Does your store encourage impulse buying?
Nowadays it is common knowledge that products placed at checkout promote impulse buys. However, few people know how to do this strategically. A study conducted in 2002 found one-third of customers make unplanned purchases every week. A retail store owner wants to ensure they are gaining from these buying habits.
When building the strategy for promoting impulse buys, you should focus on the following:
1. Think like a customer when choosing products for your counter.
Customers will not suddenly want something that has been slow-moving on your retail shelves. If a product is not moving from your shelves, there is a good reason for it.
Any item that requires that is more expensive, will be slower to move from the shelves. The more expensive the item, the bigger the commitment from the customer is.
Finally, your products must be relevant to your customers. If they are there buying something for their children, the counter buys should also be for children.
2. Focus their attention – don’t confuse customers with multiple objects
Your check-out counter should be easy to find. If you hide away or overcrowd the counter, it will lose its impact. Customers will focus their efforts on trying to locate the checkout counter, ignoring the products. This will lead to fewer impulse purchases.
Offer a maximum of 3 products or product ranges at the counter. Make the products simple and affordable so the customer can make a decision straight away. The aim is to use products that need little to no consideration, making it easier for impulse buys.
3. Have products at the right price
The thought process for an item less than $10 is much quicker than if they were investing $50 or $100. This increases your chances of successful purchases from the shop counters. Committing to a $10 purchase is easier than $100.
Further, if someone shoplifts these items, they have a lesser impact on the business. (Of course, these products should have margins to cover theft as well).
4. Correct signage will attract your customer
Using signs such as “two for one”, “buy one get one free” or “new arrivals” will certainly draw attention to your impulse purchase items. You can convert more impulse buys for customers with more creative signage that adds urgency. These can look like “The gift you had forgotten” or “just in time for spring”.
Don’t forget to take advantage of potential sales.
Cosmetics are the ideal product type for counter upsell, as they are usually inexpensive and rewarding
Even food stores can harness impulse buying
Remember, impulse buys can add to your bottom line. If 10 customers per day spend $10 more than planned, your retail store has gained an extra $100. These small amounts become bigger amounts fast, paying off the effort of the display.