From a customer’s standpoint, walking through a store can be tricky on most occasions. Not only do you have other customers barreling around from aisle to aisle, you also have to navigate your way around various displays of different products. There might be a cardboard cut-out of a football player that measures up to stacks of soda bottles or a new holiday cookie laid out on a random table. At the movies, you often can’t make it inside without making your way through a maze of candy, soda and popcorn promotions.
As you know, there is a method to the display layout madness in all stores. They are there because you, the shopper, will notice them. This simple reasoning is also much more effective than most could ever even imagine. In fact, in-store displays have been shown to be more effective than price discounting in a study by OgilvyAction.
Their research, conducted with over 6,000 shoppers in the United States during the first quarter of a recent year, showed that 29 percent of those sampled purchase things they didn’t anticipate on before they entered the store. Of that 29 percent of impulse buyers, 24 percent said that they were moved to make those unexpected purchases because of a secondary display set up somewhere in the store. That’s considerably higher than product demonstrations (18 percent) and special pricing/discounting (17 percent).
This group also conducted a survey concluding that special display set-ups fueled twice the number of impulse buys of snack food in convenience stores than low price promotions.
These statistics can be helpful when applied to the café industry. In the past, we’ve stressed the need for product demos and offering specials, but this kind of data is something that cannot be ignored. In terms of allied product offerings, a display rack can be a great way to help those retail items stand out, Mighty Leaf or Two Leaves and a Bud teas, for example. Setting something up directly at the register for that impulse shopper to grab on their way out would be a nice add-on sale.
One strategy would be to have your customer’s path–from where they placed their drink order to the register–stretch along the front of your bar. Lining the area with juices, chocolate covered espresso beans, biscotti, and whole bean retail bags of coffee would give those 29% of customers the opportunity to buy more and will generate more money for your shop.
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