The overwhelming majority of consumers have at one time or another made an impulse purchase. Even the most self-disciplined shoppers can find themselves surrendering to the urge to save money or not miss a valuable opportunity.
Making a purchase on the spur of the moment is an impulse buy. There are many reasons why people buy on impulse. What is important for marketers to know is that roughly 80 percent of impulse purchases are made in brick-and-mortar stores. It is also known that shoppers make on-the-spot purchases approximately 40 percent of the time.
Considering the statistics, creating an effective marketing strategy aimed at those buying on impulse can yield generous revenue. The most successful marketing plans consist of three prominent features: (1) product type; (2) product promotion; and (3) product placement.
Consumers who make unplanned purchases tend to buy items that are relatively small. That means it could be a pack of gum or a ring. Consider that jewelry and sports equipment are purchased more on impulse than are shoes or body care products. Whether it’s an article of clothing or a new automobile, an estimated 40 percent of retail sales is the result of impulse buying.
With total U.S. retail sales reaching just below the five trillion-dollar mark in 2015, implementing a marketing strategy that considers which products have the most appeal to impulse buyers is vital information.
Products that are simple and easy to hold and carry are among the bestselling items for those who buy on the spot. Whether it’s the travel size lotion at the register, a candle or a candy bar, these are items that do not require explanation.
There’s nothing like a good sale to urge to make an unplanned purchase. With 88 percent of impulse buying triggered by a sale or discount, retailers can integrate a myriad of strategies to boost receipts.
One reliable approach is to arrange complementary non-sale items around sale merchandise. This elevates the value of the sale items, while also helping to move non-discounted product. Another strategy is to plan weekly sales of limited items. For instance, a new product can be introduced with a special 24-hour special offer. Remember to use social media to announce the sale and build excitement in the days leading up to your promotion.
Small items attractively displayed at the checkout counter is often a simple and successful way to add length to receipts. Invite customers to make last minute purchases with the type of item that can be tossed in a purse or an automobile console. Snacks, gum, lotion, hand cleanser, lip balm, sunglasses, bracelets—the list is endless. Make additional sales irresistible with discounts on multiple purchases, or a BOGO offer.
Retail therapy also involves an element of fantasy. Tell a story by creating a modest display that invites customers to inject themselves into the scenario. For example, if you sell blankets, arrange a cozy picnic on your merchandise. Use props such as a champagne bottle, a woven basket and cutlery to suggest how the blanket can be used.
Window-shopping does not require a window. Whatever merchandise you offer, you can always find a way to present an item as part of vignette that allows your shoppers to visualize themselves using the product in the way you suggest.
The Urge to Splurge
The innumerable surveys on shopper behavior consistently show that impulse buying transcends age, gender and even income bracket. Why people make unplanned buys is more interesting and almost invariably relates to mood. Approximately half of both men and women are more likely to buy something on impulse when they are feeling excited, and a little less than one-third of both genders feel the urge when they are bored. No matter what the reason, the data unequivocally shows that developing marketing strategies to indulge impulse buys can create lucrative profit centers for retailers of all size.
If you’re a new or existing Specialty Store Services customer who would like more information on Impulse Displays, just Email Us. Or you can also shop for all of your Cash Handling supplies online on our website, Specialty Store Services, by Live Chat, or by phone at 800-999-0771.