I used to own a store located in a shopping mall selling
cell phones, plans and accessories several years ago. It was a typical retail
business model based on foot traffic and convenience. However, I felt the need
to change my sales model in order to increase the sales volume. I pursued an
aggressive sales promotion plan such as giving way 3 free accessories when you
buy a plan, free accessory replacement for one year etc. The cost of the
accessories such as holsters, hands free kits(except Bluetooth devices),
chargers are so low that I decided to sacrifice the profit I would be making by
selling accessories for the sake of selling more plans and drive more traffic
to the store.
I also tried to develop a relation-ship building method
mentioned in this thread. You would think that would be just a waste of time
and effort when you have a store in a mall where you expect a steady traffic to
the store most of the time but you need to try everything you can think of in
order to pay for ridiculously expensive store rent. Yes, customer flow is there
but you are also facing a stiff competition because you can easily find 6-7
different carrier kiosks, stores within a few hundred yards! I don’t even need
to mention the brick and mortar competitors outside the mall and online
competitors. I built a client email database over time and sent emails
periodically to my clients to inform them about new products, promotions etc. I
organized raffles offering free products or deep discounts in order to appeal
to both new and existing clients.
I also built a small direct sales team as a new sales
channel. The sales people worked from home and they went after business and
corporate clients by cold calling and site visits. They were quite successful in
establishing and developing relationships with business clients which opened
new horizons for the business. The direct sales team also brought in new influx
of business clients shopping for personal needs to the store. As a result my
sales went up significantly.