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Merchandising Tactics to Drive Impulse Purchases

December 16, 2017

Merchandising Tactics to Drive Impulse Purchases

Merchandising Tactics to Drive Impulse Purchases. It’s ironic that something called “unplanned purchases” accounts for almost 80% of retail purchases. But unplanned purchases, also termed “impulse purchases”, are something for which every company must develop a sound strategy, utilizing the most effective retail merchandising tactics in order to optimize their share of this weighty percentage.

Low Risk + Low Price = High Reward (For You)

Everyone has made impulse purchases. Think about the items you’ve “impulse purchased”: gum, a magazine, pop, baseball cards, a small toy, the list goes on. Different products, with one common denominator: they don’t cost a lot, they’re easy to grab off the shelf or from a display, and there’s zero risk associated with buying them.

Of course, there are countless companies looking to make their impulse item stand out. So which merchandising tactics work best?

  • Pricing: the lower the better
  • Placement: a broad, diverse selection on a prime shelf, gondola, or end-cap
  • Product: Attractive, eye-catching colors
  • Promotion: promote your products in a POP display to separate them from the competition while making them just as accessible (or more so). Add “discount”, “new”, or “sales” signage and reap big rewards.

Find a Need and Fill It

The phrase “Find a need and fill it” has been around since the dawn of time. In its most basic interpretation, you find out what your customer needs and fulfill that need. Nowadays, the process of determining and fulfilling needs is quite complex. With so many companies vying for a consumer’s attention, the axiom “knowledge is power” has never been more relevant.

Before you develop merchandising tactics to drive impulse purchases, you need to know everything there is to know about your target audience:

  • How often they shop
  • How loyal they are to brand-names
  • How much more likely they are to buy products that are part of a promotion
  • Average number of items purchased per store visit
  • Average dollar amount spent per store visit

Armed with this data, you should have no problem creating a highly effective POP display/merchandiser that provides you with a juicy slice of the “80% pie” mentioned above.

Cross-merchandising/transaction-building for Increased Impulse Purchases

Why compel the customer to make one impulse purchase when they could make two, or three? This is where cross-merchandising and transaction-building are key. One great, well-merchandised product is, well, great. But three great products are even better, especially if you can convey the message that all three products are the sum of a whole. Or, put another way, the consumer must understand that buying one of your products is fine, but buying all three is mind-blowing. For example, if you were to design a POP display to sell stationery, your display would integrate paper, envelopes, and pens/pencils. All three products are linked together: each one has a use on its own, but the “total package” is what the consumer really needs.

Test and Retest

Even when armed with copious consumer data and a knockout merchandising display idea, you still don’t want to cannonball into the pool right away. Dip your toe in first by testing your approach at one or two stores to see how consumers respond. Set a minimum baseline for the amount of impulse purchases you’d like to accrue, and tweak your merchandising display/product mix & look until you’ve blown through said baseline. Then expand the concept to additional stores.

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Point-of-purchase displays and merchandising solutions are not just functional tools; they are an extension of your brand’s identity.
December 26, 2024
Successful POS Design Pushes Traditional Marketing Strategies To Another Level. Point of Sale marketing in 2018 took traditional marketing methods – unique design, eye-catching presentation, effective branding with clear messaging, a clear tieback to existing consumer advertising, targeting emotional triggers, and an awareness of the shopper's journey – and pushed them to the limits of creativity. Studies in point-of-sale effectiveness showed that in 2016, properly leveraged marketing initiatives resulted in an average of 9.2% sales lift and that 40% of shoppers recalled the merchandising displays. As marketing has become more complex, these numbers have improved, and it’s been found that the most successful campaigns didn’t prioritize one method over any other but rather ensured each factor was leveraged to the fullest to maximize the impact of the overall strategy. Marketing is More than Matching Form to Function Across every industry and market segment, setting your brand apart from the competition is a fierce and driving force that informs every business decision. The process of marketing is no exception – companies everywhere have come to understand that customers can get whatever service you offer from a myriad of sources, so a successful marketing plan can usher consumers beyond any concerns of quality and focus their behavior on the one thing you can control: the journey they take in buying your product. Don’t Think Outside the Box, Leave the Box at Home Successful creative marketing approaches break down the boundaries around how consumers expect to consume and interact with your brand. Bold, compelling designs, larger-than-life displays, interactive or dynamic displays, and point-of-sale media that not only showcase the product but draw the user into the unique experience your brand has to offer. And don’t stick to only static floor installations. Explore shelf edging, ceiling-hung displays, or signage and displays for register counters. Approach your marketing without limitations on space and location, and open the door to all of the possible ways to engage consumers. Show and Tell with Clear Branding and Messaging While creativity is necessary, clarity is just as important. The last thing you want consumers to do is look at your POS branding and either not be able to tie your product to it, or worse, not understand the message you’re trying to get across. Your brand should be front and center, and the supporting messaging or call to action should cleverly play into your brand without straying too far afield. An energy drink display modeled after a refueling jet or a gas station is not only clever and engaging, but on-brand and appropriate. A display focused on your brand’s new chocolate bars combining imagery of clowns having a party on a yacht inviting consumers to dive in? Memorable, sure, but in none of the right ways. POS Displays are Breadcrumbs on the Trail Back to Your Brand A cohesive marketing campaign requires your point of sale materials to tie back to your overall brand image and message. As with the example above, great POS displays tell a story and paint a picture consistent with your brand presence across all mediums. Think about it from the perspective of the Apple aesthetic, where you can instantly recognize the sleek minimalistic design of an Apple product. Consumers should be able to see your branding anywhere – the store, online, on a billboard – and instantly recognize consistency in your messaging and presentation. Disrupt Routine with Emotion Let’s go back to the crucial element in marketing that successful campaigns take into account: the market is oversaturated, no matter the market niche to which you cater. All of the guidance discussed to this point is meaningless if you’re marketing department cannot embrace this one guiding principle: you’re not selling a product or service. You’re selling what it feels like to engage with your product or service. You’re honing in on the emotions and the place your product should hold in a consumer’s life. Your material must embody that aesthetic, that a lifestyle where your brand plays a role is the lifestyle they would prefer to anything else. Don’t Be Passive, Take Control of the Consumer Journey Building effective eye-catching, emotion-inducing POS displays for your product isn’t enough in the modern marketplace. Buying and shopping habits have shifted and more decision-making occurs before customers step foot into a brick-and-mortar retail space, requiring a marketing approach that places you squarely into the consumer journey. Engage digital throughout your marketing efforts – from targeted online advertisements that draw consumers to your brand to engaging and digital-savvy store installations that incorporate video and digital POS displays when consumers follow your advertising into the store and complete their journey to where your product is displayed. A Firm with a Successful Track Record in POS Design You want your product to stand out and make an emotional impact on consumers. You’ve created a solid branding and marketing plan, and need to find a solutions provider with a track record of success and the ability to bring your visions to life in ways that will draw consumers to your brand and maximize the return on your marketing initiative. Or maybe you’re a small business just starting and you could use some help in designing your marketing strategy to support your product. Whatever your needs might be, contact the award-winning team at Butler Merchandising Systems, LLC. today to collaborate on your next project.
By Butler MSI Team October 21, 2024
With online shopping growing rapidly, physical stores are under increasing pressure to stand out to the average consumer. Out of all the possible ways to differentiate yourself from your e-commerce competitors, visual merchandising is crucial in attracting foot traffic and driving sales.
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