Monday, January 29, 2018

Poach Those Jilted by Delayed Delivery

Here’s a chance to steal customers from the competition in a way that chokes off the competition stealing the customers back from you, according to researchers at University of Kentucky, Pennsylvania State University, and Stanford University: When a highly attractive product upgrade is being introduced, watch for signs that other retailers are running low on stock and then advertise the fact that you’ve either that specific upgrade or a high quality substitute.
     Why does this work even if the other retailer could also offer a high quality substitute? Because the irritation at the out-of-stock (OOS) spreads to impressions of the retailer. The shopper feels jilted and is ready to turn away from their current supply source. It’s emotional more than rational.
     The feelings around an OOS of an attractive upgrade are stronger than with other types of OOS because when an attractive upgrade becomes available, consumers strive to justify to themselves spending the money to purchase it. This justification usually takes the form of disparaging the current possession, saying it’s not really so good after all. Researchers at Columbia University, University of Michigan, and Harvard University say that this might lead to consumers getting careless with the product, figuring that if it breaks, they’ve a firm excuse for buying the new model.
     This set of researchers also found that even when the objective benefits of the updated model over the current model are trivial, many consumers will long for the new version. This means that when the consumer learns they can’t get the upgrade, they don’t want to go back to what had been a perfectly acceptable status quo.
     For you to poach, you’ll need to pounce, catching those irritated consumers on the rebound. It’s best not to wait until you hear from your regular customers that the competition is OOS. That could be too late. Instead, track news about launch delays, manufacturing problems, overload of the delivery channels, and other breakdowns in availability of the item.
     On the other side of the equation, you’ll want to keep customers rather than have them defect when you go OOS. Research-based techniques for this:
  • If the item is OOS because you didn’t place a timely order, the supplier had production problems, or there were shipping delays, explain this as a failure to anticipate the high demand rather than as a logistical problem. 
  • Demonstrate expertise about your store’s products, building the trust you will then depend on when suggesting a substitute. 
For your success: Retailer’s Edge: Boost Profits Using Shopper Psychology

Click below for more: 
Keep Up On Your Promises
Control Out-of-Stock Irritation
Accept the OOS Redirection Exception

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