According to Georges Chétochine in his book "Strategic Marketing of Distribution Channels" there are three types of points of sale that are determined according to the buying habits of customers. In this article we will see in detail what they are and the key factors for their development.
The first step in understanding how to classify retail outlets is to understand the customers of these outlets. These shoppers can be classified according to their shopping motivations and their distance from the shop as follows:
FLUX: These are customers who chose a Point of Sale because it is the closest or easiest to access.
TRAFIC: Unlike the previous one, these customers come from far away because they are promised a reward that balances the inconvenience of travel.
Flux customers
These customers pose the least problems and develop the least inconvenience. The location of the Point of Sale, its catchment area, and its defined competition system, will determine the amount of flux it can have.
They are customers who frequent the Point of Sale more regularly than anyone else because in terms of accessibility it is more convenient for them. However, the flux shopper is not always a loyal customer to the Point of Sale. They may well have a negative relationship with the outlet that is most easily accessible to them, choosing it out of habit. The same shopper may be fluxed by several outlets of the same nature in different shopping areas". (Chétochine, "Strategic Marketing of Distribution Channels").
Flux customers can be analyzed from the perspective of their loyalty to the Point of Sale. Loyalists have a feeling of guilt when they buy products in other shops. "Attachment to a point of sale is a psychological notion that is generally consistent with the efforts made by its managers to welcome its customers, to recognize them, and to give them the status of privileged customers. If a loyal flux perceives that the Point of Sale to which he goes has deceived him about quality, prices, or service, the spell is suddenly broken, not only will the retailer lose his customer forever, but he will have gained a great enemy, who will soon discredit the store, and then contaminate the whole area, resulting in a massive loss of the hitherto captive market.
Disloyal fluxes are those who make their purchases in different Points of Sale and have no special relationship with one of them. "The notion of loyalty is essential because it is a simple way to combat the possibility that a competitor, by its mere presence, can divert the flux from its habits".
Trafic customers
These customers only frequent an outlet because the outlet has bought their trip by providing them with special benefits, such as a promotion, special offers, or any good deal. Traffic customers operate on a cost-benefit basis. Most traffic customers are flux customers from another outlet and whatever the type of distribution, pure traffic customers who only react to promotions and rewards will be rare.
Types of outlets
There are various ways of classifying sales outlets. While the most commonly used in industrial markets are purchase volume, regions, specialties, etc., the concepts of Flux customers, which are those who come because they are close by or because of easy access, and Trafic customers, which are those who come from far away in search of better purchasing conditions, are taken into account. Chétochine identifies three types of sales outlets:
Exclusive flux sales outlets: These are sales outlets that only cater to flux customers. This flux zone is located in a catchment area within a radius of about 3 to 5 minutes on foot. Whether or not customers are loyal to the outlet, they come to it because of the ease of access, essentially related to distance.
Semi-flux outlets: Semi-flux outlets differ from exclusive flux outlets in that they have flux buyers from the catchment area within a 3 to 8 or 10-minute driving distance. In this case, location, customer service staff (training, credibility, communication), and parking are of fundamental importance because some customers come on foot, and others arrive by different means of locomotion.
Flux and traffic outlets: These outlets have to serve two very different types of customers: some flux, others trafic. The flux of customers comes from the ease of access. It is made up of very close flux and more distant flux, as is the case for exclusive flux and semi-flux outlets. The trafficked clientele, on the other hand, comes from very different geographical horizons, which does not mean from everywhere. These provoked customers to come to the point of sale because they received information, or advertising, offering them a tangible reward that overcame the inconvenience caused by the distance they had to travel to reach it.
Trafic customers are generally customers of other points of sale, which is why it is necessary to carry out different actions to generate traffic to the point of sale, some of which are mentioned below:
- Periodic sales promotions.
- Point accumulation programs.
- Analysis of competitors' actions.
- Offensive pricing strategy.
Depending on the type of point of sale, a strategy can be implemented to generate new customers, to make customers who have already bought come back, or to make them come to the point of sale for promotions.
To retain existing customers, relationship marketing tools should be used. To generate new customers, various forms of promotion can be used, such as:
Leaflets inserted in newspapers were distributed in the catchment area.
Advertising in local radio stations or magazines.
Street signage.
Flyers are distributed in the area of influence.
Up-to-date Point of Sale decoration and advertising (interior and exterior signage, painting, cleanliness, tidiness, etc.).
The exterior of the Point of Sale
The objective of any retail outlet is to sell its products, and one of the best ways to achieve this is to create an attractive exterior that encourages entry.
It is through exterior appearance that potential shoppers may decide to enter one shop or another, and the one that promises to deliver what they are looking for will be chosen. Some of the means of improving external attractiveness include:
Signs: Identification through outdoor signage has the dual function of attracting and informing, as it allows the shop and its products to be quickly identified, helping the public to locate the establishment, and generating brand image.
Entrance: It is also important to take care of the entrance to the establishment, it is essential to design an inviting entrance, avoiding creating a barrier for the buyer.
Shop window or shop window: This is a key factor in attracting new customers, as it produces a very effective visual impact and generates a perfect communication of the products and brands marketed: A good display provides a distinctive image of the premises compared to competitors.
It is important that all the elements of the exterior of the point of sale maintain coherence, project the image we want for our establishment and are a true reflection of the interior of the shop.
The interior of the point of sale
At the point of sale, there is direct contact with shoppers, and in order to influence their purchasing decisions, it is necessary to know what mental processes lead them to make their choice. According to Henrik Salen in his book "The Secrets of Active Merchandising", all planned purchases are based on a prior decision about the product to be purchased:
Realised: These are those that are carried out according to the initial forecast by product and brand. This occurs when a buyer enters the shop with the intention of purchasing a specific product and brand and leaves with that product.
Precise: They do not have a choice of brand and adapt to the buyer's profile. As in this case, there is no forecast of the brand to be purchased, the shopper enters the point of sale to select the brand from among those available.
Modified: These are those that undergo a modification of the brand purchased. Unlike the previous one, in this case, the customer enters the point of sale with a choice of the brand but buys a different brand to the one initially planned, being influenced at the point of sale.
Impulse purchases are made without having foreseen them before entering the point of sale, and can be classified as follows:
Planned: This occurs when the buyer has the intention to buy but waits for the right moment to do so. In these cases, promotions or price reductions are effective.
Remembered: This occurs in cases where the customer did not anticipate the purchase, but upon seeing the product, remembers that he/she needs it.
Suggested: These are those produced when a customer, visualizing a product on a shelf, decides to try it.
Analyzing behavior at the point of sale, two of the most important factors in the purchase decision are the content and the packaging.
The content is made up of the product itself, its qualities, results and brands; and the commercial promise, which includes the price and the different conditions of the operation.
As for the packaging, it refers to the packaging or box. The buyer can be influenced by the information it contains the design, references to promotions or other elements that stimulate the purchase.
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