Customers always demand that the retail stores are filled with the products they want and satisfy their needs. Otherwise, they will shop somewhere else to satisfy their shopping needs. But how can retailers adapt to their shopper’s promptly changing buying behavior? The answer is simple: Consumer Decision Tree (CDT). CDT helps to understand customer buying habits and their decision-making process while shopping.

What are Consumer Decision Trees? 

Consumer decision trees are also known as product hierarchies, which aid manufacturers and retailers in identifying how customers make their decisions while shopping a category. CDT is considered as the path to purchase, by considering factors such as product, store layout, location, brands and many other factors. Therefore, CDT can be used to boost customer loyalty with the help of a visual merchandising strategy. Planogram is considered as the visual merchandising tool, that helps shoppers to easily identify the type of products they are looking to purchase. So, the following are the consumer decision-making processes in a retail store:

• Before entering the store, shoppers already have an idea of what type of product should be purchased. The first decision a consumer will make while entering a category is which brand should be purchased or not.
• The next decision is on the quality segments, which include economy, premium or super-premium. Such segments will be defined within the category and are priced according to their quality. This will make consumers shop easily and satisfy their needs.
• The final decision of the CDT is based on product attributes such as size, flavor, type, color, packaging, and more. Products in such segments are grouped with similar items, for instance, “baking items.”

How CDT can Improve Customer Loyalty to boost Retail Sales? 

A well-built consumer decision tree ensures that consumers can easily shop in the category and could bring a difference between loyal customers and occasional shoppers. Planograms help to group products into categories in a logical and friendly way to easily approach the shoppers. Let us look at some consumer decision tree benefits to improve the store performance:

• CDT can help with data analysis: Consumer decision trees can help retailers discover the buying habits of shoppers. Therefore, CDT can be created with the help of retail data to understand what is happening in a retail store. This will provide retailers with a close insight into shopping trends and needs and assist in boosting customer loyalty. By understanding consumer shopping habits, retailers can create a satisfying shopping experience for their customers. Creating planograms with the use of a CDT, will help the retailers to please customers by placing the right products on their store shelves effectively.
• Help to take assortment planning decisions: Consumer decision trees can help retailers to identify the attributes such as price, quality, brand, store type and location. By analyzing such information into your retail ranging practices can improve store performance and customer shopping experience.
• Help to build great floor plans: Retailers can create a floor plan for their stores by understanding the buying habits of their customers. It also helps to identify how customers shop in categories and walk through your retail stores and create awareness for products that are newly introduced to the market. When the customers become familiar with store layouts, it will satisfy them by shopping at your store.
• Product adjacent to shelves: Product adjacency is to place products on shelves near similar products, where shoppers can easily identify and purchase what they need from one shelf. This will also create awareness of brands, and new products, which customers may not have seen before.

Overview of Nexgen POG 

Nexgen POG is a robust and user-friendly cloud-based visual merchandising tool. It is designed for quick and efficient planogramming with minimal effort. Planograms can be designed by easily dragging and dropping the products. The multi-device compatibility feature of POG allows you to obtain, share and edit planograms on any device, including your phone. It helps in designing store-specific planograms for increased product visibility and sales.

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