Thursday, July 11, 2013

The Psychology Of a Shopper

Understanding the the psychology of shoppers will give you a huge advantage as a retailer. Knowing what triggers the "buy" response in a customer will naturally result in more sales and more profits. Practically ALL big-name national grocery stores and retailers use this technique, so why aren't you? Contrary to what some people may believe, it's actually a simple concept.

"Luxury" Items First


Ever notice how most grocery stores place snacks and junk food close to the entrance? This is because people are more likely to purchase them when they first walk into the store. Cakes, snacks, cookies and other non-essential food is considered a luxury purchase simply because people don't need it. Allowing the customer time to shop around before exposing them to luxury items will reduce the likelihood of them purchasing it. Of course, snacks and junk food is just one example of a luxury item. If you are in the retail clothing industry, then perhaps you can place some of your accessories up front.

You have to think outside of the box when it comes to luxury items. Identify your store's primary customer base and then choose luxury items that would blend well into your line of products. Perform some initial tests with these items to see which ones sell and which ones don't. At the very least you'll get some helpful data to improve your store's layout from tests such as these.

Impulse Buys


Impulse buys are similar to luxury items in the sense that they probably aren't what the reason why the customer came to your store. Nonetheless, you can still encourage customers to purchase "impulse buy" products by choosing the right type of product and the right location. The best location is typically around the cash register where customers will wait in line with nothing to do. While they are waiting, they may see an impulse buy product that catches their eye, and hopefully they will add it to their shopping cart.

So, which type of impulse buy products should you use in your store? It really depends on your store's industry. With that said, I've seen video games, movies, snacks, sodas and even art supplies in line waiting to check out at a major apparel store. These are all items that people probably wouldn't normally purchase at a clothing store, but since they are waiting in line with nothing else to do, they might feel encouraged to make an impulse buy.

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