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How to Increase Revenue with Merchandising Panels


How to Increase Revenue with Merchandising Panels

Whenever you go to the grocery store, have you never noticed the placement of the merchandising panels? You might have noticed the ones at the checkout counter, but what about the ones by the entrance or placed in the middle of big aisles?

Merchandising panels are strategically placed by stores in order to get you to look and stare down at products you do not necessarily need. They promote impulse buys and overspending on things you might not even need. Most of the time, merchandising panels are used to play with the customer’s boredom.

For example, you are roaming through the grocery store looking for a specific item. You came into the store with the intent of buying that item solely, but as you make your way through the store, you stumble upon many merchandising panels selling items you do not really need. However, the panels are so eye-catching, and the products are so enticing that you end up making many extra purchases. The panels have successfully captured your attention and converted them into sales.

A well-designed merchandising system has been shown to improve sales and create customer loyalty. There is a lot of effort and thought that is required to build a successful sales channel. Sometimes it might even require a monetary investment, but you eventually get paid back with the increased sales and profits.

Know Who Your Customers Are

In order to build a successful sales channel, you need to know who your customers are – what is the average age, what are the most popular items sold at your store, what is the usual time or day customers come in, etc. are all questions that you should answer.

Knowing the different aspects of your clientele can help you design a sales channel best suited for them. It helps you decide what products to place on the merchandising panel, the configuration of the panels should be placed in (so that they are placed near the more popular items sold), and the time the panels should be displayed.

Such consumer profiles enable you to reach your target audience more successfully because, in order to give the customers what they want, you need to understand and recognize their needs and desires. Customer profiles should not only consist of demographic information, but also their psychographics, motives, and habits. 

A great place to start is receipts from customer purchases – you will be able to see what they buy, what time they buy it, and with what method they make their purchases (cash or card). Take note of what items customers are willing to purchase and when they purchase them. For example, if you find customers purchase more snacks (such as chips, cookies, and gummies) at night, stock your merchandising panels with the same products at that time; you will definitely see an increase in sales!

Develop a Strategic Plan

Now that you have understood your customers, it is time to develop a plan based on all the information you have found. The consumer profile will determine:

  • The number of merchandising panels needed
  • What products/brands you will display
  • What way you will be organizing the panel
  • Where will each panel be placed

A good idea would be to print out a map of your store layout, pinpoint where each panel will be placed, and number them. Then, assign each numbered panel a certain type of product (such as cookies), a certain brand (for example, a skincare or makeup brand), or a certain theme (this could be a ‘movie night’ theme; the panel can be stocked with snacks, DVDs, a Netflix gift card, etc.).

How Many Merchandising Panels Should You Purchase?

The number of panels you purchase will depend on these factors:

  • How big your store is – The bigger your store, the more panels you will be able to fit. However, it is important not to overcrowd your store with panels to keep your customers from being overwhelmed.
  • The amount of customer inflow you have – If you have reduced customer inflow, merchandising panels may cost you more than the money you will earn through them.
  • The number of brands/products you would like to feature – For example, you have noticed that a popular item at your store is cigarettes. But you do not want to promote smoking, so you would hold off on having a panel for such items.

Merchandising panels can be purchased from Crowd Control Company.

What Products/Brands Should You Display On Your Merchandising Panels?

The products/brands you will display will be based on your customer profile. It is best to place popular items and brands to entice customers to make a purchase. You can also place products that are common impulse buys, such as candy, sodas, lip balm, magazines, gum, and mints.

Merchandising panels are also a great way to promote a certain product or brand. They can be a great option if you have made a brand deal as panels are proven to increase sales. If you have a product you are trying to get rid of (such as a stock of cereal that is about to expire), paired with a flashy sign and a two-for-one deal, merchandising panels are a great way to sell them off.

How Should You Organize Each Panel?

Panels can be stocked and organized by product, brand, theme, or (a more unique way perhaps) color. It is important to make the panels attractive and organized in a way that customers are attracted to them – a merchandising panel with only purple products would certainly make customers curious.

More important than that is making sure the panel is clear and simple, free of clutter. Avoid overfilling the panels as it will leave customers confused and keep them from making a purchase.

Where Should You Place Your Merchandising Panels?

Merchandising panels can be placed close to popular products or products you sell regularly; they can also be placed along the route to these products. Customers tend to turn right when entering a store, so the right side of the entrance would be a great place to put panels.

Now that you have decided on your plan, all you have to do is implement it and get ready for the surplus of sales and profits you will receive!