores and showing them personalized content. Finally, an essential part of any omnichannel plan is to deliver a great customer service experience across all channels.
Tips and tricks
- Make it easy for customers to find your products online and in-store.
- Even though customers buy from physical stores, they still search for products through their phones. Make sure your website content is optimized for mobile devices.
- Be sure to maintain the same prices across all channels.
- Unify your look and feel across all channels. Your store’s website and product descriptions should match the online and in-store experiences.
- Deliver personalized content for every customer, regardless of channel.
- Offer a multi-channel payment system. Let customers buy online and pick up in store (BOPIS) and vice versa.
- Make sure your customer service experience is fantastic across all channels.
With an effective omnichannel experience, a furniture retailer can increase both sales and profitability. It is estimated that for a store with million in annual revenue, adding an omnichannel shopping platform can increase annual revenue by up to 20%. This means that 0,000 in additional revenue could be generated by implementing a successful omnichannel strategy.
Promoting more sustainable furniture alternatives
The popularity of sustainable furniture is on the rise, and customers are increasingly looking for more eco-friendly options when purchasing furniture. Promoting more sustainable furniture alternatives can provide an incredibly profitable opportunity for furniture retailers to increase sales and profits. Not only will promoting sustainable furniture attract more eco-friendly customers, customers at all levels are increasingly interested in sustainability and environmental concerns. Here are some tips and tricks on how best to capitalize on this opportunity to increase furniture retail store sales and profitability.
Explain the benefits
Explain to your customers why investing in durable furniture is a good choice. Show them the environmental benefits of buying sustainable furniture made from natural, eco-friendly materials. Explain how buying durable furniture helps contribute to a better future. Customers are more likely to invest in furniture if they know their purchase is meaningful.
Encourage purchases of sustainable furniture
Offer discounts and special offers on your more sustainable furniture. Customers love feeling like they’re getting a lot, and incentivizing sustainable choices will help convince more customers to invest in sustainable furniture.
Spread Awareness
Use your website, email campaigns, and other forms of marketing to raise awareness of the sustainable furniture you offer. Highlight the features and benefits of your sustainable furniture over traditional furniture options. Using the environmental and economic benefits of investing in sustainable furniture will help you reach more customers effectively.
Make it a priority
Make sure durability is always a priority when buying furniture for your store. This will ensure that the selection you offer is current and up to date with the latest sustainable trends. Plus, show customers that you’re invested in sustainability yourself by showcasing your values on your website, in your store, and in other marketing materials.
Calculate the impact
Consider doing a number of calculations to determine what kind of impact your sustainable furniture promotion would have on your store’s sales and profits. For example, if you sold 10 items of durable furniture for an average price of 0 per month, you reach a monthly profit of ,000. Be sure to factor in monthly expenses with this calculation, such as advertising costs and shipping costs. Selling more durable furniture can add to your short-term and long-term bottom line.
Create a sustainable future
By implementing strategies to promote more sustainable furniture alternatives, furniture retailers can increase sales and eventually profits. Not only will these strategies make customers more likely to invest in sustainable furniture, but they will also lead to more environmentally friendly practices. An increased focus on sustainable furniture can create a better future for everyone while making a profit.
Provide customers with flexible payment options
As a furniture retail store, offering flexible payment options can give your sales and profitability a big boost. When customers have the option of choosing between a monthly payment or an all-at-once payment, they are more likely to make a purchase. Additionally, payment plans can increase your ability to collect payments quickly and accurately.
Offering flexible payment plans can also provide a better customer experience, which can directly impact customer loyalty. As a result, you may be able to retain customers longer and experience higher Customer Lifetime Value.
Tips & Tricks
- Evaluate the costs associated with offering multiple payment plans. Many third-party providers and payment gateways charge additional fees for certain payment methods.
- Create different payment plans for different product price ranges. For example, you can offer 0% interest plans for purchases under 0.
- Choose a payment gateway that offers solid customer service and support. Improper payment processing can hurt your customers’ experience.
- Provide accessible and understandable information about available payment options. Eliminate confusion by clearly explaining which methods you accept and any additional fees or benefits associated with each option.
- Make sure your payment system is safe and secure. Lack of trust with potential customers can significantly reduce sales.
For example, if you decide to offer 3-month installment plans with 0% interest, you can expect an increase in sales of around 5%, plus additional costs associated with the preferred payment provider. This can be calculated by taking the average order size, multiplying it by 0.05, and then adding the cost of using a third-party payment processor.
In conclusion, offering flexible payment options is a great way to promote sales and profitability in your furniture retail store. With the right setup, funnels, and service, you can ensure a positive customer experience and increase repeat purchases.
Focus on customer education
Many furniture retailers often ignore the importance of educating their customers. However, this strategy has a profound impact on sales and profitability. By educating customers on the value of their furniture choices and the importance of quality, sales opportunities and retention rates will increase.
The best way to educate customers is to provide them with basic information, such as the materials and construction used to create the product, why the product is priced the way it is, and any warranties or warranties available. Additionally, educate your customers on the impact their purchase will have on their lives and surroundings, such as comfort levels or eco-friendly design. This will help customers make more informed choices.
Tips and Tricks for Educating Customers
- Create an online store with details about your furniture.
- Provide special in-store print materials with the same information, such as brochures.
- Share videos on social networks to present the advantages of certain parts.
- Use content marketing tools, such as a blog, to write about furniture trends and tips.
- Take advantage of in-person staff to provide additional product knowledge.
Educating customers creates an invaluable obligation that can lead to higher sales and more loyal customers. Studies have shown that customers who are educated are more likely to make multiple or above-average furniture purchases. For example, a 2018 study found that furniture sales increased an average of 10.5% each time customers engaged in an educational experience.
Increase your furniture retail store’s profits by investing in customer education. Educated customers are more likely to make larger purchases and act as brand ambassadors. This strategy also reduces returns and retains customers for multiple buying cycles.
Design a personalized shopping experience
Providing a personalized shopping experience is a great way to increase sales and profitability in your furniture retail store. Customers want experiences tailored to their needs and preferences. By providing customers with a personalized shopping experience, you can ensure that your customers feel valued and their needs are met. This, in turn, can increase sales and customer loyalty.
Tips and tricks for designing a personalized shopping experience:
- Get to know your customers. Take the time to learn about your customers and their specific needs. Find out what kind of furniture your customers are typically looking for, what prices they prefer, and overall furniture buying goals.
- Pay special attention to customer feedback. Take customer feedback seriously and use it to adjust and improve your personalized shopping experience. Ask questions of customers and incorporate their answers into your strategy.
- Create personalized marketing campaigns. Develop marketing campaigns that target customers with a specific message, rather than sending generic emails or other communications. This will help ensure that your customers feel appreciated and understood.
- Help customers find what they want. Make sure your store is organized and easy to navigate. Invest in customer-friendly technologies that make it quick and easy for customers to find what they’re looking for, such as digital product catalogs, customer reviews, and more.
- Remind customers of past purchases. Use customer data to remind customers of past purchases. This will help inform their purchase history while making them feel more valued and appreciated.
By creating a personalized shopping experience, you can increase customer sales and loyalty by demonstrating that you care about their individual needs. For example, if 10 customers spend an average of 0 per month, that’s ,000 in sales each month. If you are able to increase customer loyalty by 10%, your monthly sales would increase to ,500, resulting in a 0 increase in monthly sales.
Conclusion
Having a successful and profitable furniture retail store involves careful planning and implementation of strategies. From promoting sustainable furniture alternatives to engaging with the local community and creating a strong customer loyalty program, these strategies can help you increase your sales and profitability. By making your customer experience more personalized and providing them with flexible payment options, you can ensure that you meet your customers’ needs and achieve your goals.
By taking the time to implement these strategies, you can set your store up for success and ensure that your furniture retail store stands out in a competitive market.