How to Increase Revenue by Targeting Impulse Buyers
Every consumer is different.
Some people like to shop online, and other people prefer shopping in stores.
There are customers who spend days or even weeks researching a product before making a purchase, while others buy something without any prior intention at all.
This is called an impulse purchase.
Believe it or not, more people are guilty of this than you would think.
Have you ever bought something impulsively?
I’m willing to bet that you have.
In fact, 84% of Americans admit to making an impulsive buy.
So, how much are they spending?
If someone is waiting in line to check out at the grocery store and buys a magazine or candy bar, that counts as an impulse purchase.
But that’s really nothing to get excited over.
However, 54% of consumers have spent more than $100 on an impulse purchase, and 20% have spent over $1,000.
Those are numbers that can motivate marketers and retailers.
As an example, let’s take a look at something that everyone buys.
Here’s some data that compares planned and impulse clothing purchases grouped by age and household income.
It appears that nobody is immune to this.
You might think that the more money someone makes, the more likely they are to spend money impulsively.
But based on this data, that simply is not the case.
There’s only a 2% difference between consumers with an annual income less than $25k and an annual income more than $75k when it comes to impulsive clothing purchases.
As you can see from the numbers we’ve looked at so far, impulse buyers aren’t hard to find.
But you need to position your brand, products, and marketing campaigns accordingly to encourage these people to spend more money.
I’ll show you how to do it.
Understand the psychological characteristics of impulsive consumers
Younger generations are more likely to make an impulsive purchase.
9 out of 10 Millennials have purchased something impulsively.
That number gets even higher when you focus on the youngest portion of that generation.
95% of consumers under the age of 25 say they have made an impulse purchase.
It has to do with psychology and personality traits.
Impulse buyers would fall into the spontaneous category of this graphic.
They are more emotional as opposed to logical thinkers.
Impulsive shoppers are willing to take risks and respond to visual cues such as color schemes.
Studies suggest that impulse buying translates to gratification.
Those who seek self-gratification and approval from others are more likely to have impulsive tendencies.
The risks associated with an impulse purchase can suggest that the buyer may not consider the consequences of their spending.
They may not realize that the item puts them over budget for what they can afford based on their income and other expenses.
While some people are more susceptible to impulse purchases than others, the data that we saw earlier showed that the majority of consumers have made impulse buys.
This means that these personality and psychological traits are somewhere within all of us.
As a marketer, you just need to find ways to exploit those tendencies.
If you do this correctly, you could turn just about anyone into an impulsive customer.
Focus on the right products
First, you’ve got to figure out what products you want to entice people to buy.
Ideally, these products will have a high profit margin for your company.
Depending on your business, you might be selling hundreds or even thousands of items.
So, which ones are the right products to emphasize?
Let’s take a look at how men and women shop impulsively.
So you’ve got to decide who you’re targeting.
If you’re targeting impulsive men, you want to focus on products that they could buy for their spouse.
But if you’re targeting women, you should concentrate on items suitable for children.
You’ll want to strategically place these items in your store on your website, but we’ll go into greater detail about that later.
Every product you sell shouldn’t entice consumers to be impulsive.
Some items are necessities.
People are going to buy those regardless.
For example, let’s say you own a home furnishings store.
Your primary target market is new homeowners.
There are certain items that you know they need for their house.
Things like a bed, couch, and kitchen table are needed in a home.
But an impulsive product could an ottoman for their living room or an extra television for the bedroom.
Those aren’t necessities, but consumers may be swayed to buy them, even if they had no intention to do so in the first place.
Look at this bedroom set from Bed Bath & Beyond.
Items like the painting, extra lights, throw pillows, rug, and artificial flowers would be good products to focus on for impulsive buyers.
Consumers may visit a store looking to buy bed sheets, which is a necessity, and end up leaving with artificial flowers and a painting, which are luxury and decorative pieces.
Create FOMO (fear of missing out)
Promotional campaigns are a great way to target impulsive shoppers.
Discounts, deals, and coupons that are only available for a limited time might do the trick.
The concept of FOMO makes the consumer think, “If I don’t act now, I’ll lose out on this opportunity.”
So, now that you’ve narrowed down the products you want to focus on, it’s time to figure out how to advertise them.
Create a sense of urgency by saying that there is a limited quantity remaining.
Take a look at this promotional email from GetResponse.
They use certain keywords to create FOMO, which can appeal to an impulsive shopper.
Come up with ways to incorporate this strategy into your business.
For example, let’s say you have a retail store located inside of a shopping mall.
A consumer may be at the mall for something else and have no intention of stepping foot into your store.
So you’ve got to draw them in when they are walking by.
Take a look at this window display sign outside of a Banana Republic storefront.
It doesn’t just say 40% off.
The sign says, “today only” to entice impulse shoppers to walk inside.
Even if they had no intention of buying clothes, 40% off is too good of a deal to pass up on, right?
That’s the idea behind creating urgency and FOMO.
Learn how to strategically place items
Placement is key for brick and mortar store locations as well as ecommerce sites.
Even though our society is moving toward digital trends, the majority of impulse purchases still take place in physical store locations.
In fact, 68% of impulse buys occur in-store as opposed to online.
With that said, it doesn’t mean that ecommerce websites should shy away from targeting impulse buyers.
Research suggests that impulsive online sales jumped 60% over a time period where total online sales increased by 12.6%.
Those numbers are extremely encouraging for online retailers.
So now that you’ve identified which products are the best to focus on to trigger impulsive behavior, you need to make sure they are placed properly.
On an ecommerce site, you should put these items on your homepage.
Don’t make shoppers go searching for something.
That defeats the purchase.
You want someone to stumble upon your website, see something that catches their attention, and buy it.
Check out this example on the SAXX website.
The items are clearly displayed on their homepage.
In addition to offering these products at a discounted rate, look at how SAXX used FOMO to entice impulse buyers as well.
“Get your hands on these seasonal styles before they’re gone.”
So when people visit their website, they may end up purchasing something they don’t really need and never intended to buy.
For those of you with a retail store location, you’ve got to apply the same theory to your layout.
Impulsive items shouldn’t be hidden in the aisles.
Present these at the end of a row or separated alone at a table or display areas.
Put items near the register so customers see them on their way out or while they wait in line.
Remember what we said earlier about the differences between men and women shoppers?
Based on that information, you could put some women’s products on display near the men’s section of your store to entice men to buy for their wives.
You could position some children’s items near the women’s section to encourage women to buy for their kids.
Simplify the buying process
Once someone decides to make an impulsive purchase, you don’t want to give them any chance to change their mind.
The buying process needs to be as fast and easy as possible.
For example, let’s say you only have display models of a certain product in your store.
In order for the customer to buy it, they’ll have to pick it up at your warehouse or visit another store location.
Those products shouldn’t be aimed at impulse shoppers.
There are too many extra steps that give them the opportunity to back out.
Have you ever been inside of an IKEA store?
IKEA sell furniture and accessories for bedrooms, living rooms, bathrooms, kitchens, offices, and every other area of your home.
Their retail store operation works like this.
You walk through different display areas for each room of a house.
If you see something you like, you write down the item number from the corresponding tag, which I’ve pointed out on the image above.
After you walk through the entire store, you find the item based on the corresponding row and aisle number in their warehouse.
IKEA is successful on an international scale, so it’s a great business model.
However, this process is not set up to target impulse buyers.
It’s too long. There are too many steps and too many opportunities for the buyer to change their mind.
For those of you with an ecommerce site, you want the customer to finish their checkout in just a few clicks.
Don’t ask them to create an account or fill out unnecessary information.
Just ask for their name, address, and payment information.
That’s all you need to complete the sale.
Provide ease of access to customer support
Great customer service can help drive a sale, especially for an impulse buyer.
But your company needs to provide the consumer with easy access to a customer service representative.
For those of you with retail store locations, make sure your staff is properly trained to assist customers while they are walking through your store.
They should be informative and let the customer know if an item is on sale or if you’re running a special promotion.
It’s always important for you to clearly state your shipping and return policies as well.
Take a look at the impact these policies have on encouraging online sales.
If the customer knows the item will ship for free and they have the option to return it, they are more likely to buy the item.
So just make sure your company prioritizes customer service and has representatives available online, over the phone, and in-store to communicate with your customers.
Businesses can increase their sales revenue by learning how to market their products based on impulsive shopping behavior.
Although certain personality types are more likely to make an impulse purchase, the vast majority of consumers are guilty of this as well.
There are certain things you can do from a marketing perspective to trigger an impulsive response from your customers.
First, you’ve got to focus on the right products.
Then use marketing campaigns to make the customer think they are missing out on a great deal if they don’t buy something.
Strategically place items in your store and on your website to entice a sale.
The buying process needs to be fast and easy.
Make sure you provide shoppers with excellent customer support options.
Follow these tips to increase your sales revenue.
What types of products are you strategically placing on your website to target impulse buyers?
via Quick Sprout http://ift.tt/UU7LJr
January 22, 2018 at 10:10AM