One of the keys to success for retailers is maximizing both the average dollar per transaction (ADT) and units per transaction (UPT). One of the best ways to do this? Capitalizing on human impulse behavior, of course.
Retailers can significantly drive up both ADT and UPT by encouraging consumers to make impulse purchases. The vast majority of American consumers – a full 84 percent – admit to making unplanned purchases while shopping. A full 33 percent of consumers actually admit to making impulse purchases at least once per week. Research consistently shows that consumers struggle to completely control their urges to buy something they see and want, especially when they feel that they are scoring a good deal.
Recognizing the economic power of the impulse purchase, retailers like Sephora, Target, and H&M all entice consumers to make impulse purchases, often relying on impulse shopping zones. Wonder where and how to create compelling impulse zones in your retail store? Be sure to keep the following tips in mind.
Set Up Tabletop Displays
Tabletop displays are an excellent way to drive up UPT. Scattering these throughout the store – ideally in high-traffic zones – are an excellent way to grab customers’ attention and get them to pick up something they might otherwise not. When populating impulse shopping zones, remember that the key is to choose items that consumers are likely to perceive as inexpensive and low risk and that are frequently consumed.
Use the Window
Window displays can actually make great impulse shopping zones, getting people in off the street to buy something impulsively. If people see other people shopping in your store windows, chances are higher that they will step off the street and into your store on a whim and perhaps even make a purchase.
Take Advantage of Popular Items
If you want customers to make an unplanned purchase, make sure you are looking for opportunities to provide value. You can do this by placing impulse items next to products that are very popular to maximize the attention they get from consumers. Ideally, these impulse items should complement the popular item in some way. For example, if there is a particularly popular brand of men’s shirts in your store, it would be a good idea to place accessories like ties and cufflinks in the vicinity of the shirts.
The bottom line is that it worth putting some time and effort into creating compelling impulse zones in your store. The more you can capitalize on your consumers’ impulses, the better your store will do.
