Retail Psychology - Impulse Buys Increase your Revenue Per Customer
As online shopping becomes more popular, foot traffic at physical stores is becoming increasingly important.
Setting your store up to encourage impulse buys will increase the amount of money your customers spend each visit.
- 88% of all impulse purchases are made because an item is on sale
- Households of young unmarried adults with higher incomes do 45% more unplanned buying than older, married households
- Shoppers who go to the store in a car instead of by foot are 44% more likely to make an unplanned purchase
- Overall, 50% of women and 47% of men said that they've made an impulse purchase because they were "excited". Younger consumers (18 to 29-year-olds) are particularly inclined to impulse shop more when excited (69%)
- Shoppers make an average of 3 unplanned purchases during 40% of all store visits
The first step in increasing impulse buys is selecting the products you want to focus on.
The best impulse buys are small, inexpensive, and fulfill a need or desire.
Think back to all the times you were checking out of a grocery store or large retailer. All those batteries, candy bars, and magazines in the checkout lanes are examples of impulse buys.
If you don't already have items that could be used for impulse buys, contact your vendor(s) and explore your options.
Next, you must choose where you are going to place these items.
For these smaller items to get purchased, they must first be noticed. Decide where your customers will most likely see these smaller items. Just like large retailers, your check out area is always a great spot.
If there are other hot spots in your store that customers gravitate toward, get creative and set up displays for impulse buys near this area.
After you have decided on the items and where you are going to place them – You need to draw attention to the products.
Signage and in store advertising are going to play a huge role here.
Promoting these items as being on sale will play to your advantage. Humans are motivated by sales because of missed opportunity and fear of loss.
Take advantage of upcoming events and holidays to change up your displays and impulse items.
Placing non-sale items next to sale items makes them more attractive.
All in all the idea of placing impulse buys around your shop isn't a ground breaking one but this retail practice can greatly boost your overall revenues and profit throughout the year.