Suggestive Selling in Retail

Suggestive Selling

In reading a recent article about new product launches and what determined if a launch was successful or not, the point was made that suggestive selling by cashiers is still the most effective way of selling new or mature products.  This brought to mind two recent contests conducted by a local chain..  One was for the best increase in a very mature category.  The other was for a line extension in this category that was relatively new and still had not made market penetration.  The first contest was a huge success and hit every benchmark they were looking to achieve.  The next contest sputtered and died a horrible slow death and wasted many resources and did not even come close to goal.  What was different?  If suggestive selling is the key to product launches and increased incremental sales, how can we design contests that achieve their targets on a consistent basis?

In the first contest, results were set up so they could be tracked very clearly.  Twice a week, the results would be posted for all store teams to review.  This would set the tension needed for the next step, the weekly conference call.  Not only did the stores have one week to look at their numbers in comparison to the other locations, it gave them a week to build up questions, challenges, taunts or whatever other comments they wanted to bring up on the call.  As long as the comments were positive, they were encouraged.  Everyone wanted to find out    how were the results achieved and who was going to beat who next week.  By keeping the results up front for everyone to see, they were able to overcome the inertia that plagues many of these programs.  Winners with the greatest delta for the week were given bragging rights for the week but there was no monetary compensation until the end of the contest.  Even then, the rewards were minimum compared to other contests.  The only thing that kept this contest going as well as it did was the pride and drive of the store teams.  All the company did was provide the benchmarks so they could measure their results.

The next contest had much larger prizes and the increases needed were smaller than the previous contest.  And it failed miserably.  To the point that it was embarrassing when they discussed the result with their vendor partner.  What was different?   Why was there no grass roots excitement?  In the first contest, the results were discussed at least three times a week and during every store visit.  The second contest had no discussion until several weeks into the contest and then very sporadic after that.  The first contest had very clean cut goals but the second contest judging criteria was not finalized until the contest was half over. The first contest was a product everyone was very familiar with but the second contest was a relatively new product.  Instead of dropping the number of communication events they should have doubled them to overcome the inertia factor.

So why the change?  Why were they executed differently?  The same answer every time, the only variable there is in business.  People.  In one contest, the management listened and reacted quickly to reports from the field on issues with the contest.  Not only did this tune in the contest, it earned that manager credibility with the store teams.  There weren’t any battles over whose idea it was or who was in control; it was strictly what was going to give the best result.  In the second contest, the manager did not want to release any information until they were sure they were going to have good news.  The problem was, by the time they were able to see if it was good or bad news, the contest was already headed in the wrong direction. 

So where do you go from here? 

First, make sure the goals are clearly defined.  Do not assume they are because most of the time they are not.  You wont be able to tell until they are battle tested in the field.  Second, take the suggestions and execute them or explain why they are not practical.  Keep your eye on the goal but at the same time, consensus must be built.  All levels of the organization has to be in agreement so progress can be communicated clearly.  Which leads us to the next point; COMMUNICATE.  Even if you think it is enough, I guarantee it is not enough.  Be sure to keep the metrics as the basis for your agenda but allow some time for the next point.  Have some fun!  Contests are one chance where competition is encouraged and bragging right s are some of that competition.  It is amazing how many times we will see someone walk through fire to see their name at the top of a list..  This was always the best part of the job.  Being #1. 

Happy Selling…….