Checklist For Growing Sales In Challenging Times

by David McMahon, PerformNow

Eighteen ways to navigate challenging conditions in the furniture industry so you can achieve sustainable growth and long-term retailing success.

In today’s market for home furnishings, achieving sustained sales growth is no small feat. Companies must navigate a landscape filled with challenges from fluctuating consumer behavior due to a variety of post-COVID factors to the rise of digital innovation. To thrive in such an environment, businesses need more than just determination; they must adapt, innovate and act to drive meaningful results. This article contains a summary of tactics to achieve sustained growth.

1. The Crucial Role of Sales Managers

   At the heart of any successful sales strategy are strong managers who can implement change. These individuals need to be more than just supervisors. They must be dynamic leaders capable of driving their teams toward excellence. Effective sales managers are deeply involved in day-to-day operations, ensuring that their teams are motivated, and that required actions are executed effectively. Their active presence, especially during peak times, can make the difference between falling short and exceeding sales targets. By fostering a culture of accountability and support, sales leaders play a pivotal role in the overall growth of the sales force.

2. Expand the Sales Force for Greater Reach

   Retailers must invest in expanding their sales teams. A larger sales force means more capacity to engage with customers, which translates into higher sales volumes. This strategy helps businesses outperform industry averages, allowing for better customer coverage and more personalized service. However, it’s not just about hiring more people; retaining top talent is equally important. The loss of experienced salespeople can be a significant setback, requiring businesses to focus on recruitment, training, and retention strategies to build robust and loyal sales teams. For example, suppose a store has average sales of $8 million generated by ten salespeople. In that case, experience has shown that the chances of growing sales to $8.8 million are much better when onboarding one additional salesperson rather than attempting to do this with their current team.

3. Implement a Clear and Consistent Selling System

   Well-defined selling systems are a hallmark of successful retailers. Such systems provide structured approaches to customer interactions, ensuring that every salesperson follows a consistent method proven to deliver results. The best-selling systems are simple, easy to remember, and designed to be used uniformly by the entire team. The selling system should be known, lived and practiced daily by all to have an effect.

Successful companies focus on factors they can control—internal processes, customer interactions, and employee performance.

4. Commitment to Continuous Improvement

   Complacency is the enemy of growth in an ever-evolving marketplace. Top-performing companies constantly seek ways to improve. They actively participate in industry groups, share best practices, and stay open to new ideas and innovations. This commitment to continuous improvement ensures that they remain competitive. By fostering cultures of learning and development, these companies do things their competitors are not willing or able to do.

5. Track and Measure Success With Key Metrics

   Keep score. One of the foundational elements of any successful sales strategy is the ability to track and measure performance. It’s impossible to make informed decisions without a clear understanding of what’s working. Successful companies identify and closely monitor key metrics—such as success rates, lead conversion rates, and average sales per customer. By keeping score and regularly reviewing these metrics, valuable insights into performance are gained, allowing for data-driven coaching and decisions to drive growth.

6. Maximize Lead Conversion Through Effective Follow-Up

   From years of research we know that over 70% of furniture customers do not buy on their first visit to a physical store. Leads are the lifeblood of any sales operation; however, generating them is only half the battle. The real challenge lies in converting leads into sales. Successful companies excel by refining follow-up processes to improve success rates. Personalized and technology-enabled follow-up can add value to the customer experience by moving the purchasing journey forward with relevant communication. By maximizing the potential of each lead, businesses drive more traffic to stores or websites and boost overall sales.

7. Digital Leads: Equal Priority for Non-Instore Leads

   As digital commerce continues to grow, the ability to manage and convert digital leads has become increasingly important. Successful retailers treat non-instore leads with the same attention as face-to-face interactions. They establish processes for handling digital leads, from initial inquiries to scheduling appointments. Since appointments are more likely to result in sales, this approach ensures that no potential sale is left on the table. By integrating digital lead management into an overall selling strategy, companies can capture a broader audience and increase their sales potential.



8. Expand Product Categories to Drive Additional Revenue

   Diversification is a powerful tool for driving sales growth. Top retailers understand the value of expanding product categories to include high-margin items such as protection plans, mattresses, adjustable bases, accessories, rugs, delivery services, and financing options. This contributes to overall sales volume gains and enhances the customer experience by offering one-stop-shop solutions. By broadening product offerings, retailers capture more of the customer’s wallet share and increase profitability.

9. Master Inventory Management for Optimal Sales Performance

   Inventory management is another critical area. Having the right products in stock at the right time is essential for meeting customer demand and driving sales. Leveraging technology, effective inventory management involves regularly reviewing stock levels, identifying best sellers and under-performing products, and making data-driven decisions about items to restock or discontinue. Additionally, regularly introducing new merchandise, at the right time, keeps the inventory lineup fresh, encouraging repeat visits and purchases.

10. Leverage Advanced Selling Tools to Generate Better Results

    Introducing advanced selling tools significantly enhances sales performance. Sketching, room planning, house calls and introducing more effective communication techniques allow sales teams to provide more personalized and engaging customer experiences. These tools help increase close rates and significantly boost the average ticket size by encouraging customers to explore their options and make complete lifestyle purchases.

11. Segmented Marketing: for Better Engagement

    Generic, one-size fits-all, marketing messages have become increasingly ineffective because customers expect personalized experiences. Smart marketers recognize this and use segmented communication strategies targeting specific customer groups with tailored messages. Software advances have made analyzing customer data and preferences much easier, helping to create campaigns that resonate more deeply, leading to higher engagement rates and better conversion outcomes. Segmented marketing also strengthens customer loyalty by making them feel valued and understood.

12. Create a Digital Pipeline for Follow-Up

    Effective follow-up ensures that no lead is forgotten. When handled properly, the maximum number of leads will be converted into customers. Digital pipeline systems allow sales teams to manage and track follow-up activities with unsold leads and past customers, maximizing every opportunity. A well-organized digital pipeline provides visibility into the status of each lead, helping managers and salespeople prioritize their efforts and maintain consistent communication with potential buyers. This approach reduces the risk of missed opportunities and increases the likelihood of closing sales.

Combining salary with commission-based incentives aligns salespeople’s interests with business goals, motivating them to perform at their best.

13. Invest in Innovation for Sustained Growth

    Innovation is the engine of growth in today’s fast-paced market. Companies that invest in new tools, technologies, and training are better equipped to adapt to changes and seize opportunities. Whether adopting the latest CRM software, implementing new sales techniques, or exploring innovative marketing strategies, these investments can provide a competitive edge. By staying in the forefront of industry trends and continuously seeking ways to improve, successful companies remain relevant and positioned for long-term success.

14. Reference Core Values for Decision-Making

    Core values play a central role in guiding the decision-making processes of successful retailers. These values influence everything from hiring practices to marketing strategies and overall business operations. A strong set of core values ensures that actions are consistent with a company’s mission and vision, resulting in a cohesive and aligned organization.

15. Focusing on Controllable Factors for Better Results

    In a volatile market, it’s easy to get distracted by external factors such as economic trends or competitors’ actions. However, successful companies focus on factors they can control­—internal processes, customer interactions, and employee performance. By honing in on controllables, businesses can create strategies tailored to specific situations and needs. Don’t get distracted by the news or the opinions of uninformed sources.

16. Design Effective Compensation Plans

    Attracting and retaining top sales talent requires a well-thought-out compensation plan. Combining salary with commission-based incentives aligns salespeople’s interests with business goals, motivating them to perform at their best. In addition to financial incentives, recognition programs celebrating top performers are crucial in maintaining morale and encouraging continued success. Companies can foster a positive and productive sales culture by recognizing and rewarding achievement.

17. Optimize Gross Margin and Reduce Waste

    Optimize gross margin to fuel growth by minimizing waste in retail processes, inventory management, and underperforming areas. Solid margins allow the financial flexibility required to invest in new initiatives, be they expanding product lines, upgrading technology, or entering new markets. By continuously seeking ways to reduce waste and improve efficiency, businesses can enhance profitability and reinvest in growth. Profit is a precursor to growth.

18. Foster Collaboration Within the Organization

    To achieve optimal sales growth, departments within retail organizations must collaborate effectively. Sales teams need the support of marketing, customer service, and logistics to deliver five-star customer experiences. When these departments work together, they create more efficient and effective operations. Collaboration across functions ensures that everyone is aligned with company goals. This leads to better communication, faster problem-solving and, ultimately, stronger sales performance.

Conclusion

Strategic initiatives that require thoughtful planning and execution pave the way for increased sales growth. By embracing the eighteen proven strategies outlined in this article, companies can not only navigate the challenges of the modern business environment, but also achieve sustainable growth and long-term success.