Increasing Sales BEA 2005 NEW YORK, NEW YORK June, 2005

Increasing SalesIncreasing Sales

BEA 2005NEW YORK, NEW YORK

June, 2005

ABACUSABACUS

ABACUS is an initiative to create a benchmark for the measurement of independent bookstore operations.

The numbers generated by the ABACUS study were used to create…

THE 2% SOLUTIONTHE 2% SOLUTION

Concentrates on Four Areas:

• Sales

• Margin

• Compensation

• Occupancy

Today we’re focusing on Sales

The 2% SolutionThe 2% Solution

How do you Increase Sales?

1. Bring more customers into the store2. Sell more to customers once they are in the store3. Sell more outside the store

Today’s seminar will expand upon these ideas presented in the 2% Solution


What we’ll cover…

Use advertising and public relations to raise the profile of your store

Form stronger relationships with your customers Get to know your best customers and reward them Make your website an extension of your store Make your store an exciting and unique place to

visit, both physically and virtually Reach out to find new customers

Section 1Section 1

Bring more customers into the store.

Bring more customers into the store…Bring more customers into the store…

Develop a co-op Develop a co-op planplan

Find out how much co-op is available to you

Talk to your reps Find out about additional co-op programs Claim indirect co-op through wholesalers Don’t forget about co-op for non-book

Create an advertising budget for the year

Set the advertising budget as a percentage of sales Start with last year’s expense and industry benchmarks Set the budget at the net amount you’re going to spend

(Co-op 1 of 2)


Develop a co-op Develop a co-op planplan

Tips for claiming and using co-op efficiently

Focus on the big dollars first Consolidate advertising to use up smaller co-op amounts Be sure to use your co-op before the end of the year Know and use the right medium Monitor your advertising expense on an ongoing basis Create an advertising package and rate card that publishers can

easily understand

(Co-op 2 of 2)


Implement a public relations Implement a public relations planplan

Project your store’s image

Find a personality that represents your store Project that personality consistently in all of

your advertising and public relations

(PR Plan 1 of 3)



Cultivate media contacts

Identify appropriate local media contacts Have a designated media relations contact Invite key media to special store events Provide members of the media with copies of your

newsletter, events announcements, etc.

(PR Plan 2 of 3)



Make your store newsworthy

Send out press releases about forthcoming events

Write op-ed articles and letters to the editor on relevant topics

Make your website a source for news Use your store’s owner as a public relations

asset

(PR Plan 3 of 3)


Build a customer databaseBuild a customer database

What the heck is a customer database anyway?

A system for keeping track of who your customers are, what they are interested in, and how much they spend. It is a crucial tool

for growing relationships with your customers.

“…enterprises that fail to establish strong relationships with their customers will see their position eroded by up to 20% per year.” --Gartner Research

“It’s a lot like dating. I’m dating my customers. That is how an independent is going to compete.” --Tim Metcalfe, Sentry Foods-Hilldale, Madison, Wisconsin

(Database 1 of 6)



Before setting up your database, decide:

What information you want to keep How you will capture and store that information How you will get customers to give you that

information

(Database 2 of 6)



Information you must keep on your customers Basic contact information What the customer is interested in How they prefer to be contacted

Information you should keep on your customers:How much they spendWhen they last shopped in your storeWhat they buy

(Database 3 of 6)



Have a clear privacy policy

Tell your customers what information you keep, and whether you share it with anybody

Stress your commitment to protecting their privacy Use this as an opportunity to talk about how

independent booksellers are at the forefront of fighting to protect consumer privacy

(Database 4 of 6)



Your database will allow you to:

Reach out to new customers Bring back former customers Bring existing customers in more frequently Reward your best customers

(Database 5 of 6)



Tips for getting the most out of your database

Ask complimentary businesses to share their customer lists Create a welcome message for new members of the database Mail your best customers hand-written thank you letters Send key customers coupons, gift cards, or other incentives Contact customers who haven’t purchased in six months or

more

(Database 6 of 6)


Use your website as a marketing toolUse your website as a marketing tool

“The store remains the primary channel for purchase among the multi-channel shoppers we surveyed…

“What is striking is that of the 38% who used the Web to research their purchases, 71% chose to complete their purchase in the store. --Foresee Results/FGI Research Report, January 2005

(Website 1 of 4)



Your website is an extension of the store

Designate a staff member to be responsible for the site Require all staff to become familiar with website content Mirror online displays and promotions in the store Have content that will entice people to come back

Forthcoming events and promotions Staff picks with blurbs Book Sense Picks/Bestsellers New releases News items/Commentary

Update your website content at least weekly

(Website 2 of 4)



Make your website user friendly, by allowing customers to:

Search for books and place orders See lists of upcoming events Opt-in to receiving your newsletters and other

announcements Contact store staff

(Website 3 of 4)



Promote your website heavily

Mention your website everywhere: on store signage; in your newsletter; in advertising; on store bags, bookmarks, gift cards, etc.; on your voicemail

Create an affiliate program Make staff members evangelists for your site Create an in-store kiosk featuring your website

(Website 4 of 4)


Use e-mail as a marketing toolUse e-mail as a marketing tool

Sending e-mail

Make your e-mails relevant, interesting, and timely Don’t bombard customers (remember the Rule of 24) Always get permission first Have a clearly stated privacy policy, and make it easy

for customers to opt out Don’t be a “Monday Morning Emailer”

(E-mail 1 of 2)


Use e-mail as a marketing toolUse e-mail as a marketing tool

Get the Most Out of Your E-mail Campaign

Track the success of each e-mail sent – How many customers (and which ones) opened the email?– Which customers clicked on which links?– Which content was ignored?

Add what you learn to your customer database Personalize e-mail messages Avoid having your e-mails classified as spam Investigate outside services to send and host e-mail

(E-mail 2 of 2)


Do more in-store eventsDo more in-store events

The goal of an event is not just to sell books, but also to make the store an interesting, inviting, and lively place to which people

will want to return.

(In-store Events 1 of 4)



Be proactive in asking for authors

Know who the publicists are and stay in touch Request authors early Make concrete proposals




Promote your events List events on your website and in your newsletter Use in-store displays and signs Get the press interested

Promote your success Follow up with publicists after the event Keep reminding publishers how good your events are Remember, publicists look at websites




Think outside the box

Host book groups Create theme events Host a weekly story-time for children Bring in experts to give lectures and demonstrations Host political debates and discussions Allow self-published authors to hold events Hold private events for your best customers



Reach out to underserved marketsReach out to underserved markets

Identify which market you want to target Learn about the market Find a good source of books Promote that you now serve this market Be patient

“…because of the changing demographics of the U.S., there was an increase in the number of literary readers from all ethnic and racial groups except white Americans.” --National Endowment for the Arts Reading at Risk: A Survey of Literary Reading in America, June, 2004

(Reach Out 1 of 1)


Form marketing alliancesForm marketing alliances

Raise your profile in the community

Look for other businesses or organizations that complement your image

Cross promote and merchandise Consider setting up or joining an independent

business alliance

(Alliances 1 of 1)


Join Book SenseJoin Book Sense

“We must all hang together, or assuredly we shall all hang separately” --Benjamin Franklin, July 4, 1776

“Being part of Book Sense connects us to the community of independent booksellers across America. That’s very important to us, and I know it gets us more attention from publishers.” --Virginia Powers, General Manager, Olsson’s Books & Records, Washington DC

(Book Sense 1 of 1)

Section 2Section 2

Sell more to customers once they are in the store.

Sell more to customers in the store…Sell more to customers in the store…

Improve traffic flow and ambienceImprove traffic flow and ambience

Look at your store through the eyes of the consumer

Start outside, work your way inside and around the store

Follow your customers’ traffic patterns Notice how each part of the store looks, feels,

sounds, and (yes) even smells

(Ambience 1 of 4)



Pay particular attention to:

Visibility Height and spacing of fixtures

Layout Ease and logic of traffic flow Locations of departments, information points, and cash registers

Convenience Accessibility of merchandise Ease of access to information resources Speed of check out

General ambience Visual harmony Background music, temperature and smell

(Ambience 2 of 4)



Add amenities that build traffic

A café A magazine/news section Internet access terminals Ticket sales A masseuse?

(Ambience 3 of 4)



Focus on merchandising, to make it more:

Eye catching Interesting Customer friendly Timely Well-maintained

(Ambience 4 of 4)


Introduce a customer loyalty programIntroduce a customer loyalty program

Decide on a program structure

Extra discount at the cash register? A gift card each time the customer spends a

certain amount? Charitable contributions? Invitations to special events?

…and remember, price is not everything

(Loyalty 1 of 2)


Introduce a customer loyalty programIntroduce a customer loyalty program

Keep it simple!

If your staff can’t explain the program in the time it takes to ring up a sale, it is

too complicated.

(Loyalty 2 of 2)


Bring in non-book merchandiseBring in non-book merchandise

Decide what kind of merchandise makes sense Source merchandise A good book buyer does not a good non-book

buyer make Plan carefully Follow through, be a retailer

(Non-book 1 of 1)


Sell gift cardsSell gift cards

The statistics on gift cards:

Gift card purchases grew 50% from 2002 to 2003 Gift card sales are projected to exceed $73 billion

by 2007 Most bookstores tell ABA that they’ve seen a

minimum of a 20% increase in gift card sales versus gift certificate sales, and some over 100%

(Gift Card 1 of 2)


Sell gift cardsSell gift cards

Getting the most out of gift cards

Position gift card merchandisers around the store Sell gift cards on your website Promote gift cards in your newsletter

Remember that the recipient of a gift card is frequently a new customer, and surveys show that they often spend

more than the value of the card

(Gift Card 2 of 2)

Section 3Section 3

Sell more to customers outside the store.

Sell more to customers outside the store…Sell more to customers outside the store…

Use out-of-store eventsUse out-of-store events

Decide what kinds of events you want to do

Off-site author signings at conferences and meetings

Book tables or booths at conventions Book fairs

(Outside Events 1 of 3)



Let the world know that you can do events

Contact publicists and sales reps Post signs in your store Mention it on your website and in your

newsletter Contact local non-profit organizations, event

planners, etc.




Use events to promote your store

Take promotional materials with you: Bookmarks Bags Your newsletter and event calendar

Invite attendees to visit your store



Sell to corporations and institutionsSell to corporations and institutions

Create a store policy for corporate discounts, and publicize it

Identify key local corporations and key contacts within those corporations

Do targeted mailings announcing your corporate sales program

Participate in your Chamber of Commerce

(Corporate Sales 1 of 1)


Summary

Use advertising and public relations to raise the profile of your store

Form stronger relationships with your customers Get to know your best customers and reward them Make your website an extension of your store Make your store an exciting and unique place to

visit, both physically and virtually Reach out to find new customers

The End!The End!

Thanks for listening!

Documents

Increasing Sales BEA 2005 NEW YORK, NEW YORK June, 2005