Convenience & Impulse Retailing Article
Category: Retail Insights
Issue: Jul/Aug 2010
Using sensory cues to increase sales in Convenience
By John Berenyi & Ranil Illesinghe
'Convenience' is not the same as 'quick'
One of the biggest misconceptions flying around in the C-Store world is the belief that 'convenience' means the same thing as 'quick'. But walk into a C-Store just after the local high school has finished for the day and you can't help but notice groups of teenagers gathered around the slushie machine, socialising, browsing and spending time in-store.
In reality, what shoppers are actually looking for is the perception of convenience – not the x number of seconds or minutes is takes them to undertake a given shopping mission. Certainly the shopping experience needs to be easy and uncomplicated, but C-Stores can still take advantage of the benefits that can be gained from encouraging shoppers to browse and spend time in store.
The sales benefits of increasing dwell time are well documented. For instance, a study conducted by Path Intelligence and the Massachusetts Institute of Technology found that when dwell time of a shopper rose by 1%, corresponding sales rose by 1.3%. One of the keys to increasing dwell time, while still maintaining the perception of convenience, is to use sensory cues.
Using sensory cues to increase dwell time
There are literally hundreds of thousands of ways sensory cues can be used in C-Store environments. Many of them may be inappropriate to your particular store. But here are some examples that might act as food for thought – think about how you could use similar ideas in your store.
1. Make your shoppers feel comfortable. Studies show that retail spaces with fluorescent strip lighting are consistently perceived as being cold and uninviting. In contrast, spaces bathed in warm, yellow lighting are seen as being more welcoming and inviting. A certain department store in Montreal managed to sell more bikinis than the rest of Canada in below freezing temperatures because they used warm lighting, set the thermostat a bit higher, simulated a gentle summer breeze and heated the floor in the change room. C-stores are traditionally known as being cold, uninviting places – but by changing this, your store could benefit.
2. Using fresh food in-store is another option. Fresh fruits and vegetables in a c-store environment may not sell more bananas and oranges, but by giving shoppers a sense of comfort and making the store seem more inviting, they may just sell more chips and cola.
3. Mirrors can slow people down and increase dwell time. Think about the last time you visited a department store – lots of mirrors everywhere. Sure, one reason they're there is so that shoppers can try on merchandise without having to go into a change room, but another is that because humans are by their very nature, quite vain, they can't help but slow down and take a look at themselves. Placed next to say, the toiletries section in a C-Store, the potential is there to increase dwell time.
4. Visual cues should of course not be underestimated. The human eye naturally responds to contrast. So place visually attractive, high margin products under a spotlight to draw the eye in and encourage shoppers to take a closer look. Use bright pictures and colour to prime shoppers as they're walking in to the c-store, and once inside, use them to help navigation, draw attention and ultimately increase dwell time.
5. Taste and smells can stimulate hunger. Some supermarkets in Northern Europe are connected to bakeries by pipelines. These pipes carry the smell of baked bread to the stores, which not only provides an inviting atmosphere but actually stimulates hunger. Likewise, offering taste samples can achieve the same effect. A shopper may have entered your store to pay for petrol, but by subtly reminding him that he's hungry, he may just pick up a sausage roll or sandwich on the way to the counter.
It's about finding out what's going to give you most bang for buck …
Establishing certain sensory cues in your store can cost an arm and a leg. But it doesn't have to – some very cost effective tactics can have a direct impact on your bottom line. It's all about maximising bang for buck. And it's about taking a tailored, integrated and shopper-centric approach to achieve your end goal. We at Bergent Research have worked with retail clients to fine tune their sensory strategy, and many have been surprised at how a few simple changes can go a long way.
For further information call Bergent Research on +613 9322 4000.
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