How hard does your store work for you? If you don’t think of your store as the salesperson that never leaves then perhaps it’s time to revisit your merchandising strategy. Effective stores increase sales. Successful merchandising is more than decoration or even attractive displays. It’s one part science, two parts savvy communication and a dash of magic. When done properly, it can successfully convert shoppers to buyers and prove to be a very profitable tool.
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Help shoppers envision your product in their homes by coming up with creative and seamless displays such as this one from our Top Shop profile, Lilies White.
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Many small-business owners will point out that space is at a premium and budgets are pretty tight too. Effective merchandising needn’t be expensive or involve expanding the physical space. It’s really about hierarchy of message and being clear as to what steps your customer is taking psychologically as they navigate your business space. The first order of business is to get people in the door. The biggest mistake retailers make when it comes to merchandising is to pile goods at the door entrance in the hopes that it will entice people in. You think you’re saying “come and get it” but customers may be thinking “too many barriers to get past” and keep walking by. Take a stroll down a mall sometime and notice those retailers who pile stuff at the front of the store. Luggage retail stores are notorious for this. Does it really look welcoming or does it just look junky? If you have a feature product to showcase then by all means have a small display with clear signage at the entrance. Otherwise – make your entrance look welcoming and open with some tasteful floral accents.
Once you’ve got the customers across your lease line – here’s where you need to think carefully about their decision-making process. When they enter the store, they’re typically a bit disoriented and adjusting to new lighting, temperature, sounds and surroundings. There’s a lot going on and that’s why important marketing messages shouldn’t reside in the entrance to your store. What’s the first thing they’re wondering? You can usually tell by what questions are asked when somebody new comes in to buy. Chances are that the customer is thinking of an occasion. That occasion may be anything from “Happy Anniversary” to a casual dinner with friends. Why not organize your store into four or five sections with big signs dangling from the ceiling to direct customers to the appropriate section for their occasion? This is known in retailing lingo as “wayfinding.” In other words – help the customers find their way to exactly what they need quickly. If you take this approach it will likely mean a few sacred cows will need to become Friday night’s steak dinner. If you’re the type who typically retails all similar items together or even by colour then you may have to split up some of the groups you’re used to having. The candles will reside in all sections now instead of all together in the candle section. You may get the odd person coming in for just candles but chances are you’ll get more impulse sales if the red candles go in the “I love you” section and the yellow ones in the “casual dinner” section. The two other key “wayfinding” messages most consumers want to have included: what’s new and what’s on sale.
If you think of retailers that really do a good job of leveraging their space, booksellers often come to mind. Close to the front of their stores they typically have a “what’s new” section organized according to the bestseller list. Industries such as the floral design and home décor sectors are very much rooted in design trends so people are keen to know what’s new and trendy. Create a big sign that says “new and trendy.” Here’s where you showcase colour stories, design trends and ideas for customers to feed off of. For products being marked down, discontinued or featuring an introductory sale price, create a section called “great values.” Once you’ve got the customers directed to the sections they’re most interested in, the on-shelf or product signage will help convert the “shop” into a “sale.”
Regardless of which section they end up in, the next question on every customer’s mind will be “how much does this cost?” Promote your prices clearly and unapologetically. Don’t put the price sticker on the bottom of the item if you want to encourage sales. Not everyone will be motivated enough to pick it up and turn it over to get the price – it’s too much work for many. If an item is on sale, make sure the tag communicates the regular price as well as the sale price. Customers love seeing the savings clearly marked. A note at the bottom of the tag that says “sale ends (insert date)” will introduce a bit of urgency to the purchase decision and may help sway it in your favour. Another on-shelf trick that we should borrow from book retailers is the “peer to peer endorsement” strategy. You will often see publications with stickers that promote it as one of “Oprah’s picks” or even a “staff pick.” Customers love knowing that the people running the store have their favourites too. If you can include the name of the employee endorsing the product and a few words as to why they like it – even better! It will now have a personal touch. If the product has won an award, that’s great to highlight as well.
Great merchandising isn’t expensive and needn’t involve much in the way of smoke, mirrors or sleight of hand. The results may be magical but the journey there is paved with common sense.
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