How to strengthen sales by adapting to consumer habits

by jason_cramp | October 22, 2016 3:30 pm

By Ted Lawrence

[1]

A retailer has less than 10 seconds to make a first impression on a consumer. Within this time the consumer will start to form their opinion, not just about the store, but everything about the business. This is amplified more so if it is the consumer’s first time in the store.

During this period the consumer is trying to figure out if they are going to make a purchase. People need to feel comfortable within their surroundings first before they let their guard down; therefore, within the first 10 seconds, consumers will look for any negatives about the retailer before the switch flips in their brain to start looking at the positives. This author believes this process actually starts in the parking lot, long before they step foot in the store; however, this article focuses on what happens in the store.

For returning customers, the process is the same except they look for change. For instance, they want to be exposed to new and different products and services every time they shop in the store. Some of the world’s best retailers understand this, like grocery stores. End caps on the aisles change weekly, the front of the store changes every two weeks, and items go on and off sale twice a week. These retailers understand the consumer wants and needs fresh eye candy.

Change of pace

[2]

Today’s consumer wants the stores they shop in to change and look different each and every time. However, this does not mean the answer is to constantly change things around, as moving certain items can actually be detrimental to business. For instance, think about what would happen if a grocery store moved everything around one day. It would aggravate customers enough to give them a reason to shop somewhere else.

 

Therefore, play it safe. Customers do not mind so much when the produce section changes up, or end caps are altered because these areas follow a simple rule—20 per cent of the store represents 80 per cent of its sales. That said, a retailer will never change that 20 per cent around.

What are some things that can be done? First, it is important to be aware if consumers ‘shop’ the store. For instance, are they walking in and spending time looking around before they make their way to the counter? Or are they walking straight in and standing at the counter waiting for assistance? If the latter is the case, it may be time to rethink the store’s layout, style, and flow of the location.

Cut a path

The consumer should never have a straight path to the door, checkout counter, or water testing centre. There should be a series of roadblocks to inhibit their path. Roadblocks are displays with key products on them that not only obstruct the path to purchase, but also help turn off the autopilot in the consumer’s brain. Instead, these displays turn on the customer’s cognitive control functions—in essence, waking them up so they notice something new around them. Another example of autopilot is driving into to work and not remembering the drive. Everyone does it—especially when shopping; therefore, knowing the proper way to use roadblocks can be extremely important. To use them properly, it is important to understand how, when, and where to use them.

Roadblocks cheat sheet

• [3]

  Use them by the entrance; make sure they are out of the decompression space on entry (two steps in either direction of the door). Make sure products that are located here are fun and useful to all customers that shop at the store. Do not be afraid to put premium items up front with hefty price tags. This helps to get the initial price shock out of the way so items seem less expensive the further they get into the store. Car dealerships are masters at this manoeuvre.

• Be sure to departmentalize the roadblocks. For example, hot tub fragrances are in the hot tub area, or those swan pool floats are in the pool area. This may seem simple, but this author has seen many cases where products are intermixed throughout a retail location. This will only serve to confuse the customer.
• Place new items that have not been sold before or merchandise that complement products around them, along the path to purchase routes. Good examples of these types of products include: Bluetooth speakers, light-emitting diode (LED) lighting, and outdoor games.
• Keep in mind the further the customer gets into the store, the more pool relevant the roadblocks can be. For instance, robotic cleaners, pool lounge chairs and, yes, even those stacked buckets of chlorine tablets at the water testing counter.
• Do not be afraid to duplicate items either. It is okay to have the same products located in two or three different areas of the store. For example, grocery stores have candy in the main aisle, at checkout, season aisle, and even by the marshmallows to make s’mores. Therefore, if it makes sense, duplicate.

Roadblocks can also be seasonal. Again, look at how grocery stores capitalize on this. For this example, those who live in snow belt areas can relate, as they will see snow shovels, salt, gloves, etc., scattered throughout a store. This is an excellent way for grocers to capitalize on the season while making the store look fresh, different, and relevant.

To all appearances

Many retailers rely on the pool closing season to give them that last boost of revenue before winter arrives. They do this by transitioning the store to not only look great, but also to increase revenues during this season; however, it must start with a plan. The pool closing season does not need to be a two-month quiet period and it should not be an excuse for the store to look like a flea market either.

[4]

At this point in the season, many of the summer items typically stocked during the pool season have been sold; however, consolidating any remaining products into one area of the store is a mistake. Consumers do spend money on ‘deals’ and off-season merchandise this time of year, e.g. buying a winter coat in the spring, or a swimsuit in the fall for next year. When displayed correctly, customers will buy pool floats, robotic cleaners, and other related products during the off-season.

Therefore, instead of consolidating, do the opposite—spread out the merchandise. Start by purchasing smaller display hooks for use during the off-season. (Many retailers use 203-mm [8-in.] to 305-mm [12-in.] hooks during the season, which is fine.) As the pool season comes to a close, switch up the displays using 102-mm (4-in.) hooks. The products will have less depth on the wall, but more breadth. In fact, it will make that particular section of the store appear as though it was just restocked. This author has used this trick successfully when helping people open new stores.

[5]

In the off season it is okay to take down some of the excessive shelves or racks to give everything else some breathing room. Consumers love to shop in stores that are full and appear to have selection all year-round.

When doing this, position the majority of any summer-related merchandise in the front of the store with winter goods and accessories towards the back. This will help to expose customers to the ‘summer specials’ items first before purchasing the winter-related products they were initially looking for.

When stocking the winter products area, make sure winter covers are in the back corner of the store and only display what will sell out within two to three days. If the space is overcrowded, it will only serve to confuse customers. Further, showing an abundance of inventory takes away the urgency factor of buy now before its gone.

Make sure to offer premium and standard winterizing kits. Make the consumer choose which one they want. In this author’s experience, between 10 and 15 per cent of consumers will choose the premium kit, especially if it has an algae-free pool opening guarantee. Premium kits should be different than what is typically carried (e.g. those that include natural enzymes), and charge a premium for them.

Signage is key

Spend some time to carefully think about store signage, especially when roadblocks are being used. One way of doing this is to use monthly themes in the store. For example:

• Spring into Summer Event
• Summer Suntacular
• Fall into Savings
• The Polar Plunge Event

Change out all of the ‘regular’ signage with new ones each month. It keeps it fresh and different. These themes can be supplemented weekly with additional signage that may include:

• All items under $10
• 2 for $5
• Buy one get one half off

[6]

Try to stay away from percentage-based discounts as it is more difficult for consumers to calculate. For example, this is seen more readily in the restaurant industry where tip percentages are now being pre-calculated. This is because the average consumer cannot easily do this math. Therefore, do it for them and offer a monetary discount instead of percentages.

For higher ticket items, do not be afraid to use digital signage such as digital photo frames or manufacturer displays that incorporate video screens. This is a growing trend that will continue to be seen more and more in every retail environment, so be ahead of it.

As a rule, stay away from anything handwritten with a marker or pen. Take the time to type the items and print them. Make sure the signage not only states the price, but also builds value in the product. Further, show the manufacturer’s suggested retail price (MSRP), regular price, as well as the new price so the customer can visualize how much they will save. Never discount the power value has; it is one of the main motivators when someone makes a purchasing decision.

Finally, when entering the store each day, walk through and look at things like a customer would for the first time. By implementing a few of the strategies presented in this article, retailers can increase the success of their businesses.

[7]Ted Lawrence is a global retail specialist with Pool Corp., a wholesale distributor of swimming pool supplies, equipment, and related leisure products in Cleveland, Ohio. He has served the swimming pool industry for more than 20 years and is an authority on retail, sales, and management. Lawrence is also a regular seminar presenter at various national and international industry events, and participates on several professional retail boards and councils. He can be reached via e-mail at ted.lawrence@poolcorp.com[8].

Source URL: https://www.poolspamarketing.com/trade/how-to-strengthen-sales-by-adapting-to-consumer-habits/

---