Retailers: Try A/B Testing to Increase Sales

POS SOFTWARE

 

I was struck by this article here that showed how A/B testing can dramatically improve sales in a shop. Now with POS Solutions Software, such In-Store Tests are simple and quick to do. We did notably a set of tests with Mars Bars a while ago, but this will do as an excellent example of how it works. 

The Problem

When sales of chilled coffee slowed at Savita's convenience store in Manchester, the UK, she wanted to re-energize its sales without a major expense. With limited space and budget, she adopted this low-risk, high-impact solution.

The Approach

Savita decided to allow A/B to test two different layouts for her chilled coffee section:

This is how it works. 

First what you do is establish what we call a baseline, the A case.  So over a week, you measure how your sales are going. Often all we have to do is use your existing information as it is already in place, so we save a week.

Secondly, we make the changes to the shop and let it run for a week.

Now we measure the difference. If it does not work for some reason, we try something different.

In her case, what she had was 

Layout A (Original)

  • Chilled coffee split across two fridges
  • 6 facings
  • Arranged randomly

She then made the changes and now had her B case

Layout B (Test Layout)

  • The entire range consolidated into one fridge
  • Organized thoughtfully by flavour profile
  • 12 facings

She tracked sales under each layout for two weeks.

The Results

The test yielded the following results:

  • Chilled coffee sales increased 200% with Layout B
  • Customers appreciated the easier shopping
  • Higher purchase frequency despite no traffic increase

The Learning

With a simple in-store experiment, Savita unlocked major growth. She learned:

  • Consolidate products together
  • Arrange thoughtfully by type
  • Allocate enough space

The Takeaway

A/B testing can help retailers optimize merchandising and increase sales. But running in-store tests can seem daunting without the right tools.

That's where POS Solutions Software comes in. Our system makes it simple for retailers like yours to set up, run, and analyse A/B tests quickly. So you can try bold ideas risk-free and scale up what works.

Facts do not lie - minor tweaks can have a significant financial impact.

Let's discuss how your POS system can build your business with easy A/B testing.

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.