»  Shopper Technology

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.

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.

 

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.

Are QR (Quick Response) codes / 2D bar codes a mandatory for print in today's digitized society? Some feel that it's made trade publications relevant again while other think "how relevant can the technology be if such a small percentage of shoppers actually use it?" Perhaps they're just the crude precursor to augmented reality. Any way you slice it, these bar codes created in 1994 for the automotive industry for their ability to be scanned at high speeds have changed the way people interact with all sorts of printed media. If used strategically, and with viable content or compensation at the end of the line, it can extend the user experience and provide marketers with data. If you simply want to "take them to your home page" you're probably better off spelling it out for the audience. We've helped a number of clients"link" their traditional advertising with not so traditional means. If interested in hearing more call birdsong gregory at (704) 332-2299 and ask to speak to Jared. He loves to talk. No really.

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? 

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?

PSFK is back with this year's Future of Retail report. This is a great forward looking report, capturing some of the key trends happening across different channels of retail. While the report predictably focuses on shopper technology, the focus is on how these technologies enhance and enable improved shopping experience.

Talk about retail activation and employing shopper technology! European grocery chain Tesco has 'opened' a virtual supermarket in a South Korea subway station where the items are just pictures lined against the walls of subway stations. Riders can simply snap an image of the QR codes placed on each product to add it to their shopping cart, then they checkout and then have items delivered to their home by the end of the day.

As reported recently in The Wall Street Journal, the once staid barcode is suddenly getting a bit of flair. It seems that granola, juice and olives packaging are sporting barcodes that integrate famous buildings, blades of wheat and bubbles into the ubiquitous black and white rectangle of lines and numbers. This evolution of package design to include the barcode is a way for consumer-goods companies to better connect with customers. And while the the trend is popular with smaller companies, even one of the world's largest food companies, Nestle SA, is trying out vanity barcodes on its smaller brands.

The Journal reports, "Barcodes are what allow retailers to track products through their stores and change pricing without needing to retag every item. Every retail barcode number in the U.S. and 107 other countries is assigned by GS1, a nonprofit standards organization created in the early 1970s when barcode technology entered the retail landscape. A company applies to GS1 for a barcode number specific to that company. It then creates (or hires a firm to create) the barcode to match that number."

Do you have a novel vision for your next barcode? Contact Shopper Marketing agency birdsong gregory and let's chat.

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.  

Because we're social animals. That's why. And no matter how fast a network we have at home. Or however many QVC channels. Or how convenient it is to order a kayak while wearing pajamas, just because it's increasingly easy to shop online, doesn't mean we'll stop going to the mall.

Indeed, for most retail sectors, a physical store can serve a fundamentally different function, giving consumers the ability to see, taste and touch the products in a way that is impossible online. Think of prime retail spaces like an Apple Store. Or Nike Town. Or the Disney Store.

The shopper marketing challenge for retailers in the future will be to figure out a way to play up the strengths of a bricks-and-mortar store while incorporating new technology and consumer trends into the experience. From interactive video screens to a smaller, carefully cultivated selection, here's an interesting article from The Street about ways that retailers can remain relevent as online commerce continues to grow.

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. 

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.

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. 

A recent post from Advertising Age sheds a little bit of light on a planned in-store kiosk from Kraft to take shopper marketing to a new level.

Using a consumer's list and shopping history (derived from scanning your loyalty card and/or shopping list), it regurgitates suggested recipes and adds new items to the shopping list that are needed to cook the meals. Kraft has not deployed it anywhere yet, but is in discussions with unnamed retailers about possibly launching it soon.

"Shoppers struggle with 'What am I going to make?' every single night for dinner," said Don King, Kraft's VP-retail experience. "This is designed to try to help that process go smoother." Along the way, it drives more purchases at the store, including more Kraft brands.

The kiosk also includes a small camera that scans an image of the shopper's face. Using video analytics technology, the machine derives a basic profile -- such as age and gender. Now if the kiosk could only come to my Charlotte home and cook for my family!

From the blog at birdsong gregory, a Charlotte, NC shopper marketing and advertising agency.

The World Is Obsessed With Facebook from Alex Trimpe on Vimeo.

This video provides some staggering context for how much Facebook is utilized. The implications for marketers are huge. We need to ensure our approach to getting and utilizing shopper insights take social and technological tools such as Facebook into consideration. Based on the way consumer continue to evolve how and where they spend their time and get their information, this is critical. From packaging design to POS design, utilizing relevant and current insights should be the critical bedrock of all your work.