Tuesday, November 18, 2014

What makes in-store shoppers leave without buying?

What makes in-store shoppers leave without buying?

There are a various number of reasons why people shop – ‘showroomers’, window shopping, shopping for specific product, the list goes on. Although recreational window shopping where people use shopping to socialise has always been popular, showrooming is a new term to describe shoppers who visit a shop to check out a product but purchase online. In Singapore, showrooming is getting common with 78% of consumers using their smartphones while in-store and 73% stating they would leave the store if after researching they find the same or similar product 5% cheaper somewhere else.



Finding the right product in-stores should be made a breeze for shoppers. Statistics show that 91% of shoppers were likely to leave a store without buying if they are unable to find a product they wanted. Retailers need to maintain right stock levels to reduce the loss of 1 sale and the potential to make more sales from the same shopper. In addition to this, retailers should explore the usage of clear in-store signage or good product display. These would help shoppers find products easily and help in building a better shopping experience. If you are a fashion retailer with a collection of denim jeans, do consider the usage of signage with displays showcasing the types of denim jeans, the cut, colour and design.

Example of GAP store men’s denim section
Example of GAP store men’s denim section

Do take note of customer behaviour in-stores to understand if shoppers are able to pick out specific products or if your promotional products are gaining enough visibility. While it is not easy to monitor customer behaviour especially during peak periods, retail solutions such as KAI Square’s video analytics, crowd density analytics, would help you to track which areas in your store are of higher activity levels and how you should place certain products at these hot spots.

Customer service is one major reason why shoppers purchase in brick and mortar shops over online shops. Hence, it is important that retail staffs are appropriately helpful and welcoming. 41% of shoppers are most likely to leave a store if the retail staff offered too little or too much attention.

Retail staff ought to pay attention to the needs of customers. Be alert to offer assistance to customers and avoid the appearance of being busy, chatting with colleagues. Retailers also need to train staff with good product knowledge and try to upsell related products to customers. However, offer appropriate service and avoid being pushy. Give customers space to explore the store as following them around the store would pressurize shoppers which in turn drives them away. For example, if a customer is intending to purchase a dress, you may suggest a matching accessory or inform them of any ongoing sales promotion and leave them to shop around.

Store ambience helps in retaining customers, with 74% stating they are likely to leave stores that are cluttered and unwelcoming. This links us back to our very first point of shoppers being unable to find specific products. Also, avoid having overpowering scents in the shop and keep the music at an appropriate level. One’s sense of smell is tied to the emotional center of the brain and can trigger a “good or bad” experience for the customer. If you are unable to choose an appropriate fragrance, strive to keep your retail space odour free.

Display an appropriate amount of products on the sales floor and restock them in orderly intervals. Review your store layout if you notice long queues forming at checkout or fitting areas because 26% of shoppers are very likely to leave a store if the queue is too long and would even visit another store.

Retailers need to be sensitive to the changing consumer trends and lifestyle habits. Whether it is recreational shopping or shopping for a specific product, shoppers these days want efficiency in making purchase decisions. Clarity of product placement through signage or displays would help shoppers find specific products easily while adequate product information would aid shoppers in making purchase decisions. In addition, the store environment has to be comfortable and retail staff alert and responsive to customers. Retailers who foster a great shopping experience would be able to see success in high retail sales and even repeat sales.