Why Collection Merchandising Boosts Sales?

When customers visit a brand's website, their journey typically begins at the homepage. From there, the path diverges based on the customer's intent. Those who already have a specific product in mind tend to head straight for the search bar. However, a significant portion of visitors are there to browse and get inspired. It's this group that often finds themselves navigating to the collection pages. Creating a strategy for turning these visitors into customers increases sales through the following means:

Enhanced Customer Experience: Collections help customers see how products can be used together, improving their shopping experience and making it easier for them to make purchasing decisions.

Storytelling: By grouping products into collections, you can tell a story or convey a lifestyle that resonates with your target audience, creating an emotional connection.

Increased Visibility of Products: Collections can highlight products that customers might not have noticed individually, increasing the visibility of a wider range of products.

Cross-Selling Opportunities: When customers are interested in one product, they are more likely to purchase related items if they are presented as part of a collection.

Perceived Value: Bundling products can create a perception of added value, therefore, it encourages customers to make a purchase.

Now let’s look at what kind of tactics well-known brands use for collection merchandising in the Holiday Season

Seasonal discounts

Let your customers know about any special discounts your brand is offering this holiday season. Create seasonal store displays with eye-catching promotions and immediately grab the attention of shoppers. Remember, consumers have a lot of options for where to shop during the holidays, so make sure your company stands out in the sea of stores to stay ahead of the competition.

Use your displays to spread the word. Add bold and attention-grabbing signage to your holiday merchandising to inform people about your offers. Also, ensure that the products are easily accessible, and that the discounts are clearly visible.

Take a page from Nordstrom's playbook. The retailer set up a large, illuminated display to highlight its holiday deals. Nordstrom also made it easy for shoppers to see exactly how much they could save by choosing to shop there during the season. This strategy is a great way to encourage people to spend more.

Don’t hide your gift cards

Retailers don't usually highlight gift cards prominently in their stores. Typically, they're tucked away near the cash registers as a last-minute purchase option. However, according to research from the National Retail Federation, 63% of shoppers will buy at least one gift card during the holiday season. Strategically placing gift cards in multiple locations around the store, even in a window display, can prompt customers to get a gift card along with other items they originally planned to buy.

Offering gift cards sent out via physical mail or email is actually a quite nice touch. Here’s a great example from Essentielantwerp for a very visible way of presenting your gift cards.

Be more subtle during the Holidays

Big city holiday shopping draws crowds for a reason. The holiday window displays in major department stores are often lavish and perfectly capture the holiday spirit. Interestingly, these displays often don't directly promote products. Instead, they inspire passersby with decorations that stir emotions and evoke holiday memories, rather than overtly selling merchandise.

Displays that incorporate traditional holiday symbols – like pumpkins for Halloween, Santa Claus for Christmas, or blue for Hanukkah – can be highly effective in catching the attention of shoppers. These classic displays signal to people that you have what they need for the holidays, whether it's something to help them get into the festive spirit or a last-minute gift for someone special.

Therefore, if your goal is to attract shoppers looking for specific holiday items, sticking with classic holiday themes is a smart strategy.

When it comes to Christmas displays, there are several popular styles.

For products that are primarily used indoors, opting for a warm, traditional Christmas look can be appealing. This might include creating a cozy atmosphere with lights or candles or fireplaces, green Christmas trees, usually red furnishings, and an emphasis on family time.

A great example of this approach is a banner from Gymshark. Their warm Christmas display is executed beautifully and focuses more on setting a mood than overtly selling products. They even used blue for the sofa because it matches more with the colors of the brand and red would have taken the spotlight from the clothing on the people.

Bundles, bundles everywhere

Grouping related products together can significantly boost impulse purchases. This form of upselling subtly encourages consumers to view products not just as individual items, but as components of potential gift sets. This tactic is particularly effective for fragrance brands during the holiday season.

However, there's no need to always be subtle with this strategy. You can take a more direct approach by creating pre-made gift bundles for your customers to choose from. An even better option is to offer custom bundles, giving customers the freedom to select whether they want a single item or a combination of different items gift-wrapped.

A notable example of this strategy is employed by Snif. They offer an option where customers have complete control over every aspect of their bundle. This level of customization not only enhances the shopping experience but also meets the diverse needs and preferences of different customers, making it an effective approach to holiday sales.

Benefit from a proper Merchandising Tool

If you're running an online store on Shopify and looking to enhance your customers' shopping experience via collection merchandising this Holiday season a merchandising app can be an invaluable asset.

The Shopify app store is a great place to start. You can browse through various options, read reviews from other store owners, and even install some apps to test them out yourself.You can start optimizing your collection pages, filters and search experience immediately with Rapid Search. Install the app for free by clicking the banner below:

Summary

In essence, collection merchandising is not just about selling products; it's about creating an experience, telling a story, and connecting with customers in a way that goes beyond the transaction. It's a holistic approach that benefits both the customer and the retailer, enhancing the shopping experience while driving sales and brand loyalty.