Paco Underhill’ book “Why We Buy” is a must read for every sales executive that sells radio to direct local clients. In his book, Paco lists dozens of things retailers could do to encourage business; and dozens more mistakes retailers make in laying out their store.
Included are points as fundamental as these:
• Forget about signs on the door to a store - people don’t read them unless the store is closed - they’re looking to see if you push or pull the door.
• Train store staff to offer baskets: people only have two hands so that limits their amount of purchases. If a customer has three items, ask them if they want a basket. People will usually accept and a basket will increase both the number of purchases they make and the total amount of their average purchases. Also scatter baskets throughout the store for easy use. People might only have two items and think they can’t pick up another - especially women on cool days where they’re holding a purse, possibly an umbrella and a coat. They don’t have enough hands to make more purchases.
• Signs should be placed in areas that reflect contents. The most effective level is eye level or very close to it as people are fascinated by other people’s faces. If it is in a zone where people linger, the sign can be slightly longer. A sign in a quick moving area should be no longer than two or three words and be succinct and impactful. Don’t place a sign for people on the way to the bathroom; they have more important things on their mind.
• People always walk to the right in North America so design your store flow that way. If the predominate shopper in the store is females do not have a men’s display to the right of the entrance.
• If the product or service has appeal to kids, place a hopscotch board on the floor beside where you want people to linger. Research shows kids will stay there an average of 14 seconds, a long time to go without a purchase.
• In a women’s store, don’t place a seat where it will be near a display of merchandise that is uncomfortable for men (a bra section for instance.) Women will avoid the area.
• 65% of male shoppers who try something on buy it - as opposed to 25% women. So make sure in a men’s clothing store the fitting rooms are clearly marked and have easy access. If a man has to search for it, he may decide its not worth the trouble and leave.
Remember we are trying to make our clients advertising effective. If our advertising brings people to a store and they leave without buying something, who does the store owner blame?
Right.
You.
Tuesday, September 14, 2010
Saturday, September 4, 2010
How Basic Burgernomics Can Work for Radio
In my last blog, I wrote about the power of three as a tool for getting better prices for products and services. Simply put, if you want to sell more, provide three choices. This timeless strategy is being used again by the big burger chains of the world with superior results.
The Saturday edition of The Globe and Mail newspaper this week ran an article in their business section reporting how McDonald’s stock was up more than 30 percent over the past year - in spite of the recession that continues to grip the United States. In the article it held how fast-food chains used to believe that no one single item should cost more than $5. But McDonalds recently broke that barrier in offering a $5.98 burger (Canadian) in their Ontario outlets.
What has this to do with the power of three? Scott Hume, editor of Burgerbusiness.com stated that burger “chains are using a barbell strategy, mixing low priced items with premium price items” to boost prices. That’s the beauty of the power of three.
The power of three dictates that when offering 3 choices, the most expensive choice should go beyond historical pricing for an item. That’s what McDonalds did with their Smokehouse Deluxe Burger. They priced it at 20% more than common practice. And they ended up getting it.
In my theatre example, 20% of the patrons at the theatre ended up purchasing the newly created super size drink. And their surprising bonus was that 60% of purchasers chose the medium size drink (which was actually their old large size). In the past, the same size drink accounted for only 20% of their sales.
It seems the timeless strategy of the power of three, with its super sized third choice, is being understood more and more. . As Mr. Hume went on to say about burger chains, “Increasingly, they’re tilting the balance toward the premium end”. Why?
Because people love excess in burgers, soft drinks, computers, cars and just about everything else. Radio should consider this strategy as well. For a more complete look at the power of three, take a look at my Last blog, “How to get Better Results for Clients ”.
The Saturday edition of The Globe and Mail newspaper this week ran an article in their business section reporting how McDonald’s stock was up more than 30 percent over the past year - in spite of the recession that continues to grip the United States. In the article it held how fast-food chains used to believe that no one single item should cost more than $5. But McDonalds recently broke that barrier in offering a $5.98 burger (Canadian) in their Ontario outlets.
What has this to do with the power of three? Scott Hume, editor of Burgerbusiness.com stated that burger “chains are using a barbell strategy, mixing low priced items with premium price items” to boost prices. That’s the beauty of the power of three.
The power of three dictates that when offering 3 choices, the most expensive choice should go beyond historical pricing for an item. That’s what McDonalds did with their Smokehouse Deluxe Burger. They priced it at 20% more than common practice. And they ended up getting it.
In my theatre example, 20% of the patrons at the theatre ended up purchasing the newly created super size drink. And their surprising bonus was that 60% of purchasers chose the medium size drink (which was actually their old large size). In the past, the same size drink accounted for only 20% of their sales.
It seems the timeless strategy of the power of three, with its super sized third choice, is being understood more and more. . As Mr. Hume went on to say about burger chains, “Increasingly, they’re tilting the balance toward the premium end”. Why?
Because people love excess in burgers, soft drinks, computers, cars and just about everything else. Radio should consider this strategy as well. For a more complete look at the power of three, take a look at my Last blog, “How to get Better Results for Clients ”.
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