Smart retailers take advantage of many strategies to supercharge their in-store experience. We’re firm believers in the shelf-edge and how technology can transform a customer’s trip to your store, but focusing solely on ESLs as the game-changer your store needs is short-sighted. Quite simply, you must utilize as many techniques as possible to keep people spending.
Promotional Pricing: We’ve said it many times – promotional pricing and sales are important. ESLs make the task easy and efficient – with near-instant price changes that replicate what the rest of your systems use, red & yellow “ink” on digital tags to denote the best deals in your shop and automated algorithms which change prices based on competition and / or expiry date. But remember, there is a fine line between pricing to get folks in your store and pricing which will turn your books red.
Mind Your Digits: As discussed in a recent blog post, psychology plays a huge role in customers perceiving something as a deal. Lowering the price by mere cents and changing the left-most digit in the price can cause consumers to round-down subconsciously, maximizing what they feel is a great deal.
Proper Template Design: Continuing the psychology theme, minimizing the regular price on a tag and/or maximizing the savings on a tag can cause a consumer to cognitively think a price is lower or savings are higher – based solely on the font size. Studies suggest that when an individual reads a price tag, they give weight to the size of the font and correlate the size to the actual price / savings of a product.
Store Events: Having a manufacturer or vendor co-sponsor an event with your store is an excellent way of bringing in shoppers. Not only can the customer see the product in action through in-store demos (think Costco), but they can also be surrounded by other eager shoppers there for the same reason and group-think can quickly set in and create happy customers.
Point-Of-Purchase Displays: Stores utilizing end-cap space, register space and other commonly frequented areas of a store increase sales by promoting products and placing low-cost items in areas where shoppers otherwise wouldn’t be interested in. Of course, a successful implementation of digital price tags / electronic shelf labels with the merchandise can further the information provided to a consumer and encourage them to purchase.
Loyalty Programs: Customers love to be recognized for being a frequent or VIP shopper. Loyalty programs can not only offer these repeat buyers with better pricing, but enable retailers the option of specifically targeting them for promotions. Bluetooth enabled ESL’s in combination with an in-store app make this even easier, by allowing retailers the ability to automatically send promotions to consumers when they walk by a product.
In addition, research shows that it costs 5-times as much to get a new customer than it is to retain an existing customer. This expense, coupled with the fact that return shoppers purchase items 60-70% of the time, while new customers only purchase 5-20% of the time, makes loyalty programs even more important.
Urgency: In certain situations, it is beneficial to display inventory levels or time-left in promotion information directly on a price tag to create a sense of urgency to buy in a shopper. This is easy to do with digital tags – not so much with paper tags.
Think Local: Shoppers love to support the “small-guy” or the “local-guy.” Encourage small-town, local thinking through frequent social media use, local advertising, quick response to messages and phone calls, volunteering the community, etc.
These tips, worthwhile on their own, combined will supercharge your business. Make it hard for consumers to NOT shop at your store by honoring them, providing them with the information they need, being involved in their community and catering directly to them.