Month: October 2014

Scent Marketing Makes Business Sense

Posted onAuthoralice@specialtystoreservices.com

wordsSuccess tastes sweet, but who knew its smells even better? Scent marketing research studies show that the use of scent in retail stores can have a significant and direct impact on business sales and profitability. Wondering how? Well, simply put, it helps deliver a better shopping experience to customers.

By using scent in your business outlet, you can make customers connect with brands on an emotional level and tug all emotional strings that help increase customer loyalty, brand engagement and, of course, the time consumers spend in stores; they tend to linger longer, thereby fetching retailers more sales.

The Science of Scent Marketing: How it Works?

Scents have a compelling and immediate effect on people. They are directly linked to the brain’s limbic system, which is the part of the brain that is responsible for our memories and emotions. Scents basically go beyond our rational perception, and have a strong impact on our emotions. According to Nobel Peace Prize Winners, Richard Axel and Linda Buck, our sense of smell is the most emotional sense we possess. Rather than interpreting the information we receive from a particular fragrance, we immediately get a feeling when we smell something.

For example, during the holiday season, there is a certain smell in the air which makes us jollier. Is it the spirit of Christmas? Well, not so much! It’s the smell of pine and oranges we associate with the holiday season. Make sense?

Scent Marketing Makes Business Sense: Let’s Talk Stats and Facts

It makes business sense both literally and metaphorically. Before we discuss some great tips for influencing shoppers with scent, let’s look at some stats and facts first. In a study conducted by the Smell and Taste Institute, it was discovered that 84% of consumers were more likely to buy a pair of Nike trainers in a scented room compared with a non-scented room. And what was even more surprising was that they were ready to pay more.

And did you know:

  • Consumers evaluate scented products as being of higher quality
  • 75% of human emotions are triggered by smell
  • Customers are more eager to buy and pay higher in a scented environment
  • Consumers remember scented shops more than the unscented ones
  • Tests show a 40% improvement mood when exposed to a pleasant scent

Cinnabon, the bakery chain, uses this marketing strategy. They place ovens in front to entice people into entering their establishment. The enticing smell of warm cinnamon rolls can make anyone salivate. They intentionally choose malls and airports (or closed spaces) to make the smell linger. This has worked for their business. Now it’s time you caught on to it!

Actionable Tips to Sniff Out Higher Profits with Scent

If you run a bakery or a restaurant, that doesn’t mean you can’t use this strategy to optimize sales. Here are great tips to help you leverage your business:

Use Simple Scents

First things first, make sure the scent you use is not a complex one. Studies show that consumers exposed to simple scents spent 20 percent more than those exposed to a complex blend.

Reinforce Branding with a Signature Scent

According to the Sense of Smell Institute, people remember scents better than photos. Develop a signature scent that people can associate with your brand. For example the tanned leather scent of ‘Fine Suede’ can be used to entice people into entering and making purchases in a leather goods store.

Make Sure it’s Not Off-Brand

Don’t go off-brand when choosing scents. For example, facts say that the aroma of lavender slows the perception of time and smelling it encourages shoppers to spend more time in a store. This scent would be beneficial in a grocery store. An amber scent or earthy wood notes, however, would be a good choice for a furniture store. These scents induce warmth, comfort and sometimes nostalgia. Such notes can help create brand association.

Showrooming: If You Can’t Beat It, Befriend It

Posted onAuthoralice@specialtystoreservices.com

 

Showrooming: If You Can’t Beat It, Befriend It

Showrooming is a relatively new foe in town for brick-and-mortar retailers. It is eating away showroomingretail sales and business profits. If you are not familiar with the term yet, it is basically a practice wherein potential shoppers visit a brick-and-mortar store, examine a product and then use their mobile devices to see if a better price is offered at other stores or e-commerce sites. This practice is becoming common with time, which means it is here to stay for a while.

Let’s talk stats to see how showrooming is posing a threat to brick-and-mortar retailers:

  • A report from Teradata (a marketing software subsidiary Aprimo) and Forrester Research shows that more than half of consumers report finding lower prices over the web than in store. Thirty-three percent use this information to buy the product elsewhere.
  • A report published in Denver Post shows that retailers lose as much as $217 billion a year in missed sales from showrooming customers.

Counter Strategy That Backfired

To counter this practice, some retailers tried disabling Wi-Fi service in their stores to keep shoppers from browsing. This approach did not last for long and retailers had to discontinue it because turning off Wi-Fi did not stop consumers from browsing. Since most mobile users have data plans in their phones, they can surf the web regardless of their location.

Time to Convert the Threat into an Opportunity: Use Showrooming to Your Advantage

If you can’t beat them, join them. Likewise it’s time that you use showrooming to your advantage instead of looking at it as a threat. The truth of the matter is that it is not a fad and it will likely no be going away any time soon; quite the opposite, it is likely to become more popular with time. The point, then, is to acknowledge and accept this phenomenon and use it to your advantage to minimize negative impact.

Here are some of the best ways to leverage showrooming for your retail success:

  • Price Match: The most obvious way to give a good run to the competition is a price match. Last year, Target announced that they would start price matching online competitors, even the big ones, such as Amazon, Walmart, BestBuy and Toys R Us. BestBuy took this concept a step further by matching with a greater selection of online competitors and physical stores within a 25 mile radius. They claim that price matching worked to their advantage. You can try it, but it is important to understand that this might not work for every business and depends on where your price points are. In addition, it may only workable as a short-term strategy as it may override your overhead costs.
  • Invest in a Mobile-Optimized Site and Mobile Apps: Direct your customers to your own mobile site and app through in-store Wi-Fi where you can offer both product information and reviews. This will reduce the likelihood of a customer landing on a competitor’s e-commerce site. Also, make sure your site is optimized for all types of mobile platforms, including tablets, phablets, and smart phones.
  • Keep Your Website Up-to-Date: Make sure that your site prices match those offered in your store and are also competitive. You can also consider offering printable coupons and rebates that can be used in your store to encourage customers to buy from your retail store.
  • Deliver the Ultimate in-store Experience by Offering in-store Giveaways and Promotions: In-store promotions, exciting discounts for retail customers and special giveaways are enticing for shoppers. They would love to come to your store and find deals that allow them to save money.

Never Forget the First Rule of Customer Service

Offer the one thing that can’t be found on a mobile search: In-person customer service. Make sure your staff is well-trained to offer the best in-store experience possible. Remember, a pleasant shopping experience goes a long way, especially for those who love traditional shopping.

Walking Down The Aisle: The Relationship Between Aisle Spacing And Customer Behavior

Posted onAuthoralice@specialtystoreservices.com

dia_gridFrom determining where different category products will be placed, to how the in-store advertising material will be displayed there is no doubt that shelf-product placement and SKUs prompt shoppers to purchase products they may never have had any intention of buying, which eventually fetches more sales for retailers.

Does retail success only lie in merchandising planning, though? Well, let’s just say this is one part of the equation to maximizing retail sales. Want to know another very important part? Aisle Spacing!

Yes, this is an effective retail layout strategy that can boost retail sales dramatically. Before we get down to business and share with you some great tips to work out your aisle spacing, let’s take a look at how Walmart learned the impact of aisle spacing phenomenon on sales the hard way.

In 2009, Walmart conducted a customer survey in an effort to improve their customer’s retail experience. According to the survey data, Walmart had to overhaul the approach of displaying inventory on the sales floor. They removed 15% of the store’s inventory. The retail giant created more space between the aisles by decreasing the merchandise in store, stocked on the aisle end caps and also shortened shelf height. The outcome from a business point of view was shattering. The sales plummeted $1.85 billion. In the quest of giving a cleaner and a spacious store to the customers and a better retail experience, they sacrificed their retail sales. Eventually they reverted to ensure they didn’t lose even more sales.

After years of shedding inventory and clearing store lanes for a cleaner, wider and more appealing look, retailers across the country are now adding more inventory and opting for narrow spacing in stores. This most certainly doesn’t mean that you cramp up the space and make it impossible for shoppers to walk-through, though, especially if you provide shopping carts.

Understanding the Aisle Width Mantra to Power up Sales

First things first, developing a good understanding of aisle width (i.e., selecting the right width) can increase your sales. Here’s how aisle width is connected with retail sales: where wide and long aisles facilitate movement for buyers and deliver a good shopping experience, they also encourage customers to walk briskly past merchandise they might otherwise be interested in purchasing.

Narrow aisles on the other hand may restrict easy movement (and sometimes even hamper foot traffic), but such aisles encourage browsing. There is a thin line, however, between narrow and clogged aisles. Clogged aisles can frustrate customers and lead to premature departure, which is something no retailer wants.

Are we suggesting narrow aisles? No. Narrow aisles may not be the best bet for you, if you have a small store. The crux of the matter is to select aisle spacing according to your store type.

Choosing the Right Aisle Width: Strike a Balance

Wide aisles encourage customers to power walk to the merchandise they have come to the store for; this may be a good idea for big box stores, but not so good for specialty stores. Studies show that a customer spends, on average, eight minutes shopping in a single store. This means it is practically impossible for them to see a large number of SKUs in such a short time.

The idea is to slow the customers down to get them to see more products, while acoiding traffic jams in your store.

  • The best strategy is to select aisles that are narrow enough to force customers to slow down, but at the same time still be wide enough that shoppers are still able to notice the products displayed. Strike a balance.
  • Make sure the area in your store is wide enough for two people to pass one another at the same time. This means a minimum of three to four feet is good enough.
  • If you provide shopping carts, then an aisle width should be enough to accommodate two (side by side) shopping carts.
  • Beware of the butt-brush effect where the typical customer may avoid perusing merchandise if it brings another customer’s backside into close proximity. To avoid this, make sure aisles and floor space allows patrons adequate personal space in your store.