customers wants and desires - pga of canada · experience. abercrombie & fitch – a youth...

6
CUSTOMERS WANTS AND DESIRES AND 15 VISUAL MERCHANDISING TACTICS YOU CAN DEPLOY TO EXCEED THEM PART 1 WRITTEN BY: DIONCO INC. More specifically, we are going to talk about nailing one of the rights of retail: the right place, and we are going to highlight how having the right place will lead your pro shop to higher profitability. The better the shopping experience you are able to provide to your customers, the more you can charge for products you sell as your customers will be willing to pay more for a better experience which will then help your bottom line (again, think Apple and their not so inexpensive products and astronomical profits!). Location, location, location. You have certainly heard this phrase before from real estate agents and of courses retailers. What it means, is that location can truly make or break a retailer’s business. If it is hard for a customer to find your shop, if parking is difficult, if the area is not safe or the image of the building, shopping center/mall or the course where your store is located are not right, chances are you will not survive, let alone thrive. M&M’s, the candy company, provides us with a good example of this reality. Two of In our previous article, we looked at different tactics that you can deploy to hit it off with today’s customers who, time and again, have demonstrated that they only want to do business with retailers and brands that can provide them with something brilliant and worthwhile. We are now going to look at some of these tactics more closely, to help you put together a clear plan of actions you can start taking tomorrow (if what we are suggesting here is new to you), or stop taking (if you find out there are things that you are doing today that we recommend that you stop doing), or continue taking (if it turns out you are already doing the things we talk about here). EXCITING THE DEMANDING CUSTOMER

Upload: others

Post on 05-Jul-2020

1 views

Category:

Documents


0 download

TRANSCRIPT

CUSTOMERS WANTS AND DESIRES AND 15 VISUAL MERCHANDISING TACTICS YOU CAN DEPLOY TO EXCEED THEM — PART 1 WRITTEN BY: DIONCO INC.

More specifically, we are going to talk about

nailing one of the rights of retail: the

right place, and we are going to highlight

how having the right place will lead your pro

shop to higher profitability. The better the

shopping experience you are able to provide

to your customers, the more you can charge

for products you sell as your customers will

be willing to pay more for a better experience

which will then help your bottom line (again,

think Apple and their not so inexpensive

products and astronomical profits!).

Location, location, location. You have

certainly heard this phrase before from real

estate agents and of courses retailers. What

it means, is that location can truly make

or break a retailer’s business. If it is hard

for a customer to find your shop, if parking is difficult, if the area is not safe or the image of the building, shopping center/mall or the course where your store is located are not right, chances are you will not survive, let alone thrive. M&M’s, the candy company, provides

us with a good example of this reality. Two of

In our previous article, we looked at different

tactics that you can deploy to hit it off with

today’s customers who, time and again, have

demonstrated that they only want to do business

with retailers and brands that can provide them

with something brilliant and worthwhile.

We are now going to look at some of these tactics

more closely, to help you put together a clear plan

of actions you can start taking tomorrow (if what

we are suggesting here is new to you), or stop

taking (if you find out there are things that you are

doing today that we recommend that you stop

doing), or continue taking (if it turns out you are

already doing the things we talk about here).

EXCITING THE DEMANDING CUSTOMER

their stores are in phenomenal cities for the

type of traffic that they are seeking to get:

one is in a mall (very busy) in Orlando and the

other one is on the main strip in Las Vegas.

The difference in revenue however, is huge and that is simply because customer traffic on the Las Vegas strip is phenomenal, and even if Orlando is a great market for the type of product that they sell, being in a mall does

not yield the same volume of sales for them.

“STORES ARE BEST LOCATED WHERE THEY CAN DRIVE

CUSTOMER TRAFFIC (FOOT AND COMMUTER TRAFFIC), ATTRACT

THE RIGHT EMPLOYEES, PROJECT THE RIGHT IMAGE, ENSURE COMPETITIVENESS, BE RUN

EFFICIENTLY AND MEET THE BUDGET. ”

Not all successful stores are near their target

customers. Abt Electronics – a much written

about U.S. consumer electronics and white

goods big box single store – is located in

Glenview, Illinois (kind of ‘in the middle

of nowhere’ for a lot of its customers who

reside in Chicago, some twenty miles away).

Their store is what is often referred to as a

‘destination’ store. Customers will happily

drive the distance if the store is unique in its

overall shopping experience and Abt, once

dubbed the ‘Bellagio of Retail’ by the Wall

Street Journal, provides the most extraordinary assortment of products, in the most exciting space and with the most phenomenal service.

Sometimes, the ideal location is near a

competitor. ‘Clustering’ together allows

to draw more customers. Customers like to

choose and compare different stores and they

tend to gravitate where they can conveniently

compare products, services and prices (that’s

one of the reasons why shopping online is so

widespread – comparisons are just a mouse

click away!). A retailer may choose to be near

its competitors counting on the fact that the

competitors might have invested in market

research and concluded that the area is right

for their target customer. Competition also

makes a retailer better. Survival of the fittest

is the game here, and successful retailers

love the challenge. Car dealers are known for

clustering and so are shoe stores.

And finally, the ideal location can be near an indirect competitor. For example, an art materials retailer might want to open next to a college of arts. Or, it could be an exclusive jewelry retailer down the street from a Theater District. Or, a high-end golf store near a Rolex or Burberry store.

In your case, the ideal and most common location is obviously, on a golf course! You already have a captive audience which you need to cater to according to their experience expectations. You too though, must remember that the reason why it is important to analyze the location of your store within the clubhouse or surrounding buildings is because it likely provides both opportunities and challenges. An ideal location in the club requires less focus and investment in marketing activities to reach out to the customer, whereas a less than ideal location must be accompanied by a strong marketing push to make sure the member or customer even knows how to find you at the club. We have seen some Pro Shops that were so well hidden that you almost felt you needed a treasure map to find them!

SO, WHAT CAN MAKE YOUR STORE

WORTH FINDING?

Many things! And having the right retail

environment, comprised of store design and

visual merchandising, is one of them.

Good store layout and product presentation

are key drivers of customer traffic and sales.

GOOD STORE LAYOUT... THEY ALLOW YOU TO:

• Sell more to existing customers• Get them back more often• Attract new customers• Increase margins through adding value to the store’s offer• Keep the customer in the store longer – the longer they stay, the more they buy.

Why? Because humans are visual, and they believe their eyes before they believe anything else. If they like what they see, they stay and buy. The message must be compelling though, meaning unique and truly worthwhile.

There are three key elements that contribute to the perfect retail environment and shopping experience: WINDOWS, INTERIORS, and MAINTENANCE.

We are now going to talk about each one separately and list things that you can do to make sure that they help you deliver an extraordinary experience for your customer.

WINDOWSWindows must work as traffic magnets. If your store has windows, here are some tips to optimize their use.

WATCH THE VIDEO

SETTING UP YOUR PRO SHOP With Lesley Hawkins, Brand Director for Adidas Golf and Ashworth.

1 Use windows to make a powerful and eye-catching statement that makes the store stand out and causes the customer to stop and look (unique

look and feel)

Store windows are among the first things that passersby’s see, and if they like what they see – the first impression is good – chances are that they will come inside. Create simple yet powerful presentations: a quick glance

should tell what the store is about.

The store window is the place where you can showcase one single product, a season story, a special offering, a new brand, anything that tells a story about the quality and value of the products carried in the store and the excitement that the customer will find inside.

Never use your windows as your stockroom!

Store windows are integral in creating a

positive impression and impulse buyers,

because they offer an opportunity to begin

telling your store’s unique merchandise story

immediately (and everyone likes a story well

told). When it comes to windows, less is more.

Simple, linear and uncluttered displays go a

long way in delivering a clear and powerful

message. The more merchandise you try

to jam in your windows, the less value

and impact that merchandise has.

Also, it is important that customers notice the

store when they are close as well as from a

distance. So, lights, even at night when you are

closed, are important for window shopping (and

if you are on a course that is open late at night).

The entrance must be inviting, too. Many

stores use glass entrances and some stores

(Apple, again) even use a type of glass that

almost looks like it’s not even there. The

idea is for these stores to be one with the

environment where there are no barriers and

passersby are encouraged to come in.

Finally, windows must help promote your

store brand by enhancing it with proper

signage and visuals on the outside that project

your store brand identity that customers can

immediately recognize. Photograph your windows

regularly and be very critical of what you see. You

might even want to invest in a professional window

‘dresser’ who can create a perfect window for you.

And, remember, windows need to be changed at

least once a week!

INTERIORSThuy T. Tranthi, former executive at Thomas

Pink, the London shirt company known for its

classic shirts in all colors, once said:

“I WANT TO MAKE SURE THE CUSTOMER HAS A WONDERFUL

FEELING OF BEING TRANSPORTED TO A DIFFERENT PLACE WHEN THEY

ENTER ONE OF OUR STORES,”

One of the main goals at Thomas Pink is to

create a retail environment that focuses on

the elements in a store that can provide an

extraordinary sensory experience (a ‘feast for

the senses’) such as, light, color, texture and

sound among other things.

2 Use interiors to tempt the customer (unique look and feel)

Studies have shown that 80% of purchases

are impulse and 20% are planned and that

customers make the final decision to buy or

not to buy and what to buy in the last meter.

Creating a unique look and feel for your store

is to capture the impulse buyer. And impulse is

especially important to us in the golf world.

Just like with windows, interiors must help

promote your store brand. Brand-related

signage and logo are absolutely necessary in

order to give the right look and feel to your store.

3 Use color to create a mood

Shopping is an emotional experience more

than anything else. The right environment can

either cause a positive (receptive) or negative

feeling (not interested). Colors, in particular,

can help create the right mood for the type of

customer you are targeting, the type of product

you are selling and the experience you are trying to provide. Subdued, neutral colors are more relaxing and more suited to a golf shop as it makes the merchandise the star and not the walls. However, you can mix subdued colors with bolder hues for accent walls or displays as long as the product on display remains the main focus and is in fact enhanced by the background color.

4 Use lights to make the product ‘look good’

…and to show the true colors of that product. So many stores use the wrong

lights – tube fluorescent lights, for instance

that don’t make their products stand out.

Lights are a fundamental component of the

shopping experience and just like colors,

they help set the mood. If the mood is right, customers will be more inclined to stay and buy. Use floodlights for ambiance, spotlights (accent lighting) for drama, and decorative lighting for a

‘homey feeling’. New LED lighting, especially

those that are more daylight temperature are

great and they will save you money too!y?

5 Use atmospherics to create a mood

Music, scent and videos are what we call

atmospherics which once again, help put the

customer in the right mood for enjoying the

experience. Abercrombie & Fitch – a youth

fashion retail chain – are the perfect example

of a great use of scent and music to target

their 14-27 years old customers (along with

their very low lights!).

6 Use ceilings to create added drama and floors that match the overall environment and can withstand heavy traffic

Ceilings and floors are active components

of your overall interior design direction

and need to be consistent with the rest of the

experience and image elements. Small stores

do better with light color floors and ceilings

as they make the space feel more open.

7 Use walls and wall systems to showcase the product and make it stand out

Walls are phenomenal opportunities for

displaying product so it really stands out. Properly

lit, almost invisible slat walls and systems are the

perfect choice for displaying products neatly,

effectively and with high visual impact.

Good luck getting the right retail environment

and stay tuned for our next article on the

remaining 8 Visual Merchandising Tactics

You Can Deploy To Exceed Your Customers’

Wants And Desires!

JAMES DION AND STEFANIA PINTON

We provide our clients with the most up-to-date data and competitive solutions to their

needs from our access to extensive research as well as information from some of the largest

corporations in the world. We are also sensitive to cultural and global issues as we consult in

North America, Asia, Africa, Australia, Europe, the Middle East and South America.

FOUNDER & PRESIDENT

MA

NA

GIN

G PARTNER & SENIOR CON

SULTA

NT