According to CreditCards.com, impulse buying accounts for 40% to 80% of all purchases. Grocery stores worldwide have mastered encouraging impulse buying to increase sales. This guide is a deep dive into the psychology of impulse buying and how it can be used to increase sales in retail and eCommerce environments.
Impulse buying is when people purchase something they do not intend to. Impulsive buying decisions are difficult to avoid when made on the spur of the moment and driven by feelings. These transactions often take place right before the customer leaves the store.
Research shows that impulse buying is often a cost-benefit analysis between desire and self-control. People avoid things they know are wrong, like binge eating, hitting the snooze button, or buying things they don’t need. However, their emotional state of mind often contributes to their ability to override their “wants” and place their “needs” first.
While the exact reasoning behind impulse shopping can be pretty complex, some common patterns have emerged:
Designing stores with these psychological traits can significantly improve the total cart value.
By putting related goods and services together, customers will likely acquire everything they need in one go. For example, keeping all related items like ties, belts, and pocket squares near the mirrors in the suit section can direct their attention to these goods at the right time. Similarly, consider placing recommendations for related products next to the items in your eCommerce store.
Place the best-selling or most well-liked goods at the buyer's eye level to improve exposure. In online stores, put these goods at the top of your home page to draw attention quickly. An easy way to encourage higher spending is by placing Sales/Discounted products in popular aisles or on product pages that get high traffic.
At the storefront, it's also essential to emphasize fresh and exclusive goods. Customers who value novelty highly are thus encouraged to test out items at the store.
Additionally, place more expensive things in a particular area in the middle of the store and emphasize them with more vital lighting. Banners and specific landing pages for high-end products on eCommerce sites can boost sales.
As mentioned earlier, it’s hard to resist a good deal. There are several ways to promote such offers:
The majority of impulsive purchases involve minimal risk. This indicates that the client typically has little emotional connection to the sold item but is willing to spend a little more to reward themselves. This implies that the gifts given should generally be cheap as well. Place socks, bangles, earrings, and other fast add-ons near the checkout aisle.
Small-ticket products are a great way to take advantage of promotions like "Buy for XYZ amount and receive 10% off" They serve as incentives for frugal shoppers and significantly raise the value of the cart.
Interactivity is a vastly different experience, online and offline. In eCommerce stores, the best way to improve interactivity is to invest in a chatbot app that can offer suggestions to browsing customers. Tickers and banners that create FOMO, or Fear Of Missing Out, can also help.
In brick-and-mortar stores, it's vital to train salespersons to encourage spontaneous purchases. Some small gestures include:
Seasonal items provide a sense of urgency, making them ideal for checkout and impulse displays. Displaying seasonal products also makes it simple and necessary to change your point of purchase, which is essential for encouraging customers who have already seen your shows to make impulse buys. Additionally, buyers are attracted to simple add-ons like scented candles, perfumes, and other trinkets to make their celebrations even more unique.
Research shows that shoppers usually spend more with the company, i.e., friends and family. Festive season shopping is, therefore, a crucial time for improving sales tactics. Here are some things you can do to bring more traffic to your store:
Impulse purchasing plays a significant role in increasing sales, whether it's at a physical store or an online store. For both sorts of shops, inventory planning and forecasting increased levels of impulsive buying during particular seasons are essential. It's also crucial to remember that items based on trends are far more likely to attract buyers' attention.
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