GETTING TO THE FRONT OF THE QUEUE

THERE IS STILL WORK TO DO TO DEFINE THE OBJECTIVE AND PROCESS OF SHOPPER MARKETING

If you were to ask 100 industry experts for a definition of shopper marketing you would get just as many answers. The answer given often depends on the amount of time the individual has spent thinking about the topic.

Perspectives range from the simple to the highly sophisticated. Some say, for example, that shopper marketing is ‘activity in store which influences sales’. A much more sophisticated idea is represented in The Shopper Marketing Revolution by Antony and Desforges. They say that shopper marketing is a combination of activities which aim for an increase in consumption taking into account the influence of consumer and shopper decision making, balancing the objectives of manufacturer and retailer.

It’s clear that the process of shopping does not happen in isolation without the influence of an underlying consumer need. Understanding those consumer needs feels important, therefore, in deciding how to persuade the shopper to buy.

From a marketing perspective a similar logic applies; campaigns which are not integrated through the line are surely less effective than campaigns which tie together across touchpoints and present the brand in a cohesive way. We should pause here to reflect that in most industries there is huge disconnect between the way a brand is thought of in general and the way in which that same brand is shopped. Often brands are built via advertising and customer experience programmes, focussing on benefits, then promoted at retail emphasising function and price.

In conclusion we feel a rounded view of Shopper marketing is needed because a focus on short term sales tilts the emphasis toward price promotion. Creating the rounded view means setting the business objective and then considering the manufacturer, retailer, consumer and shopper needs in order to create an integrated marketing plan.

THERE IS A TENDENCY TO FOCUS EXCLUSIVELY ON THE DIGITAL ASPECTS OF THE OMNISHOPPER’S JOURNEY AT THE EXCLUSION OF WHERE MOST SHOPPING IS STILL DONE: IN STORES

We believe that the shopper and the process of shopping are changing forever. This change may not be evenly distributed but the increasing dominance of digital in our lives has shifted, and in general has lifted, our expectations when it comes to shopping.

Terms like omnichannel and omnishopper were created because of the rise of digital but this does not mean that digital defines the omnishopper.

Physical retail has always been and will always be a key touchpoint on the path to purchase. For example expectations of convenience have changed from being able to replenish at a premium from a local store to being able to access product and service on the go; the increasing prevalence of pop-up stores being just one expression of this. This is a trend which on the one hand is nothing to do with digital but on the other it’s plausible that such changes would not have occurred without digital as a catalyst for raised expectations.

When we refer to the ‘omnishopper’ we are not talking solely about people who shop online or engage in digital shopping in store. We are all omnishoppers because we are talking about a change which has affected all shoppers today and in the future.

Winning with the omnishopper involves creating insight which tells us how to better capitalise on their needs at the moment of their need, whether online or offline.

WHILE WE NATURALLY BUILD KNOWLEDGE OF CHANNELS IN ISOLATION WE ALSO NEED TO UNDERSTAND HOW CHANNELS ARE USED IN COMBINATION. THIS WILL ENABLE US TO REFLECT ON HOW EACH RETAIL ENVIRONMENT SHOULD BE DESIGNED TO MEET THE SPECIFIC NEEDS OF THAT CHANNEL

Historically the focus of shopper research enquiry has been on understanding how big stores are shopped, and how to optimise them. As old channels came back into vogue (such as convenience) and new channels entered the fray (such as eCommerce) attention has shifted to these growing ways to shop.

It’s obviously necessary to understand the detail of how people behave in each channel; their mission and the process of converting that demand to sales.

It’s also important to find out how the channels connect. Uncovering the relationship between channels tells us a lot about what to emphasise in each, which enables us to make the shopper feel they are getting what they need from that experience specifically, thus increasing loyalty.

If I know exactly what I want to buy or I know exactly the information I need to help make my decision I am likely to turn online for the transaction or information. If I want to be inspired or discover something new I am less likely to go online and more likely to wander a store. These are hypotheses which can only be tested in research with coverage across multiple channels.

It’s a mistake to think that because people shop across different channels all research needs to follow the shopper on the full path to purchase. There will always be a role for single channel studies. Such studies allow you to get the depth you need for the series of specific decisions you need to make, to optimise that space.

On top of this you also need to explore the relationship between channels for a different reason: to establish channel differentiation and points of connection.

RETURN ON SHOPPER MARKETING INVESTMENT LACKS A CURRENCY. THERE IS LITTLE AGREEMENT ON HOW TO MEASURE AND DIAGNOSE SHOPPER MARKETING CAMPAIGNS

The modern world demands accountability. This applies to services such as healthcare, teaching and public transport as well as marketing. This reminds me of the Peter Drucker quote “you can’t manage what you can’t measure”. The point here is that without a system with which to measure, diagnose and improve our Shopper marketing campaigns, how can we ensure continued investment in the endeavour? We know a lot about how changes in price and price promotions influence short term sales. As we know price levers are but one tactic, and a very costly one particularly in an era of slowing economic growth.

Retail has so much more to offer the shopper in addition to price, an obvious point but one which is often forgotten.

How do we measure the effect and create improvement plans for all the other things at our disposal?

Considerable effort is made to entice the shopper in a way which can enhance rather than diminish value, for example:

▪ Open store fronts to entice the shopper or personalised landing pages online to create a sense of familiarity

▪ Category placement combining the need for visibility and to be in tune with the practicalities of shoppingTaxonomy and filters which aid navigation online

▪ Over-facing for beacon brands to signify the category in question or category headers online for the same reason

▪ Imagery above shelf to demarcate the sub-categories and help the shopper visualise the consumer benefit

▪ Experiential marketing in stores ▪ Optimal placement on shelf considering shopper flow in aisle and areas of prime visibility

▪ Talkers, barkers and other point of sales material at shelf

▪ Queueing systems managing shopper flow and generating impulse purchase

▪ The extent to which store associates help the shopper fulfil their mission

To be progressive in challenging times we need to broaden our shopper insight horizons beyond price and promotion. To do this with confidence we need a system which evaluates Shopper marketing in all its glory.

To find out more about Shopper Conversion from GfK and get your free information guide, get in touch by emailing James Llewellyn at ukmarketing@gfk.com or contacting us on T +44 7771 704966.

©GfK 2016

WE HAVE BUILT A SYSTEM WHICH DOES JUST THIS: ‘SHOPPER CONVERSION’.