Visual merchandising notes
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This document provides tips on visual merchandising for e-commerce retailers. It discusses five tips: 1) ensuring the site is optimized for mobile, as many consumers shop on mobile; 2) providing clear and interactive tools to aid customer decisions and improve search functions; 3) keeping the checkout process short and simple; 4) using data analytics to inform merchandising decisions; and 5) monitoring competitors to identify gaps in inventory. It then discusses retail store layout, including defining store design and customer flow. Key aspects of store layout planning are identifying customer flow patterns, avoiding clutter in the entrance "decompression zone", and leveraging tendencies for customers to navigate stores in a clockwise direction.
Visual merchandising notes
- 1. VISUAL MERCHANDISING Visual Merchandising in E-Commerce. Merchandising can come in many different forms, from inventory to pricing, and beyond—but the end goal is always the same: to drive conversions. It can be tricky to keep up with all the different ways online retailers can optimize their stores through the magic of merchandising, so here is a list of the top five tips to help retailers of all sizes. 1. Get mobile optimized…yesterday Almost half (40%) of consumers don’t feel comfortable shopping online and it doubles to 80% when we’re talking about shopping on mobile. This may look dismal, but it means that your web store not only needs to be mobile friendly, but also wow shoppers on whichever screen they prefer. 2. The clearer, the better Shoppers don’t want to be confused. Do you know what happens when they’re confused? Yep, you guessed it, they vanish. Luckily, there are many things you can do to cut down on those pesky abandoned carts. Here are a few: Add interactive tools that aid customer purchase decisions. This can help retailers see up to a 40% boost in conversions. This is especially important for ecommerce because you can’t be there like a salesperson can in a brick and mortar store. Add a live chat feature to support shoppers and get them closer to checkout. Improve your search function. Did you know that 11%-15% of consumers start shopping by searching for a specific product in search bars? This number is on the rise, so it’s prime time to take advantage of this. Shoe retailer, FootSmart, made a small change by adjusting search results to include top items sold and saw an impressive 82% increase in conversions. Provide shipping policies and estimations as early as possible in the checkout process. Offering free shipping is a great way to increase average order value because 93% of shoppers take actions to qualify for free shipping. 3. Keep it short and sweet The fewer steps to purchase, the better. When retailers ask for too much information or otherwise complicate the process, shoppers drop out of the sales funnel. To help this, you should decrease the number of steps it takes to complete a purchase and provide a status bar up top to show that it won’t take them long to checkout. You also want to provide clear, descriptive, and to-the-point product descriptions to resolve any confusion. 4. Be data driven
- 2. Analytics can help retailers make better merchandising decisions. More than half of retail leaders (63%) already do it—so if you want to keep up and get ahead, you should, too. Data is your friend because it can teach you what works and what doesn’t. Walmart is a great example of a retailer that used data to its advantage. After crunching the numbers, Walmart learned that diapers and beer sales were highly correlated. So you know what stores did? They put these two aisles side by side and saw a sales increase for beer. Cheers to that! 5. Keep your enemies closer You already know that competition is fierce in online retail, but what can you do about it? The first step is to know exactly what’s going on in your competitive landscape at all times. How are your competitors pricing? What do they have in stock? When do they run out of products that you carry? Tracking competitors and their inventories can clear this up once and for all. Then retailers can fill in the gaps in their inventory and effectively become a more successful competitor. The more you know, the better your sales can be. Module-II: Layout and Store Display WHAT IS A RETAIL STORE LAYOUT? A retail store layout (whether physical or digital) is the strategic use of space to influence the customer experience. How customers interact with your merchandise affects their purchase behavior. This retail principleis one of the many from Paco Underhill, author of Why We Buy: The Science of Shopping, keynote speaker, and founder of Envirosell. The interior retail store layout has two important components: Store Design: The use of strategic floor plans and space management, including furniture, displays, fixtures, lighting, and signage. Website designers and user experience (UX) researchers use space management techniques and web design principles to optimize e-commerce websites. We’ll further discuss a variety of popular retail floor plans later in this article. Customer Flow: This is the pattern of behavior and way that a customer navigates through a store. Understanding customer flow and the common patterns that emerge when customers interact with merchandise based on the store layout is critical to retail management strategy. Physical retailers are able to track this using analytics software and data from in-store video and the wifi signal from smartphones. For example,
- 3. solution providers like Retail Next provide shopper analytics software for retailers to understand flow and optimize the customer experience based on in-store video recordings. The technology also exists to track the digital customer flow and online shopping behavior. Using “cookies” and other software, online retailers can track customer behavior, including how customers interact with their website. While the exterior retail store layout includes exterior store design and customer flow, it also includes the following factors: Geographic location of the retail store (real estate) Size of the building and length of the walkways accessible from the entrance and exit Use of furniture and exterior space for people to gather and interact Style of architecture of the retail building Color of paint and choice of exterior building materials Design of the physical entrance and exterior window displays The objective of retail store design is to positively impact customer experience and create value, which is the primarygoal of retailers inthe supply chain. For more information on retail strategy and management read the article “How to Survive and Thrive in Retail Management.” A STEP-BY-STEP GUIDE TO PLANNING STORE LAYOUTS THAT MAXIMIZE YOUR SPACE It is essential to understand your customer flow and the general patterns of navigation in your specificretail environment before youcan optimize customer experience and plana strategic store layout. Retailers, consultants, store planners, interior designers, and architects all use a variety of retail floor plans and concepts to influence customer flow and behavior. Retail giants along with small, independent retailers can improve customer experience, and in return, long-term profitability with efficient store layouts. In Store Design and Visual Merchandising: Creating Store Space That Encourages Buying, author Claus Ebster offers valuable insight into maximizing your retail space.
- 4. Step One: Target The First Floor The first step to maximize your profitable retail space might be the most unavoidable, however the principle and knowledge behind the customer behavior is crucial for understanding your overall designstrategy. Ebster’s researchindicatesthat customers prefer to navigate the floor of a retail store they initiallyentered. Walking up and down stairs or using elevators and escalators to navigate a store hurts customer flow. When possible, planning for a single floor store design will optimize the customer experience. Exceptions exist, such as downtown locations where real estate is at a premium or large department stores with multiple categories of merchandise. Further, Ebster points out that retailers should consider customer perception if they are a luxury retailer, as shoppers often associate multi-level stores as “elite.” Conversely, if a discount retailer is planning store layouts, as customers associate single floor layouts with “less high-end” merchandise. Consider your overall retail strategy and store layout design prior to selecting your store location. If you have multiple floors, account for the preferences of first floor shoppersbyusing this space for the feature or high-margin merchandise in your retail mix. Step Two: Identify Customer Flow Ebster presents some general rules for customer traffic. Customer flow patterns vary depending on the type of retailer, the size of the store, and the target customer. Ebster encourages retailers to use their observations to discover the problems and opportunities unique to their environment. The next step in maximizing your space for profitability is identifying your customer flow. The most effective method for understanding your existing customer flow and identifying areas of opportunity is video recording and heat mapping analysis. This service is available via solution providers such as Prism (you can also do a quick online search for heat mapping consultant services in your area). However, setting aside different times of the day to make in-store observations in person and recording your notes is a step in the right direction for identifying customer flow patterns. Step Three: Avoid The Transition Zone After you identify how your customers navigate your entire retail space, turn your attention back to the entrance. The transition zone area, coined the “decompression zone” by Underhill, refers to the space just beyond the entrance to a retail store. The average customer needs this space to transition so they can familiarize with the new environment. Underhill is adamant that nothing of value to the retailer, not high-margin merchandise, prominent signage, or brand information goes inside this zone. Customers need time,
- 5. however brief, to adjust to new lighting, smells, the music, and the visual stimulation in the store. Step Four: Design for Clockwork Navigation The next step moves beyond the transition zone and shifts the focus on how to leverage a customer’s tendencyto navigate the retail environment. The area just outside of the transition zone is where most retailers make a first impression. Customers consistently turn right after entering the store and continue to navigate the store in a counterclockwise direction. Ebster points out that this customer behavior repeats itself time and again in consumer research. Although researchers and design professionals have different explanations for the reaction, in general, many recommend displaying high-margin merchandise and valuable information just to the right of the entrance (outside of the transition zone). Underhill popularized the “invariant right” and proved the effectiveness of the technique with thousands of hours of video. Step Five: Remove Narrow Aisles Finally, follow your customer flow through the transitionzone and around the retail space in a counterclockwise pattern. Search for tight spaces or bottlenecks along aisles or around fixtures and displays. Repeated analysis of Underhill’s video research demonstrates that customers in the US — women in particular — value their personal space when shopping. If a customer is touched, bumped, or otherwise interruptedwheninteracting with merchandise, they are likely to move on from the items or exit the store altogether. Ebster uses customer behavior research from one study of a supermarket to further advocate for broader aisle design. Video analysis showed fewer customers entering narrow aisles in the store compared to the more expansive, accessible walkways. These aislessend positive signals to shoppers and positively impact customer flow and merchandise interaction. Avoid narrow aisles and corridors when planning your store layout and strive to protect customers from what Underhill coined as the “butt-brush effect.” Lighting- Types of lights 1. Ambient Lighting (General Lighting) This is one of the most common types of lighting. Ambient light is a soft glow that blankets your space just enough for you to function without causing a harsh glare. In photography and cinematography, ambient light is considered the “natural light” within a room. In décor, ambient light is very similar, except you create the ambient light by making the room’s lighting as natural and flat as possible. While ambient light is meant
- 6. to get you safely from point A-to-B, it is not ideal for working closely with things or to highlight things around your space. Atmosphere: When used correctly, ambient light creates a fantastic environment to relax from an overly stressful day or to have a warm conversation with an old friend. Ambient lighting is often referred to as mood lighting, because this light captures the soft curves of your face and allows your pupils to dilate slightly (a physical sign of affection). Some yoga studios have even begun using the softer ambient lighting in their classes to help draw stress from the body. How to Get This Look: We recommend using the following lights to create ambient light. Recessed or Track Lights. Try using a series of these throughout your space. These work well with all types of ceilings, but if your ceiling is lower make sure the light isn’t too harsh for the room. Be careful not to over light the space. See the example with the track light system below. Try these in your bedroom, den, kitchen or living room. Chandeliers and Pendants. These light fixtures work fantastic with taller ceilings. You can choose which height is best for your lighting needs. Notice how the chandeliers below are placed lower in areas people will not be walking near. They are also very classic pieces that work well in foyers, over the tub in the bathroom. Wall Sconces and Wall Lights. These are so versatile they work almost anywhere. Use these carefully. If you use too many in one location it may cause a harsher light, but when placed sparingly these work great in hallways, patios and porches. Try to incorporate the wall sconces into your homes architecture. 2. Task Lighting This is a smaller more concentrated light. You want task lighting around when you’re working. In fact, some people call it office lighting. Task lighting is meant to help you see when you’re doing projects in which you need a finer light, such as, reading, cooking, writing, sewing and many other things. Task lighting only works well when it is used as a contrasting light. For example, if you have a low lit room with a table lampturned on, the light in that area will be more effective with less glare than if the entire room was lit with a brighter light. Atmosphere. Task lighting helps naturally stimulate your brain. The contrasting light allows you to be more alert and concentrated. This will help you see more details as you work, creating higher quality results. This is why many businesses choose to use task lighting in their offices. How to Get This Look: We recommend using the following fixtures to create task light. Desk, Swing Arm and Floor Lamps. Use lamps on your desks, bedside tables, coffee tables or anywhere you need a little extra light for working. Swing arm lamps allow you
- 7. to adjust the light anyway you’d like. Since these floor lamps are lightweight and adjustable these are the ideal task lights. Under Cabinet and Vanity Lights. These are the ultimate task lights. Under cabinet lights work great in your kitchen, like below. They add a flare to your kitchen and give the extra light you need for chopping and cleaning. Vanity lighting works well in the bathroom and on dressing mirrors. These lights also work in garages or workstations. Pendant and Track Lights. Pendants are great because they can be placed in a lot of areas and can hang directly about work spaces. Track lights are great for the same reason, except they can typically cover a little more space. These lights are great for offices with rows of desks, above kitchen islands and in children’s play/homework areas. 3. Accent Lighting This is a very concentrated light with the intention of drawing the eye to its focal point. Accent lighting is a way of adding style and drama to your home. This will help you illuminate the pieces you want on display, while shadowing dull areas. People use accenting for wall washing, artwork, bookcase displays, pieces of furniture, collections and the general architecture of their homes. Outdoor accent lighting is when you highlight parts of the architecture of your home or yard. This is very popular during the holidays, especially Halloween and Christmas. Atmosphere. Accent lighting is one of the types of lighting that creates a very sophisticated atmosphere. It evokes feelings of meaning and importance to the images it displays. This lighting type is used a lot for museums, historical buildings and art shows. How to Get This Look: We recommend using the following lights to create accent light. Wall Lights. Wall lights are fantastic for designing accent lighting. They come in a range of sizes that allow you the highlight big or small pieces of art. These work great on art walls and for showcasing the architecture of your space. Recessed Lighting and Spot Lighting. These lights are often used for wall washing (when you illuminate an entire wall with light). Recessed can lights are great for accenting. Place them at the base of your wall to illuminate a beautiful brick texture, a colorful paint design or display a huge bay window. Landscape Lighting. These lights are the best for showing off the outside of your home. Use landscape lighting to light up a pathway, prized garden or statue.