I’m not sure this truly qualifies as a surprise party. Still, like Molly, many other consumers who love to plan in detail also enjoy surprises. For example, researchers at Yale University and Carnegie Mellon University found that a surprise gift to commercial bank customers resulted in significantly higher deposit account balances.
In the Yale/Carnegie Mellon study, some bank customers with relatively high account balances were mailed unexpected gift certificates to restaurants and gas stations. The outcome was that account balances for those receiving the gift grew by $6,000 more, on average, than did account balances of those not receiving the gift. Those receiving the gifts also were more likely to praise the bank.
Another form this can take is to have surprise specials in your store. At first glance, it might seem to be really bad business to surprise a customer with an especially low price on items the shopper had already intended to buy. After all, they’ll buy the items at the price they had expected, so why give up any of the profit? But consumer behavior researchers at University of Arizona, Arizona State University, and University of Pennsylvania found that just such a practice, used with care, can end up building your profits.
The reason is that customers who are grateful to you will buy more from you, and nothing brings out gratitude in a customer more than finding a surprisingly low price on an item the customer already had intended to buy. They’ll buy more from you over time, and they’ll also spend more than they’d originally planned to spend during the shopping trip where they found the surprise special.
Don’t discount most items on the person’s shopping list, and don’t stop advertising the low prices on those popular items which will draw traffic into your store. But knowing you offer surprise specials will motivate all that traffic to move up and down the aisles on a treasure hunt. What better way than this to make shoppers aware of all the products you offer them?
For your profitability: Sell Well: What Really Moves Your Shoppers
Click below for more:
Have Unannounced Discounts on Common Purchases
Tailor Loyalty Programs to Customer Culture
Thank Shoppers Freely
On a similar note I discuss with students why might a good-selling, popular brand name of shampoo offer 40% more in the packaging of their product. Why?
ReplyDelete1. To reward loyal customers.
2. To attract new customers.
In the case of item 2, anecdotally, students say that when they run out of that shampoo, they buy the next shampoo that has 40% more or is discounted.
It is important to note that this demo (students) have a limited budget so they shop the bargains. Having said that, many in this demo are loyal to their personal hygiene products.
Another perspective on your excellent point, Prof. Vendramin, is that when bargain hunters form an emotional connection with the product or store, they become more loyal and therefore less likely to flit on to the next bargain. The best emotional connections with bargain hunters come from gratitude for solving bargain hunters’ problems and meeting their needs.
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