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14 Ekim 2015 Çarşamba

Is More Choice; No Choice?



Social psychologists Iyengar and Lepper carried out an experiment that illustrated how, in practice, more choice isn’t necessarily beneficial.  
They evaluated reactions to two tasting tables at a supermarket; on one they laid out 24 different jams and on the other just 6. While more people elected to stop for the wider selection (60% vs 40%), a dramatically higher proportion purchased from the selection of six jams, whereas only 3% did so from the larger choice. Put another way, less than 2% of people will buy from a display of 24 jams, but 12% will if you give them a choice of just six.
Ref: Consumerology by Philip Graves

5 Mayıs 2015 Salı

With Respect to Paco Underhill -II


What Do Shoppers Love?



What do shoppers love? A few important things, we've learned, such as:

Touch:  We live in a tactile-deprived society, and shopping is one of our few chances to freely experience the material world firsthand. Almost all unplanned buying is a result of touching, hearing, smelling or tasting something on the premises of a store-which is why merchandising is more powerful than marketing.

Mirrors:  Stand and watch what happens at any reflective surface: We preen like chimps, men and women alike. Self-interest is a basic part of our species. From shopping to cosmetic surgery, we care about how we look. As we've said, mirrors slow shoppers in their tracks, a very good thing for whatever merchandise happens to be in the vicinity. But even around wearable items such as clothing, jewelry and cosmetics, where mirrors are crucial sales tools, stores fail to provide enough of them.

Discovery: There's little more satisfying than walking into a store, picking up the (metaphorical) scent of something we've been hunting for and then tracking it to its lair. Too much signage and point of purchase display takes all the adventure out of a shopping trip; stores shouldn't be willfully confusing or obscure, but they should seduce shoppers through the aisles with suggestions and hints of what's to come.

Talking:  Stores that attract lots of couples, friends or groups of shoppers usually do very well. If you can create an atmosphere that fosters discussion of an outfit, say, or a particular cell phone, the merchandise begins to sell itself.

Recognition:  In that old TV show Cheers, the theme song went, "you want to go where everybody knows your name." This is a battlefield where the small, locally owned store can still best the national chains, and smart stores make the most of this advantage. Given a choice, people will shop where they feel wanted, and they'll even pay a lime more for the privilege. Even the smallest stores ·can build customer loyalty just by keeping track of what people buy and giving price breaks when appropriate. Our studies show that any contact initiated by a store employee-and I mean even a hello-increases the likelihood that a shopper will buy something. If the salesperson suggests a few things or offers information, the chances rise even higher. Of course, shoppers don't love pushy salespeople, so there's a line here.

Bargains: This seems obvious, but it goes beyond simply cutting prices. At Victoria's Secret, for example, underwear is frequently piled on a table and marked five pairs for $20, which sounds like a much better deal than the $5 a pair normally charged.

10 Nisan 2015 Cuma

With Respect to Paco Underhill -I

Paco will be in Turkey for Local Chains Summit  (YerelZincirler Birliğinext week; 15-16 of April, an event to be followed certainly…

Please find some quotations below  from his book “Why We Buy?”



Advice for the Store Staff

Remember that more than 60 percent of what we buy wasn't on our list. This isn't the same as an impulse purchase. It's triggered by something proposing the question "Don't you need this? If not now, then maybe in the near future?" Use this feeling to boost your sales…

Offer help, try to get the stuff your customer needs to carry that limits her / his desire to put on the products, offer to put the coat/bag behind the counter....

Shoppers are more pressed for time than ever. They've grown accustomed to stores where everything for sale is on open display; and they expect all the information they need will be out in the open. Keep in mind while designing in store- signageand visuals.

Smile: Wal-Mart founder Sam Walton's homespun advice to retailers was that if you hire a sweet old lady just to say hello to incoming customers, none of them will dare steal.

Critical location Dressing Rooms : A shopper who talks to a salesperson and tries something on is twice as likely to buy as a shopper who does neither. Not only does shopper conversion rate increase by half when there is staff-initiated contact, it jumps by 100 percent when there is staff-initiated contact and use of the dressing room. 

Store Design & Signage

The Gap, Aeropostale and Anthropologie-all apparel store chains-put their discount sale products in the back left-hand corner of the store. They've trained their most veteran shoppers to visit the remotest corner of the store. Once they've gotten them to the back, their challenge is to make sure the pathway back to the front of the store is well merchandised and that at least some of the signage is facing the customer going back-to-front.

In the retail environment, a chair's main purpose is slightly different: When people go shopping in twos or threes, with spouses or children or friends along for the trip, seating is what keeps the non-shopping party comfortable and contented and cared for and off the shopper's backJ

Retailers should walk every foot of selling space asking this question: Can I stand here and shop without being jostled from behind? Any place where the answer is no is no place for merchandise requiring a careful look.

Aisles must also be wide enough for baby strollers. Adjacencies should be planned rather than accidental

For the most part, the men and women who design clothing stores do everything possible to allow us to touch all that's for sale. But then, when it's time to design the dressing rooms, they show how completely they misunderstand what happens inside that store. Where do they go wrong? They think of dressing rooms as bathrooms without the plumbing. They see them as booths where shoppers can strip, don the garment in question, emerge for a quick, dutiful glance into a mirror and then switch clothes again. They design dressing rooms with all the romance and glamour of changing stalls at public pools. It's the most misguided aspect of store architecture and design, a trade that at its best isn't terribly responsive to retailers or shoppers. They skimp on dressing rooms, I believe, because they don't want to "waste" space by making these rooms too large. They don't want to blow too much of the budget on rooms that will never be photographed by the fancier design magazines. In fact, the dressing room may be more important than the floor of the store. It's a truism that improving the quality of dressing rooms increases sales. It never fails. A dressing room isn't just a convenience- it's a selling tool, like a display or a window or advertising. It sells more effectively than all of those combined, if it's properly used.

Men & Women

86% of women look at price tags when they shop. Only 72% of men do. For a man, ignoring the price tag is almost a measure of his virility. As a result, men are far more easily upgraded than are womenThey are also far more suggestible than women
Men now do more purchasing than ever before. That figure will continue to grow. As they stay single longer than ever, they learn to shop for things their fathers never had to buy. And because many marry women who work as long and hard as they do, they will be forced to shoulder more of the burden of shopping. 
Here's the actual breakdown of average shopping time from a studyperformed at one branch of a national housewares chain:
Woman shopping with a female companion: 8 minutes, 15 seconds 
Woman with children: 7 minutes, 19 seconds 
Woman alone: 5 minutes, 2 seconds, 
Woman with man: 4 minutes, 41 seconds

A good general rule to design future: Take any category where women now predominate and figure out how to make it appealing to men without alienating women.

Competition

Today everybody is competing with everybody else, and so the threat can come from any direction. It is dangerously narrowminded for a store owner to believe that the only competition is from others in his or her category. .In truth, retailers compete with every other demand on consumer time and money. 
if the experience of spending twenty minutes of unused lunch hour browsing in a computer store is more enjoyable than visiting a bookstore, then it becomes likely that some software will be sold-and impossible that a book will be. The era of the visionary retailer or the manufacturing king is over. In the twenty-first century the consumer is king. Just as fashion comes from the street up, the world of retail is about following shoppers where they are going.

12 Şubat 2015 Perşembe

Advice for the Store Manager

My notes from Smart Retail (Richard Hammond) combined with my comments;

* Be the person whom you, personally, would also like to be served by
* Smile!
* Sales motivation comes from inside, be sure you are feeding your appetite and energy
* Be passionate for the best retail environment ( for customers and for collegues) not just be sales animals...
* You have to create / do something different to be noticed in the multiple store environment
* If possible volunteer for different projects
*Be the contact person of head-office guys, say would be glad to assist, give your personal number when they visit your store
* Specialize in x let head-office guys know you are the best man to do x
* Create your own consumer portfolio, especially if you working in a company targeting the upper tier customers
* Try to understand your customer, and try to solve their problems instead of being sales animals... As the good saying your customer doesn't want a drill but he wants a simple hole on the wall.
* Retailing is as old as human history and it isn’t about inventing brand-new ways of doing things, it’s about creatively applying simple principles; so do “simple” brilliantly.
* Success tip in retail is about trying things: constantly adapting, nudging, and improving parts of the store
* Know and embrace what your brand stands for
* The question is how to create the happy team for best customer service
* Invest in your team, they are the ones who will take you to your next career step





10 Şubat 2015 Salı

Reference Reading List for Retailers

Please find my reading list below, where I plan to make quotations as I read;

Smart retail - winning strategies & ideas (Richard Hammond)
Retailing in the 21 st century (Manfred Krafft)
Why we buy (Paco Underhill)
Retail strategy (Jonathan Reynolds)
Retail survival of the fittest (Francesca Nicasio)
Consumerology (Philip Graves)
Retail analytics (cox emmet)
Visual Merchandising—Tony Morgan (Laurence King, 2008)
People Don’t Buy What You Sell: They Buy What You Stand For—Martin Butler with Simon Gravatt (Management Books 2000, 2005)
Retail Success—George Whalin (Willoughby Press, 2001)
Made in America: My Story—Sam Walton with John Huey (Doubleday, 1992)*