What is Cause Marketing? Part 2

By Dr Kathy Kelley, Professor of Horticultural Marketing and Business Management, and Dana Ollendyke, Extension Associate

The first installment in this series can be found here.
With so many local, national, and international causes already being supported by your customers’ generosity, how can you compete with them and the businesses that sponsor them?  Consider the following, which could help bolster your cause marketing program.

Make sure that the donation process is transparent  

For each dollar that you collect, you need to show how and where these funds were distributed. Consumers who do not see any progress associated with the money they donated may very well choose not to donate anymore.  Be sure to indicate on your website, in your promotional activities, and in-store that money collected helps to do great things.

Consider a cause that has a natural connection with your business  

Perhaps a member of your business has suffered from a disease that could benefit from a donation.  If this is the case, ask him or her to be the “face” of the effort. In the Wharton Business School article "To Increase Charitable Appeal to the Heart-- Not the Head", it describes how consumers are more likely to donate to a cause if “presented with a personal case of an identifiable victim” through pictures and stories, “something that purely engages the emotional system”.

For example, we can all probably think of at least one product that dons a pink ribbon in honor of breast cancer research.  One of the businesses that does so is J. Lohr Vineyards & Wines.  The winery actually began partnering with cause organizers due to a family member’s breast cancer fight.  Founder Jerry Lohr lost his wife, Carol, in 2008 and through sales of both J. Lohr Carol’s Vineyard Cabernet Sauvignon and Sauvignon Blanc, the company had a 2014 goal of “providing over 4,000 mammograms to women who would otherwise be unable to afford them”. Certainly, the cause is worthy enough, but by associating a name, story, and image of Carol Lohr, we begin to associate the brand with a real family – not just a business.

Image 1.  Screenshot of the J. Lohr Vineyards website that details their mission to provide mammograms to women in need.

Or perhaps there is an environmental issue that greatly impacts your city/state/region. Sales from Crimson Pinot Noir, produced by Ata Rangi Vineyard (Martinborough, New Zealand) supports Project Crimson, “to protect and renew our spectacular red-flowering rata and pohutukawa – New Zealand’s iconic native ‘Christmas trees’.” Not only can consumers support the cause by purchasing this wine (Image 2), they can also purchase Northern Rata trees and plant them on their own property (Image 3).

Image 2.  Label showcasing the partnership with Project Crimson.

Image 3.  Sign advertising the sale of the rare Rata trees.

More considerations on creating a cause marketing program to follow in part 3 of this series!

Are You Using a Mobile Payment System? Part 1: Keeping Customer Data Safe

We have blogged a bit about mobile payment systems and the benefits they offer consumers and small businesses (Why You Might Want to Consider Offering Mobile Payments); however, what does a small business owner need to consider before implementing a system or when they switch mobile payment companies?  As with every business decision, the owner needs to do some research and make sure that the proper guidelines and procedures are followed to ensure a good experience for all. 

This week’s blog, the first of a two-part series, will focus on some of the security considerations pertaining to the device itself.  Next week’s blog will discuss measures, including insurance, small business owners can take to protect their businesses should the mobile device go missing or worse.  

What is at stake?

You very well could experience a security breach that (though not restricted to using a mobile device to collect payments but applicable to every method you use to collect cardholder data) with consequences that include:

An example of a mobile payment card reader.  Wikipedia.org

• cost of reissuing new payment cards,
• fines,
• termination of ability to accept payment cards, and
• "going out of business" (bit.ly/1iwnFUd).  

Still, even with these penalties, many businesses have been able to process credit cards with mobile payment systems without experiencing any problems.

Why is there so much concern about compromised data or a security breach associated with mobile devices? 

As you can imagine, and maybe it has happened to you, it is easier to misplace a smartphone or other mobile device compared to a register or computer that is either tethered to something or too heavy or bulky to just carry off without anyone noticing.

A safeguard that is suggested includes securely storing the device, in a safe for example, when not in use or fastening the device to a heavy, bulky item (such as a desk or counter) with a combination lock and cable, much as you would a laptop or desktop.  Concern is further based on “traditional security controls such as [anti-virus], firewalls, and encryption [not having] reached the level of maturity needed in the mobile space” (bit.ly/1ftLIm3). 

How can a small business owner using a mobile payment system protect customer data and their business?

Let’s first start with the device that you will use to collect payments.  A list of equipment and systems can be found here (Why Mobile Payment Systems Might Work for Your Business), but you’ll also need to consider device ownership, who can use the device, and (in certain instances) whether an employee can use the device for more than just collecting payments. 

If you are not already familiar with the PCI (Payment Card Industry) Security Standards Council, they work “to educated stakeholders (merchants, processors, financial institutes, and similar) about the PCI Security Standards…and promotes the awareness of the need for payment data security to the public” (www.pcisecuritystandards.org), in essence “keeping your customer’s payment card data secure.” bit.ly/1ix8PN3.  Retailers who accept credit cards are required to be compliant with the standards (next week’s blog will include an overview on how to be complaint).

Device ownership: BYOD vs COPE

The PCI strongly discourages what is referred to as BYOD (bring your own device), which involves employees using their own mobile device to process consumer credit card payments.  Instead the device should be owned by the business, regardless if it is used solely for “payment and acceptance for transaction processing” or for both business and personal tasks (bit.ly/1hayiqv).

Some companies do buy corporate-owned personally enabled (COPE) devices which they distribute to managers and other employees who process payments at remote locations.  In such instances these businesses permit employees to use the device for both business and personal use.  This allows the business to install and update software that might not necessarily be appropriate for an employee-owned device (bit.ly/1iCHYyj).  Updates can be pushed to devices and the business can seize the device when needed.  This particular arrangement is not unreasonable as employees are often provided with desktops, laptops, and tablets to use in their homes and when traveling. 

Basic mobile device security policies

Some of the more recognized security policies that you should implement:

•    Don’t store any sensitive cardholder data on the mobile device, or on any electronic equipment for that matter.  If you are using the smartphone or tablet and/or a mobile app to save customers’ addresses, birthdates, etc. for the purpose of keeping track of purchases (i.e. loyalty program) take steps to encrypt the data and only collect and store what is absolutely necessary. 

•    Be selective about what apps you download to the device and question why apps might need access to contacts, calendars, location services, etc. on the device.

Source: Pixabay.com

•    Require each employee who needs to have access to mobile devices to have a unique username and password.

•    Employees should be trained on how to properly use the device and owners should educate them on how to maintain device security. 

•    Don’t “jailbreak” or “root” your devices (iPhone, iPad, iPod touch, Android phone or tablets).  Jailbreaking or rooting a device allows the owner to download “additional applications, extensions, and themes” not available at the Apple App Store (bit.ly/1luD6Mb); however, Apple states on its website that doing could: shorten battery live, allow for security vulnerabilities, cause apps to crash, prevent future software updates, and similar (bit.ly/1iDCiEq).

•    Update your operating software.  Often you will get a notification but check the setting on each device often in case a push notification doesn’t go through. 

•    Keep apps up-to-date, too.

•    Beware of phishing emails (emails from individuals posing as legitimate companies with links to malicious software) and SMS texts.  Don’t click on any hyperlinks or URLs that look suspicious. 

All of these procedures, and other applicable best practices, should be included in your employee handbook and operations manual.  Just as you would expect your employees to adhere to a code of conduct when dealing with customers you should expect the same for those who have access to business-owned mobile devices.

No matter what type of device, mobile or stationary, that is used to collect payments it is the retailer’s responsibility to ensure that customer payments processed properly and that only the appropriate data is stored – and that it is stored correctly.  In next week’s blog we will continue the discussing and help you further ensure that you are operating a safe mobile payment system and have a policy in place for any issues that might occur with either a missing device or compromised cardholder data.

Kathy Kelley is a professor of horticultural marketing in the Department of Plant Science
Robert C. Goodling, Jr. is an extension associate in the Department of Animal Science

Learning from Consumers: Examples of Easy and Insightful Questions to Ask

In last week’s blog, I encouraged you to learn about your customers’ needs, wants, and likes.  This week I wanted to provide you with examples of questions that you might ask them and that could provide you with a great deal of valuable data. 

No matter what survey format you choose or the type of retail operation you own or manage, consider asking:

• Why do you shop at our store?
• How frequently do you visit our business?
• What additional goods do you think we should stock and that you would be interested in purchasing from us? 
• What other businesses are you visiting today?
• What events and activities do they attend/participate and how do they learn about these events/activities? 

A good bit of information could be gleaned from asking these questions, which includes identifying businesses that you could cross promote with and further build your customer base.  Responses also help you learn about festivals or celebrations where you could have a presence.  Asking customers how they learn about these events and activities is one way to identify avenues through which you could promote your products.
 
On-farm markets or farmers’ market venders might be interested in selling produce items that they have never sold before.  If you fit this description, ask consumers the following questions to learn if the product has potential:

• If we offered ‘x,’ would you be interested in purchasing it?  Why or why not?
• Do you already purchase ‘x?’  How often do you purchase ‘x’ and how do you use it in meals and snacks?
• Do you serve ‘x’ to family and friends when entertaining?  If yes, what other food items or beverages do you serve with ‘x?’ (This question can help you with cross merchandising the potential product with existing goods, or help you learn about other items you could stock.)
• How many adults and children live in your household? Of these household members, how many already eat ‘x?’

Would customers buy canning supplies from you? Don't guess, ask them.

What if a group of your customers share a similar heritage and you would like to provide them with products they could use to create authentic meals?  Consider asking questions that will help you determine the following:

• Products that are in greater demand during specific periods such as holidays, seasons, or for festivals and special occasions.
• If there is a preference for a particular variety, size, condition, type of package, or partially/fully cooked product.
• What foods, cooking tools, or particular brands they have difficulty finding locally. 

Additionally, think about what other products you could sell, even those that might be a little more “nontraditional.” For example, ask consumers about their other interests.  How many of your customers are pet owners?  Traditional garden centers have been successful selling pet products and pet foods, as there are consumers who spend a significant amount of money on their pet’s care and well being.  Pet food is also a product category that pet owners need to purchase on a frequent basis, thus they may return again and again to restock their supply.  You may also find that these goods bring new consumers to your business.

Count Foot Traffic When Hosting an Event at Your Business

The number of shopping days until the fall and winter holidays are dwindling; and most likely you will host an open house or event to draw consumers to your retail outlet to do some holiday shopping.  In the past, we have offered some insight into hosting events (Events – Know When and How to Host Them and Cross Promotion: Partnering With Other Business to Better Serve Your Customers, Part III), and as a result a question you might be asking, “How will I know if the event was a success?” 

Certainly calculating gross and net sales is important but it is also important to document foot traffic – the number of people who attended the event.  It is key to know your customer counts so that you can determine if the event encouraged more consumers to visit than during an average day, or if the event needs to be redesigned to be more appealing.  Foot traffic counts also help retailers understand whether the event attracted more consumers than past events held during the same period. 

Obtaining foot traffic counts can be accomplished by: 

• Distributing invitations that attendees bring to the event to be admitted or requiring attendees to RSVP
• Counting attendees as they arrive at the event by either assigning an employee to manually count customers or installing an electronic sensor that tabulates the number of customers who pass through a particular doorway
• Asking customers to sign up for a mailing list or loyalty program
• Giving each attendee a raffle ticket and keeping track of the number handed out  

Each system has its advantages and disadvantage. 

• If invitations or RSVPs are expected you will also need decide if “walk-ins” will be admitted and how to capture this number
• Not all customers will sign up for your mailing list or loyalty program, or they may already be members unless you are launching these programs during the event 
• If attendees are counted as they enter a doorway—it is possible that they could be counted more than once if they exit the store and then reenter.  It is also possible that the person counting attendees could be distracted if others ask questions or for assistance.  You will also need to determine how you will “count” attendees.  Will you count all adults or will you count families (with two or more adults) and couples as one attendee?  It will also be important to “subtract” any employees, who enter the store through the same entrance, from these counts.  

Foot traffic can also help with planning for next year’s event.  Consider counting the number of customers who visit based on the time of the day and, if it is a multi-day event, the day they visit. These numbers can help with scheduling staff as well as adjusting the hours that the event could be held in future years. Additionally, if you invite other vendors to showcase their goods and services or schedule a special entertainer to perform, use these counts to schedule their appearances when foot traffic is favorable for all involved.  

Having entertainment at your event is a great idea to set the tone.
Just be certain to schedule performers during periods when you expect high foot traffic counts

Record not only foot traffic but also the number of visitors who access your website during and after the event. Also, ask customers to participate in an online survey and ask them if they are interested in attending the event (or if they did attend), what additional vendors or attractions they would be like to see, and how they heard about the event or if they first learned about it when visiting your site.
 

Why You Might Want to Consider Offering Mobile Payments

Last week, I was at a restaurant where the serve took our order on her iPhone, swiped my credit card through a reader attached to an iPad, rotated the iPad screen toward me so that I could enter a tip and sign for my transaction using my finger, and asked me if I wanted a printed receipt or one emailed to me.    

The email receipt I received

Now, the transaction may not have been that much faster than a traditional restaurant transaction, but I did not have to wait for the receipt to print (or wait for the server to add a new role of paper to the receipt printer), search for a pen or use an electron stylus that is often tethered to credit card terminals, and calculate my tip.  I felt that the process was pretty seamless.  This restaurant used a system that involved both iPhones and an iPad register but several other systems exist where only one electronic device is needed to process a payment.  

You probably have head of Square (https://squareup.com/), among the number of other systems, which require a user to obtain a small scanner (most of which are provided free) that attaches to a smartphone, but several other systems exist.   This technology is evolving and you may find that you like a system that does not even require a consumer to use a credit card to make a purchase. 

In this posting I am going to touch on why you should investigate whether mobile payments could work for your business.

Consumer use of mobile technology

Recent statistics indicate that between 42% and half of all mobile phones used in the U.S. are smartphones (http://tinyurl.com/6q5rd5s) with capabilities that allow users to download apps they can use to make mobile payments.  Compared to the number of the consumers expected to own a smartphone at the end of 2012, 115.8 million, the percentage of users expected in 2015 is set to increase nearly 66% (http://tinyurl.com/cruhdlm).

So, that provides some insight about smartphone ownership, and we know from reports that the two most popular activities conducted on a smartphone are checking email and Facebook, but what about current data that describe purchasing using smartphones and tablets?  

• During the first quarter of 2012 34% of tablet and 17% of smartphone owners had made at least one purchase on their devices.  
• An even great percentage of smartphone owners (43%) used their device in a store “for a shopping purpose,” (http://tinyurl.com/8553tbh) which could include comparing product prices at other retailers and looking up product details.  

If over one-third of smartphone users are using their phones for these purposes it is possible that they may convert to mobile purchasers.  

Flexibility for businesses

I have shopped at a number of retailers where it would have been more convenient for me to make a purchase at a site other than where the cash registers were located.  Or, sometimes I have had to pay with cash or by check instead of with a credit card, my preferred payment method. According to one source, only 7% of transactions in the U.S. are completed with cash.  Hence, we are becoming a “cashless society” (http://tinyurl.com/d6wk5eg). 

Think about your business and situations where a mobile payment option might have been useful.

• Residential landscape contractors and growers delivering product can collect payments immediately rather than invoice and wait for payments,
• food and farmers’ market vendors,  agritourism businesses, and food tradeshow exhibitors  can provide more payment options, and
• landscape nurseries can process payments in the tree lot after selecting plants with customers.  

Benefits mobile payments provide businesses 

Aside from flexibility these systems provide, businesses also benefit from their use:

• These systems capture a fair amount of customer information, which can help the businesses create  a loyalty program (or take the place of an existing one),  
• transaction funds are transferred to the business more quickly – reducing the duration from “days to hours” (http://tinyurl.com/893svvx), 
• most mobile payment companies do not charge a setup fee or a monthly fee to use their system,
• there may be little or no requirement to purchase equipment (if businesses already own the required smartphones/tablets), and
• though percentage processing fees are applied to each transaction (can range from 1.74% to 3.7%) some companies have eliminated the per-transaction charge (can range from $0.10 to $0.30).      

In the next posting I’ll discuss a bit more about the different methods you can use to process mobile payments, including on that uses the consumer’s face to verify purchases!

Cross Promotion: Partnering With Other Business to Better Serve Your Customers, Part III

In this final installment of discussing cross promoting I've suggested thinking about hosting events with complementary businesses and how this partnership might "cost" businesses involved in such a venture.

Hosting Events Together

Though one business may develop the vision for an event the responsibility of coordinating and implementing it needs to be shared. There are advantages that two or more establishments provide and gain by working together.  For example, if an event’s focus is outdoor entertaining the retailer may be interested in pairing up with a local winery or specialty food retailer. Another complementary business could be a local florist.

Allow time for a series of demonstrations, such as meal preparation using value-added processed foods, home entertaining, and flower arranging. Both businesses should also provide goods that could be included in gift baskets for sale, raffle, or door prize.

             

Considering Your Costs

Cross promotion cannot be implemented without certain “costs.”  Some of which include:

·    how much complementary product should be used in displays,

·    whether or not the shelf or floor space will be provided for free or if the space will be rented,

·    what discounts to apply if customers buy a combination of products offered by both businesses,

·    how advertising and promotional costs will be shared,

·    how many times during a season or year each business will agree to provide information for blogs, newsletters, etc. and the number of feature articles each business will write, and

·    how staff will be allocated for events and activities, if one business provides space for the event what the other business will offer in compensation.

Additionally, staff should be educated about the complementary products, how to use the item, benefits for customers, and related.  Staff should be able to answer basic questions about why the businesses are cross promoting each others’ product and provide customers with at least an introduction on how to use the products. 

These are just a few possibilities for cross promotion and obtaining access to new customers.  Your decision will ultimately depend on the amount of time you and your staff have available, your budget, business goals, and facilities available.  There are tradeoffs to consider; however, working together can provide benefits for your business and customers you serve. 

Cross Promotion: Partnering With Other Business to Better Serve Your Customers, Part II

       This posting, the second in the cross promoting series, focuses on how to join efforts with complementary businesses to communicate with your customers and theirs.

Newsletters and Blogs

How do you currently communicate with your customers?  Whatever methods you use to inform and remind customers about your business or persuade them to buy your products, there is at least one way to cross promote each others’ products and expertise.

With the number of garden centers who have a blog, newsletter, or other publication that they publish on regular basis it is highly likely that the person writing these pieces often has to find items to write about.   Short pieces can alert readers about the complementary business or a new product they are offering.  Feature articles can describe how products from both businesses could be incorporated into new gardening trends or an upcoming event that the two businesses are co-sponsoring.  Do not forget to include the complementary business’s logo, URLs or hyperlinks to their website, and contact information.

Also, invite the other business to write a newsletter item or be a guest blogger.  Suggest a topic so the guest writer has some direction as to what your readers might be interested in learning and that would meld well with other items you are including in the newsletter or blog.  

Your Website, Facebook, and Twitter

Your website is an ideal outlet for cross promotion activities.  Use space on your website to inform readers about complementary businesses you cross promote with and provide space for their advertisements.  If customers sign-up for your newsletter online provide an option that would allow them to sign up for other businesses’ newsletters or add a link that will take them to the other businesses’ online form.

When it comes to Facebook, make sure that you “like” business you cross promote with, post images of events and activities both businesses implement, include links to articles, and mention each other in postings.  Tweets you publish on Twitter should also mention your cross promotion partners.  Include these businesses in your #followfriday (#ff) tweets (a strategy used on Fridays to suggests to your Twitter followers who they should also follow) retweet (forwarding another Twitter user’s tweets to your followers) appropriate messages, publish tweets when you add their products to your displays, and similar.   Inform your customers about joint activities while reminding them about your business.

Until next time when I’ll present ideas on how to cross promote with other businesses to host events and some of the costs to consider when entering into this type of relationship.

Cross Promotion: Partnering With Other Business to Better Serve Your Customers, Part I

           With consumers desiring outdoor living spaces, complete with lighting and kitchen components, and baskets filled with wine, assorted cheese, and other food and non-edible items always proving to be popular gift items, how can ag. retailers provide such items when they do not stock and sell all the components?  One idea is to partner with business owners who sell complementary goods and services, thus the two businesses work together to help customers obtain a complete “package.”  

           Promoting goods and services offered by business owners you have an existing and trusted relationship with takes the guess work out of where to direct customers and your recommendation also helps reduce the risk for your customers.  Such a situation, known as cross promotion, is based on two (or more) businesses working together towards a common goal.  

        In this blog posting I’ve presented ideas for cross promoting in the retail space, but over the next couple of posts I’ll provide examples of how retailers can cross promote in other ways.  When cross promoting works, efforts coordinated with a complementary business provides certain benefits:
· expanding your customer base,
· greater reach with promotions and advertising,
· reduced marketing costs, and
· increased profits

Putting Items on Display

        Displaying items produced or sold by complementary businesses is one cross promotion strategy.  You may already have relationships with business owners who produce or sell items that would complement what you offer, but what if you do not?   What goods and services could appeal to your customer based on their demographics, behaviors, and interests?  If you do not already sell items like bath and body products, jewelry, specialty foods, place settings, or the like, search for businesses that do.  Once you have assembled a list, learn about clientele they serve, search for reviews customers post online about their shopping experiences, and investigate as much as you can about their business practices before requesting to meet.  Just as you put thought into developing a relationship with a new vendor the same amount of consideration is required when selecting a business to cross promote products.  

        Signage placed next to items should include a description of the product as well as information about the complementary business (e.g. business history, other available products, contact information) and an explanation as to why the product is so unique that you decided to display it in your store.  Don’t forget to ask the other business to reciprocate by incorporating select products you offer into their displays.

        The possibilities of what type of businesses to cross promote with are endless.  Displaying complementary items together is just one step, in the next few postings I’ll provide examples of how to cross promoting when communicating with customers and when hosting events, as well as the “costs” to consider before committing to this partnership.

Retailers - keep rotating merchandise and rearranging displays

Most every retailer has started decorating for the winter holidays, or at least will choose to do so after Thanksgiving.  Nevertheless, all retailers should understand the importance of changing the “look” of their outlet on a regular basis, whether it is a display, a window, or how customers will walk the floor. 

Why might you want to change or rearrange product placement or how customers must walk to get to key departments or merchandise?  The reason is simple – if you keep products displayed in the same location or do not rotate merchandise in key sales areas it is likely that repeat customers, who are accustomed to purchasing one or two items and then leave the premises, will never notice items other than what is on their list.  By moving “anchor goods” (items that customers purchase often and “draw” consumers to visit the retailer) to other locations, or mixing seasonal goods in with more commonly stocked items (so that customers looking for holiday decorations will notice other products) customers will certainly notice items that they may not have considered or may not even have realized were stocked and sold.

Aside from rotating merchandise, another way to periodically change the look of a display, or draw attention to a particular area, is to set up temporary and portable backdrops that complement product placed in front.  One way to achieve the goal of easily and cost effectively changing a backdrop is to hang fabric.  The numbers of colors and textures available, as well as being relatively easy to store, provide a realistic solution for retailers who may not have a large floor space and are limited in how they can rearrange merchandise.

Now, how often should you rearrange or change the look of your outlet?  It is suggested that retailers change some component of their window or floor display, or other design element, at least once a month; however, if your average customer visits more frequently than consider changing and rearranging more often. Again, it is in not necessary to completely rotate and/or redesign the entire retail space at this frequency, rather find something that you can change easily and that customers will notice.   

Alerting customers about a new product

I just finished reading my July issue of Produce Business, a publication that I find to be very helpful in discovering new products and learning about how supermarkets, grocery stores, and club stores merchandise new and established products, packaging, national promotional programs, etc. While flipping through the pages, I saw a picture of black garlic, something that I was able to taste at the 2009 Summer Fancy Food Show in New York City. On first glance, you might not find this product to be visually appealing. The bulb certainly looks like a garlic bulb you would find in a supermarket. Instead of a creamy translucent- looking bulb though, the contents are a dark black, almost charcoal-looking. Being someone who loves the flavor of garlic, I was pleasantly surprised to find, as stated in the Produce Business article, that the garlic tasted "milder and sweeter" than traditional garlic. The bold color could really add dimension to a dish.

I must admit that if not presented with the opportunity to try the garlic at the Food Show and hear about the various ways that it could be used (in place of or in addition to traditional garlic) I would have probably passed by without a second look. I'm sure that there have been instances where you have seen a new product or service and weighed the cost vs. the benefits that the item would have provided you. If you are a retailer or a wholesale grower who gets feedback about consumer response to products you sell in an outlet, perhaps you have learned about or witnessed consumers looking at or touching a new item that is offered but instead of placing it in their basket, they return it to the shelf. The consumer might not even know what the product is, how to store it, how to prepare it, and/or how to serve it. Attendees at the Food Show (most of whom are retailers, brokers, and others involved in the food industry) benefitted from some insight about the product. It is best that retailers consider the same level of promotion and education in their own stores.

What are some simple promotions that a retailer could implement whether it be at an independent grocery store, a farmers' market, on-farm market, or other?

-Signage that describes the item is one example and probably something you already implement. Do you describe the products flavor, how it could be used, and how easy it is to prepare? The idea is not to make the sign too busy with words and overload the customer, but rather pick three brief but informative points and include them on the sign.

-How about making the new product the "product of the week?" Add extra signs throughout the store to alert customers of the new addition.

-Product placement may also be something to consider. Keep the featured product near the other like items but also position smaller batches for sale near the register and other items consumers tend to purchase frequently.

Perhaps to get you started, visit a few retail outlets that appeal to your target customers and see how they are using signage and product placement. What works for them might just work for you.

Using smells to increase impulse buys

Have you ever walked into a bakery with the plan of just getting a loaf of bread, but the delicious smell of fresh baked chocolate chip cookies makes you impulse buy a few? By using smells, a food retailer can get customers to make impulse purchases.



The smells of oven-baked bread, fresh ground coffee, warm cookies, and hot soups can evoke positive memories for a customer. The cookies may remind a customer of a Christmas party or the hot soups may remind the customer of a cold winter day at Grandma’s house. Whatever the memory, smell is an important part of marketing. According to the Sense of Smell Institute, people recall smells with a 65% accuracy after a year, but only have a 50% visual recall of photos after 3 months.

"Setting the Mood for Higher Sales" article

If you are a retailer who doesn’t have enticing smells naturally produced at your retail outlet, you may still want to invest some research in the idea of scent marketing. Stores like Sony Style and Bloomingdale’s are using scent marketing to set the mood for customers. Sony Style uses a combination of mandarin orange, vanilla, and cedar which are thought to entice women shoppers. Sony Style also uses this scent combination in every store to create a “Sony brand smell”. Bloomingdale’s uses a baby power scent in their baby department and a suntan lotion smell in the bathing suit department. Also, the ice cream parlor in the Hard Rock Hotel in Orlando uses a waffle cone smell which is thought to have led to a recent 50% increase in sales.

How do these stores incorporate smells into their businesses without producing the actual item? Companies have been created that focus solely on developing your business’s signature scent. One firm, Scent Air (www.scentair.com), has produced a technology called ScentWave that dispenses these signature smells.




Scent branding may sound like a fabulous marketing tool, but you must first experience the retail atmosphere in the eyes (or nose) of the customer. Don’t over do it. Customers will not be rushing to the cookie display if your scent brand of cookies smells like 10,000 cookies just dropped from the sky. Subtlety is the key. Customers need a friendly reminder smell, not a smack-in-the-face smell!


"Scent Branding: Smell of Success?" article

As a consumer, do you feel that you make impulse purchases because of positive smells? Has a smell ever led you to not purchase a product? As an agricultural entrepreneur, have you seen sales increase when a new smell (like fresh baked bread) fills your retail outlet? Will you think about developing a “scent brand” for your retail space or product?