How to Stimulate More Sales at Retail
You spend a good amount on your advertising and instore promotions so how can you stimulate additional retail sales? Selling more units during a single consumer shopping trip could have a dramatic effect on your overall profits and future shelf exposure. And, it helps keep competitor’s products out of shopper’s shopping baskets.
Selling more units might be the right choice for a number of reasons. Research seems to bear this out. Shoppers are looking for more value, however they define that value. What constitutes value to your customers? Check out these tips and techniques below that can get you started on your new POP strategy.
One study named Point-of-Purchase Promotions That Sell More Units by Brian Wansink, Robert J. Kent, and Stephen J. Hoch set out to identify extra value promotions that worked. The experimenters wanted to discover more about how consumers make product quantity decisions. They found that suggesting quantities to shoppers made an impact. Could this be the focus for your POP display creative and call to action?
Wansink, Kent, and Hoch focused on anchor-based promotions, ones with multiple unit prices, quantity limits, and suggestive selling. It is the numbers and dollar symbols that perhaps put shoppers into a more money saving frame of mind and suggested extra value. 4 units for $2 works better than 50 cents each and limiting the quantity they can buy makes them feel the item is more scarce, while giving them a reason “buy 12 for the party” provides justification.
Another more recent survey of 25,000 respondents by Nielsen Research revealed that while value and price are important drivers of where consumers shop and what they purchase, retailers and manufacturers which offer more value will stimulate more sales from consumers wanting to stretch their buying dollars. Good value was found to be slightly more important to most shoppers. They also liked great sales promotions and well-stocked shelves. The theme of more available product and more product to take home seems to come out in the survey results.
Larger Economy Sizes Synonymous with Value?
Survey respondents chose larger economy sizes with lower per unit pricing or smaller pack sizes at a lower cost. Reducing product quality was the least desirable choice for shoppers. Yet quality/quantity reduction is a major retailing strategy used by manufacturers today. Consumers though are tuned into brands playing with product sizes to trick them. Size strategies are all the rage, but customers may get annoyed — it’s taking them out of their comfort zone.
Although searches on Google for “discounts” are flat lining a bit, consumers are still looking discount coupons and deals — suggesting the value-conscious shopper is still alive.
Of course, we’re avoiding price competition and discounting so we need to drill down to discover what extra value we can promote at point of purchase. Time to return to your value proposition and take inventory of which benefits are key at point of sale where consumers are making their decisions.
How value is communicated at point of purchase: Brand logo and tagline, greater quantity, gift with purchase, lower price, coupons, discount stickers, membership card, copy accentuates specific product benefits, added ingredients, and better packaging and POP displays.
Does the mere presence or visibility of product suggest more value and availability? How does the packaging itself communicate great value?
Globally, consumers are waiting for items to go on sale before purchasing, and they are eager to use discount coupons. The use of temporary cardboard POP displays with fresh creative might be a key way to access these price sensitive shoppers. Value pack combo packaging might be the right way to stimulate volume sales and improve cash flow. Consider using cardboard floor displays or pallet displays to get shopper attention and keep it going on the shelf too, with shelf talkers.
Discover more shopper research and instore merchandising strategies? How do you feel about sustainable packaging and packaging that adds value? Find out more about what makes for better packaging design and the best POP displays possible.