Why We Buy: The Science of Shopping, by Paco Underhill

  • “Butt Brush factor”: shoppers, especially women, hate being bumped or brushed from behind. Avoid narrow aisles and product placement below waist level.
  • Interception rate in a store: the more shopper-to-employee contact, the greater the average sale. Good time: the longer a shopper remains in a store, the greater the average sale. Bad time: the single most important factor of customer satisfaction: waiting time.
  • Turn bad time into good time: use diversions, marketing, human interactions during waiting time. Two minutes is a crucial cutoff wait time, anything over two minutes wait feels prolonged and becomes unpleasant.
  • Add seating to improve shopper comfort. Make the shop a pleasant experience.
  • Shopper conversion in clothing stores increases by 50% if there is employee initiated contact, and increases by 100% if there is contact and the use of a dressing room (rooms should not merely be a convenience, but a selling tool). The use of baskets increases sales—customers don’t like to hold too many things.
  • S. is becoming a saturated market. Stores are not opened to serve new market segments but to compete against other retailers. Science gives retailers an edge.
  • Transition zone: shoppers need a “landing strip”. Don’t put important items (flyers, signs, baskets) immediately at the front entrance—place them at least ten feet back. Put security or a greeter at the transition zone—best way to deter shoplifters.
  • People naturally slow down to see reflective surfaces—use mirrors, and they usually walk rightwards after entering a store.
  • Product packaging should be advertising billboards: clean, high contrast, visible image, and large typeface.
  • Boomerang phenomenon: shoppers typically do not walk down the entire aisle. Manufacturers should therefore try to have their products placed near the end of aisles and retailers should place popular goods in the middle of aisles.
  • When a man and woman are shopping together, “sell to the woman, close to the man”. While men do not necessarily enjoy shopping, they get a thrill from paying (control and providing instinct).
  • Shopping is Shopping is still and always will mostly be meant for females. Men want to find, the “destination” is important; women want to shop, the “journey” is important. This is true in most retail stores, but is reversed for the internet and technology/ hardware stores.
  • Shopping follows social change. By 2025, 20% of the U.S. population will be 65 years or older. Retailing needs to adapt to the aging baby boomer. Product labels are designed by product packagers in their 20’s for consumers in their 60’s—make typeface larger!
  • If a store is unfriendly to children, parents will stay away. Make aisles large enough to accommodate strollers; keep the children entertained while selling to the parent; keep children merchandise at reachable heights.
  • Shoppers love: to touch, uninterrupted space, mirrors, serviced by salespeople, bargains; but hate: lines, goods out of stock, obscure price tags, and poor service.
  • Some 90% of new grocery products fail—not because they are bad, but because people never tried them. Give people samples. Let them feel the object. Create displays and packaging to allow people to try the product.
  • 80% of sales will come from 20% of customers. Figure out how to wring more out of existing customers. Sell accessories, add-ons, and complementary items. Staff should keep (gently) selling until the customer says no.
  • The paying process should be enjoyable. Place cash/ wrap registers strategically—they should not interfere with the flow of the store.
  • Retail banking is under-merchandized. Establish relationships, provide financial education, and cross sell financial products.
  • Test display systems in their natural habitat—in stores, not in corporate marketing offices.

Finished: 17-Dec-2008