Targeting the Impulse Buyer—Are You Getting What You Pay For?
Targeting impulse buyers is a proven merchandising strategy for brands and manufacturers.
A recent report found that shoppers spent more than $8 billion on checkout purchases in 2020. And this isn’t a recent trend. A comprehensive study looking at data from 2012 to the 1950s found that impulse purchases can make up between 40% to 80% of a customer’s spending, depending on the store or product.
It’s no surprise then that you are likely spending a lot of money to have your product featured on an end cap, for instance, prime real estate to target that impulse buyer. Other highly sought-after spaces like special retail displays, promotions, rollbacks, etc. are also big ticket items.
But are you getting what you pay for? Here’s what you need to know.
Targeting the Impulse Buyer—Are You Getting What You Pay For?
Research shows that 43% of retail displays lose money. Why? In nearly 60% of cases, the retailer didn’t execute the display as designed. Experts estimate that if planogram compliance was improved by just a single percentage point, sales across the entire industry would grow by more than $3 billion.
And there’s the issue of stockouts.
In 2021, 7.4% of sales were lost due to stockouts, costing retailers over USD 82 billion. It’s a simple truth that if customers don’t see your product they can’t buy it. These losses are compounded if stockouts are occurring in expensive areas like end caps.
Unfortunately, retailers are overwhelmed right now. In Canada, there are over 130,000 job vacancies in the sales and service sector. If you want to make sure that your products are being properly displayed, you should consider enlisting the help of a third-party merchandiser who can get out there are confirm you’re getting the share of shelf you paid for.
The Right Place at the Right Time
If you want to ensure you’re successfully targeting impulse buyers, let us help. Our national field force of over 500 skilled employees will ensure your products are exactly where they’re supposed to be. And with our AI-powered planogram compliance software, you can see the changes we’re making in real time.
Want to learn more? Call 1-877-421-5081 or visit our website to request a free consult.
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