Utilizing the “Bait Product” Strategy to Attract Customers and Boost Sales

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In retail marketing, a powerful strategy often used to draw in customers is the “bait product.” If you’ve ever rushed to a supermarket for a heavily discounted product advertised on their flyers, only to leave with a cart full of regular-priced items, then you’ve experienced this tactic firsthand. This strategy is designed to lure customers into the store, where other techniques are then employed to maximize the value of each purchase. If you’re considering opening a retail business, learning how to effectively implement this strategy can significantly boost both foot traffic and revenue. Below are key tips to help you succeed.

What Is a “Bait Product”?

A “bait product” is essentially a highly attractive item or deal used to entice customers into a retail store. The product itself may not generate significant profit, but its purpose is to act as the initial draw. Once the customer is in the store, other tactics can be employed to fill their cart with more profitable items.

Typically, bait products include items with deep discounts for a limited time or products available in limited quantities. These products are often highlighted in flyers or online ads, specifically designed to drive immediate customer action. Importantly, these bait products are rarely static; they change based on customer demand and trends. A classic example of this can be seen in supermarket flyers featuring exclusive, time-sensitive discounts designed to pull shoppers into the store.

Key Tips for Successfully Implementing a “Bait Product” Strategy

1. Select Bait Products Based on Trends

To successfully leverage bait products, it’s essential to stay current with consumer trends. A good example is the shift in consumer preferences for dishwashing liquid. Several years ago, the majority of households in Vietnam preferred Mỹ Hảo, a domestic brand, but today, Sunlight from Unilever and Amway are far more dominant. If you were to use Mỹ Hảo as your bait product now, it would not have the same pull as the more trendy brands. Therefore, you must consistently update your product selection based on market dynamics and consumer preferences to maximize effectiveness.

Example: A local electronics store used budget smartphones as their bait product, knowing that smartphones are high-demand items. Once customers entered the store, they were led past displays of accessories like phone cases and headphones, increasing the chance of additional purchases.

2. Choose Products with Low Margins

While bait products may attract a lot of customers, they are not intended to be the primary revenue drivers. For this reason, it’s important to choose products with low margins and low acquisition costs. These products should do their job of pulling customers in, but you should not rely on them to boost your bottom line.

Example: A bookstore offered popular bestsellers at a deep discount but placed more expensive hardcover editions and premium stationery nearby to encourage higher-margin purchases.

3. Opt for High-Demand, Fast-Selling Products

To ensure your bait product remains effective, select items that are in high demand and have a fast turnover rate. Fast-moving products increase the sense of urgency, making customers more likely to visit your store or make a quick purchase online.

Example: A grocery store promoted essential household items like cooking oil and rice at discounted prices, knowing these were staple products that customers frequently purchased. Once in-store, customers were enticed to buy additional groceries.

4. Have a Cross-Selling Plan in Place

Since the bait product isn’t your profit driver, it’s critical to have a cross-selling strategy in place. You can do this through product placement or targeted upselling. For example, position your bait product toward the back of the store so customers must walk past other high-margin items. Cross-selling can be as simple as this strategic arrangement, making it easier for customers to add more to their carts.

Example: A fashion retailer advertised a discount on basic t-shirts but placed them near displays of more expensive jeans and accessories. Customers who came in for the shirts often ended up buying other items from the new arrivals section.

Conclusion

Implementing a “bait product” strategy can significantly increase customer traffic and drive additional sales if executed correctly. While the bait product itself may not be your primary source of revenue, its ability to attract customers opens the door for you to sell other, higher-margin products. By choosing products that align with current trends, focusing on fast-moving items, and having a solid cross-selling strategy, you can maximize the benefits of this classic retail tactic.

Start applying these tips today to see a noticeable boost in both customer engagement and overall sales for your retail store