One of the most effective ways to get customers to make a positive buying decision is if they believe the product they really like might not be available if they return later. In stores like Forever21 and TK Maxx, where customer know that this is almost certainly true, a higher proportion of store visits result in a purchase. This obviously works in fast moving fashion but how can other types of retailer boost sales by creating the same urgency to buy?
A reduced price or offer is one tool to grow sales but in most cases shoppers don’t know when the offer will end so the urgency to buy is not as strong as it could be. Simply being clearer on the signage about when the offer ends will further boost sales. Some customers will think they might not be in the store before the offer ends and make the purchase just in case. Even those who “miss out” on the offer will feel that they had all the information required to make a buying decision.
Another tactic to gain more store visits and sales from the urgency factor is to have some price reductions and offers available for a much shorter period of time. This could be a week or even a day. Knowing that a retailer has fast sales on certain products will attract customers into a store to spot the latest short term offers.
Finally, some retailers can more directly copy the Forever 21 model but with a limited range of new and different items in low volumes. They could be new products that the retailer/brand wants to test market or come from customer suggestions. I particularly like the idea of getting customers to vote on which products should be part of this programme but there are many other ways that the tactic can be used effectively.
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