Reaching Shoppers On Their Terms

by Ronda Sherman
November 2009

Reaching Shoppers On Their Terms

Since the late 90s when we began our Shopper Marketing work with P&G, we’ve helped many manufacturer and retail clients improve sales results with what we now call Shopper-Led Marketing.

At PowerPact, we think the Shopper Marketing model needs to evolve to follow the shopper whenever and whereever they’re in a shopping mindset. In today’s consumer-led Web 2.0 world, that can be way before “the last three feet” in front of the shelf. And yet, because of the past decade’s focus on research at the last three feet, our industry has developed a shopper-centric philosophy focused primarily on in-store marketing. That’s not to say that in-store marketing isn’t worthy of focus.

We’ve spent a lot of time analyzing shopper research and linking shopper insights with brand benefits and retail objectives to motivate shoppers to buy. But today’s Shopper Marketing programs must include both in-store and online marketing because retail transactions are fast becoming a convergence of both pre-store and in-store selling platforms. The Internet has become part of the shopping process as a primary research tool for shoppers who buy offline. Studies show that in key categories, 80-89% of consumers who made in-store purchases conducted online research beforehand. And that’s not only for decision goods.

Shoppers are taking matters into their own hands by going online for inspiration for their occasion-based needs. With the weakened economy and volatile gas prices, planning is much more a part of the shopping process. Take for instance, birthdays. A mom goes online to find birthday ideas for her daughter. Betty Crocker shows her how to make a princess cake with thematic party ideas, mom downloads the information, goes to the store to purchase Betty Crocker and pretty soon there’s a princess birthday party. Shoppers are controlling the selection of the products they need and brands they want by using the web to access occasion-based solutions.

And in the next few years, shoppers will take complete control. Even now, many shoppers come to the store web-enabled through their mobile phone. These phones can be used to comparison shop, download a coupon/recipe, enter a sweepstakes or get a sample. Soon new technology will readily allow shoppers to download information from the shelf, enabling them to use their phones as mobile mice, pointing and clicking – at retail or while walking down the street – to purchase, download demo videos, find out more information or buy elsewhere.

This phenomenon of “untethered” shoppers with constant internet connectivity will soon blur the lines of “shopping,” both in and out of the store. Shopping will be done in car pool lines, at home or while shopping at different retailers. So to reach them while they’re in a shopping mode, on their terms, is the trick. In the age of engagement, Shopper-Led Marketing must provide the shopper with the holistic solutions (s)he’s looking for – both in-store and online – to motivate purchase.

PowerPact’s successful Shopper-Led Marketing programs rely on our expertise in the following:

1.  Retail Intimacy – Deep understanding of the market dynamics, marketing objectives and key decision makers by retailer. Category leadership knowledge and perspective, understanding the role of the client’s brands within the context of the retailer’s business and within the lives of the shopper. Channel knowledge that’s category specific. Ability to negotiate programs, orchestrate joint planning sessions and deliver presentations and programming that meet the needs of both the retailer and the manufacturer. Knowing what will work in terms of execution and ensuring store compliance, sales training and benchmarking of results.

2.  Developing Shopper Insights from Shopper Research – Analyzing shopper data from syndicated and loyalty card sources to understand shopper behavior, as well as initiating primary research into shopper motivations. Layering shopper segmentation on top of consumer segmentation to understand the intersections.

3.  Creative Mastery – How to communicate a message/promotion that motivates purchase based on shopper insights. Knowledge of every gizmo, every digital vendor, every type of substrate available to that channel of distribution and how the message will be suited to that medium.

4.  Solid Service – Excellence in execution and understanding what the client wants and needs. Balancing the needs of the day-to-day client and thought leadership.

5.  Context of Digital Content – Understanding how to use digital content in-store and online to help the shopper “decide” between brands, or “delight” them with information that provides a solution.

If you’re interested in learning more about our Shopper-led Marketing expertise, please contact Frenchie Guajardo at frenchie@powerpact.com,
1.877.361.5700 x2001.

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Comments

  1. Frenchie Guajardo says:

    Fascinating perspective.

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