Everyone is always looking for the secret formula to increase conversion and average tickets.
Whether it be changing the consumer experience or how we sell to customers, retailers are constantly experimenting with new ways to get more out of each customer who walks through your door.
This week we take a deep dive into how solutions like Buy Now Pay Later and new retail experiences, such as retail on wheels, can increase conversion rates by 20-30%.
THIS WEEK’S HIGHLIGHTS
- How Buy Now Pay later increases average ticket and conversion rates.
- A look into how doctors and sleep.com are helping Mattress Firm educate its customers.
- A new type of showroom that brings the product directly to the door of customers.
FOOT TRAFFIC INDEX
Here’s a look at last week’s foot traffic compared to the same time last year.
FOOT TRAFFIC TRENDS
Industry insights so you can convert your foot traffic into more sales.
Holiday 2021 predictions
In the past, it was common for shoppers to use layaway plans to get ahead of the holiday season and pay for the goods over time. Now, layaway plans are disappearing as Buy Now Pay Later takes over the charge.
Many retailers have begun to embrace the option for customers to pay later by utilizing companies such as Affirm, Afterpay, and Klarna.
Researchers have found that Buy Now Pay Later options can increase conversion rates by 20-30%. As it turns out, it makes the buying decision significantly easier when you don’t have to pay right away.
Not only do options like Affirm and Klarna increase conversion rate, but researchers find that it can also increase the average ticket by 30-50%.
Paying later gives customers the convenience of planning their budget and also increases trust between customers and retailers, as customers feel as if you are giving them the extra hand they need during the holiday season.
Retail on wheels
Retail has changed a lot in the last year, and retailers are still finding ways to rethink the wheel. For Santa, they have rethought the wheel by putting retail on wheels.
Santa, a new retail concept, was created by veteran tech startup founders who recruited experienced store executives for their pandemic-inspired idea. “Santa is an attempt to create a new kind of physical store that moves around and is backed by logistics and technology,” stated Roee Adler, co-founder, and CEO of Santa.
After researching 1,400 markets, Santa has chosen Collin County as the first stop on their journey. Customers will be notified by the Santa app that the truck is in their neighborhood.
Similar to virtual showrooms, customers will be able to try an assortment of products from their own homes. There’s no better way to find if a product is for you than to see it in action in the comfort of their homes.
Although this type of concept is easier said than done for large-ticket retailers, an alteration of retail on wheels could be a game-changer for customers deciding on a new couch, bed, or appliance.
Over time, marketers and retailers alike have discovered that selling the lifestyle or benefits of a product yields better results than simply reading off the features of the product.
Over the last few months, Mattress Firm has released Sleep.com, a resource for customers to learn more about their sleep and feel better.
In addition to Sleep.com, Mattress firm has announced their sleep team. The team will share insights and analytics about how people can get the most out of their sleep. This not only gives customers a useful resource to help live a healthier life but also gives customers the confidence they need to make a purchase.
The sleep team includes doctors, sleep advisors, and researchers who have devoted their careers to guiding people to get better sleep.
Giving away useful information is a win-win. It informs your customers to make an educated purchase and increases trust between retailer and customer.
The million dollar question
Put yourself in front of the judges on the hit ABC show, Shark Tank. Mr. Wonderful, also known as Kevin O’Leary, offers you the million dollar investment you are asking for if you can answer the following question: “What is the #1 skill needed to be successful in mattress sales?”
Do you know the answer?
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