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July 2, 2023
We’ve all waited at the checkout line of our favourite stores. Before our turn, we often look over at the displays of low cost items like candy, USB cords, or socks. Something hits the corner of our eye, and before we know it, we’ve convinced ourselves that it’s usefulness is worth the few extra bucks, placing it in our cart. This isn’t by accident. In fact, there are many ways that both retail and online stores promote impulse buying. In 2021, Slickdeals, a social media shopping platform, published a survey of over 2000 online shoppers and found that they spent an average of $276 per month on unplanned purchases. This dollar amount was a 51% increase over a survey that they conducted the year prior.
Capturing the attention of our customers and influencing their purchase decisions is an ongoing challenge for retail businesses. Doing it in an ethical way that doesn’t condone materialism or exploit the various mental health factors that could contribute to a shopping addiction is even more challenging. It’s important to understand how customer buying habits work. Instead of nudging them towards unplanned purchases, we can communicate the real value of a purchase to that shopper within a few seconds.
Well-designed POP (point-of-purchase) displays are an effective strategy to attract and spark curiosity. It is even more important to figure out how to communicate enough to customers that they will choose to go that extra step and make a purchase, thus driving up your sales.
Impulse Buying Behaviour
Impulse buying refers to the act of making unplanned purchases driven by emotions, desires, or immediate needs. It stems from a variety of psychological factors, and while some may align with deeper or more complex societal or personal issues that shouldn’t go ignored, there are three key behavioural elements that influence customers to make purchases within any given moment.
Emotional Triggers:
Emotions can play a significant role in impulse buying. Excitement, pleasure, and instant gratification can sometimes take precedence over asking yourself if this is really an essential purchase. Retailers can tap into these emotions in their design process. If you have a design that can evoke joy, excitement, or anticipation, our banner stands are a perfect way to draw attention to it.
Fear of Missing Out (FOMO): A phrase that has exploded in popularity in various spaces is the idea of missing out on a limited-time offer, a special discount, or an exclusive product. The “scarcity” or indefinite unavailability of an item or service once it sells out can drive impulsive purchases. The most common example on a POP display is the phrase, “Limited Time Only,” but it can also include other elements like “first 500 customers” or “between 2 and 4 pm only.” Online stores have used the idea of limited drops within a certain time frame to boost sales, resulting in high traffic demand and quick sales.
Novelty and Curiosity: Humans are naturally curious beings. Novelty and the desire to explore new products or experiences can lead to impulsive buying. Retailers can leverage this by incorporating unique, eye-catching elements in their POP displays that pique customers' curiosity and motivate them to explore further. Sample booths where you can see the product in action have proven to be effective. If you want to share information, you can get one of our brochure and literature holders to compliment your product by teaching potential customers about it.
The Power of Visual Appeal
Visual appeal is a crucial aspect of a well-designed POP display. By leveraging visual cues, retailers can capture attention, pique curiosity, and ignite the desire to purchase.
Display Design: A visually striking display stands out in a crowded retail environment. Bright colours, bold graphics, and unique shapes can instantly draw customers towards the display. Retailers should consider their target audience's preferences and the overall brand identity when designing the display to ensure it resonates with potential buyers. Soda companies, for example, are proficient at these displays by building eye-catching designs that promote a sporting event or holiday, often using their own product!
Product Positioning: Strategic positioning of products within a display can influence customer behaviour. Companies often pay grocery store chains more to have their products placed on the shelves that are at eye level as opposed to the top or bottom. Thus, your most frequently purchased items can receive an even greater boost in desirability when placed at eye level. Bundling products together can also encourage impulse purchases, like a condiment trio. Additionally, creating a logical flow and intuitive layout within the display can guide customers towards exploring different product offerings and increase the likelihood of a purchase.
Limited-Time Offers: As discussed earlier, displaying time-limited promotions or exclusive offers creates a sense of urgency. Sometimes, this taps into the fear of missing out, triggering an instant buy. Retailers can highlight countdowns, expiration dates, or limited quantities to create a perceived scarcity that drives customers to act swiftly.
Visual Hierarchy: Creating a visual hierarchy is similar to product positioning, but more focused on drawing attention to specific products through size, colour contrast, or creating focal points. IDL has a wide variety of data strips, clips, gondola shelving accessories, and wall mount sign holders that can assist you with utilising these elements. Retailers can direct customers' attention towards specific products or promotions within the POP display, ensuring that the most compelling items or offers receive maximum visibility.
Interactive Elements: Incorporating interactive elements into POP displays can increase engagement and entice customers to interact with the products. This can include touchscreens, product demonstrations, or sensory experiences that allow customers to experience the product firsthand, fostering a stronger connection and increasing the likelihood of an immediate purchase. Probably the most recognizable interactive element that requires little technology are slat wall shelves for shoes. Shoe stores are known for having samples displayed on these slat wall shelves, which you can purchase from IDL, and this allows customers to examine, hold, and even try the shoe before buying.
Effective Call-to-Action
Incorporating a clear call-to-action will enhance the design of POP display. If your display has compelled customers to see the benefit they will receive from your product or service, they are more likely to make that purchase.
Persuasive Messaging: Use concise and persuasive words that highlights the benefits, value, or exclusivity of the product. Using product reviews, strong phrases like “one-day only,” “limited quantities,” or “80% sold out” can create a sense of urgency. Utilise language that resonates with the target audience and aligns with the brand's tone and messaging. IDL has all the clips, hooks, mounts, and holders to display this messaging. All that is required is your creativity with words.
Incentives and Rewards: Offering immediate rewards or incentives, such as samples, “buy one get one” bundles, or loyalty program benefits, can provide an extra push for immediate purchases. Leading with discounts can often cheapen the value of the product to consumers. Retailers should consider motivating customers with alternate strategies like limited time offers or high value exclusivity available at a POP display.
Easy Purchase Process: Simplifying the purchase process by either providing clear instructions or even incorporating convenient payment options near the POP display will be extremely helpful in completing a sale. The smoother the transaction, the more likely customers are to follow through with a purchase.
An understanding of these elements and how they contribute to customer buying patterns and increased sales will be crucial in the near future. By leveraging well-designed POP displays that appeal to a customer’s emotions, curiosity, and clearly communicate a product’s benefit, businesses will be able to boost their sales through a positive influence on consumer purchase decisions. By creating visually appealing displays, tapping into consumer psychology, and incorporating persuasive calls-to-action, retailers can create a memorable shopping environment that will make customers feel good about what they buy. Consumer buying habits and socio-economic conditions could change. But a powerful POP display still attracts customers and drives significant revenue growth.
