The most basic keys to unlocking shopper psychology in the world of retail marketing are old news.
For many years, retailers have used the key concepts of needs, wants, and demands as ways of figuring out what really drives shoppers’ buying behaviour. There are no mysteries here, especially when it comes to the nature of needs, wants, and the connections between them. Retail industries have been leveraging shoppers needs and wants to make their marketing more effective for a very long time.
But it’s an exciting new day for retailers willing to expand their thinking. There’s a new and profitable way to work with shopper wants and needs, thanks to Purple Dot and its approach to “need/want resolution.” It’s time for real change, and Purple Dot can help you and your business decode the thinking of your customers and increase sales through smart discounting.
Practical Retail Magic: Recognising Your Two Shopper Categories
If you’re a savvy and experienced retail marketer, you understand the importance of your buyer profiles – the carefully researched descriptions of your typical target shoppers.
You also know that your shopper profiles show important differences between shoppers who buy because they need a product, and those who buy because they want that product. These are your two basic groups of retail buyers, and you share them with every other retailer in your industry – and that means increasing competition in online markets.
A shopper may be a need shopper one day, and a want shopper the next day (or even the same day). Shoppers who need what you’re selling may be in no position to worry about sales and discounts. Those shoppers are looking for items they need NOW, and time is an important factor for them. In fact, the more time pressure they feel, the less likely they are to care about paying full price for a product.
On the other hand, price is more critical for want shoppers. These are the buyers who don’t feel under pressure to buy right now. They have some discretion, so they’ll pay more attention to price and their own budgets. They’re in a position to look for bargains, and their interest in getting a great deal may outweigh their desire for a product offered on your website.
This means that a shopper’s willingness to buy a product at a specific moment in time doesn’t just depend on price.
It also depends on the shopper’s mindset when he or she arrives at your site.
These are critical issues. Wouldn’t it be great if you had an effective, innovative way of dealing with both types of shopper, with minimum effort and maximum reach?
Reducing Retail Pain: Facing Reality and Your Rising Business Costs
If you think about your own online shopping habits, you’ll get the importance of your shoppers’ motivation and mindset.
You know there are times when you visit a website because you have something particular in mind, something you regard as a need – you feel you have no choice but to locate and buy whatever it is you’re after.
At other times, you’re simply browsing through items you like. They might be anything, from work-boots to cashmere sweaters to stereo equipment. You rarely buy; instead, you bounce, usually because of the listed price and your current inability to justify the purchase or pay the required sum.
If you bounce around enough, you’ll see the items you like listed on other sites, often at discounted prices.
Why? It’s simple: retailers – folks just like you, facing the same challenges -- are willing to absorb seemingly ever-increasing costs to retarget you as a buyer. Just like you, they want to reclaim on-the-fence shoppers for their own. Their advertising spending and stock discounting costs are going up, just like yours.
They’re feeling the same pain, we promise you.
The Real Magic: Smart Discounting To Increase Sales and Improve Retention
Enter smart discounting, an innovative discounting approach that helps on-the-fence shoppers justify their want purchases, enables you to improve customer retention, and attracts new, soon-to-be-loyal shoppers.
Smart discounting involves thinking differently about your discounting practices. Discounting isn’t just a way to clear old stock at the end of the season, nor should it be a desperate seasonal race to the bottom with your competitors.
Instead, you can think of smart discounting as a way to convert shoppers on existing stock and new arrivals when those shoppers’ desire to buy is at its peak.
Smart discounting allows a shopper to make a simple trade-off for a desired discount: in asking for a specific discount against the stated price, the shopper accepts a transaction delay and takes the risk that the retailer may deny the discount request. There’s no actual risk of loss to either party.
This may sound a bit weird, in part because it’s new, but it really isn’t all that strange.
And it works.
The travel industry worked this out some time ago, and at Purple Dot, it’s our goal to help you catch up with shoppers’ changing attitudes by taking advantage of smart discounting.
In fact, extensive user testing and our ongoing research reveal this typical shopper thinking again and again:
To me it's need vs want. So if it's something that I need like an event coming up or we are going on a trip and I want to make sure I get this particular item, I'm going to pay full price for it. But, if it's something that I can just wait and see, I would wait for it and try the Purple Dot Price and if I don't get it then maybe I'll go back later and do the full price.
Purple Dot lets you keep your need shoppers happy and offers your want shoppers the price flexibility they’re looking for.
Finding Your Retail Balance: Happy Vendors and Happy Buyers
In our roles as online shoppers, we can all identify with the issue of need vs. want. Every time we look at a purchase decision, we’ve got to decide whether our personal circumstances lead us to view an item as a necessity. In those cases, we’ll be inclined to pay full price. But when we feel that we’re prepared to wait and see whether a discount might become available, Purple Dot lets us request a discount right then and there, bringing us down off the fence. After all, if we don’t get the discount we want, we can continue to wait and watch or we can elect to pay full price.
As a retailer, if you get discount requests on an item that’s selling well at full price, let Purple Dot communicate that to your discount shoppers by refusing the requests. If your item needs a sales boost, then use your ready-made waitlist for the Purple Dot price. Purple Dot will let your shoppers know they got their items at the requested discounts.
Let Purple Dot do the heavy lifting in moving your business into smart discounting. Your shoppers will thank you.
And so will your bottom line.