The Power Of The Impulse BuyRoie Raitses
Whether you run an online business or a brick and mortar store, if you sell a product, you are probably familiar with the concept of an impulse buy. Impulse purchases work like this: a customer visits your store for a specific product, finds that specific product and prepares to check out, while they are preparing to check out, they notice an inexpensive product that they don’t necessarily need but would like.
Stores of all types have relied on impulse buys to boost their margins since the 1950s. Wielding the power of the impulse purchase properly, however, is a fine art.
Step One: Know Your Core Customer
In order to appeal to your core customer, you must know who they are. With the exception of food and drink, there are precious few products that have universal appeal.
Though you can base a portion of your decision on demographics, it may be more beneficial to understand why your customer is interested in your products. If you run a high-end salon or boutique; your patrons are likely interested in fashion and cosmetics, they may appreciate magazines that keep them up-to-date on trends or self-care items that will help them look their best at home. If you run a gym, your members may be interested in vitamins, protein bars or other health-related items.
When you understand what your core customer is looking for, you’re more likely to be able to put it in front of them.
Step Two: Give Them Options
Clothing stores often keep perfume and inexpensive accessories near the register to entice their customers into completing their outfit. Shoe stores keep deodorizers and shoe care items near the register because, although few customers set out specifically for those items, they pair nicely with most purchases.
Using a strong impulse buy strategy isn’t a substitute for a fast approval loan, but it can significantly impact your business.
By offering your customer a purchase that assists them in protecting their investment, the customer feels goodwill towards your business and like they’ve spent their money wisely.
Step Three: Make Sure The Price Is Right
Impulse buys are not big ticket items. Most of your customers aren’t going to pick up a TV or new phone on their way to the checkout. Likewise, a candy bar that costs a dollar or very cheap headphones may be equally unappealing.
Your impulse buy products should cost a fraction of your average product, typically between 10% and 30%.
Whichever strategy you choose, it’s important to experiment around with your impulse products to find the best fit for your customers.
More Impulse Buys = Better Business
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