Suggestive selling is a widely popular sales technique where the retailer or salesperson makes suggestions on additional items to include in a sale to increase the value of their transactions. As per Kavan Choksi Professional Investor, the key to successful suggestive selling is to recommend products based on the value they can provide to the customers. By aligning the product recommendations with the wants and needs of the customers, retailers can increase the odds the success of this strategy.
Kavan Choksi Professional Investor lists a few benefits of suggestive selling
Suggestive selling is a good way to improve the sales of a retail store without coming across as too pushy to the customers. It not only helps elevate the revenue of the store, but can also benefit customers. Here are a few key benefits of suggestive selling for the retailers:
- Increases average order value and revenue: Average order value or AOV is the average amount of money a customer spends per purchase at the retail store. Upselling can help improve AOV even if the customer buys just a single item. However, in the case of cross selling, AOV goes up by increasing the number of items a customer purchases. Suggestive selling helps increase AOV, and ultimately the store revenue.
- Improves customer experience: Suggestive selling is a good way to lightly nudge customers to make more purchases, without coming across as too pushy and risking them leaving the store without making any purchase. Suggestive selling provides salespeople and retailers with the opportunity to educate shoppers on products that complement their initial purchase, or explain the benefits of one product when compared to another. Instead of focusing on simply making a sale, retailers should put emphasis on educating and informing shoppers. This would ensure improved customer experience and satisfaction.
- Grows customer loyalty and retention: If a customer knows that they can depend on a retailer to make helpful suggestions, there is a good chance that they will continue making purchases from that store in the future. This increases the average customer lifetime value (CLTV) of the retail business. Moreover, satisfied customers are more likely to refer the store to their family and friends, which can help retailers to get more customers. It is much more expensive to acquire a new customer than to retain an existing one. Hence, retailers should follow strategies like suggestive selling that can make their customers happier. This would help them to turn more first-time shoppers into long-time customers.
- Building trust and credibility: When salespeople or retailers make thoughtful and relevant suggestions, it builds trust and credibility with customers. Customers are more likely to trust recommendations from knowledgeable and helpful staff members. This trust is crucial for fostering long-term relationships and encouraging repeat business.
In the opinion of Kavan Choksi Professional Investor, implementing effective suggestive selling strategies can provide a competitive advantage to a retail business. A retailer that consistently offers relevant and valuable suggestions differentiates itself from competitors, and attracts customers who appreciate the personalized attention and guidance. It also encourages customers to explore new products they may not have considered.
