Supermarkets bombard shoppers with special offers and discounts, but by doing so they are in fact just pouring profit down the drain and giving money away. So what is the best special offer?
- Get a ‘free’ product or a discounted price?
- A multi-buy offer or an extra value pack?
- Save £’s or %?
Turns out it doesn’t really matter. Why? Because every second in the supermarket aisles, shoppers are faced with 2 different special offers – making it impossible for them to accurately calculate the value of each one. As a result, their subconscious kicks in and decisions are made based on best guesses that stem from emotions.
- In a BOGOF display of tea, 45% of shoppers bought just 1 pack
- Sales of DVD’s individually priced at £4.24 soared when placed by a sign saying ‘2 for £10’
- Sales of a leading lager brand increased by 10% when supported by an impactful SEL (shelf edge label). The SEL read: ‘Thieves with be prosecuted.’
When faced with hundreds of different brands in an aisle, the brain automatically tries to reduce it to a smaller, more manageable number. If there are 4 or 5 on special offer, the brain will use that as a deciding factor. So while shoppers are influenced by product promotions, they don’t fully absorb the details. The subconscious takes over and as shoppers we then tend to fill our trolleys with products regardless of whether they are deemed ‘good value’ or not.
Here at SBXL, we send our teams of researchers into stores to monitor how people really shop and we understand that shoppers simply cannot cope with the number of decisions they are faced with in-store. In the countless studies we have carried out, it is increasingly apparent that the nature of the special offer is far less important than the visual presentation of the offer itself.
We increased the prices of products and saw sales rise, we altered the layout of SELS and saw significantly more sales with no additional value to the product, and introducing a promotional colour resulted in share of sales increasing by over 30%!
We also have a wealth of evidence to prove that the widely accepted belief about gondola ends and ‘on-shelf vs. off-shelf’ are wrong, (a matter which I am only too happy to discuss and share our statistics to substantiate such a claim).
Our message to retailers and brands here is simple: ‘it’s not what you say, it’s the way you say it.”
My name is Phillip Adcock, and I am one of the world’s leading authorities on shopper psychology and behaviour. If you would like to know more about how best to promote products in-store, you can either call me on on 07960 109 876, send me an email, or have a look at the ‘Promotions Research’ section of our website.