Why do people shop?

It’s not just to acquire things they want or need. People shop because it makes them feel good.

Cheryl Lu-Lien Tan has an intriguing article in the Wall Street Journal called The Neuroscience of Retailing: Research Shows Shopping Can Make People Euphoric:

Research shows that people often do get a high from shopping — the brain releases chemicals such as dopamine or serotonin when a person is stimulated by discovering something new, such as a handbag. Sometimes, aspects of the shopping experience such as friendly sales clerks, eye-catching displays or aisles that are easy to navigate can trigger brain activity that brings about these “euphoric moments,” says Dr. David Lewis, director of neuroscience at Mindlab International, a United Kingdom-based consultancy whose clients include athletes, retailers and advertising companies. “The brain is turned on by novelty.”

We started SilverDock on the premise that online retailers haven’t mastered the art of selling yet. In the real world, the art of retail ranges from Wal-Mart (”stack it high, sell it cheap”) to Neiman Marcus (”luxury experiences”). Retail at the low end is “stocking” more than “selling” — you put what you have on the shelves, consumers look at it, and they buy what they want. Retail at the high end is about emotional connection and fulfillment. The high-end retailer is the consumer’s consigliere, providing trusted advice about what goods will satisfy the shopper’s emotional needs. At its best, retail is about providing consumers with novelty, entertainment, and vehicles for self-expression.

Online retailers are stuck in the Wal-Mart mindset — we “stock” products more than we “sell” products. However the Internet provides an incredibly powerful, intimate medium to connect 1-on-1 with shoppers. Shouldn’t we use that power to sell better?

At SilverDock, we think video can help. Innovative retailers are starting to explore the power of video to merchandise, market, and connect with their shoppers. The next five years will be an exciting time as we collectively figure out how to realize the potential of online selling.

Filed under: ecommerce, effective online video, luxury, marketing, online retail, retail, strategy