Fresh Produce In-Store Nudge

Nudge marketing has been shown to be pretty effective in getting shoppers to buy more produce.

After an informal trial of nudge marketing tactics in a grocery store in El Paso, Texas, the store found that certain levels of marketing worked better than others. When a mirror was placed in carts or when green arrows pointing to produce were placed on the floor, shoppers bought more fresh produce. One of the surprises in this marketing study, however, is that overall sales stayed the same because shoppers exchanged processed food for fresh. While this does help to incite social changes that might reduce obesity and make healthy customers, it doesn’t do much for a retailer. Produce might generate more revenue than processed items where margins are slimmer but the fact of the matter is these tactics aren’t driving more sales overall.

Yet the data is compelling—habits can be changed with small nudges better than overwhelming customers with too much push in the direction you want them to go. What does this mean for in-store marketing? We need to become more sophisticated in the way we present products to show customers what we want them to do without bludgeoning them with it. Subtle cues, it seems, do better than a more direct “Buy Now!” approach.

One example of nudge marketing we’ve employed in stores is the Family Movie Night display that we placed in the entertainment section of Walmart stores. Instead of putting up signs all over the store about a special movie promotion or having associates approach customers to tell them about Family Movie Night, we went with a simple display that nudged customers towards a new purchase path.

Like the arrows on the floor in the produce trial, the display directed customers towards a goal—a movie night enjoyed with family—and put all of the items needed in one place. Combined with disrupting shopper habits, although much more gently than others might advocate, the display attracted attention. The simple but effective call to action of the display planted a seed of an ideal of many shoppers—spending enjoyable time with family. If that ideal met the desires of a shopper, the items in the display found their way into the shopper’s cart.

A well-placed nudge can do a lot for sales.

Source: Store of the Community (http://goo.gl/riTfs1)