Generational Insights: Creating the Perception of Value

Too many retailers are terrified of Generation Z based off of the fact that they’re comparison shoppers. It’s true that young shoppers are quick to hop on their Iphones to find the best price on an item, but there’s no need for small business owners to worry. If you’re a small to medium-sized retailer, let me be the first to reassure you: you won’t have to compete with the big box stores on pricing in order to win over next generation customers. Why? Because “pricing” and “perceived” value are two very different things, and the perception of value is more important to your sales than the actual price of the merchandise.

In other words, your customers need to feel like they’re getting a great deal.

This doesn’t have to be based on sales. In fact, young customers have seen so many bright red “CLEARANCE” signs that the discounting game has lost its luster. Young customers do their research and they value transparency, so strive for everyday low prices and a great in-store experience. As far as discounting is concerned, one sincere sale of 15 percent off your actual inventory will go a lot further than multiple fake markdowns on lower quality product.

Or you can forego sales altogether.

One of the best ways I’ve seen retailers increase the perceived value of their product is to offer a gift-with-purchase. Customers love getting something for free, especially if the free item has a substantial estimated value. Gifts with purchase excite customers and are a great way for retailers to clear out impulse stock to prepare for new inventory!

Another way to increase the perceived value by selling products from local makers. Of a product is by putting emphasis on its fabrics or ingredients. Young people are willing to pay more for an item when they know what’s in it, so you can use the ingredients of your products as the primary tool to market them: Are the sweaters in your store made with an ethically-sourced dye, or uniquely crafted fabric? What are the active ingredients in the eye cream on your shelves, and how do those ingredients work?

The more information you give your customers, the greater the perceived value of that product. Fill your customers in so that they can get as excited about your stuff as you are!

How do you increase the perceived value of your product? Fill me in on Twitter @GlasheenJasmin1, or get more retail insights by following #retailminded.

Till next time, 

Jasmine Glasheen

Generational Marketer | Writer

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