Another busy holiday retail season is in front of us, and as usual, businesses and retailers are looking to push their most profitable items.
Certain products that sell quickly or offer particularly high profit margins should be more attractive to stores, and businesses will do their best to promote these items.
For example, restaurant menus contain featured or highlighted items in a box, such as more expensive steaks and other special dishes the restaurant wants to promote. In retail stores, sale items are generally put on display in the storefront and in other highly visible areas.
Traditionally, items with a larger ticket price also come with a larger profit margin for the business. If a store has the opportunity to sell a $50 coffee maker or a $100 coffee maker, my bet is that the store pursues the $100 item because the company makes more money from that sale.
But it isn’t simply a matter of advertising more expensive products and letting customers know their options. For consumers, a lack of confidence in the product, company, or even their own intuition can prevent them from making a purchase, or from purchasing a higher-tiered item.
Businesses and brands need to help customers justify spending top dollar for their items, and an effective way to do that is by increasing customer confidence.
Increasing confidence can be accomplished by providing additional product information, offering special promotions, through endorsement, through repeated customer interactions, and more. While different opportunities exist to increase customer confidence and engagement, right now there is no better tool at the point of sale than mobile technology.
Create customer confidence
One way to help customers purchase particular items is to create confidence. Customers need some sort of confidence in any item being purchased, but with high ticket items, this becomes increasingly true.
Speaker and sales consultant Mark Hunter, named one of the top 25 sales influencers in 2013, tells us that in order to get full price for an item we need to create confidence in the buyer. Take his following example.
“You’re in a store and you see something you’re not sure is going to be right for you. The price appears to be high, and because you’re not quite sure, you simply can’t see spending the money to buy it. You see another item that again just doesn’t seem quite right, but the price is much lower. You process the price in your mind, and before you know it, you buy it.”
“Reason is the lower price offset the lack of confidence about the item. A discounted price will always make up for a lack of confidence…if you want to get full price, you have to create confidence in the mind of the buyer. More confidence, more likelihood the customer will pay full-price.”
Confidence through mobile
For most retailers, the ideal situation would involve having numerous idle salespeople ready to help customers on demand. However, this is not cost effective or plausible for the majority of businesses.
What mobile uniquely offers is a chance for consumers to access additional information or resources at their own discretion. Mobile allows businesses to provide additional information or insight at the point of sale, empowering customers to make better decisions.
In Mark’s earlier example, if the right information were available, would the customer purchase the higher priced item? Being able to take advantage of situations like this is critical, especially because of the lower margins faced by many brick and mortal businesses today. Any opportunity to upsell must be realized.
Read more about customizing the shopping experience through mobile.