Creating successful merchandising programs in brick-and-mortar retail stores is not easy. Navigating the intensely competitive retail landscape, capturing the attention of distracted and hurried shoppers, complying with retailer requirements, creating a compelling brand identity, and making the numbers work are all part of the challenges faced by both well-established and newly emerging brands. In today’s post we’ll look at 5 timeless truths that help to drive strategies for retail success and the effectiveness of retail display strategies in merchandising programs.
- High-Quality POP Displays Create Perceived Product Value– One of the fundamental truths of retail merchandising strategies for retail success is the importance of POP displays in creating perceived product value in the mind of consumers. This truth applies to almost any product category. In eyewear, for example, if you take a $5 pair of sunglasses and merchandise them on a high-end display, consumers will immediately think they are expensive. Conversely, if you take a $300 pair of sunglasses and put them on a corrugated display, shoppers will assume they are cheap glasses. Compare the corrugated sunglass display below to the more premium sunglass tower we created that resides in over 2000 Wal-Mart Optical Centers.
So, what are some ways to create high-quality displays that can create higher perceived value? It starts with great design. An elegant design is foundational to creating perceived product value. Using high-quality materials is also important. Beautiful hardwoods, tempered glass, high pressure laminates, and solid surface tops are all examples of higher end materials. Add-ons like LED lighting, dimensional graphics, digital media players, and similar upgrades can all contribute to greater perceived value.
- Storytelling Captivates and Converts Shoppers to Customers– Storytelling has become an essential component of the retail equation. Just as televised singing competitions like “American Idol” or “The Voice” are as much about the stories of the contestants as they are about the singing, so too are the importance of the stories told through retail display strategies. Simply put, it is not enough to have a good product. Brands that tell stories about their products or their companies are more likely to capture shopper attention and make emotional connections. Stories make products sticky and more memorable.
Stories can be told in many ways, but the easiest and most common way is through graphics. We helped Woodinville Whiskey tell their story about what goes into becoming the Craft Whiskey of the Year.
- Speed to Market and POP Display Longevity Trump Unit Cost– Overwhelmingly, brands focus on getting the lowest cost for their POP displays. While that is understandable and makes good sense from a procurement standpoint, it can often be less important than speed to market and longevity of the display.
Most customers overlook the cost of delaying the implementation of their POP display programs. For every day of delay, brands lose sales, profit, and the opportunity to capture new customers and promote their brands. In some cases, avoiding a 2- or 3- 3-month delay could possibly pay for the entire cost of the display program. We refer to this as the “economics of delay.” We illustrate that concept in more detail in our blog entitled “POP Displays: 3 Economic Lessons that Will Help You Make More Money- Part 1 (And Why So Many Customers Miss Them).” These economic lessons are essential components of strategies for retail success.
Longevity of a POP display is even more important than avoiding implementation delays. Once the cost of the display is recouped through product sales, the return on investment continues to increase the longer the program runs. The ROI on a program that lasts one year is likely to be dramatically lower than a program that is in place for 5 years. We documented this truth in a blog about the Tieman’s Coffee display we created below. The display generated more than a 30,000% return on investment. The magnitude of that return was driven by longevity. If you missed our blog about how that display drove such an incredible ROI, you can check it out here.
- Versatile Designs Create Value– Versatility is a key pillar of merchandising program success. Creating mobile, modular, and configurable displays not only give the retailer flexibility with respect to how and where to use the display, but it also helps to future-proof the display for new product introductions and merchandising program changes. For example, a display with adjustable shelves and interchangeable signs is likely to outlive a display that is designed to fit a single product when that product evolves or has a packaging makeover. As we have reviewed earlier, longevity enhances display program economics, and versatility is an important enabler of POP display longevity.
The apparel display we created below for Free Country is just one of many examples of how versatility and configurability can be built into a retail store fixture. This display offers interchangeable branded panels and header sign graphics, slotted uprights that accept height-adjustable shelves, apparel bars, and HBARS that can be configured with hooks, straight-outs, and waterfalls. These design elements are key to strategies for retail success.
- Interactivity Drives Shopper Engagement– Interactive displays are proven to engage shoppers. When a shopper can touch or play with a product, learn more by accessing product content through a touchscreen digital media player, or test fit a product, they are more likely to convert from a shopper to a customer. Locking displays are typically the least engaging types of displays since they generally require the assistance of store personnel to access the product. For higher value products, an alternative is to use tethers or other types of anti-theft devices to secure the product in order to provide the shopper with an opportunity to touch and feel the product.
The BlueSound counter display we made below is a good example of a highly interactive countertop merchandiser. The display features multiple speaker models with adjacent buttons to enable shoppers to play different soundtracks. The digital media player plays a continuous looping video, and the brochure holder offers shoppers another opportunity to engage in more detailed product information.
While there are many other important elements that contribute to a POP display program’s success, focusing on these 5 merchandising truths, including strategies for retail success will go a long way toward winning customers and enhancing program economics.