Take site speed, for example.
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For retailers with physical and digital stores, omnichannel merchandising involves creating a seamless customer experience—even if the customer moves from one to the other as in the Bonobos example above. Omnichannel merchandising also referred to as omnichannel retailing is a topic of increasing interest and research—especially because physical stores are increasingly embracing digital.
A customer visits a digital store through finding an organic piece of content via a Google search. From there, they search the online store and build out their cart, but then at the last minute they abandon their cart. The customer accepts the offer and completes their purchase.
This experience could be referred to as an omnichannel merchandising experience because the customer moved from a search engine, to on-site, to their email, and then back to on-site. The types of merchandising and certainly the merchandising examples covered below can be understood on a deeper level when paired with knowledge of a few merchandising techniques.
Consider the technique of cross-merchandising, where items that are in some way related are displayed in close proximity to encourage additional sales such as bread with peanut butter. Again, this is not meant to be a complete list of merchandising techniques, but it can serve as a base from which to improve your overall merchandising knowledge. Making a strong first impression in merchandising is a critical aspect—whether it is to entice window shoppers at a physical store or those who have recently landed on the home page of your website.
Retail merchandisers try to control as many variables as possible, knowing that those first initial moments are what may influence the customer to stay and browse around. While these physical first impressions may certainly impact that first step into the store, first impressions are increasing formed digitally—through an advertisement on television or Instagram, for example. Similarly, making a strong first impression in digital merchandising is about controlling a variety of variables.
Take site speed, for example. Site search is often one of the first ways a potential customer engages with a site, so making a strong first impression here can lead to a better customer experience and even revenue increases. Unfortunately, many digital retailers are still asking customers to type in their product search, click submit, and then hope that they stumble on something relevant. For the above reasons, more and more retailers are taking site search seriously. Our own research revealed that intelligent site search is one area where elite retailers are separating themselves from the pack.
Manipulating light is an important part of all types of merchandising. Just as a theatre production uses light to convey moods and highlight characters and scenes, modern merchandisers use light to display products, highlight particular promotions, and even influence the mood and energy of their potential customers. The use of color plays an important role in purchasing decisions, and lighting can be used to highlight certain colors and even steer customers in certain directions.
Apple, for example, is known for using clean white backgrounds to display their steel gray computers—and they keep this consistent whether you are in their physical store or shopping on their site. This color and lighting contrast conveys modernity and mechanical or technological precision—elements that many people would associate with the Apple brand. Every type of merchandising is influenced by traffic. This can include everything from the foot traffic of customers walking into your retail store to the digital traffic of potential customers visiting particular product pages.
Physical traffic can be influenced by end caps, floor plans, and product displays. Digital traffic can be influenced by search engine optimization, social media, and other digital marketing initiatives.
Consider how many major supermarket chains place the milk in the back of the store. In this metaphor, Crestodina says that understanding your digital traffic flow is critical to understanding how to optimize your site for the customer journey. There are many merchandising metrics, and merchandising techniques can be determined by which merchandising metrics are considered the most important. The sales-per-square-foot metric, for example, is one popular efficiency metric. It determines the ratio of sales to total floor and shelf display space.
Jernigan, and Beth E. Wuest may be a helpful resource. Womens Lace Shoes Available Shoes Colors up Sneakers Green Neon 18 Canvas 18 Science plays a large role as it relates to influencing which merchandising techniques will work the best in particular environments and sectors. The field of merchandising science is about solving retail challenges through the application of data science.
As alluded to in a few sections above, successful retail strategy demands a fundamental understanding of human psychology. Additionally, research from Forrester and others is showing that the rise of eCommerce merchandising means that retailers are increasingly turning to artificial intelligence not only to automate mundane tasks but to deliver more relevant, personalized experiences for their digital customers.
Seeing examples of merchandising is a great way to pull all of your knowledge together. Many of the examples mentioned below are those that will be familiar to you. Fashion merchandising is the promotion and sale of clothing and accessories from brands and designers. As such, fashion merchandising involves all marketing-related activities—from building relationships with brands and designers to promoting and selling an array of clothing and accessories.
To them, fashion merchandising refers to more high-priced, trend-setting products. Lace Shoes Shoes Colors 18 18 Canvas up Green Available Neon Sneakers Womens Like other types of merchandising, fashion merchandising can encompass a variety of aspects that may not typically be viewed as promotional—such as fabric production and purchasing directly from suppliers.
From Managing to Merchandising by Dimitri Koumbis may be a helpful resource. Toy merchandising is the promotion and sale of products meant for children to play with.
Toy merchandising at once has to enthrall and engage children while influencing the adult decision-makers to make a purchase. As it relates to in-store retailing, toy merchandising is often about creating an immediate and powerful first impression for the child in the hopes that this leads the child to influence the adult to make a purchase. One unique hook is seen in the educational toy sector, where children are influenced to want and play and parents are influenced by their wanting an educational experience for their child.
Technology merchandising is the promotion and sale of products and services associated with the technology space. Products can include smartphones and computers, and services can include data storage and cloud services. Many brands focus too much on positioning themselves, which can lead to basic promotional failures—such as neglecting to show the customer the benefits of their service or product. Likewise, technology companies can get lost in their own lingo or language.
Grocery merchandising is the promotion and sale of all products housed within a traditional grocery store or supermarket. Additionally, grocery merchandising can also take place inside gas stations or other small non-grocery specific venues where food and drink items are displayed. A fantastic and dare I say must-read resource on this topic is Grocery: Ecommerce electronic commerce merchandising describes any and all types of business or commercial transactions that involve the purchase and sale of goods and services via the Internet.
Ecommerce merchandising, then, involves all activities surrounding the promotion and sale of products and services that are sold digitally.
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