Behavioural merchandising is using customer behavior to promote, place, and showcase products in order to boost retail sales revenue! Read this article and discover more!
Looking for a way to maximize the sales revenue of your retail store? Look no further as you have come to the right place! In this article, we are going to talk about the real value of effective online merchandising, as well as, behavioral merchandising.
Behavioural merchandising is using customer behavior to promote, place, and showcase products in order to boost retail sales revenue. It was originally made popular by Amazon.com and today it has evolved much more. Nowadays, behavioral merchandising is practices at retailers everywhere around the world and can be used by businesses whose turnover can be anything from $1 million to $billion and more.
The reason why this approach is so popular today is the fact that it has been proven to be really effective, up to 300% more effective in affecting sales per visitor through maximizing average order values and raising conversation rates. This type of online merchandising offers a positive customized shopping experience for visitors that is trustworthy and pretty relevant and that adjusts to customer preferences and needs automatically.
What is Merchandising Exactly?
Merchandising means boosting merchandise sales by using product design, product selection, product pricing, product packaging, and product display that provoke and inspire customers to buy and spend more. The process contains physical presentation and showcasing of products and displays, disciplines in pricing, advertising, and discounting, and decisions about which products should be showcased to which clients at which time.
The Real Value of Merchandising: Why Merchandising Matters?
It is proven that retail merchandising is an effective technique for maximizing sales and increasing sales revenue from a certain audience of visitors. In order to understand the real value of merchandising, we are going to put it in relation to advertising, which is the process of attracting visitors to the retail store.
Usually, the retail stores spend a lot of money on advertising and promoting, in order to drive relevant traffic to the store, The store at that point will want to use the best possible merchandising techniques in order to convert these visitors into active buyers and boost the performance conversion rate. In other words, the retail store wants to persuade the visitors to purchase as much as possible.
In a nutshell, the success of the effort of the retailer in increasing cost-per-visitor, average order value, and conversion will determine the sales revenue generated by the store.
The ultimate goal of merchandising, advertising, and purchasing combined is to boost the operating income of the retailer. At this point, the four key elements that define the success of the process are Average Order Value, COnversion Rate, Cost per Click, and Cost of Goods Sold margin.
The Importance of Behavioral Merchandising
According to a research, personalized merchandising utilizing behavioral methods has proven to be the best and most effective. It has generated better results than other approaches by being more trustworthy, relevant, and adaptive.
Besides these 3 advantages, behavioral merchandising has other benefits over other approaches and techniques, such as the fact that it can be made completely automated, it reduces the cost of merchandising operations, requires no ongoing human maintenance or administration, and etc.
If you want to finally maximize the sales revenue of your retail store and to attract more buyers now is the perfect timing to do so! Using an online merchandising approach is the solution you need!