As a retail sales professional, you know how important it is to offer your customers the right product mix. But how do you determine what products to include in your assortment and how to display them effectively? In this article, we will explore some of the factors that influence the right product mix for your customers, such as their needs, preferences, behaviors, and trends.
The first factor to consider when choosing your product mix is the needs of your customers. What problems are they trying to solve, what goals are they pursuing, and what benefits are they looking for? You should conduct market research, surveys, interviews, and feedback sessions to understand your customers' pain points, motivations, and expectations. Then, you should select products that match or exceed their needs and communicate their value proposition clearly.
Absolutely, the needs of your customers are a crucial factor to consider when selecting your product mix. Understanding your target audience's preferences, interests, and pain points allows you to curate a product selection that resonates with them. Conduct market research, gather customer feedback, and analyze purchasing patterns to identify which products are in demand and align with your customers' needs. By prioritizing customer-centricity in your product mix decisions, you can better satisfy their requirements and enhance their overall shopping experience.
Here are some key factors: Customer needs - Essential products they purchase regularly Customer preferences - Items aligned to their tastes and preferences Customer demographics - Products tailored to their age, income etc. Purchase occasions - Merchandise for specific use cases or events Seasonality - Mix adjusted for peak seasonal demand New arrivals - Space for showcasing new product launches Competitor offerings - Points of differentiation from rivals Past sales data - Top-selling and high-velocity products Inventory performance - Phasing out slow-selling items Store space - Planning product density for each section Pricing architecture - Range of opening price points Omnichannel alignment - Consistent mix across channels
The second factor to consider is the preferences of your customers. What are their likes, dislikes, tastes, and styles? How do they make purchasing decisions and what influences them? You should segment your customers based on their demographics, psychographics, and behavior patterns, and tailor your product mix accordingly. You should also monitor their feedback, ratings, reviews, and loyalty to identify their satisfaction and loyalty levels.
Here are some tips for tailoring product mix: Analyze past sales data and best-selling items Conduct surveys and gather direct customer feedback Monitor social media for information on popular products Study online reviews and ratings for insights Observe customer in-store shopping behavior Talk to sales associates about frequent requests Test demand through small batch orders for new products Plan store layout with key destinations upfront Feature preferred brands and products prominently Cluster merchandise by lifestyle or usage occasions Offer breadth in categories customers like to browse Provide depth in everyday replenishment categories Cater to local community preferences and demographics Accommodate needs of loyalty program members
The third factor to consider is the behaviors of your customers. How do they shop, browse, and interact with your products? What are their purchase patterns, frequency, and basket size? How do they respond to promotions, discounts, and incentives? You should analyze your sales data, traffic data, and conversion rates to understand your customers' buying habits and triggers. Then, you should optimize your product mix to align with their behaviors and encourage repeat purchases and referrals.
Product Mix as per Customer Behavior: Track sales velocity, frequency, basket size metrics Analyze traffic flow and conversion rate heatmaps Identify response rates to promotions and pricing Study recurring purchase cycles for replenishment Note out-of-stock reactions to prioritize availability Spot trends in cross-category purchasing Cater to impulse shopping behaviors Feature products near high-traffic areas Create grab-and-go sections for convenience Use endcaps and displays to catch attention Optimize layout for natural shopping flow Reduce choices in overwhelmed categories Train associates on recommendations to influence Adjust mix and pricing strategies as behaviors evolve
The fourth factor to consider is the market trends. What are the current and emerging trends in your industry, niche, and category? What are the opportunities and threats that affect your product mix? How do you compare to your competitors and differentiate yourself? You should conduct market analysis, competitive analysis, and trend analysis to keep up with the changes and demands in your market. Then, you should adjust your product mix to stay relevant, innovative, and competitive.
While keeping up with market trends is important, don't let it compromise your brand's identity. I've witnessed companies go after fads and compromise their basic principles, confusing loyal customers. It all comes down to striking the correct balance between being relevant and staying loyal to your brand.
The fifth factor to consider is the product merchandising. How do you display, arrange, and highlight your products in your store or online? What are the best practices and principles for product merchandising? How do you create a visual appeal, a logical flow, and a memorable experience for your customers? You should apply product merchandising techniques such as product grouping, cross-selling, upselling, signage, lighting, and storytelling to showcase your product mix and influence your customers' perception and behavior.
The sixth factor to consider is the product mix evaluation. How do you measure the performance and profitability of your product mix? What are the key indicators and metrics that you use? How do you identify the strengths and weaknesses of your product mix and make improvements? You should use product mix analysis tools such as sales reports, inventory reports, margin reports, and turnover reports to evaluate your product mix and make data-driven decisions.