psychological tricks used by retailers to get people to spend more money - KQ Den

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Thursday, 22 March 2018

psychological tricks used by retailers to get people to spend more money

More than you can count.
But here’s a few examples that are the most effective at the most pivotal spot in the store - the checkout counter:
1. Allow For Impulse Purchases
Ever wondered why supermarkets and grocery stores stock up on candies, magazines and other “want-but-don’t-need” items?
To encourage impulse purchases.
An impulse purchase is an unplanned decision to buy something, usually made just before a purchase. And the reason why supermarkets continue to pile up goods right in front of their checkout counter is because it works.
Too well.
Why It Works:
A – Instant Gratification
Impulse purchases target a consumer’s basic want for instant gratification. When a customer sees candies located near the checkout counter, it immediately satisfies his/her craving for sugar. So, he picks up a tube of Mentos, and chucks it into his trolley.
The immediate gratification from buying a tube of Mentos has outweighed the future consequences.
This also has the sneaky effect of tempting children into pressuring their parents to buy them sweet treats. Supermarkets know that parents will always give in to their children asking for extra candy.
I mean, I would totally buy a candy to prevent this.
B – Commitment
According to Robert Cialdini, author of the book Persuasion, humans have a tendency to commit. We use commitment as a mental shortcut to simplify our decision making.
Committing to something that you’ve agreed to, or taken action on something you’ve agreed to prior helps reduce the amount of things we have to think about on a daily basis.
So, when a consumer is right in front of the checkout counter, he or she has already made an internal commitment to spend. Thus, when some M&Ms are placed in front of the customer right before he or she takes out the wallet to pay, it is actually a suggestion to reinforce the commitment.
C – Decision Fatigue
A long day at the supermarket means hundreds of tiny decisions. These tiny decisions are made almost every second (“should I get that pasta sauce?”, “chocolate or vanilla ice cream?”)
Willpower, or the ability to say no, is a finite resource. When we use up our tank of willpower to say no to chips, chocolate and ice cream in the aisles, we actually find it harder to say “no” at the final moment in front of the checkout counter.
Good luck, willpower.
This is known as decision fatigue. Decision fatigue has been found to be one of the causes of irrational trade-offs in decision making – especially when you didn’t want the Mars bar at all.

2. Stock Your Checkout Counter With Frequently Forgotten Items
The idea behind impulse purchases might sound a bit unethical – and you might find yourself feeling averse to it.
It doesn’t have to be that way.
Impulse purchasing can actually be helpful to your customers. One of the best ways to do this is to add frequently forgotten items to your checkout counter. These are the items that customers who frequent your stores want and need, but forget to add to their cart.
A quick way to discover what these items are is to ask yourself these questions:
  • What items do customers frequently ask your cashiers or salespeople for, or ask them to help find?
  • What does an ideal customer of yours need, but may not realize?
  • What do customers frequently comment, or exclaim when they’re paying at the checkout counter?
Examples:
Sephora, a French cosmetic chain has designed their checkout counters to “snake” around, giving customers a chance to peruse relevant items while they wait for their turn to make a purchase. Their checkout counters contain display bins that are filled with essentials, like travel-sized cosmetics, make-up brush sets and so on.
This style of “snaking” counter has also been adopted by fashion brands like H&M and Cotton On, with Cotton On even encouraging customers to purchase bottled water.

3. Design Your Checkout Counter For Optimal Customer Experience
Encouraging impulse items doesn’t mean you should “spam”. By spamming, I mean cluttering your checkout counter with tons of small items just to make a quick buck.
Always remember: long-term customers that visit you regularly are more profitable than one-off customers.
While you want your customers to increase their average order size by triggering impulse purchases, you, too want to design an experience that encourages him or her to come back more often.
That means finding the right balance between stocking up your checkout counter and designing an inviting space where the customer feels happy and less stressed (which counterintuitively means they would be more willing to spend.)
“Make them smile and take their money,” as Dan Kennedy, the marketing guru would say.
Examples:
Shopping in a Victoria’s Secret store is a luxurious experience unparalleled by many other lingerie brands. Victoria’s Secret has committed to creating a great in-store experience, making customers feel that every visit is a treat for themselves.
This philosophy guides their checkout counter, where they display bins of handy products like lip gloss and mini perfume bottles to encourage customers to add to their lingerie purchase.

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