Drive sales by knowing the shoppers psychology - Impulsive buying

User sumesh k menon Date May-18th , 2019 Comments 0 comments
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Understanding your customer psychology is not an easy job, but as a retail business owner, if you put a little effort to learn them, it might give you good rewards in your retail business. If you go shopping to the large supermarkets, you might have noticed that, the products what you purchased last month from a particular shelf is changed and you might need to ask the sales boys where it is kept now!. Have you ever wondered why they keep changing the shelf location?

Customers tend to buy a product, either when they have already decided to buy the product or when their brain trigger a signal for the need of a product. Its not necessary that, customer is in actual need of the product. The trigger can happen in the brain when a Person sees a product in a specific ambience or situation. It depends on the exposure - retailer creates in their stores with right mix of persuasion and presentation.

Ever wondered why Essentials are kept a bit deeper in the department store?, Because they woo the customers to walk through their store, by which the customers is exposed to some of the non essential products. If the presentation of the product is good, chances of buying those non-essentials increases multi-fold.

In the book “Atomic habits” – James Clear mentions about the famous psychologist Kurt Lewin, who wrote a simple equation “Behaviour is a function of the person in their environment”. We can also put this formula in to Retail business practice. In 1952 the Economist Hawkins stern described a phenomenon he called “Suggestion impulse buying”, which is triggered when a shopper sees a product for the first time and visualizes a need for it. In other words customer will occasionally buy products not because they want them but because of how they are presented to them.

Hawkins Stern states that, products which are kept in EYE level tend to be purchased more than those down near the floor. You might have noticed that, expensive brand names featured in easy-to-reach location on store shelves because they drive the most profit, while cheaper alternatives are tucked away in harder-to-reach spots.

Also you might have noticed that, products like Chocolate, magazines etc., are placed near the POS counter, where usually customers stand in queue to pay the bill. They are exposed to these products for few minutes and if presented well, customer impulse buying signals work strongly, and the chances of buying those increases drastically.

So plan your store well, and create an ambience, which can easily trigger the customer‘s impulsive buying behaviour. Maximise your profit as well as topline.

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