Introduction
When used strategically, cross-merchandising can transform consumers' shopping experience and boost sales. However, to maximize its effectiveness, it's essential to follow some of the following practices. Here are five best practices for implementing successful cross-merchandising at your point of sale. For a fuller understanding of the concepts, we invite you to visit our previous article"Definition of cross-merchandising".
1. Sales data analysis
The first step to an effective cross-merchandising strategy is a thorough analysis of sales data. Understanding which products are frequently purchased together can provide valuable insights for future product placement.
- Using POS (Point Of Sales) data: Leverage data from point-of-sale systems to identify purchasing trends.
- Basket analysis: Study the composition of baskets to see which product combinations sell best.
- Virtual shopper studies: Use innovative solutions such as Enov's Virtual Shopper Experience and Retail VR to simulate shopping paths and observe customer behavior in a virtual environment. These studies enable you to test different store configurations, analyze consumer reaction to various cross-merchandising strategies, and obtain accurate data without interfering with the actual shopping experience. For more information, read our article on the Virtual Shopper Experience.
Example
If data shows that customers who buy breakfast cereals often buy milk, placing these products together can increase sales of both items.
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2. Creation of themes and purchasing scenarios
Create shopping scenarios that tell a story or meet a specific customer need. This can make cross-merchandising more intuitive and attractive.
- Seasonal themes : combine products for seasonal events such as holidays or the seasons.
- Everyday scenarios: During the Christmas season, collect decorations, wrapping paper and popular gifts to make last-minute shopping easier.
3. Strategic use of hot spots
Hotspots are areas of the store with high footfall and visibility. Use these spaces for your cross merchandising to maximize product exposure.
- Store entrances : Position seasonal or new products.
- End of aisle : Place complementary items to capture customers' attention before they leave the aisle.
Example
At the entrance to a DIY store, placing essential tools for summer DIY projects can immediately attract attention and encourage impulse purchases.
4. Staff training
Well-trained staff are crucial to the success of cross-merchandising. Make sure your team understands the importance and implementation of this strategy.
- Product knowledge: Staff need to know which products complement each other.
- Sales techniques: Train them to suggest cross-selling during customer interactions.
5. Use of signage and visual merchandising
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Effective signage and visual merchandising can guide customers towards complementary purchases and improve the effectiveness of cross-merchandising.
- Strategic signage: Position signs and posters to draw attention to complementary products. Use clear messages to indicate associations between products, for example by highlighting combined promotions or special offers.
- Interactive technology : Integrate interactive screens or digital kiosks that offer recommendations based on the products selected by customers. These technologies can also offer product demonstrations or usage suggestions.
- Lighting and color: Use lighting techniques and color palettes to highlight specific sections of the store. This can help direct customers' attention to related products and create an atmosphere conducive to cross-shopping.
- Visual promotions: Highlight promotions with stop-radios, floor stickers or shelf displays to draw attention to complementary product offers.
Conclusion
Cross merchandising is a powerful technique for increasing sales and enhancing the shopping experience, but it requires careful planning and execution. By following these best practices - analyzing sales data, creating themes and scenarios, using hotspots, training staff, and using signage - retailers can optimize their cross-merchandising strategy and reap the benefits of improved customer satisfaction and increased sales.
Adopting these practices will enable you to transform your sales area into a dynamic zone where every product finds its place to maximize sales opportunities and enrich your customers' experience.