Emotion: the critical element in driving impulse sales

By Ranil Illesinghe

A 2-for-1 deal is an often-used tactic to drive sales and it is easy to think that the core benefit for a shopper in such a deal is a simple monetary saving. However, research conducted by both Professor Schindler from Rutgers Business School, and by Bergent Research has shown that the real appeal can actually be the idea of getting 'something for free', which is a subtly different, and more emotionally-driven idea.

This has implications on how POS needs to be designed and executed, as nailing down the right benefit in your POS material will lead to more sales.

So how can you increase sales by using emotion in your POS material? Here are some ideas.

Attracting attention – the vital first step

It seems almost too obvious to state it, but we do so because so many examples of POS fail the basic test of attracting shoppers' attention. But according to an article by Rich Butwinick written for the In-Store Marketing Institute, effectively commanding attention has been found to raise category sales by as much as 6%, so this is a step to be taken seriously.

Fortunately for retailers, capturing attention does not need to be about high tech trickery – attention can be garnered by using simple design elements such as strong contrast and bright blocks of colour as the human eye responds strongly to colour and contrast. And by using the right design elements, you can create instant brand linkages at the same time.

Bergent Research has conducted numerous studies in various categories to discover what really captures attention, and this needs to be the first and fundamental step in your in-store sales strategy.

How emotion can directly impact sales

Successful POS needs to be simple and focused. But, one of the biggest mistakes retailers make is to think that this means POS needs to be unemotional and feature-driven, rather than benefit driven. This is why so often POS relies only on item and price – save $1.34 – or get 2 for the price of one.

But It is because of the brevity of the message that emotion is needed. Research has shown time and time again that emotion plays an important role in the buying process and that ignoring it can lead to lost sales – and that this is especially true when POS is concerned. If POS has an emotional appeal, shoppers actually tend to think that the deal is better compared to a relatively unemotional appeal.

But how retailers use emotion depends on the need state of the buyer. For instance, whether a purchase is impulsive or planned has a significant impact on what will appeal to whom and when.

In what may come as a surprise to some, impulse purchases actually take longer to make than planned purchases. But while a shopper may take longer to make such a purchasing decision, there is more emotion involved during the process. This gives marketers more opportunity to influence by using emotional appeals.

Planned purchases on the other hand, are motivated and mission focused. While emotion can still be used to appeal to these shoppers, buyers tend to be more motivated by rational benefits. But by rational benefits, we don't mean simply pointing out features. The offer still needs to be benefit driven. A good example is this POS for orange juice – usually a planned purchase. The writing in the orange box emphasises that the shopper is getting a good buy – thereby spelling out the benefit of the price reduction for the shopper.

For further information and to understand how to improve sales and ROI by optimising your POS strategy, contact Bergent Research on +61 3 9322 4000 for further information.