Book summary of Why We Buy: The Science of Shopping by Paco Underhill. A must-read book if you work in retail and wants to get ideas about how to increase sales based on how your customers move in your stores

1. Adam Brostrøm | Marketing Manager | Master of Science in Business Administration and Philosophy
BOOK SUMMARY / REVIEW OF WHY WE BUY: THE SCIENCE OF SHOPPING BY PACO UNDERHILL

2. Adam Brostrøm | Marketing Manager | Master of Science in Business Administration and Philosophy
WHY YOU SHOULD READ THIS BOOK
If you are working in retail this is a must-read book to get ideas about how to increase sales based on how customers move in stores

3. Adam Brostrøm | Marketing Manager | Master of Science in Business Administration and Philosophy
More than half of all supermarket purchases are unplanned

4. Adam Brostrøm | Marketing Manager | Master of Science in Business Administration and Philosophy
GOOD KEY PERFORMANCE INDICATORS FOR RETAIL
•Conversion rate: How many of your visitors are buying
•Time spend rate: The average time shoppers spend in the store (more time = more sales)
•Interception rate: The number of shoppers who have interaction with an employee (more contact = more sales)
•Waiting time: Customers don’t like that

5. Adam Brostrøm | Marketing Manager | Master of Science in Business Administration and Philosophy
MERCHANDISING GUIDELINES

6. Adam Brostrøm | Marketing Manager | Master of Science in Business Administration and Philosophy
THE STORE WINDOWS
•Change the window decorations often, so the people passing by wants to come in and browse
•Customers have their eyes in front of the head and go forwards, not sideways: That makes it difficult to see products/signs/windows to the side

7. Adam Brostrøm | Marketing Manager | Master of Science in Business Administration and Philosophy
THE STORE ENTRANCE
•On the door to the store: The customer only has time to read 2-3 words
•The twilight zone: Don’t place anything important at the entrance. It takes some time for the customers to orientate themselves when they enter a store
•The faster we walk, the less we see: Make the customer slow down as soon as possible
•The best place in the store: To the right in the beginning of the store, just when the customer has slowed down (in most western countries)

8. Adam Brostrøm | Marketing Manager | Master of Science in Business Administration and Philosophy
IN THE STORE
•No amount of merchandise can deter a shopper on his mission: So we has to go along with it
•It is important that the customer in the store can orientate themselves: Don’t put anything in the sight line
•Capture rate: On shelves the customers primarely see what is a little over their eyes and down to their knees
•Boomerang rate: Customers don’t see a whole aisle, often they go in and take the product they need and go back
•Packaging is often seen from a little distance and sometimes from the top or from the side: That must be thought into the packaging design

9. Adam Brostrøm | Marketing Manager | Master of Science in Business Administration and Philosophy
INSTORE SIGNS
•Customers do not look for signs: Signs therefore has to get the customers attention like other ads, e.g. billboards
•You enter a store because you have a task to perform: When the customers has a task to perform they don’t read signs, but when the task is done they are more open
•The signs must be where it is natural for the customer to look
•It is difficult to read a sign when you are walking: Keep the message simple
•When the customers stand still and is browsing: They are more open for signs and also text
•When the customers is waiting with nothing else to do: Perfect timing for a sign
•To many signs: The customers don’t see any of them

10. Adam Brostrøm | Marketing Manager | Master of Science in Business Administration and Philosophy
The better educated the shopper, the more he or she makes decisions based on what is written on the products and boxes

11. Adam Brostrøm | Marketing Manager | Master of Science in Business Administration and Philosophy
THE CUSTOMERS HANDS
•Customers only has 2 hands. And if they carry a bag only 1: Help them with providing baskets, so they can carry more
•Bigger baskets, often means more sales
•Right-handed takes products from the shelves with the right hand: If you want to push a new product then set the topseller in the middle and the new product to the right of it

12. Adam Brostrøm | Marketing Manager | Master of Science in Business Administration and Philosophy
Usual 80 percent of a stores sales comes from 20 percent of the customers

13. Adam Brostrøm | Marketing Manager | Master of Science in Business Administration and Philosophy
WOMAN
•Shopping is female
•Woman take pleasure in shopping and therefore demands more of shopping environment
•Woman like to shop with friends
•Woman want more space around them when they look at products, so they don’t feel they are in the way

14. Adam Brostrøm | Marketing Manager | Master of Science in Business Administration and Philosophy
WOMAN: TIME IN STORE
•Woman with a female companion
•Woman with children
•Woman alone
•Woman with a man
Shopping houseware
Longest time in store Least time in store

15. Adam Brostrøm | Marketing Manager | Master of Science in Business Administration and Philosophy
MEN
•Men has no apparent joy in shopping - finds what they want with a minimum of looking and get out fast
•Men moves faster than woman through a store
•It is hard to get men to look at something they don't intend to buy
•They don't like to ask the staff – e.g. Tries to find the right section 1 or 2 times, then give up an leave
•The man almost always pays
•Men like to get there information about products from written sources instead of asking in the store

16. Adam Brostrøm | Marketing Manager | Master of Science in Business Administration and Philosophy
Bought clothes after trying it in store: Male 65% Female 25%

17. Adam Brostrøm | Marketing Manager | Master of Science in Business Administration and Philosophy
WHAT SHOPPERS LOVE
•Touch - to be able to touch and investigate the products
•Mirrors - especially when buying clothes
•Discovery - it is ok with a little adventure
•Talking - with friends, partners, staff about products
•Recogition - people like to shop where they are wanted
•Bargains

18. Adam Brostrøm | Marketing Manager | Master of Science in Business Administration and Philosophy
WHAT SHOPPERS HATE
•Too many mirrors
•Lines - waiting time
•To ask dumb questions because of poor store design
•Goods out of stock
•Obscure pricetags
•Bad service - intimidating, slow, rude, distracted, lazy

19. Adam Brostrøm | Marketing Manager | Master of Science in Business Administration and Philosophy
KIDS
•If a store is unwelcoming to kids the parents shoppers will get the message and stay away
•Children can be enthusiastic shoppers (or co- shoppers)

20. Adam Brostrøm | Marketing Manager | Master of Science in Business Administration and Philosophy
SENIORS
•The demographic of many western countries change so there is more seniors
•They want bigget text size on signs and products
•They needs more contrast on signs: yellowing of the sight makes it difficult to differentiate yellow, blue and green
•They needs more light in the store

21. Adam Brostrøm | Marketing Manager | Master of Science in Business Administration and Philosophy
THE 3 ASPECTS OF A STORE
1.Design - The premises
2.Merchandising - What you put in them
3.Operations – What employees do
If there is made changes in one of them, it will also influence the other two.

22. Adam Brostrøm | Marketing Manager | Master of Science in Business Administration and Philosophy
THIS PRESENTATION IS MADE BY
Adam Brostrøm
Marketing Manager | Master of Science in Business Administration and Philosophy
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