If you had to explain why you are in the retail industry, you would likely come up with one of the following reasons: to entice shoppers and to make a profit. But how? You have a wide range of choices, like upselling or cross-selling. Applying such merchandising techniques and principles will help you improve the profitability of your business.
Why Upselling is Essential in Retail?
Running a retail store means you must constantly try to entice your customers. Upsells and cross-sells can assist you in accomplishing this by raising the average order value. A lot of customer traffic to your retail store can be attracted by raising the average order value of your store. As a matter of fact, most retailers, including those who sell online, are putting a lot of effort into these tactics. Upselling will help offer your shoppers a more valuable and higher-priced version of the products they are looking for. Retailers can visually showcase customers the best models with the aid of visual merchandising planograms. Planogram in retail can be used to promote upselling by placing related products near one another. To encourage customers to buy both items at once, a store might, for instance, use a planogram to place coffee next to sugar. Similarly, a store might use a planogram to place crackers close to cheese, implying that the two products would go well together as a snack. Retailers can boost sales and revenue by carefully arranging products on planograms in a way that encourages shoppers to purchase multiple items at once.
Planogram Upselling Techniques to Try in Your Store
1. Give your upsells the spotlight: How to upsell in retail without ‘push sell’ could be a concern. A great way to do this is by displaying your upsell merchandise at the front of your store. This requires taking a closer look at the retail data to understand the current or seasonal trends, then selecting the best items from each trend and displaying them in a way that would be most appealing to your target customers. For instance, most people are shopping last-minute as Valentine’s Day approaches. Your shoppers are looking for gift items or greeting cards for their loved ones. As a result, you can create a separate shelf space to feature your best in stock Valentine-themed merchandise.
2. Bundling items to offer value: Bundling products is the most effective upselling strategy you can apply to your store. The reason for this is simple: the perception of value you create by bundling products will always lead to increased sales. This is especially true when your customer is looking for a bargain and the products are expensive on their own. You must ensure that the bundled products are similar in purpose and make sense to the customer. Let’s say you sell large appliances, such as branded refrigerators. Whenever any shopper buys this product, you could include a stabilizer for the refrigerator as a part of the deal.
3. Encourage shoppers with rewards: While bundling and upselling products with push selling are effective ways to increase sales, another strong approach is to provide rewards. In other words, give your shoppers enough reason to spend more money in your store. Most supermarkets are offering loyalty programs for their customers these days. By spending a certain amount per shop, shoppers will receive a reward. For example, you could be an apparel retailer who also sells cosmetics. In this case, you may come up with a promotion whereby a customer purchasing a specific perfume would also receive a bottle of hand lotion, either for free or at a reduced price.
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. Planogram in retail can be designed by easily dragging and dropping the products. The 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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