How Shared Services Models Work for Retailers and Brands

boardroomRetail businesses include many moving parts that must work together to meet customer demand and execute the duties of the business on a daily basis. While every business department faces its own share of unique challenges, the sales department has a direct impact on the bottom line every day.

Businesses can approach their sales departments in a couple of different ways. One method is becoming increasingly popular among brands that place their products in several different retail arenas: sales outsourcing with shared services.

Outsourcing sales companies like The Retail Outsource offer a significant, bottom line driving service to retail brands. These companies use industry knowledge and training programs to place sales representatives on the floor of big box stores. The sales representative wears multiple hats and may appear to the consumer as a general store clerk but actually has the training to push certain products or services on the floor.

There are many benefits to retailers who invest in this form of sales outsourcing shared services:

  • Cost effective.  One sales representative shared across brands costs less to employ than a company employed sales person. Two retail brands can share the costs of the sales professional, who will be trained to promote both brands on the floor, creating a streamlined sales process. Developing a highly skilled sales team internally means investing in expert infrastructure to meet and exceed business objectives. By investing in an outsourcing solution, companies can bypass that costly investment completely.
  • External management. The sales service is outsourced, so individual retail companies do not have to manage the representative at a micro-level. Instead, they will interface with a representative from the outsourcing company who will provide relevant sales information and project management for their end client company. Outsourcing companies can also provide consultation and make recommendations regarding a sales environment. They are experts in sales who specialize in promoting growth and increasing revenue for their clients.
  • Efficiency/Timeliness. When a company reaches out to an outsourcing agency that manages shared services programs, they no longer have to worry about the recruiting or training process. The entire sales process is left in the hands of the outsourcing company with the retailer providing insight as needed to personalize a sales program. Turnkey services mean retailers will enjoy the benefits of the shared services model in far less time than traditional recruiting and training processes would take.
  • Expertise. Sales outsourcing companies start every relationship by understanding a retail company inside and out. They use their sales expertise to create strategies that make sense to drive sales and promote growth.
  • Meaningful data analysis. In today’s market, it is nearly impossible for companies to maintain a steady growth pattern without meaningful data analysis. Evaluating data allows companies to remove strategies that are not providing results in favor of effective strategies. Outsourcing companies that employ shared services representatives can help retailers target solutions that work strategically to improve those processes over time.

For many retail companies, the shared services solution can decrease overhead while maximizing sales. This resource effectively allows companies to enter more markets without the costs associated with traditional sales models.

Top 5 Things to Consider When Scouting a Retail Location

Carefully selecting retail locations for your brand is integral to success. Store location largely affects brand accessibility, visibility, and overall ROI. Many companies, startups, and existing retail brands may not realize there are many resources online to expedite the process of finding a valuable retail location.

storefront3From services that do all the legwork to demographic data resources, here are some of the main considerations and resources companies can tap into when searching for great retail locations:

  1. Area demographics. Choosing a site based on appearance and proximity to company management can work occasionally, but the most successful retail locations are chosen based on demographics.A company’s product or service is usually targeted at a specific market. Look for area or location demographics that match up well with the target market for a better chance of sales. The area’s age of shoppers, income ranges, local attractions, and job sectors provide insight into whether an area will be a good candidate for a retail store. Consider these resources to learn more about demographics:
    • Census.gov. This site provides information about people, jobs, and general information about cities and states.
    • City-data.com. Some towns may not be listed through census.gov, but can be found on this website which aggregates data from a variety of sources. You’ll find information about weather and area crimes in this resource.
    • Chambers of Commerce. Look on a city’s chamber website to learn more about specific demographics and to get a feeling for the industries and people in the area.
  2. Competition. A rule of thumb for business placement is to locate a storefront in close proximity to competitors. Doing so provides opportunities for crossover marketing and beating out the competition in service, prices, and layout. Look directly at competitor locations on a map and cross reference the information with available real estate.
  3. Accessibility/Traffic. Some stores may have a great layout and sales structure, but lose out on important sales because their storefronts are difficult to access or there isn’t enough traffic through the area. Look at parking, delivery access, and the number of consumers in an area throughout the day. It may be beneficial to scope out the site in person and talk to local consumers before making decisions regarding a location.A company can learn a lot by scanning Google Maps in areas of interest for signs of heavy traffic and street views of an area. Aside from talking to individuals who know an area, the resource provides valuable information to determine the viability of a location.
  4. Regulations. Companies need to be aware of local ordinances, zoning regulations, and other area restrictions. Obstacles are much easier to address when evaluated before choosing a location. Failing to do so can delay a store opening or cause legal challenges in the location startup. Search online for “city of [insert name]” and access the local city site to learn more about local regulations and zoning restrictions.
  5. All-in-one planning services. Many startups and existing retailers are busy completing a variety of tasks from production to management. Choosing a location is a complex process that involves more than finding an attractive storefront. Full service retail outsourcing companies like The Retail Outsource provide integral consultation and launch solutions that can simplify the location startup process.