»  Shopper Insights

Today's Wall Street Journal tells us that Target "... is tired of being used." In an article discussing a concept called "showrooming," where shoppers come into a store to see a product in person only to buy it from an online rival - typically at a lower price, Target is asking its vendor partners to create special products for the banner that shield it from price comparisons.

Online sites like Amazon.com pose a significant risk to retailers like Best Buy to Barnes & Noble. The article reports that this years holiday season saw an average 4.1% jump for brick and mortar stores while on line sales jumped 15%. Target's sales were particularly disappointing in electronics, books and movies – all categories that have made a significant shift to online sales.

It appears that Target's vendors may have little choice but to play along because of the second largest discount chain's clout. For a shopper marketing agency like birdsong gregory, this just highlights more opportunities to mine the path to purchase for consumer insights that may benefit our online and B&M clients.

Recently there has been a lot of buzz around location-based marketing initiatives, such as Foursquare. These consumer-popular applications allows users to "check-in" at venues or retailers and share their current location with their social networks. In return, these apps give retailers insight into who is visiting their location and when. Marketers also gain access to communicate directly to consumers at their point of purchase.

An article in the October edition of Shopper Marketing Magazine highlights this recent shopper technology trend and its evolution into a new service called geo-fencing. According to the article, "a geo-fence is a virtual perimeter around a real-world area. When people enter that area, their mobile device alerts an app or a service that triggers the delivery of a message" to those who have opted-in. 
 
The outdoor outfitter company, The North Face, has been one of the first companies to test out the budding technology. The North Face used geo-fencing to send tailored messages to consumers when they enter into targeted areas such as hiking trails, sporting events and local retailers. The North Face is using the technology to alert subscribers to local offers, closest retail locations and suggestions for useful gear when they are in the ideal shopper mindset.

Geo-fencing is still a developing technology with a great deal of potential for future customizations that can fit the needs of any brand. Geo-fencing seems to be a great new addition to the ever-growing list of ways marketers are able to influence the shopping experience by reaching their target audiences with the right message, at the right time and in the right place.

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.

The Wall Street Journal recently highlighted what it calls the new frontier of frugality - retailers having to come to terms with consumers who traded down during the recession and aren't coming back. According to the article, 75% of consumers shop with a list compared to 45% just 3 years ago. Private brand grocery sales are up 5%. And 72% of consumers think the economy still has a way to go to reach bottom.

To survive this new reality some brands like Coca-Cola are introducing new, smaller sized packaging at a lower price and Wal Mart is reintroducing layaway which it phased out in 2005. More than ever, this new reality calls for having greater shopper insights to understand the best ways to engage them. Give birdsong gregory a call to see if we can help your brand thrive on the new frontier.

One of the more interesting bits of information coming out of the recent announcement of Apple's retail leader Ron Johnson going to JC Penney are insight into Apple's retail "secrets." While it is too simplistic to assume a short list of secrets are all you need to unlock your retail potential, there is much to learn from Apple's approach to retail.  

As retailers and manufacturers know best, your front line is where the interaction with the shopper happens. It is where impressions are made, brands are built and products are sold. And yet, even with all the complex training and engagement strategies this is one of the biggest industry weaknesses. Given this, Apple took a KISS (keep it simple, stupid) approach to employee engagement - bringing their philosophy to life through an acronym.

A: Approach customers with a personalized warm welcome.
P: Probe politely to understand all the customer's needs.
P: Present a solution for the customer to take home today.
L: Listen for and resolve any issues or concerns.
E: End with a fond farewell and an invitation to return."

What a great reminder that retail marketing requires as much simplicity as it does strategy.

As retail marketing evolves, talking about how retailers are changing has been easy. I have already spent time contemplating the role of retailers and talking about how they continue to evolve. 

What hasn't seen as much evolution is the role of manufacturers in all of this change. The creators of brands and products now find themselves competing with their retailers for shelf space and dollar share. Even worse, as retailers evolve their brands, manufactures now compete with retailers for shopper share of mind as well.

While this is not to say that manufacturers have been sitting back or standing still, retailers have led this round of evolution with manufacturers observing and learning. Why? For one, manufacturers have more to lose as they risk angering retailers by sidestepping retail outlet to sell direct to shoppers. And yet, as brands seek to stay relevant, it is essential to be where their customers are.

Which brings us to Facebook, the worldwide phenomenon that it is. Based on the scale of the audience and share of time Facebook continues to amass globally, manufactures have been dipping their toes in the water, testing out different f-comm (Facebook commerce) models. P&G has just announced the creation of new Facebook commerce pages for Tide, Gillette, Olay, Gain, Covergirl, Luvs and Febreeze, complete with product information and purchase capabilities.

P&G is viewing these pages as "live learning labs," further ways to garner shopper insights and e-comm experience. While it will be interesting to see how this evolves (will this be the tipping point for other manufacturers to dive into f-comm) what remains to be seen is how shoppers will respond. While it may be convenient to purchase products on facebook, mixing friends and brands has yet to prove a sustainable business for most manufacturers. 

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.  

It can be a difficult task to break a shopper's loyalty to a particular retailer – especially a grocery store. So when our client Bloom launched its brand refresh in the Norfolk and DC markets, our strategy was to lure as many folks back into Bloom with compelling offers, based on shopper insights, and also bring a taste of the new Bloom into the community. In addition to a direct mail campaign with coupon offers, billboards, radio and agressive digital and print advertising, the mobile unit pictured above will show up at local events in the market (with the giant shopping cart in tow) and sample an array of the new products found in Bloom. We'll also be distributing coupons that direct people back to the store for free products. Check out more of the work we deliver around Shopper Marketing at www.birdsonggregory.com

As another sign that retailers are looking for ways to adapt and adopt new technologies, Express has announced they will make their whole clothing catalog available on Facebook. As Jim Wright, SPV of CRM and e-commerce at Express explains, “If you look at what's happening today, top-down marketing and driving people to places to transact has changed. We need to be where customers are having their experiences and sharing information. We need to take down the barriers preventing a shopping experience.”

Did you catch that important shift? Retailers can no longer afford to wait for shoppers to come to them - they have to be where their shoppers are. Technology, in this instance Facebook, has brought about the means for retail marketing to evolve beyond the traditional four walls of the store. The result is a whole new world of retail. 

The article goes on to quote Patti Freeman Evans, VP and research director at Forrester Research as saying experimenting with social commerce is valuable for retailers even if it doesn't drive direct sales. Why? Because retailers “get insight into customers that are much more intimate. Retailers can pull those insights and turn them into analytics and use those analytics on their website to make recommendations to customers based on friends' purchases.”

The implications are far reaching. You have to be where your shoppers are to get the shopper insights you need to stay relevant. Even if that means being willing to experiment with new ways of being where your shoppers are. 

No, this isn't about how to sell more Chivas Regal to a business traveler in an airport duty free shop. It's about acknowledging that the basic principles of shopper marketing – relevance, convenience, understanding what consumers really want – also apply to many B2B environments.

Take conferences for example. If you think of the attendee as the shopper and the conference organizer as the retailer, how can a host organization make the experience better for their guests?

How about taking that 300 page conference program (with its two keynote speeches, seminar schedule, speaker bios, restaurant guide, etc., etc.) and turning it into an app I can download to my tablet? Think about it: no heavy tome to lug back home, instant engagement through live updates and twitter feeds, and a huge savings in printing costs for the folks putting on the event. 

The NYT had an insightful article about this exciting trend recently. Check it out.

Retail Marketing continues to evolve. Retailers have become manufacturers, creating brands and products to sell in their stores. Manufactures as retailers, looking to create more direct interactions with shoppers. Based on this, here are two interesting examples of manufacturers blurring the lines beyond their traditional roles.

Pepsi's Social Vending Machine:
This new execution from Pepsi mixes the lines of retailing, manufacturing and social media. As the video shows, you can purchase or gift a drink as well as explore ways to get involved with their Refresh project. Will it result in more sales? Increased brand engagement? Stronger brand preference? Maybe, but more importantly, the ability for shoppers to interact with products and as a result, for Pepsi to gain shopper insights from those interactions can be priceless.  



P&G's Art of Shaving Store:
While not a new execution, I had my first visit recently and came away impressed. From the merchandising to the store employee training, it is obvious P&G has invested a lot into making this store work. And while it may or may not be successful, the learnings, interactions and sampling the Art of Shaving provides could be a differentiating factor as P&G looks to evolve the men's grooming business.


There are many examples I could pull from, as evolving roles continues to be a trend changing marketing. While the implications are many, the central focus for retailers and manufactures is the same - relevance. In today's shifting landscape, having an opportunity to engage consumers and gain shopper insights is critical to keeping your store and brand relevant.

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.

Shopper insights reveal that the fresh departments in grocery stores are critical influencers on the perception of ones overall shopping experience. So when we decided to freshen up the in-store elements for Bloom's Norfolk and DC area stores, we paid particular attention to the produce department. As you can see in the photo above we utilized the wall areas surrounding the department to introduce vivid photography of fresh fruits and vegetables and, of course, people enjoying them. The reaction from shoppers (and Bloom Associates) to this work has been nothing short of amazing. It reinforces Bloom's commitment to offer the freshest fruits and vegetables in the market and improves the overall fresh perception of the store. Learn more about shopper marketing agency birdsong gregory at www.birdsonggregory.com

Want a preview of what media consumption will look like in the future? 

In this world of media fragmentation, consumers are adapting and adjusting how and where they consume media. And while there is no denying today's media landscape is a lot different than it was even 5 years ago, it is becoming harder and harder to predict what it will look like in the future.

Which is why this presentation from the Kaiser Family Foundation is so interesting. It provides a fascinating look into the media habits of kids ages 8-18. This group represents tomorrow's target shopper insights and the findings should interest any marketer who wants to be on the leading edge of trends.

Some particularly interesting insights:

• We live in a connected world. While not a surprise, it will be interested to watch the changing realities of an "always on" generation. 
• Mobile will continue to become the primary way media is consumed and shopping is completed.
• While the role of a phone is still primarily to connect, what they are connecting to has changed. Talking on the phone is out, accessing content is in. (pg 10)
• While total media consumption is up, how the media is consumed represents a significant shift. Media is consumed based on convenience - live events are on the decline as this group accesses what they want when they want. (pg 6 & 12).
• 71% have a TV in their bedroom (pg 44).
• Majority have no rules about the amount of time spend with certain media (pg 45).

The implications of such media consumption will be far reaching, impacting how traditional and retail marketing approach their audience. The implications for your plans today:

1. Understand these new media channels, especially mobile. I wrote a previous post on Integrating Mobile as a helpful reference.
2. Gather better shopper insights. The best way to build relevant marketing is to use relevant insights. Get out, observe, understand and integrate. 
3. Begin building an understanding of the new realities surrounding consumer purchase paths. No longer one size fits all, these many paths to purchase require customized, nimble solutions. 
4. Test and Learn. There is no better way to learn than from doing. With media, the ability to target and test can be customized based on your budget and needs.  
  Start futurizing your plans today. At bg, we are equally passionate and curious about how marketing continues to evolve. We would love to put our knowledge to work for your brand.

It should come as no surprise that smart phones are quickly becoming a part of regular life. As smart phone penetration has increased, the usage has evolved - they are no longer just communication devices, they are connection (web, social networks) and purchase devises as well. 

Here are some pretty staggering points from the Performics 2011 Mobile Search Insights Study:

• More than 50% of all smart phone users search the web on their phone at least once a day.
• 49% of smart phone users have made a purchase with their phones in the last 6 months.

Consumers are searching and purchasing from phones more than ever before. How should this impact your approach to retail marketing? Interestingly, when the report broke down search activity, it shed some light into how consumers are using their phones and what information they are seeking:

• 84% look for local retailer information (phone, address, hours)
• 82% find online retailers
• 73% find a specific manufacturer or product Website
• 71% learn about a product or service after seeing an ad
• 68% find the best price for a product or service
• 63% search before purchasing offline in a store or from a catalog

These facts should serve as a foundation for a deeper exploration of shopper insights. Mobile allows immediate access - to information, reviews and purchase - and shoppers continue to integrate mobile into how they shop. Given this, you should be looking for opportunities to integrate mobile into your retail marketing today.

Not sure where to start? Give bg a call - we would love the chance to help you build a relevant mobile strategy.

The supermarket business is a tough one and our client Bloom has been challenged like most grocers over the past few years. The economy spurred a flight to thrifty spending and that cost many mainstream stores a dip in sales. As the economy slowly recovers, Bloom is poised to unveil a fresh new look for its stores in the Norfolk, VA and DC markets. In addition to a larger product assortment to meet the needs of its shoppers, Bloom is also investing millions of dollars in new decor and wayfinding elements to enhance the shopping experience. We're proud to have employed our shopper marketing insights and played an integral role in the concept and design of these materials. The banner pictured above is just a taste of the work we've done for Bloom. This entry sign greets Guests as they enter the store to herald the new product assortment and attractive pricing.

Stay tuned for a full reveal of the Bloom Rebrand, and visit birdsong gregory's web site to learn more about our Shopper Marketing services.

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.

It is pretty common to wonder about the future. Even more common to wonder when some of those futuristic visions will become a reality. My Dad just sent me this video, which I found to be pretty interesting. 



Here are my reflections based on watching this: 

1. Flexibility of the technology: Notice how flexible the technology looks, seamlessly surrounding them throughout their day. It allows interaction at different points in different ways. Regardless of what your industry is or what your widget does, flexibility is an essential part of designing with the end (consumer and usage) in mind. Are you making flexibility a key ingredient in your approach today?

2. Customizing the Experience: We consumers crave customization based on our unique needs. Businesses that create customized recommendations for consumers are gaining a loyal following - look at Amazon and Netflix as two personal examples. Are you building customized experiences for your audience?

3. Empowering Consumers: Especially the in-store segments, the shopper is able to review the product information, interact with the product options and deselect down to what she was most interested in trying on. This is not an example of technology for technology's sake (which a lot of these future videos tend to have), but rather technology for shopper's sake. Do you understand your target's purchase pattern enough to identify where gaps and opportunities exist that technology might be able to fill?

The future will be exciting. It always is. And yet the fundamentals applicable today will still apply in the future. You have to have a foundation of consumer and shopper insights in order to build anything relevant, especially in marketing. This allows you to start with the problem/issue/opportunity and then find the right solution (technology/product/service) to fill the need.

As far off as the future is (after all, does it ever really arrive?!), you should be futurizing your approach today. Sound daunting? Not sure where to start? You are in luck. We can help. Because at bg, we futurize.