Behavioral merchandise is the art and science of using customer behavior to position, promote and display products to maximize retail sales revenue. In the context of e-commerce, examples include using information about where visitors come from, what they search for, what they click on, and what they buy to target the most relevant product ad to each visitor at each touch point.
Example apps include features like “people like you come here.
Search. buy often.” and “customers who bought this product also bought…”.
Behavioral marketing was originally popularized by Amazon.com, but it has changed a lot. Today, this is done in online stores all over the world – in companies whose turnover can be from a million to a billion dollars and more.
Behavioral marketing is popular because it has been proven to be up to 300% more effective than customer segmentation, influencing sales per visitor, increasing conversion rates and average order value.
Behavioral marketing offers visitors
a personalized shopping experience that is highly relevant, reliable and automatically adapts to changing customer preferences. The automation aspect also means that it offers retailers the opportunity to reduce manual marketing costs and achieve better results.
What is trading?
“Merchandising is about maximizing the sale of goods by using product selection, product design, product packaging, product pricing, and product display that encourage consumers to spend more. This includes pricing and discounts, the physical display and presentation of products, and decisions about which products to present to which customers. at what time.”
To explain behavioral trading, it’s helpful to first look at its roots. Trade is a relatively old practice used by retail stores to increase sales. Some notable examples of traditional retail include placement and advertising – Sweets at checkout – Children’s yogurt at children’s eye level – Milk at the back of the store
It’s safe to say that e-commerce has moved on to e-selling and is now a natural part of every major e-commerce website. According to the traditional definition, the goal of online shopping is to maximize conversion rate and average order value by presenting the right products in the right way to the right people.
Why is trading important?
We have established that retailing is the art of upselling, that is, maximizing the sales revenue of a given retail audience. To understand the importance of merchandising, we must also connect it with advertising, which is basically the art and process of attracting an audience to a point of sale.
A retailer usually wants to spend a predetermined amount on advertising to drive as much relevant traffic as possible to the point of sale – maximizing cost per visitor or cost per click as it is often called.
The retailer then wants to use the best possible sales to convert this traffic to as many shoppers as possible and maximize conversion efficiency. To get the most added value from the traffic generated, the retailer wants to get each visitor to make as many purchases as possible – maximizing the value of the average order performance metric.
In short, a retailer’s efforts to maximize cost per visitor,
Conversion rate and average order value are more or less determined by the sales revenue generated by the store. Adding the cost of goods sold to the margin or average product margin completes the model that determines the location’s operating profit.
It turns out that a retail manager basically has four levers to maximize profit. Unfortunately, all four levers are not under dealer control. The ultimate goal of advertising, marketing and procurement is to maximize the retailer’s business return. For more information visit our website https://www.shopletsgobrandon.com/