Article Number : 4533 |
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| Date | 6/2/2009 9:05:52 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=4533 |
| Abstract | Paco Underhill, consumer behavior expert and author of “Why We Buy: The Science of Shopping” and “Call of the Mall—The Geography of Shopping,” says successful retailers should recognize some of the barriers to purchasing, especially during these tough times—such as... |
| Article | Paco Underhill, consumer behavior expert and author of “Why We Buy: The Science of Shopping” and “Call of the Mall—The Geography of Shopping,” says successful retailers should recognize some of the barriers to purchasing, especially during these tough times—such as shoppers asking themselves, “Should I shop somewhere else? Is this going to accomplish what I want to accomplish? Why is this carpet $16 a yard and why is this one $28 a yard?” A key issue, Underhill said, particularly for brick-and-mortar retailers, is realizing the Web offers a very effective method of educating customers before they come to the store. “Retailers can take advantage of their Web sites and the opportunities they provide to inform and educate, as opposed to sell,” he says. “Educate customers online and close the sale in the store.” Some of that education is with clear messaging in the store. “You also want to have sales help who demographically match the audience the store serves. If you’re a photo dealer, it’s very important all your sales associates are not 22-year-old men,” he notes. “It’s also important to recognize one way to build your ticket price is to price the camera aggressively, and then make sure customers buy accessories that have better margins. Sell the complete outfit. Sell the camera, case, memory sticks and spare batteries.” While it’s a good idea to increase the amount of time consumers spend in a store, Underhill points out it’s only good as long as that time is spent being engaged, rather than being frustrated or lost. “If you have someone wandering around asking for directions, that’s a frustrated person. Having people waiting to see a customer service agent is not a great idea. Long waits at checkout are really poisonous; however positive an interaction the customer has, it can be dissipated at the cash register. “If you want to hold the person in the store, fine, but make sure they’re being held for the right reasons.” Good signage, Underhill notes, is very important. “You want to put the appropriate message in the appropriate place. It’s very disconcerting when people have a 20-second message in a three-second window. “You have to understand what information customers want, the nature of the opportunity you have, how much time you have, and what someone is doing while they’re looking at your sign.” Assistance from a sales associate can affect the average amount consumers spend and for a technology purchase, it’s critical, Underhill states. “A good salesperson matches the customer with the appropriate product. A good salesperson can trade somebody up or just make sure somebody closes. When there is no sales assistance, it’s the difference between a conversion rate of 22% and a conversion rate that’s a more appropriate 50%. For every person who doesn’t need any help, there are three others who do.” Underhill has seen some common mistakes in retailing. First is misunderstanding the role of storefront windows. “There are many people who put too much stuff in the front windows, or use them to show people they’re in stock,” he explains. “You want a single, simple message in your window, and frequent changes.” A second mistake is not establishing a clear circulation route—a logical pathway the customer takes. “I want customers to circulate to the right in a counterclockwise fashion, which puts their shopping hand closer to the product,” he says. “Controlling that is a store design issue.” Retailers also sometimes don’t recognize appropriate adjacencies— what products to put next to what. “Another big mistake is not recognizing it is just as important to communicate with the customer going from the back of the store to the front as it is from the front of the store to the back,” he says. And finally, checkout is a critical part of the customer experience. “Your job is to make it as pleasant and painless as possible.” |