Impulse Purchases: IQ For Retailers

Impulse Purchases: IQ For Retailers

Part One

Impulse items, also known as impulse purchases or impulse buys, are products or items that consumers buy on a whim, often without prior planning or consideration. These items are typically low-cost and catch the consumer's attention while they are shopping, prompting them to make an unplanned purchase. Retailers strategically place impulse items near checkout counters or in high-traffic areas of stores to maximize visibility and encourage spontaneous buying.

Key characteristics of impulse items include:

  1. Affordability: Impulse items are usually low-priced, allowing customers to add them to their purchases without significantly impacting their budget.
  1. Eye-catching packaging: These items often boast attractive and attention-grabbing packaging or displays that draw the customer's eye.
  1. Convenience: Impulse items are products that cater to convenience and immediate gratification, such as snacks, small gadgets, beauty products, or novelty items.
  1. Seasonal relevance: Some impulse items may be tied to specific seasons or holidays, capitalizing on the consumer's mood or needs during that time.
  1. Last-minute additions: Customers tend to buy impulse items just before checking out, noticing them while waiting in line.

Examples of impulse items include candy bars, chewing gum, magazines, keychains, small electronic accessories, and travel-sized toiletries, among others.

For retailers, offering carefully selected impulse items can boost sales and increase profits by capitalizing on consumers' impulsive behavior and desire for immediate gratification.

Part Two

Our retail food business has a unique aspect that sets it apart from other retail establishments. We have a strategic point at the area of sale where transactions take place, allowing us to capitalize on impulse purchases and display items that catch customers' attention.

Impulse items differ from leader items, though they share some similarities. Leader items act as the primary attraction for guests, potentially leading them to discover other products during their shopping experience. These items are usually priced significantly lower than the items we ultimately want customers to purchase. For instance, we can use lower-priced shots as leader items to entice people into the store, making it easier for them to buy more items, given the attractive price point.

Moving on to impulse items, they are products that customers notice while checking out and feel an urge to buy on the spot. We ensure there are no obstacles hindering customers from grabbing these items and adding them to their transaction.

At the point of sale, it's crucial that the impulse items remain within the customer's natural field of view. Placing them too far away or out of visual reach, such as behind the customer, might diminish their impulsive appeal and turn them into regular, planned purchases. Additionally, for an item to be truly impulsive, it should be easily accessible without the need for customers to reach too far.

Customers are more likely to make an impulsive purchase when they perceive the item as inexpensive and highly desirable. Creating a sense of urgency through sales or limited-time offers can also stimulate impulse buying.

While evaluating potential impulse items for our business, we need to avoid dead-end products. These are ordinary items widely available elsewhere, lacking novelty or uniqueness. Instead, we should focus on developing impulse items that align with our brand, such as little vitamin packs or supplements aimed at addressing specific needs like hangovers, stress, or immune system support.

The impulse item business is essential for us, as it can significantly increase our average ticket value. We must think creatively and explore options beyond food products. Incorporating small items like candles, incense, crystals, and other positive-themed bric-a-brac from the gift community could complement our store and tap into customers' desire for positive experiences.

In conclusion, understanding the angle of view and reach of impulse items is crucial to their success. These items should not involve asking for service and should enhance a sale rather than detract from it. We should experiment with various impulse items that resonate with our customers' desires and values while aligning with our overall brand.

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