Higher profit and satisfied customer….

 

There are different approaches for different kind of product groups. Each category needs its own assortment approach to be able to reach the maximum revenue and margin.

 

We start from the formula DNA, then respect the different categories. Followed by a specific assortment structure suitable for the productgroup.

I now appoint 1 important assortment structure….

‘Good, Better, Best 

The method ‘Good, Better, Best ‘ is very suitable for technical products with, for the customer,  a complex and mostly not transparant buying process.

For example mattresses and pillows. Which customer knows exactly how to make the right choice? How does he /she knows which item solves the need/ the problem best? Which product satisfies most?

A lot of (more expensive) purchases lead to cognitive dissonance, a sense of discomfort caused by the internal conflict after the purchase. ‘ Good, Better, Best’ helps the customer being satisfied  because of the transparent choice.

The ‘Good, Better, Best’ system leads the customer in a simple and clear way to the best solution for her/his need. And for the retailer also relevant; he leads the satisfied customer to a more profitable product.

Practice has proven  that the customer is willing to pay more for the added value! As long as the customer understands the price- added value combination!

Important for this assortment is to respect the structure conditions (3xC):

Customer needs versus solutions.

Content versus transparency

Cross- and upsell choices.

For further (or tailor made) information please do not hesitate to contact.

 

Geef een reactie