»  Shoppercentricity

Are retail employees supposed to sell products or help shoppers? 

A retailer's lifeblood is sales and therefore every retail employee needs to sell products. Your retail marketing should be oriented to sell-through. But there is a difference in the answer to this question that results in a short term (sales) or long term (service) focus.

Apple's retail stores are as oriented towards service as they are sales. In fact, a quote from their training manual reinforces this: "Your job is to understand all of your customer's needs - some of which they may not even realize they have."

Said another way, your job is to help shoppers. And through that help, based on having relevant products, the solution could be a sale. But the employee's focus is not a sale, and as a result, Apple's stores provide a richer shopping experience.

The world of commerce has exploded, expanding from the traditional store to include e-commerce (internet), s-commerce (social) and m-commerce (mobile). Pour on the fuel of personal payment options (Paypal, Google, Facebook, Square, clearXchange, etc) and you have a multi-dimensional retail marketing revolution that is no longer bound to place or time. What an awesome time to be a growing shopper marketing agency!

The above info graphic from Microsoft's Tag does a great job of bringing to life the adoption of m-commerce.

Digital Life: Today & Tomorrow from Neo Labels on Vimeo.

While a bit long and missing a compelling soundtrack, this video powerfully frames the digital life of our consumers, both today and tomorrow. The PSFK article provides a deeper recap, but here are a few powerful reasons to invest in truly understanding the insights that influence behavior:

What do consumers want? Localization, segmentation, customization, community and creation

Breakdown to time spent online: 16% social networking, 9.2% instant messaging, 6.6% on e-mail and 6.2% with ‘multimedia’. Note, time on social networks is up globally.

Localize, not globalize: Regardless of the global availability of the internet, a local strategy still makes the most sense based on the geographical differences in our behaviors.

Mobile domination: By 2015, mobile could to overtake the ‘keyboard & mouse-based’ web.

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.  

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. 

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.

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.

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.

More is happening.
And it is happening faster: 
Culture.
Technology.
Business.
They all move at the speed of evolution, which has sped up from fast to real-time.
You have to live in the now.
Don't blink or you will miss an event, opportunity or insight.

And yet, there is value in looking backwards. 

I loved this article from Ed Cotton of Influx Branding on the importance of looking backwards, of using the past as a path to the future. The next time you are stuck today on what should come tomorrow, consider these questions from the article: 

• What was the core promise of the brand at its inception? 
  
• How did that promise manifest itself? 
• What cultural truth informed it?
  
• Is the original promise relevant today?
  
• Does that promise fit into the context of contemporary culture?
  
• How might you update the promise to be relevant? 
  
• Instead of rushing forward, believing that by adding some shiny new object to the brand we are going to make it relevant again, what can we learn from its past that can help inform its future? 

As marketers, regardless of traditional or in-store marketing, you have to be a futurist, understanding and navigating what is coming. But you should also be a historist, understanding the decisions and implications of what has already come.

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. 

I love this example of pushing the traditional definitions and executions of in-store marketing from Adidas. AdiVerse is a fully dimensionalized and interactive point of sale experience that creates an engaging and informational experience, all available at a shopper's fingertips. I especially love the way they integrated shopper insights into their approach, bringing external information (like how many goals their soccer shoe scored in the World Cup) into the information provided to shoppers.

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.

The best in-store marketing takes a holistic approach to reaching shoppers. Whether point of sale or packaging design, color is one of the most important and influential aspects of design. The below infographic from KISSmetrics provides a visually interesting and compelling breakdown of its influence on all aspects of a purchase decision. 
 

Traditionally, in-store marketing has been targeted at female heads of household, as they have been the primary shopper for their families. However, as the traditional family shifts away from traditional marketing stereotypes, a significant shift is the more active role of men in family decision making.

A recent Ad Age article found that more than half of men now believe they control their family's shopping cart. While that number might be a bit exaggerated (industry numbers tend to be around 1/3 of men), the impact is nonetheless significant for marketers. 

This chart shows the variety of activities where men are getting, playing a more influential role than traditionally. Given this, have you shifted your approach to gaining and understanding shopper insights? How will you make sure you get a gender balanced perspective. How are you approaching packaging design and point of sale differently given these shifts? 

Shopper marketing is ultimately about creating a relevant connection and the most critical aspect of relevance is an understanding of your audience. As your audience shifts, so should your approach and understanding.  

When it comes to retail, your brand is built on everything the shopper experiences - from the products you offer to the cleanliness of your bathrooms. Given this, what does this floor plan of a typical Ikea say about their brand?

What's striking is that while the Ikea brand is all about giving customers the tools for organization, the design of the stores doesn't let shoppers make navigation decisions. Instead, the layout carefully creates an orchestrated customer pathway.

The Daily Mail article got Alan Penn, director of the Virtual Reality Centre for the Build Environment at University Collect London to comment, and he compares Ikea's strategy with retail parks designed to keep customers inside as long as possible. "In Ikea's case, you have to follow a set path past what is effectively their catalogue in physical form, with furniture placed in different settings which is meant to show you how adaptable it is."

Taking a shopper insights approach to retail has resulted in most retailers going towards an open, inviting environment. Ikea's stores seem like a step backwards, seemingly ignoring in-store marketing. Ikea's retail design is one way to ensure their shoppers see their full variety, but it makes me wonder if this strategy could hurt them in the long run. What other trips are they missing out on with their own, preordained, retailer-centric store layout?

What do you think? Is Ikea's strategy the right approach for their industry? Or is it a design desperately needing an updated, shopper marketing overhaul? 

In an age of over-designing the brands and products around us to help them stand out at retail, this is a refreshing look at the power of simplicity. While it is important to note this was an exploration in simplicity and not a packaging design conducted by Antrepo4, the implications are no less relevant to our everyday.

Shopper marketing is a discipline in distillation. When shopper insights are employed correctly, SM boils down a product, brand or offering to its most relevant essence. Packaging is one of the most powerful SM tools available, allowing differentiation on the shelf of competition. The next time you get started on a packaging assignment, instead of going down the well worn path of incrementalization and evolution, consider the implications of simplification.

Ask yourself: What would my brand look like stripped down? Does my brand look better naked? 

Simple question right?

Has your answer to that question changed or evolved in the past 5 years? If not, it is time to reconsider what a retailer in 2011 really is.

A retailer is a seller.
A retailer is a brand.
A retailer is a manufacturer.
A retailer is a realtor.
A retailer is a marketer.
A retailer is an entertainer.
A retailer is a media network.

The list is by no means exhaustive and will continue to grow as retailers continue to evolve. Need proof? Best Buy just launched their own network called On. It will have in-store and online reach and with an ability to reach over 1 billion consumers a year, it has tremendously broad implications. 

The role of a retailer in 2011 is definitely different than it was in 2001 and will be different than it was in 2010. If you haven't evolved your view or approach to retail, you need to. It is time to look at retailers differently.

From a shopper's point of view, coffee can be as complicated as wine to shop. Both of these categories represent shopping adventures for the knowledgeable consumer and intimidation to most everyone else. Part of the challenge is that there are so many different variables and varieties to select from, making it a hard category for shoppers to navigate quickly.

Having spent part of my career doing shopper marketing for a premium coffee manufacturer, the new brand and packaging design from Seattle's Best caught my eye. One of the biggest challenges in the coffee aisle is the vast variety of offerings (brands, roasts, flavors, etc) do not enable quick selection for shoppers; unless a shopper knows exactly what they are looking for, the coffee aisle requires time.

In such a category, the vast majority of competitors take a very similar approach to categorizing their blends and flavors. With this new redesign, Seattle's Best took a completely different direction. Although I do not have the exact shopper insights from their research that led to this approach, it is obvious their focus was on simplifying down a complex set of decision points to enable easier deselection and selection. 

This is a great example of what shopper marketing should ultimately deliver for brands: insights that are actionable and lead to a relevant, shopper-centric approach to the the shelf and the store.