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How Store Atmosphere Impacts Your Customers’ Perception of Value

pricing compression May 17, 2022

Winning at cannabis retail is dependent on multiple factors- inventory, who you hire, and customer relationships. The environment of a retail store directly impacts all these factors. 

The environment is controllable. Walk into a spa, and it 'feels serene', a nightclub might 'feel lively', a toy store around Christmas' exciting'. 

So, how do you prepare for the long weekend? The impressive tips Nickko Lenda offers on the psychology of pricing suggest some best practices for visual merchandising when discounting for these events. 

These feelings influence how a customer will value the products for sale in the environment. This concept is called atmospherics. 

Never heard of atmospherics before? Don't worry; you're not alone.

Atmospherics refers to the mood you create in your store by introducing various sensory elements. When done consistently, it allows you to develop a personality for your store - and influence customer shopping behaviour.

How can retailers and brands use atmospherics to inform the value of products in-store? 

Consider these takeaways when addressing your store's atmospheric impact and your customer’s perception of value.

Retailers

  1. Utilize floor plans to guide the customer where to go and what to see- products near-cash at the right price point will support impulse decisions. 
  2. Lighting in the store drives attention- highlight the product you want to sell  
  3. Music will set the tone for your shopper- is it upbeat or relaxed?
  4. A signature brand scent may make you more memorable or help you access your customer's memory to feel familiar- familiarity = comfort, and more likely to spend more. 
  5. The products directly around something will also influence your customer's perception of value. High-priced flower = high-priced accessories.

Brands

  1. Store display cases are like small microcosms that can be influenced by atmospherics. Have reps note how your products are showing up in the store.
  2. What tactile/ visual elements will support your customer to feel like they 'have seen it before". This will influence familiarity = comfort, and more likely to spend more.

 

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