Mastering the Art of “Bait Products” in Retail to Attract Customers

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Have you ever rushed to the supermarket to grab deeply discounted promotional items featured on monthly flyers, only to find that your cart is filled with full-priced items when you check out? This is a classic retail strategy, where stores use “bait products” to lure you in, then employ other tactics to get you to fill your cart with higher-margin goods. If you’re planning to open a retail store, learning this strategy can be extremely effective for attracting customers and boosting revenue. Below are some key insights to help you succeed in applying it.

What Are “Bait Products”?

In its most literal sense, a “bait product” is an item used to “bait” customers into visiting a retail store. These products must be enticing enough, often with special offers or significant discounts, that customers cannot resist. However, bait products are not the store’s main source of profit. Instead, their role is to attract customers, after which the business uses other strategies to encourage them to fill their carts with more profitable items.

Bait products are typically those offered at deep discounts for a limited time or in limited quantities. Since they are not fixed, these products change based on consumer demand and timing. For example, think about the large, thick flyers supermarkets distribute each month featuring shockingly low prices—these are bait products designed to attract customers, and many people unknowingly fall into the trap.

Key Tips for Turning “Bait Products” into a Winning Retail Strategy

“Bait products” are a powerful marketing tactic for attracting customers, but selecting the right product requires careful analysis and insight. Below are some essential tips for retail owners looking to effectively implement this strategy.

1. Choose Bait Products That Follow Trends

About seven or eight years ago, most households in Vietnam associated dishwashing liquid with the local brand Mỹ Hảo. Today, however, few people still remember this once-dominant player in the household cleaning market, especially with the rise of Sunlight by Unilever. Although some customers may continue using Mỹ Hảo out of habit or due to its lower price, choosing it as a bait product will not be as effective as selecting a more current brand like Sunlight or Amway. The lesson here is to stay updated with market trends and shifting consumer demands to select bait products that truly entice your target audience.

Example:

In today’s market, a retail store may find it more effective to use a trending eco-friendly brand like Ecover as a bait product, rather than an older, less relevant one. This taps into current consumer preferences for sustainability, making the bait product more appealing.

2. Select Low-Margin Products

While bait products may sell quickly, they are not the primary drivers of profit. Therefore, focus on choosing low-margin items with lower acquisition costs. The key is for these products to do their job—attract customers into your store. Don’t expect them to significantly increase your overall revenue.

Example:

A grocery store might use basic household staples like toilet paper or dish soap, which carry lower profit margins, as bait products. Their goal is not to profit from these items but to bring customers in who will then purchase more profitable products.

3. Target High-Demand, Fast-Moving Items

To ensure that your bait products are compelling, choose items that are in high demand and have a fast turnover rate. This will encourage customers to visit your store sooner rather than later to take advantage of the promotion.

Example:

A fashion retailer might use a highly popular seasonal item, such as a winter jacket or summer sandals, as a bait product. Customers drawn in by the attractive discount may then purchase full-priced accessories like scarves, gloves, or sunglasses.

4. Plan for Cross-Selling

Since bait products are not the primary revenue drivers, you need to implement cross-selling strategies to move more profitable items. This can be as simple as product placement. For instance, you could place the bait product in the back of the store, forcing customers to walk past higher-margin items, increasing the likelihood of additional purchases.

Example:

A retail store offering a bait product like a discounted blender might strategically place it near premium kitchenware, encouraging customers to purchase related items like cutting boards, knives, or storage containers as they make their way to the blender.

Conclusion

Implementing bait product strategies is an excellent way to draw customers into your retail store. However, its success depends on choosing the right bait products, based on trends, margins, and demand, and strategically using cross-selling techniques to maximize revenue. Follow these tips, and you’ll be well on your way to boosting your store’s sales and customer base