Growing a Retail Business

First, do more business with existing customers to increase sales and profits

By Marcia Layton Turner

When it comes right down to it, there are three basic ways to grow a business, especially a retail enterprise:

Find new customers
Sell more frequently to existing customers
Sell higher value items to existing customers

Use market research to identify prospects

Are your best potential customers within a certain driving distance of your store? Of a certain income level? Have children of a particular age? Or do they have something else in common?
Try: Use mailing list brokers like InfoUSA, Americalist, AccuLeads, or Dunhill to figure out how many potential customers you have and to rent lists of target prospects. Then design, print, and mail materials like postcards or flyers to entice shoppers into your store.

Use a point-of-sale system to better manage your company and its information

These computerized cash registers can track overall sales patterns and individual customer purchase histories.
Try: Request a free quote for a point-of-sale system through BuyerZone.

Hold a special event to attract attention from customers and the media

Raise the profile of your store while giving old and new customers a reason to come spend money with you. Alert the media two or three weeks before the event if it's an open-to-the-public affair and you may get even more exposure.
Try: Promote your event with Evite.com, which not only sends clever invitations to the customers on your e-mailing list (you do have one, right?) but also provides good ideas and notices of nearby events on which you can piggyback.

Use customer relationship management software

It provides a way to build an e-mail customer list, get a handle on sales trends and identify actionable demographic information.
Try: SalesForce offers the most widely used CRM software, scalable for all size businesses.

Expand beyond your brick-and-mortar store

In addition to selling through a retail store, explore other ways to market your wares, such as online, to customers worldwide.
Try: Register for an eBay, Amazon, and Yahoo! seller account to expand your customer base beyond your current Zip code.

Create, or regularly update, a database of customer names, addresses, and emails so you can communicate with them and alert them to upcoming events and special deals.
Introduce a frequent-buyer program to reward your best customers, make them more loyal shoppers, and to entice everyone to spend more.
One of the keys to attracting and retaining customers, which enables your business to grow, is attracting and retaining quality employees who care about customers, are friendly, knowledgeable, and hard-working.
Although it seems counter-intuitive, becoming known for specializing in a particular type of product will help you grow your business faster than having no specialty at all. Find a niche.