Why We Buy: The Science of Shopping
I chose the book Why We Buy: The Science of Shopping by Paco Underhill. This book really opened my eyes to a lot of marketing issues. In all honesty, I chose this book because I’ve always found the idea behind shopping interesting and I’ve always wondered why I walk out of the store with an item I don’t even need. After reading the book, I discovered that this book is actually not about that at all. This book is actually far more interesting and tackles some serious problems in marketing today. These days, very few stores open to serve new markets. The primary purpose of a store in this day and age is to steal someone else’s market ...view middle of the document...
Waiting times will cause customer satisfaction to plummet dramatically.
There were some other key elements to marketing success that the book laid out. The book went into detail on how general advertising works in the modern age. Advertising as a whole is a lot less effective than it used to be. There is so much advertising that people tend to put blinders on during the day making all advertising ineffective. Advertising may get people into a store, but won’t necessarily mean that customers will actually buy anything.
The important thing to note is that many purchasing decisions a customer will make is heavily influenced by what happens in the store itself. It’s important to make sure that the store is laid out to help customers make their decisions faster and more efficiently. The key elements of advertising and informing customers take place inside the store. It’s important to have all signs, shelves, display space, and special fixtures all combine to increase the likelihood that a sale will be made.
The book goes into detail about the concept of key performance indicators (KPI). A key performance indicator is a quantifiable measure a company uses to determine how well it meets the set operational and strategic goals. This means different businesses have different KPIs depending on their respective performance criteria or priorities. At the same time, the indicators are usually following industry-wide standards. The conversion rate is very important for retail KPI. It has to be measured and to do so there is a simple formula that is used. We take the amount of customers that walked through the door and divide that number by the number of transactions that occurred that day. This gives retail outlets an idea of how well they make sales for each customer that walks through the door.
The amount of time a shopper spends in the store (which does not include waiting in line at the checkout) is the single most important factor in determining how much a customer will spend in the store. There is a proven relationship between the time customers spend in a store and the amount of sales the store will make. The main priority for retailers is to get customers to stay in the store longer, and this important KPI needs to be measured as well.
It’s crucial that retailers work on staff and customer interaction. The more employees interact with customers, the more money customers will spend in the store. It’s critical that retailers consider this fact before understaffing to reduce wage overheads. A common mistake retailers make is cutting back on floor staff which decreases customer interaction and will hurt customer sales.
It’s critical that retailers know who their target market shoppers are and how to appeal to their needs and wants. The book details examples of how women feel when they shop. Women don’t like to be approached or touched in a store which is why several retail outlets use wide aisles. The concept of...