walmartFor those of you who are in the retail industry, you may have noticed a  recent trend to clean up in-store environments – reduce shelf heights, remove  dense ends and dump bins, widen aisles etc. – in order to increase comfort and  make the shopping experience less stressful for customers.

The big question then becomes “does clean make customers keen”? According to  Walmart, arguably the largest and most successful retailer in the world, clean  stores mean fewer beans (on the bottom line).

As reported in the New York Times, Walmart conducted a massive in-store  experiment to improve sight-lines, rationalize the overall number of items  offered, remove warehouse-like merchandising in centre aisles, and increase the  width of core aisles. According to Walmart’s CEO William S. Simon,  “(Customers) loved the experience. They just bought less.”

As a result, Walmart reverted back to its original strategy of offering more  products, with tighter aisles, more clutter and lots of bargain bins in the  hopes that customers would spend more because of a perception “there were  bargains to be had”.

If you do a quick search on the internet, there are dozens of experts who  subscribe to the view that a larger selection, more bargain bins, and sales  signage equates to “better value”. In essence, the more you look like a market  stall, the better it is to generate buzz and sales. They argue that if your  merchandise is neatly presented on the walls and in well organized aisles, with  no point of sale impulse offers and dense ends full of 2-for-1 specials,  customers will tend to think your store is expensive (i.e. overpriced) and they  will not buy from you.

And if you think about it, you can probably name a whole list of retailers  who subscribe to this “clutter is good for business” philosophy and they seem to  be successful. But how can we be sure that clutter makes customers keen? Have we  been too quick and prematurely jumped to a conclusion that clean is a traffic  and transaction turn-off?

Recent empirical evidence from neuroscience and neuromarketing sheds new light on  how we think, and more importantly, how we make decisions. In fact, the decision  making part of your brain responds strongly to certain stimuli only.

Did you know that your brain consumes 25% of your body’s energy? As a result,  you brain wants to conserve energy so you tend to pay attention and be attracted  to things that have sharp contrast, high visual appeal, strong emotional cues  and a clear beginning vs. end message.

Now what does this mean for you in the context of your shopping  environment?

A chaotic, cluttered store is cumbersome for your brain to navigate – you  have to work hard mentally to hunt down and search for bargains. It may create  some emotional appeal but it is likely perceived as having low contrast, low  visual appeal and no clear beginning vs. end.  According to neuromarketing studies, shopping in this environment takes  time and energy and it also forces your brain to go into “thinking” mode. This  is a critical point because thinking is counter-productive to deciding. Thinking  takes place in one part of your brain (the neo-cortex), while deciding happens  much more quickly (and automatically) in your old or “reptilian” brain.

So what does this neuromarketing research mean for the strategy and conclusions reached by  Walmart?

Based on neuroscience, the strongest buying cue that you can give your customers  is this – if your store (or business) has incredible bargains, people will buy  (and even sift through a maze of clutter) because something is in it for them.  The “what’s in it for me” (WIFM) principle is one of the strongest influences on  the part of your brain that decides.

However, there is no hard evidence to suggest that clutter makes your customers  keen.

Walmart and many others have come to a conclusion based on what they THINK  people are doing to reach a buying decision in-store. However, neuromarketing has  produced empirical evidence to support the opposite conclusion is more probable. Clutter  and chaos create an environment where your customers have to think too hard,  which is exhausting for the brain. They will do it if they have to, as long as  the perceived bargains and value are very high.

Wouldn’t it make more sense to find another way to communicate good value and  service without exhausting your customers and causing them to waste their time?

Wouldn’t you be more likely to get more sales and word of mouth referrals from  your delighted customers?

In the end, Walmart may be correct about the fact people buy more in certain circumstances but they are wrong about WHY that is. The best way to  create more excitement and sales is to make it easier for your customers to  decide. You need to show them what’s in it for them, increase the contrast  between your solution and your competitors and communicate a strong, clean  visual message that compels them to say “YES”.

ImagineeringNow
About The Author
Rhondalynn's life changed forever after the loss of her mother due to a senseless tragedy in 1992. She decided that despite her formal training and a promising career as a lawyer and chartered accountant, she wanted to do something more. So despite the fact she had already invested 10 years of her adult life in university and articling, she did the unthinkable. She left her high paid job as Commercial Manager for one of the largest corporations in the country, she re-trained herself in the sciences of the mind and she discovered a passion for writing and sharing her knowledge with business owners and executives. Rhondalynn has distilled the secrets to business success - that she learned from her life experience and working in GM level roles with Price Waterhouse Coopers, Max Factor, Village Cinemas, and Coles Group Ltd. - and produced a simple step-by-step process that you can apply to your business to boost your sales and bottom line. Rhondalynn can help you put strategies in place to grow your bottom line and ensure that your customers would never think of going elsewhere. She is the leading expert on harnessing the power of your brain and using it to improve your financial results in business. Rhondalynn is the author of On The Shoulders of Giants, Imagineering Your Destiny, Sobre Hombros deGigantes, Financial Foreplay, and Sales Seduction. She has appeared on CNN, Bnet/CBS, Channel 7, Channel 9, Kochie's Business Builders and 3AW, and writes for Yahoo, MYOB, Fast Thinking, Sunday Life, Dynamic Business, Business Spectator and Australian Retailer.

1 Comment:


  • By Elmer Rich III 07 Feb 2013

    The fact is measurable data proved that these changes failed – the dependent variable. We can speculate why, but without double-blind experiments with control groups we have no way of knowing what the independent variables are.

    Parsimony would suggest complex speculations are not needed for predictions or explanations but simple ideas will suffice, e.g. measuring GSR or just simple behavior tracking.

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