The biggest industry in India is retail, which makes up almost a quarter of the nation’s GDP. The Indian retail market has recently been blessed with relaxed FDI norms. Thus increasing the players in the market everyone from a small kirana store setup (100 sq ft) to big supermarkets (10,000+ sq ft.) now has a level playing field.
With increased competition, it is imperative that a shop owner does everything in their power to make sure conversion takes place. If you want to gain that slight edge over your competition and see an increase in sales too, you should see the points listed below.
Increase your curb appeal
Curb appeal is the attractiveness of the exterior of a property extending to the street most times. Curb appeal is an often overlooked part of the customer experience. It takes about a split second for a consumer to form an opinion. Imagine being a customer who has never entered your store, the outside appeal is the only thing stopping them from moving on is your curb appeal. Curb appeal refers to the setting created by you for the customers passing by your store. Moving a little beyond your store premises and setting up engaging displays outside your store ensure that people stop and engage with the product being displayed in the store.
Create a Fun Zone
Most of the retail audience in India are families with little kids, a fun zone to distract them will let your shoppers shop in peace. The setting up of a section where children can remain blissfully unaware of the surrounding would provide the relief and peace needed by the parents to shop.
For parents who might not want to part with their children, the shopping carts can also be clearly marked so as to promote the idea of using the cart as a fun ride for the child involved.
In most malls, a fun zone is set up to ensure that the parents make the most of their time. In Pune ‘Nitesh Hub’ a mall has a Play centre where children between the ages of 6 months to 14 years can enjoy unstructured free play.
Focus on the interiors
The visual appeal of your store helps shoppers stay and shop for a while longer, increasing the chances of making a conversion. The interiors of your store help decide the journey that your customer takes to execute the most profitable route for you.
The shelving and layout of the store is the deciding factor when the difference between the two stores is accounted for. A cluttered dingy feel would make you lose customers as most people like to feel pampered when they enter a store. Everything from grocery to clothing is part of an experience which a consumer creates for themselves. The end motive for any retailer is to make the customer spend money in their store. Investment in the basic structure of your store would help out with it.
The paradox of choice written by psychologist Barry Schwartz is a book that explained the theory of how too many options can mean fewer sales.
In a popular study, Iyengar and Lepper (2000) set up two tables in a grocery store. At table A, there was a selection of six jams; at table B, there were 24 different jams. Although more people stopped by table B, where the selection was larger, only 3% of them actually made a purchase. On the other hand, 31% of people stopping at table A left with a jar of jam.
The human mind works on the concept of thinking that too many options make it difficult to decide what you want, making it difficult for everyone to feel happy. The psychological implication being that a retailer should be smart about they offer their customers, a thorough research would be beneficial for everyone involved to maximize sales.
Things in limited quantities appeal to consumers faster than anything else. “Hurry while stocks last “ is an effective way to market the product that you want to sell. The feeling of exclusivity and scarcity work hand in hand with the latter being the driving force behind selling the product.
Scarce items feel not only valuable but rather give the feeling of power to the customer who manages to get the product. The feeling of superiority gives the customers a high which in turn helps increase sales.
Loyalty programs are one the most underutilized tool at a retailer’s disposal. A retail program set up with achievable goals makes a customer feel exclusive and wanted, leading to an increase in spending within the circle. Often considered to be the cornerstone of retail, they are basically a marketing system that associate spending with rewards.
Starbucks is one of the prime examples of successful loyalty. By registration for a card online or via the mobile app the achievable “star” method made sure that the engagement was customer-centric.
Personalization of products
Thorough research is highly appreciated by customers who walk in through the threshold of your store. The spending power and the area where your store is located decides the kind of products that you should sell in your store.
Target your ideal customer and ensure that products are relevant to them. Personalisation also refers to the kind of offers and incentives that you plan for your customers. A correctly timed promotional code for the right product will ensure that a customer walks in your store and not anywhere else when the need arises.
It has been proven in a 2012 Forbes study that the acquisition costs of a new customer are 7 times higher than that of retaining an old one. In order to retain customers starting a free delivery system will also do wonders for your business as it would increase the number of repeat customers.
Beauty giant Sephora works with the personalization sphere very well with rewards ranging from one-of-a-kind experiences, personalized services, and coveted sample rewards.
(Sephora Beauty Program)
Retail is an appreciating market, with people wanting to spend their money, The list given above will ensure that you make the most of the opportunity that is available to you.