Retail Sales Performance - To buy or not to Buy

It is unbelievable what a diversity of tricks retail businesses make use of to lure customers. Decoying customers with finesses requires profound knowledge of human primitive reactions and psychology. It is no secret that efficient marketing techniques utilize findings of marketers' two favorite sciences, namely biology and psychology. "Knowledge is Power" is an old piece of wisdom and marketers are not afraid to be accused of conventionalism.

Most shoppers do not realize that a retail store is a trap where every little detail has been thoroughly thought over and organized in such a way that will make them buy more. Those few who are aware of it do not seem to mind it. They think that these tricks make them fell comfortable and at ease. They are sure that they still control the situation. Do they really"

A selection of manipulative stratagems used in retail stores is broadened every year. Like experienced hypnotizers they engage all our senses to get us into a shopping mood. Over 80 percent of information from the world we perceive through our eyes. Do retail businesses know that" Yes, they sure do. Attractive exterior and interior designs of shops, strategic placement of goods with the biggest profit margins just below eye-level, triangular balance technique, when the biggest and more expensive products are placed in the center of a shelf, spellbinding window displays, clear dwell zones at the entrance of a shop - these are few of the techniques that retailers use to make their shops and products visually attractive to buyers.

Hearing is the second important channel for receiving information from the outer world. It is the second feature but still it remains very influential. Vibrant, quick tunes induce buyers to be lively, to be young again and make spontaneous decisions. French music creates a romantic atmosphere and makes us long for glamour and passion. A relaxing melody forces us to suddenly slow down and to pay attention to little details and think large at the same time. And here you are, all happy and relaxed. You like what you see, you enjoy what you hear and swift as a bullet there comes the realization that you are pleased by how it smells.

You may think, "What is a smell"" It is such a minor thing, not worth to be considered. However, as Marcel Proust wrote in his novels, smells penetrate our memory much deeper than visual images. Smells evoke memory and make it more real. Thus, pleasant perfume fragrances and bakery smells wafted trough air-conditioning systems do affect buyers. They do not only capture and subdue buyers in the retail shop but have a long-lasting effect. A slightest hint of a familiar odour and you find yourself meditating on how nice it felt in that shop, which means you may wish to pay another visit there.

There is no doubt all these tricks work. The question is "How well they work"" Do they actually boost the retail sales" Only numbers, dry and accurate numbers are able to answer this question. Gross margin, sales capacity, selling hour value, inventory turns rate, days inventory outstanding, inventories-to-sales-ratio - these are some of the important metrics that have to be included into the balanced scorecard if you want to objectively measure the performance of your retail business.

No matter how intricate and sophisticated you may be in luring shoppers, the efficacy of your stratagem can still be analysed precisely and accurately in numbers and percentages.