Growing the Basket Through Digital Strategies
The end goal of any pricing strategy is to fill a shoppers’ basket with as many SKU’s as possible. Doing that requires not only the right marketing mix, but pinpoint pricing to increase impulse purchases and innovative digital strategies that offer a one-of-a-kind in-store shopping experience. It all adds up to creating value, convenience and building trust for your shopper.
When customers have so many options and channels to choose from, you need to differentiate yourself. RW3 has worked with some of the leading retailers in the industry and, we’ve got some ideas for how to help you stand out against the omni-channel competition and grow your basket size through digital:
Deliver Value Through Trust and Gain Brand Loyalty
Don’t forget, you’re not only competing against brick and mortar grocers and retailers but against direct shipping subscription services like Blue Apron and Hello Fresh that are all about simplifying the customer experience for a premium cost. Your category managers create a custom experience in the store, but you need to make sure your digital customer experience presence is drawing them in as well. The key to doing that and building a bigger basket size is to make your digital presence well designed, easy on the eyes, and fun and rewarding to use.
- Your Website: What advantage do customers get by visiting your website regularly rather than just searching for the item they want and finding the best price available? Offering more than your product in terms of educational information adds a lot of value, whether that comes in the form of recipes, nutrition tips, or other suggestions related to the products you sell. Be a trusted adviser, not just a purveyor. In addition:
- Make Sure Your Site is Mobile Friendly. A 2016 survey of 23,000 shoppers by PWC showed 34 percent of shoppers believed their phone would become their chief mode of shopping and 67 percent rely on review sites and social media to influence their choices. You want to win their hearts and minds on the tiny screen.
- Have at Least a Weekly Ad. Put a value on your site that they can’t find anywhere else.
Make Them Love Your In-Store App
The key to user adoption is getting people to download it first. With millions of apps out there vying for space on consumers’ phones, you need to make yours a must-have.
- Make it Easy and Fun. The first order of business is functionality. If the app doesn’t work well, it’s better not to have one at all. The fewer clicks they have to get where they want to be the better. Keep in mind the three second rule!
- Create Instant Rewards: You’ve heard of custom coupons? Take it a step further and create instant coupons in the app that show up the minute they walk inside the store. Strategically use coupons to move consumers from one category to the other so they’ll shop the entire store and increase impulse purchases. You may already tie purchases to points but more and more research shows that making a rewarding game out of loyalty programs increases usage.
- Go Easy on the SMS text messages. There’s a fine line between not persistent enough and too persistent and it’s easy to cross when you’re dealing in text messages. You don’t want to become a nuisance to your customer, or your app is gone.
Try Some New Tricks To Grow Basket Size
While you’re interested in getting as many shoppers in the store as possible, there is a growing audience that really just wants home delivery or at least in-store pickup. Make it easy for them with a solution like Instacart. Let them know that from fresh veggies to cleaning supplies, shopping with you is as easy as it is with other services, only with a broader range of choices. If you’re not sure whether it will be profitable at a given store, run a pilot program and reward participants.
The digital world actually gives you many more opportunities to connect with consumers, build relationship, and fill their baskets to abundance with your products. How creative can you get with those opportunities and use digital to grow your basket size.
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