Wednesday, December 8, 2010

Cook Up Recipes for Patrons

Why have cookbooks and how-to books historically sold so well? Because people like recipes. Even the best selling book of all, the Bible, can be considered as a set of recipes for living.
     When retailers cook up recipes to suggest to customers, those retailers are helping the customers meet three objectives that research indicates consumers set for themselves:
  • Avoid indecision. “There’s enough uncertainty in my life without fretting about what to cook for dinner.”
  • Stay within a budget. “The recipe gives me the whole picture, so I can calculate the total cost.”
  • Allow for variety. “I’ve the opportunity to personalize by improvising on a proven foundation whenever I choose to.”
     A substantial percentage of households plan meals—especially dinner—in advance, and the shopper creates a shopping list based on the plans. The customers are doing this to reduce temptations to overspend. Grocery retailers can earn good will by providing to customers full meal recipes that include items available in one place from the retailer.
     The same logic applies to all sorts of other retailers, as long as you keep in mind the third objective—allowing the consumer to improvise so they can personalize. In your how-to recipes, lay out the plan for the consumer who wants a turnkey solution. Give an overview and then the step-by-step specifics. And end with possible alternative steps for the consumer who prefers to take the path less traveled. Those alternatives can stimulate the customer to increase the shopping cart total, so be sure to include them.
     Research findings from London Business School and University of Chicago indicate that people are most likely to want the creative alternatives when the product or service is intended to give pleasure beyond solving a problem. The researchers explored what happens with the retail categories of museum visits, massages, gourmet foods, and exercise programs.
     In the cases where the consumer viewed the product or service as principally solving a problem, the consumer was happy to be told what to do, as would occur with one fixed recipe. But when the goal was pleasure, the consumers chafed at the limitations of one directive. They wanted to make choices.

For your profitability: Sell Well: What Really Moves Your Shoppers

Click below for more:
Sell Impulse Items to Serve
Increase Repeat Customers’ Unplanned Buying
Show Off New CPGs on Store Shelves

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