Business owners and general managers planning a new showroom or retail space frequently ask, “How can I create a ‘Wow’ shopping experience for my customers?”
Although the answer to this question is complex, the individual elements that make up the answer are uncomplicated.
A Wow presentation is a marriage of the 4 ‘P’s of marketing—Product, Price, Promotion and Placement—and stellar, customer-centric service.
On the other hand, we regularly encounter a small business leader contingent who do not buy into merchandising’s hype. To them, merchandise presentation strategy and the retail space’s look and feel are their lowest priorities on a very long to-do list.
All the esoteric terms we use to describe the store planning process may as well be in different languages. Their position is counter to my belief that merchandising is an essential part of the marketing plan for any business offering a product or service, in online and brick-and-mortar spaces.
Says who? Says the customer!
My data-driven stance is based on decades of consistent research results that prove my point.
I was encouraged by a 2021 study conducted by Verde Group, a global customer experience firm, and the University of Pennsylvania’s Baker Retailing Center – a part of the Wharton School of Business. In a survey of 9,400 consumers, retailers can increase shopper repurchase intent by nearly 60% by consistently delivering a great experience.
Repurchase intent equals repeat customers, and that is our ultimate goal, right? The experience referenced in the study is exactly what I described.
When customers return to your dealership, these visits translate into aftermarket sales, appointments in the service department and RV sales when the customer is ready to replace their current vehicle.
We all know customers tend to talk about very good and very bad experiences, so delivering great experiences creates coveted word-of-mouth buzz, bringing additional traffic to your business.
When researchers unpacked the survey responses, finding service was the No. 1 driver of the wow or great experience was no surprise. Great service is what “consistently surprised and delighted” the respondents.
The report said, “Great service can be as heroic as a sales associate going above and beyond to help a customer find just the right item, or as mundane as a clean, well-organized store.”
Verde Group CEO Paula Courtney said, “Whether you are a specialty retailer, or a big box or category killer, or a mass merchandiser…whatever your value proposition is, the essence of that value proposition [and] delivering on it seemed to be the No. 1 thing that defined greatness and ‘wow’ for consumers.”
Retail Strategies
The traditional 4 ‘P’s of marketing strongly resemble the elements within standard operating procedures for a merchandising strategy. The marketing and merchandising plans are complementary when omnidirectional marketing is practiced properly. There are best practices related to merchandise displays in a retail store, but we also recognize regional differences and personal preferences as suitable reasons for certain actions.
The most successful retailers master the basics before heading into deeper waters. The basics include adequate shelving, thoughtfully selected merchandise that serves shoppers’ needs and wants, strategic placement of categories or departments and a competitive price structure. Despite all the elements that go into the presentation, the merchandise is always the star of the show. Merchandise can drive store choice and enhance or ruin your image in customers’ eyes. Individual stores’ specific product mix should reflect the target customer base’s demographics and complement the rolling stock selection offered.
Many traditional retail strategies are still relevant.
For example, we know shoppers tend to move counterclockwise through the retail space. Decisions regarding category and display placement should be made to draw traffic through the store. Yes, the bread and milk (or routinely purchased categories) still belong at the back of the store! The idea is consumers will walk past convenience, destination and occasional/seasonal categories to reach the routinely purchased products. Along the way, customers will be more likely to make unplanned purchases.
Once the shopper moves along our preferred path, the mission is to get them to place items in the shopping cart. Product and shelf placement is key. We know the typical shopper pays the most attention to shelving from belt to eye level. This premium real estate should be assigned to high-demand, high-profit products. Less preferred and larger-sized items should be displayed higher or lower.
Time and time again, research completed by the Point-of-Purchase Advertising Institute (POPAI) shows more than half of all purchase decisions are made in-store, so a bit of strategy will help maximize this trend.
Point-of-purchase (P.O.P.) materials are important in executing a successful in-store marketing plan. Signage, banners, literature, shelf talkers and other colorful material attract shoppers’ attention by “cutting through the clut-ter” and providing a message. Studies show people are attracted to signs and are more likely to buy a “signed” product, even if it is not on sale.
Light, motion and sound are extremely effective in drawing the eye, so video players and digital signage can be very helpful in getting shoppers to slow down and linger. According to David Bell, a marketing professor at the Wharton School of the University of Pennsylvania, “The more time (shoppers) spend in a store on average, the more things they are going to buy…they are going to be stimulated by promotions and things in the environment.”
Freestanding displays are a great way to promote products, especially large and high-ticket items that are typically not stocked or displayed on shelves. The number of displays should be proportionate to the store’s size or this strategy will backfire.
For example, 10 floor displays would clutter a small store, but a single display would get lost in a large space. Floor displays should be placed against a wall or in an area with at least 3 feet to walk around.
The most memorable stores tend to combine best practices in retail with a little personal flavor. These retailers are clean, organized and well-stocked, but they also include elements that enable customers to connect with the space.
The Apple Store and Bass Pro Shop are masters at this, but I have seen this done at small mom-and-pop stores with unique products, services or presentations. Southern RV in McDonough, Georgia, is a great example. This dealership uses a travel theme throughout the facility. The team created a unique feature wall using license plates from all over the U.S. The store’s walls are lined with posters featuring various national parks. Even the restroom signs are shaped like the USA.
Delivering a Wow experience in-store and online is the key to retaining existing customers and attracting new business in a competitive marketplace. All efforts toward this goal will yield positive results with incremental sales and profitability.
Val Byrd is NTP-Stag’s customer merchandising manager. She has worked in the RV aftermarket for over 20 years and is a leading RV retail expert on store layout/design and aftermarket product display.
