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Store Optimization – Hot Zones in your Store – Part 2

Once you have the map created the next step for your store optimization is to build in points of interaction – finding ways to interact with customers as they make their way through your store.  There are a number of possibilities that present themselves.  You can use signage to direct the customers to a feature. You can create a display (or use a pre-packaged one from a manufacturer).  Better still – do more – place the signage and display in the hot zone, add some feature pricing and you have the makings of incremental sales.

How about a real life example?  In my local convenience store the owner has placed the lottery kiosk at the back of the store and regularly changes the offerings I see on the way to the kiosk and back to the cash – this week a dump bin full of value-priced CDs, next week a display of the newest offerings from a salty snack or chocolate manufacturer.  I know from my own experience in his store that this works.  Being creative with this and changing up the displays regularly will create the opportunity to build your transactions with your customers.  Just one cautionary note – keep the area clean and tidy so it is visually appealing for the customers.  Too much crowded into the hot zone could overwhelm the customer, diluting the impact of feature activity and see them pass through the hot zone without noticing the offering.

So, what works best? Consumer Packaged Goods (CPG) companies know a lot about store optimization and can be a wealth of information in this area.  From studies on how long it takes a consumer to make a decision on a confectionery item while standing in front of a display to how consumers make the decision on what to purchase, CPG companies can provide data insights into your customer and indeed, the temporary and permanent display fixtures they produce are designed to make the most of your store’s hot zones.  For retailers working within a franchise operation the Head Office will be a valuable resource – having worked through the studies and details required to provide the best possible store set up and their work with CPG companies they are well positioned to help you make the most of the hot zones in your store.

Take a few simple steps to identify the hot zones within your store and maximize your interaction time with your customer and for better store optimization – you’ll like the results.

 

 

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November 5, 2012 | Micheal O | Data Insights, Merchandising

26 Comments

  1. Mike Says: April 19, 2013 4:00 pm Reply

    Imagine the time you can save if you’ve reviewed and assigned planograms in advance via ToolBox’s reporting solutions. Now that’s customer care!

  2. Tammie Says: April 19, 2013 4:02 pm Reply

    Working with hot zones and strategic product placement is sure to be a winner.

  3. Amir Jafary Says: April 19, 2013 4:02 pm Reply

    Hot zones within your store is not just cashier…it’s the zone that customers had been before that.

  4. Ian McClennan Says: April 19, 2013 4:03 pm Reply

    Planogrammers at ToolBox are certainly experts at helping identify and locate potential hot zones. Optimizing space in this way will certainly increase profits!

  5. Tim Says: April 19, 2013 4:09 pm Reply

    Excellent Insight.
    Quite often, the hot zones in my local convenience store are crammed and cluttered with overstock from the last 6 months of specials. As I tiptoe through the store being careful not to knock anything over, I often wonder why I went there in the first place.

    • Micheal Says: April 19, 2013 6:04 pm Reply

      There is s line between maximizing customer conversion and ‘clutter’ that should not be crossed.

  6. Stephen Yoon Says: April 19, 2013 4:13 pm Reply

    Building in points of interaction is a great way to utilize the hot zones within your store!

  7. Kristine Says: April 19, 2013 4:15 pm Reply

    I think this is a great opportunity for retailers to capture incremental sales especially on Skus with a high profit margin.

  8. Paul Says: April 19, 2013 4:29 pm Reply

    Certainly placement of your products is key to increasing sales so taking advantage of hot spots, and creating them, is key.

  9. David Says: April 19, 2013 4:34 pm Reply

    It is all about placement to ensure that the products you want to sell are in the appropriate hot zones. This helps with assortment optimization.

  10. DonWuan Says: April 19, 2013 4:36 pm Reply

    Over saturation of marketing material can definitely be a turn off for customers. Eye-popping. Thanks for the read Michael.

  11. Wingfai Says: April 19, 2013 4:56 pm Reply

    Hot zones are great for space optimization; allowing you to concentrate and maximize exposure of displays and products to the customer.

  12. JohnA Says: April 19, 2013 5:01 pm Reply

    It’s important to maximize category conversion while you have the shopper in the store!

  13. Brenda Says: April 19, 2013 5:43 pm Reply

    Hope to see an app that gives customer what to check while they are in the store.

  14. Tommy Says: April 19, 2013 5:43 pm Reply

    Consumer packaged goods companies can make a world of difference in providing data insight.

  15. Mike Says: April 19, 2013 5:46 pm Reply

    Identifying the hot zones is key for any retailer…and those that can take advantage of this information witll be more successfull.

  16. Valeria Says: April 19, 2013 5:57 pm Reply

    I must admit, I am a sucker for the Hot Zone in stores. Coming in to buy one thing and ending up with some sort of candy or thing a ma jig on my way out. “What is that promoting?” .. guaranteed I’m there. Space management and merchandise planning is definitely a plus in my retail experience a good one (for the retailer).

  17. David S Says: April 19, 2013 5:59 pm Reply

    As technology, such as tablets and smartphones are used more and more at store level, our insights on how our stores are being shopped can only get better. But you don’t need the latest tech to see how the consumer interacts with your store, every sale tells you something that can help with planning and merchandising.

  18. silvio Says: April 19, 2013 7:30 pm Reply

    Having a planogram previously defined for a certain hotzone on a particular week will probably save a lot of work for the store managers too.

  19. Donna Says: April 19, 2013 8:20 pm Reply

    Planograms can most definitely be used to determine hotzones within your stores and improve the store performance and increase sales.

  20. Jason Says: April 19, 2013 8:49 pm Reply

    I love the idea of an experience that changes from week to week. Great way to add a little intrigue to the shopping experience.

  21. David T Says: April 22, 2013 1:01 pm Reply

    Undertanding these customer habits to really provide them with the best experience, not only gives great customer service, but will benefit the retailer

  22. Curtis HL Says: April 25, 2013 12:59 am Reply

    Identifying your hot zones and making them work for you with proper signage and promotional items just makes sense.

  23. Marcell Says: April 25, 2013 2:53 am Reply

    Very interesting. I like the idea of being able to compare the display and promotional material to the actual impact on sales – something you can do with the right sales and retail analytics.