What are Duty Free’s Leading Conversion Barriers?
Last week we looked at the leading barriers to Duty Free visiting and the opportunity that increasing footfall presents for the channel. This week, we’re looking at the conversion barriers – what is stopping those who browse from actually making a purchase?
Taken from the latest edition of Pi Insight’s Global Shopper Database, the leading barriers to purchase include:
Prices were too expensive (27%)
Price remains the biggest barrier to conversion. Travellers continue to arrive in Duty Free with an expectation of value, so where pricing doesn’t meet those expectations, it can quickly become a reason not to buy.
I was just browsing to pass the time (24%)
One in four non-buyers are entering the store without any real intention to purchase. Browsing is clearly an important part of the airport experience, but it does illustrate the importance of focusing on those key impulse triggers and ‘fear of missing out’ mentality in order to convert those passive browsers.
Lack of attractive promotions (20%)
Promotions remain an important part of the Duty Free proposition but conversion is not just about promotions being available; it is also ensuring they are relevant, visible and compelling enough to influence the purchase decision.
I wanted to spend my money elsewhere (19%)
The Duty Free store is competing with various different channels when it comes to available spend. This is not just domestic retail, it’s also F&B, lounges and other airport experiences.
Didn’t find anything of interest (16%)
Getting someone into the store creates an opportunity, but the range still needs to give them a reason to buy. Product relevance, newness, exclusivity, differentiation and discovery all have a role to play in turning browsing into purchase.
Just like with the browsing barriers, the conversion barriers cover several different parts of the proposition. Price and promotions point towards value; browsing highlights purchase intent; spending elsewhere reflects competition for the traveller’s wallet; and not finding anything interesting brings us back to range, discovery and differentiation.
The free infographics, ‘What are the key Duty Free Purchase Barriers?’ and ‘The leading Barriers to Duty Free Shopping’ are available to download now in our Resource Hub.
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