It’s Sunday morning and you have one mission, and one mission only: Going to the store and buying three food items and some kitchen supplies. You got this.
10 minutes pass, you blink and – “$257,33 please, cash or card, sir?” If you think all those other purchases you made were logical, think again…
If other businesses can do that to you, why couldn’t you sell like that too? Here’s a Target Corporation case study for you. By the end, you’ll also be able to stuff your customers’ shopping carts against their will (in a nice way!)
Target’s Manipulation Tactics: Shopping Science at Target
Have you heard the saying: “Every buy is an impulse buy”?
Even purchases that seem planned or rational can be influenced by emotional triggers. Here are a couple of psychological tactics you can use to get tweets like these written about you:
One day, Sharon… Until that… Ping! $250 has been deducted from your account.
Thank you for visiting Target!
Source: https://www.buzzfeed.com/briangalindo/21-tweets-for-anyone-who-has-an-unhealthy-obsession-with
- The Gruen Effect: If you step into a Target, you’ll quickly be overwhelmed by all the sounds, sights, and smells. Target purposefully wants to overwhelm you, so you can lose track of time and purpose – leading you to buy half the store.
- Scarcity: Ever noticed how quickly those limited-edition collections from designers like Isaac Mizrahi or Victoria Beckham fly off the shelves? Scarcity makes us want something even more. It’s like dating—scarcity makes the heart grow fonder. Or, in this case, makes the credit card swipe faster. So, when you see “limited stock” signs, you’re likely to grab those items faster than a mom grabbing the last bottle of rosé at a summer BBQ.
- Odd-Even Pricing: Here’s a very well-known one. Prices at Target often end in .99, making you feel like you’re getting a deal. You can just copy this tactic, but let me give you another pro tip – Prices ending in odd numbers and more exact figures (like $137,47) seem more credible and are psychologically more appealing. If you say that your course made your client $1373, it looks more real than if you used $1300.
- Cashless Effect: It’s so much easier to spend money with your card, you feel less guilty. Target’s RedCard offers a 5% discount, enticing you to use it and also, spend more. It’s a win-win for Target – you save a bit, but they gain a lot.
Target Stores Interior: Affordable Chic
Nowadays, walking into a Target is like stepping into an Instagram filter. The interiors now have more natural light, plants, and spacious layouts. It’s all very “IKEA meets botanical garden.”
The shopping carts even glide like they’ve been fine-tuned by a Formula 1 team. Seriously, they move so smoothly, you’ll want to race them down the aisles as if you were 5 again.
These changes make the store feel upscale yet welcoming. It’s Target’s way of saying, “Hey, you deserve nice things without breaking the bank”
The space you sell your products in, whether physical or digital – has a huge influence on your competitive advantage in retail. Always make your shops (or websites) look prettier, cleaner, and simpler. It’s part of the experience. (Yeah, I know my blog also needs to be fancier – I’m working on it)
Guest Experience: More Than Just Shoppers
Walking into Target is like embarking on a mini adventure. You start with a simple shopping list, but as you stroll through the perfectly lit aisles, you find treasures you didn’t even know you needed.
That $5 candle that smells like a tropical vacation? Into the cart it goes. A quirky mug with a punny quote? Yep, you need that too. It’s the thrill of discovery that makes every Target trip feel like a delightful treasure hunt.
Target doesn’t just call you a customer; they call you a “guest.” It’s like you’re checking into a hotel for your shopping needs. The customer service is top-notch, with friendly employees who seem genuinely happy to help – And where I’m from, it’s not that common.
Creating an experience instead of just selling products can set any business apart. You can always create an experience, even if you think your business model isn’t cut out for that.
I often hear new course/service providers say that they only provide the service and that they can’t make it an experience. What about how fast you do the work? Are you giving ideas for future work? How are you making sure that you’re giving them exactly what they want?
Don’t just focus on the number of sales you get. Ensure that all your customers are happy, satisfied, and reach their goals after buying your product. By shifting your focus from money to satisfaction – The money will also grow. To give you more ideas, here’s how Starbucks revolutionized coffee by simply creating an experience.
Partnerships and Collaborations: High-End at Low Prices
In 2017, Target partnered up with fashion designer and singer Victoria Beckham. Together, they sold women’s and children’s clothing. Since the clothing was associated with her, it seemed elegant and sophisticated – but it was sold at an affordable price.
Basically, they made it look expensive and put a lower price tag on it. That made the deal look like a steal and it ended up being a huge success.
Actionable step: See who you can partner up with in your niche to make your products look more valuable.
If you want more famous and successful examples of partnerships, look at how Nike does it (Yes, Michael Jordan is waiting for you behind that link, he can’t wait to say hi to you)
In 2021, Target partnered up with Levi’s to launch an exclusive denim line, and it’s nothing short of a match made in fashion heaven. Now, you can score those classic Levi’s jeans while grabbing your favorite snacks and home decor—talk about a one-stop shop!
It’s just another way Target keeps upping the stakes, making sure you leave the store not just with a cart full of essentials, but with a wardrobe staple that’ll last you seasons to come.
Target’s Convenience: Make Your Life Simpler by Spending More Money
Target has heavily invested in same-day delivery through partnerships with Shipt and Deliv to make the customer’s life easier.
Picture this: You’ve had a long day, and the last thing you want to do is navigate the store aisles. With same-day delivery, you can get everything you need without leaving the comfort of your home. It’s like having a personal shopping assistant who delivers joy right to your doorstep.
And it doesn’t stop there – Target has expanded its curbside pickup service to more than 1,750 stores. Now, you can swing by, pop the trunk open, and have your purchases loaded up without ever stepping out of your car. Pretty much convenience on steroids.
If you can save people time and make their lives easier, I could almost bet my life that your business will grow.
Target Circle: Loyalty That Pays
Target Circle, their no-fee loyalty program, is like a never-ending freebie fest.
It’s like giving away free samples – people love discounts and free things. Give value, collect their emails, keep entertaining them, and give them great offers. Do that for long enough and trust me, they will become loyal customers.
Target’s Target Audience: Who Does Target Target?
This goes for every business, which is why I talk about it so much – Knowing exactly who you’re selling to is one of the most important things in business.
Target chose to sell to middle-class families, especially suburban moms. Everything they sell is pretty much made to appeal to them.
For your business, get crystal clear on who you want to sell to – and make your products to please these people.
Let me give you another example – I help business owners grow their small/medium businesses, so everything I write in the blog is made to help that person.
Positioning: We’re Fancy But We’re so Nice, so We Give You Discounts
In other words, Target positions itself as an “upscale discount” store.
Positioning means occupying a unique position in your customers’ minds. Target does it really well by occupying the “affordable chic ” position. How are you going to do it for your business?
One thought you might have is: “I wish I was born earlier, it would have been so much easier to find a hole in the market. Everything already exists right now.” Let me prove you wrong with my amazing physics knowledge. I must really care about you if I’m going this far…
Source: https://www.youtube.com/watch?v=SrU9YDoXE88
How many lines can you draw in between two other lines? Infinite! Each time a new line is drawn, you can always draw another one in between.
It’s the same with positioning. There’s an infinite number of positions you can take with your business. There’s always another angle or idea you can find, and if you can’t find it – Create it.
Take this example. Walmart focuses on low prices. How to outcompete them? Easy: Just draw another line.
Target focuses on more expensive, but good-quality stuff. Think of Target as the cool cousin who always has the latest trends but never pays full price. They’re similar stores, but they don’t have to battle for the same position.
Target’s Prime Locations: Find the Moms and Sell There
After getting clear on their target audience (which you should have done too!), Target decided where to set up their stores.
Target audience: Middle-class families, especially suburban moms.
Target’s prime locations: Areas with strong economies and lots of families (easily reachable by car, foot, or public transportation)
Simple and effective. Where will you set up shop to directly target your customers?
Lately, Target has been leaning towards smaller format stores in strategically chosen urban locations. This move is like having a secret weapon in the city. By setting up shop in busy neighborhoods, they tap into higher-income demographics and cater to more on-the-go shopping habits.
It’s a bit like setting up a lemonade stand right outside a yoga studio—perfectly positioned to quench the thirst of busy, health-conscious people.
If you have an online business, you can still strategically position yourself. Where do your potential customers hang out online? Find out and advertise there.
Engaging Marketing Campaigns
Target’s social media game is on point. Their witty posts and relatable content make you feel like the brand just gets you. It’s like having a best friend who always knows the latest trends and isn’t afraid to crack a joke. This connection keeps customers engaged and coming back for more. This is how they do it:
- Social Media Presence: Target’s funny social media interactions, especially on X, help them connect with their audience by being relatable. And sometimes a little flirty.
- “That Target Feeling” Campaign: Launched in 2021, the “That Target Feeling” campaign tapped into the joy and nostalgia associated with Target. Featuring content from everyday people and catchy music, it was like a love letter to loyal shoppers. The campaign captured those magical moments when a Target run feels like a mini adventure. Whether it’s the thrill of discovering a chic new lamp or the satisfaction of snagging a great deal, the ads reminded us why we love Target. And guess what? It worked wonders, driving a 12.7% increase in comparable sales in Q4 2021. Turns out, good vibes and catchy tunes can indeed boost business.
Takeaways: Building Your Own Bullseye Brand
Analyzing Target’s competitive advantage was easy, it’s all about being loved for them. To build a brand as beloved as Target, focus on making the experience of spending money enjoyable for your customers. Consider these points:
- What psychological tactics can you use to make your products seem more valuable? (Gruen effect, scarcity, odd-even pricing, cashless effect)
- How can you make your physical store/website more inviting to people? (Natural light, plants, spacious layouts, new shopping carts)
- How can you make your business an experience? (Treasure hunt, calling customers “guests”, top-notch customer service)
- Who can you collaborate with to give your products a more “chich and fancy” vibe? (Collaboration with Victoria Beckham to sell fancy but affordable dresses).
- How can you save your customers some time and make their lives easier? (Same-day deliveries)
- What free value can you give your customers to get them hooked? (Target Circle)
- Get crystal clear on who your customer is. What are their dreams? What pains them? What’s the one thing they would change in their lives? (suburban families with more income)
- What position will you occupy in your customers’ minds? (Expensive and high quality, but cheaper since you get discounts).
- What’s the smartest location to put your shop in? (Areas with strong economies and lots of families)
- What marketing campaigns make your business loved? (Social media presence, “That Target Feeling” campaign)
Who knows? You might just become the next retail giant, one well-crafted shopping cart at a time.
