DDi - June 2011 - (Page 14)

14 | Shopper Insights The path to purchase has twists and turns he path to purchase—that mystical trail that the consumer follows as she progresses from a passive observer to engaged consumer to shopper to buyer—is evolving as more and more consumers are determined to find the right product at the best deal to fit their needs. And now, the recent recession and the growth of consumer empowerment through social media has, once again, changed how we as consumers behave—detouring the path to purchase in new directions. Marketers realize that the consumer does not transition into a shopper as they cross the threshold of the store. It happens somewhere between the living room couch and the store aisle. Planned purchase intent can happen long before the consumer leaves the house, and impulse purchases can happen well after the shopper enters the store. The good marketers know that the aim of the marketing process should be developing a fully integrated marketing plan right from the start. They now recognize the significance of in-store, and are making it more of a priority. Shopper marketing pioneers also realize that the store can’t be the only focus of a program, and have started building communication elements outside the store to help convert consumers to shoppers. According to The Wall Street Journal and consulting firm WSL Strategic Retail, “it’s well known that consumers research expensive products like electronics online, but coming out of the recession, consumers are more scrupulous about researching their everyday products, such as diapers and detergent, too. More than a fifth of them also research food and beverages; nearly a third research pet products; and 39 percent research baby products, even though they ultimately tend to buy those products in stores.” Many studies have shown, however, that the majority of a shopper’s time in the store is spent simply browsing and moving from place to place, versus actually buying. The Booz & Co. study “Shopper Marketing 3.0: Unleashing the Next Wave of Value” reinforces this frustration with shopping: “When we asked shoppers to compare their actual purchases to their shopping lists, they reported that their purchases and lists varied significantly. Approximately one-third of the respondents said that they actually purchased less than one half of the items on their lists.” Consumers are now using research and pre-planning to cut down the meandering while shopping. It takes about two to three minutes to search online to find the deals and save time and money. This means that marketers (for both retailers and CPG companies) need to back up along the path to purchase and build the tools that will help consumers with their shopping decisions before they are standing in the aisle. According to the Booz & Co. study, which was conducted for the Grocery Manufacturers Association, T George Wishart 62 percent of shoppers say that they search for deals before shopping, with 86 percent of female shoppers conducting research beforehand, versus 47 percent of male shoppers. Part of a retailer’s challenge is to think about the purpose of the consumer’s shopping trip. Retailers can benefit from focusing on why the consumer is on their “path” and communicate how the store can satisfy the need with smart marketing. But don’t fool yourself; part of why a consumer will show up at your door is because of past shopping experiences. So, make sure that those experiences are good ones with the right product mix, competitive pricing, helpful staff and short checkout times. The path to purchase also includes mobile for folks on the go, which can bridge the gap between home and store. Kraft Foods has worked for years to target moms, who at 4 p.m. start to worry about the dreaded question: “Hey Mom, what’s for dinner?” They have developed an application to convert the “push” marketing approach to be more of a dialogue and increase consumer engagement. Kraft’s “iFood Assistant” has thousands of recipes with simple ingredients and easy cooking steps. This app is getting very strong reviews and is laser-focused on helping the consumer be a shopper with “No-Hassle Shopping,” which helps with a grocery list, directions to the nearest store and even which aisles to go to, so Mom can get in and out of the store fast. This is an excellent example of using digital media to influence and contribute to the consumer’s shopping experience by providing information and assistance to the shopper on her terms. As you think about shopper marketing, back up along the path to purchase and develop tools to help lead your consumer to become a shopper. These consumer impressions present a level of engagement with your brand that is very valuable and, with the right encouragement, should be translated into consumption. —A pioneer and consultant in the shopper marketing industry, George Wishart is the president and CEO of Edgewood Industries LLC. He shares his shopper marketing insights with DDI in this regularly appearing column. | June 2011 www.ddionline.com http://www.ddionline.com

Table of Contents for the Digital Edition of DDi - June 2011

DDi - June 2011
Contents
From the Editor
From the Show Director
Newsworthy
Shopper Insights
Visual Perspectives
Editor’s Choice
Design Snapshot
ASICS Amsterdam
Behind the Scenes: Macy’s Flower Show
Shopping Marketing & Consumer Insights Section
Focus on the Shopper
Shopper Marketing Roundtable
POP Products
Right Light
In-Store Technology
Product Spotlight
Calendar
Advertisers
Classifieds
Shopping with Paco

DDi - June 2011