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How the Right Merchandising Can Reduce Out-of-Stocks

January 16, 2018

How the Right Merchandising Can Reduce Out-of-Stocks

How the Right Merchandising Can Reduce Out-of-Stocks. If businesses themselves are annoyed by the occasional stockout, then imagine how frustrating it must be for customers who are struggling to track down an item the very much want or need. These out-of-stocks can occur at any time throughout the supply chain, but consumers notice them more quickly on the retail end of things, which is why those business owners experiencing them need the help of Presence from Innovation to help eliminate them and improve their overall retail merchandising experience.

Reducing out-of-stocks starts with the following changes:

Move Focus Toward Merchandise Availability

It used to be that having accurate counts of a certain item was enough to meet the demands of customers, but these days the reality of inventory management is a little more complex. It is a bit of a mindset change to shift away from straight-up inventory management and toward merchandise availability, but doing so is a much more effective way of ensuring customers have access to the items they desire.

Work to Decrease Theft

One problem businesses have had since the dawn of commerce is a discrepancy between what the inventory says should be available and what actually is available. Theft, naturally, is big cause for this, but that doesn’t make it any less frustrating for potential buyers that believe an item is in stock, only to be turned away because of inventory numbers not matching up. Even worse, the items that are stolen most often tend to the best most profitable items for stores and retail pop displays , so investing in proven theft solutions can help decrease the likelihood of shrinkage.

Embrace Data

Here at PFI, we do most of our best work through the analysis of data, which is one of the best ways to reduce retail out-of-stocks. There is so much data available these days thanks to some really incredible software, but sifting through that data and determining what to do with it can be incredibly challenging for those who don’t know what to look for. That, of course, is where we can be of assistance, since using that data is a great way of cutting back on those stockouts.

Don’t Be Afraid to Experiment

One thing we are seeing through the use of this data is businesses experimenting with test systems designed to get a hold on out-of-stocks, both in custom retail display cases located in brick-and-mortar stores, and within the individual departments of those stores. Analytics can help people determine what sorts of things are and are not working, so playing a few different options and keeping meticulous records of the results is one excellent way to get the information a business needs to see the changes they desire in terms of tracking inventory and decreasing out-of-stocks.

There is no question that out-of-stocks are a constant annoyance both to business owners and their customers, but here at PFI we want to help reduce these stockouts through an analysis of usable data. Businesses looking to solve this problem need only contact us here at Presence from Innovation for the sorts of solutions that could help make out-of-stocks a thing of the past.

January 17, 2025
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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