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Signage, shelf-position, display space and
special fixtures all make it either more likely
or less likely that a shopper will buy a particular
item. Meaningful growth, which Wall Street
demands, can be stimulated effectively at
the store level. Some underutilised means
to measure what happens inside the store are
as follows:
1.
Conversion Rate
The very concept of conversion rate implies
that shoppers need to be transformed into
buyers. Conversion rates vary widely depending
on what kind of store or product we're talking
about. In some sections of the supermarket,
conversion rate is probably 100% (dairy or
toilet paper). In an art gallery full of paintings,
probably the conversion will be less than
1%. Conversion rate measures what you make
of what you have - it shows how well or how
poorly the entire enterprise is functioning.
2.
Time spent in the store
The amount of time spent in the store is the
single most important factor determining how
much the customer will buy. Over and over
again, studies show a direct correlation.
For instance, in an electronics store, buyers
spent 9 minutes 29 seconds, whereas non-buyers
spend 5 minutes and 6 seconds. In some stores,
buyers spend three times as much time as non-buyers.
| Once
the customer is inside the store, they
are busy making adjustments, simultaneously
slowing their pace, adjusting their eyes
to the change in light and scale, craning
their necks to take in all there is to
see |
3.
Interception Rate
The more shopper-employee contacts take place,
the greater the average sale. In a large clothing
chain studied, the interception rate was 25%,
which meant that three-quarters of all shoppers
never spoke a word to a salesperson. This
meant that in all probability, customers were
becoming frustrated, wandering around or just
plain confused or in need of information.
If the staff was not helping the store sell,
then what was it doing?
4.
Waiting time
Few retailers realise that when shoppers are
made to wait too long in line, their impression
of overall service plunges. Busy executives
don't like to wait but many people don't realise
that normal people feel the same way too.
A household goods chain VP was startled when
he saw that a woman who had just spent 22
minutes shopping at the store joined a long
check-out line and stood there until it dawned
on her that she was in cashier hell and abandoned
her full cart and exited the place.
5.
Not knowing who the customers are
This is a remarkable example of business ignorance.
Consider the pet treats manufacturer who stocks
his wares too high, unaware that his main
buyers are very old people! Worse still was
the restaurant owner, whose family outlet
had too many tables for two and too few tables
for four. The tables were empty even as diners
stood in line waiting for tables.
The above considerations clearly indicate
that shopping, like every science has its
own set of rules that retailers need to abide
by.
The
First Principle
There are certain physical and anatomical
abilities, tendencies, limitations and needs
common to all people, and the retail environment
must be tailored to these characteristics.
In other words, banks, stores and restaurants
must be friendly to the specifications of
the human animal. Amenability and profitability
are inextricably linked.
The first principle goes into every aspect
of the shopping experience. Shoppers either
see merchandise and signs clearly or they
don't. They will reach objects either with
difficulty or with ease. They will move through
areas swiftly or slowly or not at all. All
of these physiological and anatomical factors
come into play simultaneously, forming a complex
matrix of behaviours, which must be understood
if the retail environment is to adapt itself
to successfully to the shopper.
For instance, retailers will charge manufacturers
for placing their name on the front door,
which sounds like a smart use of the marketing
dollar
. And then you realise that when
shoppers approach the front door, all they
are looking for is a sign whether to push
or pull.
Once the customer is inside the store, they
are busy making adjustments, simultaneously
slowing their pace, adjusting their eyes to
the change in light and scale, craning their
necks to take in all there is to see. They
are not truly in the store yet. They are making
a transition and whatever they cross during
the transition is lost on them. Today, many
stores have automatic doors, which make life
easier for customers, especially those with
packages or baby strollers. The effortlessness
of entering only serves to enlarge the transition
zone because they is nothing to stop the shopper
even a little bit.
There are two things to be done to this zone,
either forget about accomplishing anything
there or bend the rules. A classic example
is that of a store which had placed a large
bin of deeply discounted merchandise, a deal
so good, it stopped shoppers in their tracks.
Shopfloor
Syndromes
* THE BOOMERANG EFFECT
This is a measure of how often shoppers fail
to walk completely through an aisle from one
end to another. Sometimes, the shopper makes
it halfway down the aisle before turning back.
For the retailer, a good thing to do would
be to put the most popular products in the
middle of the aisle. The manufacturer on the
other hand has to keep his products as close
to the end of the aisle as possible.
* THE BUTT-BRUSH FACTOR
When merchandise is displayed in such a manner
that the customer gets bumped into or brushed
constantly against, they move away from it
even if they want to buy it. This is called
the butt-brush factor. Retailers have to ensure
that merchandise is placed properly.
Using
Signages Effectively
The role of merchandising has become crucial
because shoppers with disposable income are
giving in to their impulses at every point.
In-store media cannot be dumped in empty spaces.
First, you have to get the customers attention
and having done that, present your message
in a clear logical fashion. Escalators are
a good option because the customer is moving
up slowly. For maximum exposure, a sign should
interrupt the natural line of sight in any
given area. The number one thing people look
at is other people. That is why some of the
most effective signs in fast food restaurants
are the ones sitting atop the cash registers-more
or less at the level of the cashiers face.
Shopping
Principles Applied to Various Industries
* FAST FOOD
When a customer enters a restaurant, he is
looking for one of two things, the counter
or the bathroom. There's no point in placing
a sign for people to see on their way to the
bathroom because they have more important
things on their minds. But a sign facing people
as they leave the bathroom works fine.
McDonalds found that 75% of customers read
the menu board after they order, while they
wait for their food. That's a time when people
read anything
they've got their change
and there's nothing on their minds. That's
a perfect window for a longer message, something
you want you customer to know the next time
they come.
It is not important that every sign must stand
on its own and contain an entire message.
The fast-food restaurant is zoned in such
a manner that the deeper in the customer is,
the longer the message can be.
*
BANKS
Banks are probably the worst offenders of
sign placement. A California -based bank decided
that it would be smart to promote its new
free checking policy by hanging outdoor banners
visible from the heavily travelled road beyond
he door. The banner read "please come
in and ask our banker to explain our wonderful
new free checking policy. A banner saying
"free checking" would have been
enough.
Customer writing tables are zones where the
customer is concentrating on filling out a
deposit slip or endorsing cheques. He is concentrating
too hard to think about anything else and
once through, races to get into the line.
It's a bad place to tell them something. Customers
should pass racks containing brochures of
services offered as they exit, not as they
enter, because they are more relaxed and can
afford to take in external data.
Roads teach us the way to use signs. The similarity
between people walking and driving is that
the best signs are the ones that can be read
fast, and positioned so that you can read
them while moving.
| The
similarity between people walking and
driving is that the best signs are the
ones that can be read fast, and positioned
so that you can read them while moving |
*
CLOTHING
The most obvious arena for touch and trial
is clothing. It's a truism that improving
the quality of dressing rooms increases sales.
The dressing room is not a convenience. It
is a selling tool, like a window display or
advertising. Shopper conversion increases
by 50% when there is a staff-initiated contact
and by 100% when there is a staff-initiated
contact with use of the dressing room. The
furnishings of the trial room should be what
you would want in your boudoir, the lighting
should make everyone look like a million bucks
and the mirrors should be large, plentiful
and first-rate. This is after all the 'closing
point' of the sale.
Men
v/s Women
Most purchasing traditionally falls to women
and they usually do it willingly. They take
pride in their ability to shop prudently and
well. Almost all women go to the supermarket
armed with a shopping list. Less than a quarter
of men do. 86% of women look at price tags
while only 72% of the men do.
Ignoring the price tag is almost a measure
of male virility. There is a high level of
impulse buying (almost 60 to 70% for both
sexes). Women love the experience of shopping
whereas men love the thrill of paying.
Male love of technology and gadgetry of course
can put women shoppers to shame. Men hate
to ask directions or for help, but they like
to get their information first-hand as from
written material, instructional videos or
computer screens. If a retailer were to put
up a women's clothing store next to a computer
software store, both the sexes would be most
grateful.
Kids
Children consume even more mass media than
adults. The marketplace wants kids, needs
kids and children are flattered by the invitation
and want to oblige. A few important tips:
| Men
hate to ask directions or for help, but
they like to get their information first-hand
as from written material, instructional
videos or computer screens |
1. If a store is unwelcoming to children,
parent-shoppers will get the message and stay
away. Stores that depend on female customers
need to ensure that all aisles and paths between
racks and fixtures are wide enough for a baby
stroller to pass.
2. Children can be counted on to be
enthusiastic consumers or co-consumers as
long as their needs are considered. Conversely,
the retailer has to child-proof his shop in
order to prevent unhappy situations. The obvious
dangers are electrical outlets and sharp-edged
shelves.
3. If the parents' sustained attention
is required, say by a bank officer or by a
car salesman, someone has to take care of
a restless, bored child.
4. It is good to have miniature seating
but remember that a child is used to the parental
lap. It would be advisable to have some comfy
armchairs around so that both the parent and
the child are comfortable.
The science of shopping is a hybrid discipline,
part physical science and part social science
and only part science at all because it is
also an art. It is a practical field concerned
with providing information that can improve
the retailer's edge and the odds of making
a wrong decision. Much of the value of the
science lies in the ability to go beyond collecting
data and making educated guesses about what
it means and how best to respond.
Even with all this learning, there are creative
merchants who throw this science to the wind.
Consider the 400 sq. foot store in Toronto
called No.6. In that miniscule space, everything
from hats, dresses, bags, jewellery, scarves
and music are sold. The store is a triumph
of energy over space and budget limitations
and it is tough not to buy something from
there.
For most scientists, the most exciting part
of research is the exact moment of discovery.
There is much more to be discovered and much
more to be learnt.
The
above article has been condensed from "Why
We Buy: The Science of Shopping" by Paco
Underhill published by Simon and Schuster,
New York. All rights of the author and the
publisher are reserved.
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TURNING
POINT
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With
the advent of Shopping
Malls that offer multiple
brand choices, department
stores such as Shoppers
Stop have to reinvent
their USP or else they
are likely to lose business
to exclusive stores of
the same brands operating
in the same Malls (or
others in the close vicinity).
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Arvind
Singhal
Chairman, KSA Technopak India
Pvt. Limited
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