In simple words, consumer behavior refers to the process of understanding how customers behave while deciding to buy a product that satisfies their needs. There are a number of questions that a retailer focuses on, to understand customer’s buying patterns. These include:
- What do customers purchase?
- Why do customers purchase?
- When do they purchase?
- From where do they purchase?
By answering the above questions, retailers are in a better position to offer customers the right products at the right place and time. This is where planogram comes to play. Planograms are visual merchandising tools with diagrammatic representations of the store layout. They help retailers in deciding how and where products should be placed, and how many facings each product should get so as to maximize product visibility and sales. A well-designed and implemented planogram is key to retail success. Read on to know how planograms influence consumer behavior.
1.Basic products are usually kept at the back of the store:
Ever wondered why essential products like dairy, bead and eggs are placed in the middle of a section or towards the end of the store? Here retailers use planograms to design floor plans in such a way that store staff can place products strategically with the aim of making customers walk all along the aisle looking for it. Such an action results in an increase in time spend by a customer in a store, thereby leading to higher buy-ins. For example, you go a store to buy bread and because it was placed at the end of the store, you end up buying milk, eggs, coffee and a bunch of unplanned items that you were exposed to while walking along the aisles.
2. Capitalizing on impulse buying opportunities
Have you ever thought why your kid’s favorite candy or your favorite magazine is often merchandised at checkout points? Such a strategy is adopted to turn waiting time into buying time. The result of such Point Of sales (POS) display is that you end up buying much more than originally planned. In fact, these displays are among the most profitable areas of a store. Research suggests that impulse buying accounts for up to 16% of total sales. So how can planograms help increase chances of impulse buying? The most common technique to achieve higher impulse buying rates is through cross merchandising. Data driven planograms help retailers in understanding how complementary products should be placed within each other’s reach. This makes your shopping experience hassle free and pleasant.
3.Designing attractive promotional strategies
Discounts, loyalty programs and promotional strategies- as customers we all love a good deal. Of all the reasons why we shop, saving money is on top of the list. And for retailers, acquiring new customers and keeping the existing ones happy has been paramount. Successful retailers believe that sales promotions are among the most effective techniques to boost sales, increases customer satisfaction and create brand awareness. Hence, they use planograms to design attractive promotional strategies that prompt customers to buy more. But how is this accomplished? Planograms help retailers in understanding customers need and perspective to design appropriate promotional strategies for them. This creates a fresh and exciting shopping experience, every time customer visits a store.
Overview of Nexgen POG
Nexgen POG is an easy to use cloud-based visual merchandising tool. It is a cost efficient planogramming tool, designed for creating store specific planograms. It offers an array of features including web-based sharing, report generation, customizable template, easy compliance and much more. Multi device compatibility feature of POG allows you to obtain, share and edit planogram on any device including your phone. It helps in designing store specific planograms for increased product visibility and sales.
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