»  Shopper Behavior

The recently concluded FMI2012 in Dallas this month highlighted a number of troubling data points for supermarkets. Among the items presented by the association's president and CEO, Leslie Sarasin:

• Only 64% of shoppers choose conventional supermarkets as their primary shopping venue. This is the lowest percentage in years.
• In 2010, online sales accounted for $12 billion of sales of consumer packaged goods.
• Traditional grocery stores have not been adding square footage, while supercenters, dollar stores, convenience stores, and clubs have added 150 million square feet since 2005.

The good news, if you can call it that, is that grocers have been issued a wakeup call. The strongest among them will survive and thrive, while weaker retailers may find their doors shuttered. Need some help? No one knows grocery like birdsong gregory. Contact our shopper marketing agency to learn more.

 

 

 

Maybe it was my recent trip to the public library seeking out the next literature adventure, but the concept of physical and digital collisions has recently been on my mind. Allow me to explain:

Without any specific book or author in mind, I spent a good 30 minutes scanning aisles upon aisles, rows upon rows, books upon books. In such an analog environment, there was nothing except vertical book bindings to aid my selection. In other words, I was left to figure it out myself.  

Except I wasn't.

As a sign of the times, amidst paperbacks and hardcovers, I stood motionless. Looking down. At my shining iPhone. To illuminate my decision, I used Amazon's algorithm to make recommendations based on past browsing and buying behavior. I used Esquire's list of recommended reads to curate my selection. In order to deselect from the thousands of options lined up in front of me, I used technology to enable my selection.

As a consumer, I am not alone in my use of technology as an aid and influencer of decision. If you really want to see how shopper behavior is evolving, watch people in a new environment where they have to make decisions - in a new store or new category where they have to deselect and then select. In order to create order from the chaos of modern choice, information is required. And increasingly, this information is sourced online.

The collision of physical and digital takes place at the point of choice.

Shopper technology is not the solution, it is the reality. If your shopper engagement strategy does not include or recognize this collision, you may be missing the complete picture. Technology delivers information. If you don't provide that information physically, shoppers will find it digitally and will make decisions based on the information they find.

Being a car guy, I found PSFK's article on how Rolls Royce uses customer experience to differentiate themselves interesting. Naturally, selling 3,600 cars a year allows an increased level of service that millions of shoppers a week doesn't. But, in this age of increased competition, a focus on shopping experience is critical.

Differentiation within product selection and in-store environment is a challenge for retailers across all channels. And yet, I am amazed at how many retailers ignore the first and last touchpoints with customers. These arrival and departure moments are key opportunities to set expectations and end on a positive note experience.

A Rolls Royce owner doesn't buy a Rolls for driving pleasure. It is a symbol of status and stature. As one RR executive explained in the article, "that feeling an owner has when they turn up somewhere...and also when they leave, is a critical differentiator of the brand."

How are you leveraging arrival and departure moments to enhance your shopper engagement? These are bookend opportunities to reinforce a return. And really, is there a better way to influence shopper behavior than providing a positive end to their shopping experience?

The process of finding, selecting and purchasing a product continues to evolve. For the one or two regular readers of this blog (thanks Dad!), this should not be a new idea. What is new are the different technologies that lead this purchase evolution.

Because we live in the age that birthed Facebook and Twitter, it is easy to be skeptical when people talk about the "next big thing". And while VC's spend their days trying to find and fund the next, technology ultimately has its future determined by consumers wielding the power to select which of the many new innovations available will become adopted. 

Pinterest is emerging as one such technology.

On the surface, it is a pretty simple concept - this technology lets consumers create online boards, allowing the curation and sharing of different "pinned" inspirations, passions and products across the interwebs. What makes Pinterest a relevant technology for marketers and shopper marketers specifically is its ability to connect pinned interests to a purchase. According to a recent article, 21% of Pinterest account holders have made a purchase after seeing a product pictured on the site.

That is a pretty staggering fact - 1 in 5 users have purchased a product based on seeing it pinned somewhere by someone. This is the kind of organic word of mouth and authentic influence that is starting to build bottom lines. Forget point of sale, Pinterest is monitizing the point of interest. 

What does all this mean? A couple quick thoughts:

1. All technology is becoming shopper technology. The power is found in its ability to connect, inform and influence -- and like Pinterest, ultimately lead to a purchase (or Pinterest purchase, a pinchase?!)

2. Shopper behavior continues to move upstream. The most pinned items on Pinterest? 70% cite recipes and cooking. The impact of this will be felt downstream at your local grocery store.

3. Be authentic in your engagement. Brands are still figuring out how best to use Pinterest. What Pinterest forces brands to do is find their voice and curate the world based on values, perspective, or a point of view. If you don't have any of these established for your brand, start with your brand essence before you add in technology. 

Whether path of purchase or pin to purchase, your consumer continues to evolve their approach to purchase. How are you evolving your approach to understand and connect? We can help.

 

 

 

Jeet Kune Do, or "style without style", was Bruce Lee’s very different way to approach martial arts. Boiled down to its essence, instead of approaching a conflict with an established set of tools, great martial artists should take on the attributes of water: fluid, flexible and adaptable.

Sounds pretty simple, right? And yet years after this philosophy was created, I am still amazed at how counter-intuitive it is - especially in business. By nature, our temptation is to try and apply past successes to future projects, as if we have the ability to create a framework for replicating greatness over and over. Yet regardless of how many times we try, this approach doesn’t work.

Why?

Because applying repetition to a process can cause situational blindness. It fails to recognize that every circumstance is different. Every project is different. Every team is different. Every shopper is different.

And these differences make all the difference.

This is especially true with shopper behavior. If you have been doing shopper marketing for any length of time, you find yourself leaning on previous experiences to contextualize current situations. It is too easy to quickly assess certain behaviors based on previously identified notions. This is especially true when you begin working in new categories with new shopper behaviors.

Yet I would challenge you to begin applying Jeet Kune Do to how you approach shoppers. Recognize the dynamic forces of retail, culture and economics at play in varying degrees in each situation. Jeet Kune Do calls us to begin with a willingness to learn, to view similar things in dissimilar ways.

As Lee put it, “I hope to free my followers from clinging to styles, patterns, or molds.” In other words, start looking for the differences that make all the difference. 

 

 

 

I had the privilege to be part of the round 2 judging panel in Chicago for the soon to be announced Shopper Marketing Effies. It was a nice opportunity to step away from daily work and not only review some great case studies, but dialog with fellow SM'ers about the work and the industry.

After investing a good amount of time reviewing a diverse group of case studies, I came away from the experience with four thoughts:

1. No one has the corner on the insights.

Insights aren't exclusive to one organization, category or brand. Insights don't have a preference towards organizational size or scale. While these may seems obvious, reviewing cases from both large and small companies was a refreshing reinforcement. I know this first hand, having moved from a large international ad agency in Chicago to a small agency in Charlotte two years ago. And I've loved the change, as I still deal in the currency of actionable insights. In fact, insights are even more valuable and critical here, as our work speaks louder than our brand.

2. A great insight doesn't need explanation.

While there were specific regulations as to what each case study should or shouldn't include, it was amazing how easy it was to pick out the great projects. They had the great insights and told a coherent story that was almost intuitive to arrive at. They didn't need a lot of further explanation or selling - their story wrapped up insights into powerful explanations of shopper behavior. Meanwhile, other cases used statistics, strategy or story to overcome their insight gap. 

3. Relevant Insights + Powerful Activation = Great Shopper Marketing.

SM has expanded beyond the four walls of retail. It is physical, it is digital, and it is experiential. And because of this, the litmus test of a great SM campaign is the combination of insights + activation. Too little of one of these causes the campaign to crumble. The work that ends up delivering the results we promise finds the perfect marriage of a relevant insight and powerful activation. Both have to hit the mark.

4. It is an awesome time to be a Shopper Marketer!

If you are looking for the ability to do the same thing continuously for the same result, a career in shopper marketing is not for you. Shopper Marketing is a career in constant evolution: the retailer pendulum continues to swing back and forth, economic pressures continue to shift shopper behaviors, and evolving technologies continue to change the path to purchase. All of this adds on layers of challenge and opportunity - it is truly a great time to be part of this industry! 

Pew just released analysis of how shoppers shopped during the holidays. While it should come as no surprise to regular blog readers that technology continues to shift shopper behavior, this study in particular illuminates just how shopping experiences are changing.


The highlights:

• 50% of US adults used their phones while they were in the store
• 52% used their phone for one of these three reasons charted above
• 33% used their phone to look up product reviews or compare prices
• 20% decided to make their purchase at an online retailer vs. in-store

The implications are pretty far reaching. The path to purchase continues to be fluid - it is no longer about activities that happen in physical locations (ie research at home) but more about what information is accessed and how it influences the purchase. Shoppers continue to evolve their approaches to purchase, allowing information (reviews, pricing, etc) to influence their purchase decisions like never before.

Have you changed the way you approach retail activation? As shopper engagement continues to migrate into a customized blend of physical and digital, it is essential that marketers also blend their approaches. After all, with studies like these it is becoming impossible to ignore the fact that the phone is the shopper's best friend. It should also be a marketer's best friend.

                 

Iconic brands, such as Hostess and Little Debbie bring back memories of happier childhood days when things were easy and care-free. The advertising campaigns and packaging design were targeted at children and boded well with their target audience. As these kids grew older and the Twinkie (& Hostess brand all together) remainded unchanged buyer behavior adjusted. Those kids became parents and food trends evolved. Parents became more concerned with eating and feeding their family healthy, quality options, rather than fast, cheap ones. 

In the Wall Street Journal, Harry Balzer, chief industry analyst for a consumer markerting research firm confirms that "Consumption of healthy snacks is growing, too. About 32% of Americans ate yogurt at least once in two weeks in 2011, for instance, up from 18 % in 2000. "We're less likely to be snacking on items that we shouldn't be snacking on." Instead of adjusting to the trends of more healthy snacking, Twinkie stood by their old memorable brand model, so it's no surprise that this company is now filing for bankruptcy for the second time. In order to maintain sales with your target audience, companies need to adjust to developing trends. 

However among rumors of the company going bankrupt, customers are coming to the rescue. Even though most Americans have changed their shopper behavior to fit a more healthy lifestyle, they still cannot stand the thought of losing the Hostess brand and all the childhood memories and emotions that came with eating those delicious and mal-nutritious Twinkies. Will this quick attempt to save the company work? My guess is no, since people may not be willing to change their healthy lifestyle to make up for Hostess' loses.

We are officially in the middle of shopping season. Terms like Black Friday and Cyber Monday are not only part of our vocabulary, but are increasingly how we search for deals. According to a recent MediaPost article, the search term "Cyber Monday" led all google.com search terms, jumping 120% from last year. "Black Friday" rose 60%. 

While it is not news that consumers shop more and spend more during this time of the year than any other, what is news is how we are shopping. This year, more than any other in history, consumers shopped differently.

Consider these statistics from this week:

• PayPal saw a 511% increase in mobile payment volume on Cyber Monday vs. last year.
• 17% used a mobile device to visit a retailer's site.
• 10% used a mobile device to make a purchase.
• 5% of mobile traffic came from the iPad. 

Year to date, online retail purchases are up 16%. All of this points to a healthy start to the holiday buying season and more, illuminates the continued adoption of mobile as a critical shopping tool. 

Shoppers are multi-channel creatures of purchase and smart phones are their multi-functional swiss army tool of choice. Shopper behavior has forced retailers to stretch their offerings across channels in order to enhance shopper engagement. Retailers have started to focus on creating a seamless and similar shopping experience regardless of which channel shoppers are engaged.   

What does all this mean?

• Shopper technology, that is, technology that enhances the shopping experience, has to be a focus for marketers. 
• Digital Shopper Marketing strategies and insights are increasingly critical for retailers and manufacturers.
• Organizational silos that separate online and in-store need to be unified under a renewed focus on shopper experience.
• Mobile executions need to consider context. Reapplying traditional or web programs is cutting your effectiveness short.

The brave new world of the integrated, informed consumers is here. How have you adjusted your engagement with them? 

If you've never heard of Martin Lindstrom, then you probably don't work in shopper marketing (like the folks here at birdsong gregory). He's the author of six highly insightful and well written books about consumer behavior and retail branding, including one of my personal favorites, Buyology - Truth and Lies About What We Buy. He also recently made Time Magazine's "100 Most Influential People" list. 

He wrote a great shopper marketing article recently for Time based on one of his invaluable blog posts. The big premise?

The next time you go grocery shopping, take a look at the signs, the type of flooring, and even the carts. Everything has been designed with an eye towards getting you to grab those three cans of something that was not on your list. 

Martin spent some time at a huge "shopper research" facility outside of Chicago (run by a big consumer goods company), where test shoppers spend hours pushing carts through what, to the untrained eye, looks just like a real grocery store. Of course, to the shopper marketers, consumer anthropologists, and other pointy headed brand geeks back in the control room hovering over a bank of glowing video monitors, every detail is carefully analyzed and tweaked. From the type of flooring (people move more slowly over parquet than linoleum) to how special deals are formulated on in-store price signs (using an actual dollar sign decreases the probability of purchase), it's a fascinating look at what goes on behind the shelf.

Here's the link.

Quantifying and capitalizing on digital behaviors is a focus of many marketers, as a lot of traditional shopper behavior has migrated online. Based on this, I thought the below infographics from Nielsen on the most valuable digital consumers presented some compelling information.

Based on reaching the tipping point of 50% smart phone penetration, understanding your target market's needs, behaviors and opportunities is going to become even more important.   

The technology tipping point is here. More phones are sold than computers, becoming the preferred way to connect and compute in the twenty first century. Nielsen estimates that smartphone penetration will be over 50% by the end of 2011. With the increased adoption there is enhanced integration of technology into everyday life. And more strikingly, in shopper behavior.

55% of smartphone users believe the shopping experience is more enjoyable thanks to smartphones (Internet Retailer).

73% of shoppers would rather use their phone than talk to a sales associate (Internet Retailer).

41% of iPhone owners have made a purchase from their smartphone

These are not just shifts in behavior. They are step changes in beliefs. This is not just about digital shopper marketing. The conversation is no longer about adoption. It is about adapting marketing strategies and tactics to harness the power of this technology for your business.

So how should you adapt? Your customer should be your starting point, not technology. Watch how they are and are not using technology today. Look at trends that will continue to evolve their behavior tomorrow. Find opportunities to provide value beyond the realm of just your products. Just like shoppers have integrated technology into their experience, so should you look for ways to holistically integrate technology into your plans. Not just as the strategy, but as a way to better connect your strategy to your audience. Want to learn more? Visit www.birdsonggregory.com

Think the shopper behavior of finding ways to save money is going away anytime soon? Not according to a recent Mintel report. 

Shoppers continue to look for discounts. While this is not a total surprise based on the sluggish economy, what is surprising is how this behavior has seemingly shifted away from doing this out of need and into doing this out of enjoyment. According to the report, 64% of US Moms say they are spending more of their time looking for details, sales, etc.

In other words, they are spending more of their personal, pre-purchase and pre-store time seeking these deals. This is no longer just about saving money, but about finding enjoyment in the “hunt” for these deals. It is about the process as well as the outcome.

With the boom of shopper technologies, the challege for marketers is not creating and helping shoppers find deals. Instead, the important consideration is how we are shifting shopper engagement strategies to talk to customers pre-store and at the point of sale to effectively drive brand preference.

There is no doubt that this focus on price and finding deals presents significant shopper marketing challenges. However, given this reality, how you adjust and directly impact your shopper's choice to put your brand in their cart?  Perhaps birdsong gregory can help?

 

I don’t buy 10 cartons of Yoplait because I can’t (won’t) eat 10 cartons of yogurt before they go bad. I’m lucky if I can eat my way to the bottom of one carton. So when my local Food Lion has a great deal on yogurt, I tend to pass. From a shopper marketing perspective however, such outlier behavior is generally atypical of how middle America reacts to a ten for $10.

The Times had a good article about multiples this morning, and here’s a quick birdsong gregory exegesis.

Using buying patterns detected from loyalty cards, receipts, and other research, grocery chains are searching for the multiples sweet spot. For example, Kroger currently has lemonade, socks and Kroger gummi bears candy on sale at 10 for $10. And, to the chagrin of right-brained finger counters everywhere, the old gimmick — buy one, get one free — has been expanded to include some pricing equations based on complex NASA-inpsired algorithms – or at least it appears so to my mathematical challenged mind.

Most grocery shoppers make a list before going to the store, according to two recent studies,  In one, Acosta Sales and Marketing, which advises clients like Nestlé on pricing, found that 84 percent of shoppers make a list, 23 percent make fewer grocery trips than a year ago, and that, over all, shoppers are spending less per trip than a year ago.

Then, throw unemployment, rising gas prices and more expensive food into an already meager stew, and you get consumers who have become extremely value driven, budget minded, list minded, less impulsive, and very deal oriented. So in order to get someone to buy something that wasn’t on their list (or more of what was), grocers like our client Bloom need incentives to nudge shoppers outside their typical behavior. And it’s working.

Well advertised, relevant multiples push customers a little higher than their typical purchase rate. People tend to buy the amount, or buy in increments, that are advertised – ten boxes of tortellini for $10, for example. According to John T. Gourville, professor of marketing at Harvard Business School who studies pricing strategies, even though shoppers usually do not have to buy the suggested amount to get the discount, they do anyway. “It is all about the power of suggestion,” he said. 

This video explains Facebook commerce (f-comm) in a pretty simple way. As shopper marketing expands beyond the walls of traditional retail to include digital shopper marketing, the fundamentals of understanding shopper behavior to create a positive shopper experience is still critical to retail success.

While brands and retailers are still trying to figure out how to use Facebook, this video proves there is a lot of opportunity for creating meaningful shopper engagement through social media.  



Looking for a partner to help you determine if you should enter f-comm or help you differentiate your f-comm from your m-comm? Reach out to bg - we believe not all comms should be treated equally. In this digital age, we are an equal comm opportunity shop that loves helping clients navigate the new world of retail activation.  

What is creative effectiveness? How do you judge it? 

While these are relevant and important questions to ponder, they have been asked and answered countless times in countless ways. Interestingly, the famous international advertising award show Cannes has just (finally) announced their intention of bringing the perspective of effectiveness into their judging. The new Creative Effectiveness award will be judged 50% based on sales results the creative delivered, while the other 50% will be made up of strategy and the idea. While long overdue, this is a sign of the times we marketers must embrace.
Marketing spending is crunched.
Technology is bringing about constant change. 
Results and measurement can no longer be an afterthought.
Shopper scrutinizes every product decision.
Retailers are building private brands to compete for every dollar.

It is the new reality and in this reality, creativity that embraces the challenge to evolve will thrive. This new reality evens the playing field, forcing agencies to embrace change. It favors the nimble and the curious - regardless of size. It is in this new reality that bg thrives. While we bring a heritage of creativity, we are purpose built to connect our strategy with best in class execution vendors.     

As a retail marketing focused shop, the idea of creative effectiveness is not a new one. We firmly believe that the strategy, the resulting idea and ultimately the creative output must leverage shopper insights. Why? Because without an understanding of your audience, their needs and resulting behaviors, you are creating noise. And in today's noisy economy, who wants to spend marketing dollars on noise? Not our clients.

So what is creative effectiveness? It is about creating relevant work. Work that embraces and thrives in today's new marketing reality. It is work we love developing and delivering for our clients.  

I focus a lot of these blog posts on how the intersection of technology and marketing is reshaping marketing in general and retail marketing specifically. At bg, we fundamentally believe you can't (and won't) stay relevant unless you understand how shoppers are adapting their behaviors to new technology. It is a fascinating and evolving world, and mobile continues to emerge as a key part of this. Not a surprise given that it is the device in more shoppers hands in more places for more of the day than any other.

While I have spent time focusing on how to integrate mobile into your marketing plans, I think it is important to step back and ensure we are taking a broad view of mobile. As this article points out near the beginning, mobile includes a lot more interaction than purely a purchase. As Rosen defines it, they include "using one's phone to facilitate any part of the shopping experience -- from comparing products, evaluating prices, and selecting where to buy, to sharing product photos, tweeting price details, and actually completing the transaction. The mobile shopping experience can also include activities post-purchase, such as returning or servicing a product." 

The mobile usage funnel gets smaller the closer to a purchase you get. But that doesn't mean the end point is where you should focus your efforts - it is important to see mobile with a broad lens. Shoppers are using mobile for a variety of activities, and most of the time they vary by trip type, product or category. We no longer live in a one-size-fits-all marketing world and given this, it is critical to understand how, when and where your target is using mobile.

Wondering where to start? It all comes back to your shopper insights - how well do you know your audience? How and where are they getting their information? Where are the other influences or considerations? Given how differently shoppers are approaching retail and using different tools like mobile, it is critical to have a bedrock of understanding and a partner that can help convert these insights into initiatives. Give us a call and lets get started.

Facebook announced that they are launching their version of Groupon called "Deals" on Tuesday April 26th. It was reported that Deals first launched in the following 5 citites: San Francisco, Atlanta, Dallas, Austin and San Diego. These deals will be delivered through the user's facebook feed and via email. Users can share the details of the deals with their friends through messages, likes or posts.

Facebook is now not only a social platform to connect people, it's a social platform to connect people to companies and events and offerings. This expantion of services really opens the gates to gain shopper insights and buyer behavior.

Here in the Charlotte Social Media world, the big companies that offer local deals are Groupon, Living Social, Charlotte Half Off, and Restaurants.com where offers are emailed to you directly. However, I don't know how I feel about advertising the fact that I bought teeth whitening or boot camp to the entire facebook community. Also, as much as I care about Sue eating lunch, or Bob going to France, I really could care less what they bought that day for half the price. And it's just another way to fill up all your friends walls and inboxes, cluttering things up and potentially annoying all the friends you have.

Needless to say, I will never opt out of a deal if it seems to fit my lifestyle, so I am curious what the results will be from this program and how facebook users will take to this extra additive. If you live in one of the above cities, I encourage you to check it out, and post a message back to me talking about your experience.

In-store marketing has always been about understanding and engaging shoppers on their path to purchase. And yet technology continues to act as the change agent, bringing new levels of innovation to retail. It has forever evolved the traditional path to purchase. Given the changed retail reality we all face, I found this to be a fantastic article that challenges much of the commonly accepted philosophies on why shoppers make the decisions they do.

The article boldly states there is no longer a traditional path to purchase. Meaning there is no longer a linear purchase process - there are added dimensions and layers to how consumers get, interact with, and give information. And these interaction points can influence or change a shopper's approach to purchase. It is no longer about tracing a shopper along a path leading to a store for a purchase. As Mark Prichard, CMO of P&G says, you have to "follow the consumer. And the consumer is becoming more and more engaged in the digital world.” 

Shoppers are becoming increasingly channel- and commerce-agnostic. Said another way, they care more about the what than how they get their what. Given this, how are you evolving your approach to them? Here are three initial ideas and I would love to hear your thoughts as well.

1. Question your assumptions. Really seek to understand how these new retail realities are shifting your shopper's behavior. Not knowing or not being sure are no longer acceptable. 

2. Follow your shopper. Find, gather, and utilize shopper insights in new and different ways. Shoppers are not taking a traditional approach to the store. Your insights shouldn't either.    

3. Integrate your strategies. Social, mobile and shopper marketing should no longer be treated as divergent strategies. Shoppers use them seamlessly and marketers must start viewing them as different avenues by which you can communicate to the same target.

Ultimately, with an ability to purchase anywhere at anytime, a shopper's path no longer is a journey to a brick & mortar store. Each shopper can take many different paths at different places at different times. As shopper marketers, it is time to embrace the many paths to purchase.

The challenge with technology in shopper marketing is not the lack of innovative technology, but the lack of adoption of the technology with shoppers. As most of the technologies are new, it takes a while for the adoption curve to get past early fringe adopters.

Knowing this, I think it is significant to watch the growth of mobile barcode scanning. A new report from ScanLife, as demonstrated by the chart to the left, shows it is on a serious growth trajectory. Even though it has a small base upon which to grow, statistics like "there were more barcode scans performed in a single month starting in July 2010 than in all of 2009" point to an increase in shopper adoption of this technology. The article goes on to say barcode scanning is up 700% this year and 1D and 2D barcodes are scanned about equally, "showing people are less concerned with code format, and more interested in getting information quickly."

What is important to note with this trend is not just the adoption, but the fact that this is technology shoppers are using at the point of sale. This points to a larger trend of shoppers adopting and utilizing technology to help them make smarter decisions in stores and at shelves.  

This has many implications to retail marketing. Here are a couple quick take-aways:
1. Shoppers are using technology to make them smarter. How are you using technology to inform and influence decision at the point of sale?
2. Shopper insights must be based on actual understanding of behavior. If you don't know how your target audience is getting information or approaching purchase decisions, it is time to invest. Without a true understanding of your audience and their behaviors, your work will be ineffective or worse, it could be just plain irrelevant.