Thursday, August 24, 2017

Redesign Your Store for Loyalty

Retailers redesign the configuration and decorative themes of their stores for a number of reasons, ranging from changes in the nature of the merchandise to a desire to stay fresh. Researchers at Dublin Institute of Technology, Massey University in New Zealand, and University of Surrey warn that, regardless of the reasons, such store redesigns can disrupt customer loyalty. Mission Shoppers—those who want to come in, make the purchase, and leave—were taken aback by the new layout. And all types of shoppers became more price-sensitive in the redesigned store. They felt that the prices were relatively higher, even when there were actually no changes in the prices.
     Still, the upsides of store redesign outweigh the risks. In the research, many longer-term customers liked the novelty and the opportunity to explore. As long as the difference between old and new is not too great, what is surprising and unfamiliar improves recall, which, in turn, can trigger repeat business. Other studies, at Monash University, found that announcements of a grand reopening drew in new customers, with higher spends per visit and, for a time, more frequent visits than was true for the longer-term customers.
     Maximize the upsides by respecting visual aesthetics. Research results from Brazil’s University of Paraná indicate that if shoppers judge the exterior and interior design and décor of your store to be visually beautiful, the shoppers are more likely to become loyal customers. What different target populations of consumers judge to be visually pleasing may seem to vary widely. And those judgments do. Research does find three fundamentals:
  • Symmetry with a few surprises. The underlying design should be balanced, with matching elements on the left and right and on the front and rear. But there also should be a few surprising asymmetries. 
  • Unifying themes. Customers find visual aesthetic pleasure in store designs and décor which repeat themes. If a visual design theme is also reflected in sounds or aromas in the store, this augments the aesthetics. 
  • Familiarity. The arrangement of shelves and aisles should balance novelty with familiarity. The familiarity may come about because of a principle of design common in a culture. 
     Then, too, lessen the risks of store redesign: Forewarn customers of changes. Keep the store items most popular with Mission Shoppers in locations similar to where they were in the old configuration. And at the time of the grand reopening, run promotional discount sales.

For your success: Retailer’s Edge: Boost Profits Using Shopper Psychology

Click below for more: 
Have Shoppers On a Mission Look at Possibilities
Design Stores with Visual Aesthetics
Impress from the First
Lead Your Customers Through Changes Gradually

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