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Shopper Insights New Ways of Captivating Shoppers

Jim Lucas,Dir. Global Retail Insight and Strategy,

Draftfcb

MontrealMarch 8-9, 2012

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Introduction & Trends

• Shoppers more planful– Pre-tail and In-store• Expanding number of shopping occasions• Changing role of store from Point-of distribution

Destination status• Role of Shopper Marketing:

– Demonstrate fit with lifestyle (relevance)– Make it easier to find right product for me (shop-ability)

• Thinning of Attention– Visual literacy– Me-Here-Now

• Why Zone Communications Approach makes sense

What’s a Shopper Insight?

• Shopper insight goes beyond identifying “who” the shopper is, providing more depth about “why” the shopper behaves a certain way within a category, during a season or within or across specific retailers.

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Several Muses can Help DriveShopper Insights

5/11/2011

Shopper

BrandStore

Great !nsights do 3 Things:

• Inspire the team to look at the problem in a new way

• Are the first, most important step in the creative process.

• Help change behavior• Remove subjectivity from the process.• Based on observation of shoppers in

the shopping context, and why they behave that way.

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New Role for the Store

• With the many changes in the retail market place, there is a renewed interest of understanding the role of the store within the shopping eco-system.

• Two main goals of the eco-system from the perspective of the shopper:1. Establish relevance to consumer’s lifestyles2. Make it easier to shop

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Next purchase

Consume

Close purchase

Interact with product

Visit aisle/section

Choose store

Get on the list

Shopping

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Importance of Visual Salience

• “Thinning attention spans” require more respectful, sensitive approach to communication.

• Two key learnings:– Print model Visual salience model– 2-3 messages or elements can be communicated– Establish a message heirarchy

Visually Prioritize

Easy to Navigate Difficult to Navigate

No longer dominated by Gutenberg DiagramVisual strategy & objectivesVisual salience creates areas that attract

attention

Gutenberg Diagram

Hobnob Wines: Shelf Blades

Though the 2 shelf blades are laid out slightly differently, bottle + imagery draws most visual attention.

QR code area also draws pretty well—about 50% view on first glance.

Zone Merchandising Evolution

Know who the customer is, but also want to know when and where to deliver messages.

Understanding where patrons are in their visit allows us to tailor the conversation to speak to them at the right time.

Zones help us stage our story in a way that is relevant to consumer’s visit.

Within each zone (aperture), patrons behave differently and seek to accomplish different things.

The Science of Shopping

Shopper insight goes beyond identifying “who” the shopper is, providing more depth about “why” the shopper behaves a certain way within a category, during a season or within or across specific retailers.

Understanding how consumers interact with in-store messaging is challenging given human memory and the short time frames and spatial compression. One of the most useful techniques for garnering insights is…

₋ Mobile eye-tracking—shoppers are fitted with glasses that record their behavior;

₋ This is often augmented by interviews where shoppers view and discuss their behavior (retrospective think alouds)—the why.

₋ “Over-the-Shoulder” utilizes iPhone to get insights directly from shoppers in the retail environment.

Insights about broader behavior are developed from observational research and/or video- or sensor-recorded behavior.

Message Mapping: In-Store

Zone Role Vehicles/Area Aperture

Pre-tailGet in her consideration set;

on her list.Advertising, Edgar.com,

Open to new ideas, inspiration, solutions.

Transition Seed simple idea; remind Windows, Stancjions, etc.

Transition to store expereince; the 'hello' of the conversation; present an idea that catches their attention--new, check out…, introducing, great value.

Impulse Disrrupt routineVignettes, merchandising ,

displays

Catch their eye; piques their interest; 'That looks great', make the purchase irresitable; inspiring visuals, engaging copy; draw them emotionally; create the urge to buy!

Destination Make it easy to choose Price tags, rack/shelf signage.Where the patron makes purchase; create a clear path to purchase; clear communication of benefit, price.

Bounceback/Cross-sell What's next; complete the look.

Vignettes, merchandising , displays; sales associate.

Plant an idea for the next visit; accessorize; if you like…try this…

ReassuranceReinforce, reassure purchase;

reduce buyer's remorse.At the cashwrap; at home, etc. Reassure patrons that they have made

a great purchase; RTB; social proof.

In-store

Pre-tail

• Role: Get in her consideration set; on her list.

• Apertures: Open to new ideas, inspiration or solutions.

Transition

Role: Seed simple idea; remind.

Aperture: Transition into Edgars experience; the 'hello' of the conversation; present an idea that catches their attention--new, introducing, remember how good…, value, great for occasion.

Impulse

Role: Disrupt routine/habit.

Aperture: Catch their eye; pique their interest; 'That looks good', ‘Like that look!'; make the purchase irresistible; visuals, engaging copy; draw them emotionally; create the urge to buy!

Clusters of Mannequins serves as a gateway to departments-Nordstroms Naples, Fla. Below, visual merchandising tells the story.

Destination

• Role: Make it easier for the shopper to find the right product for her.

• Aperture: Educate, aid, clear communication of price/value.

IKEA’s how to buy a pillow.

How to shop HeatTech winterclothing (Uniqlo).

JC Penney’s new fair and square pricing in-store.

Bounceback/Cross-sell

Role: What's next?

Aperture: Plant an idea for the next visit. Complete the look.

Try this…

All Saints iPads used in store to aid accessorization, feature catalog.

Red and black striped blazer paired with basic black dress and gold star accessories complete fashion forward evening look (Edgars).

Reassurance

Role: Reinforce, reassure purchase.

Aperture: Reassure patrons that they have made a great purchase; RTB; social proof.

Macy’s denim reassures, provides confidence by showing different fits Best Buy’s ‘Walk out working”, aids and reassures shoppers.

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Role of the Store

• Make it worthwhile for the shopper to visit the store

• Shoppers are more pragmatic, knowledgeable and discerning

• Shoppers are demanding a more seamless retail experience and rise of digital (shopping ecosystem)

• The demand for a more human retail experience

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Destination Status

5/11/2011

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Backstory: Re-tale, Store-y

• Backstory makes it easier to understand and remember

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The Elttob Tep Store in Tokyo:Issey Miyake New Retail Concept

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Upside down Gap Store

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Canadian Tire Launches New Auto Retail Concept

• The new automotive concept store focuses on elevating the customer experience by providing a solutions-oriented approach to automotive needs, and providing customers with the information they need to make informed purchase decisions.

5/11/2011

http://strategyonline.ca/2011/11/14/canadian-tire-rolls-out-new-auto-retail-concept/

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The Beer Store’s New Beer Boutique

http://www.canadianbeernews.com/2011/04/20/the-beer-store-to-launch-new-retail-concept-the-beer-boutique/

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Tate + Yoko by Naked And Famous

• Over the holidays Naked & Famous Denim opened a new retail concept boutique called Tate + Yoko (Tate + Yoko translates to “Warp + Weft” in Japanese) in their hometown of Montreal.

• The store features 40s and 50s aesthetics that inspire many of the labels, as well as the playful and tongue in cheek attitude Naked and Famous are known for: vintage comic book pages line the walls of the dressing rooms and there is ice cold Ramune soda in the old Pepsi cooler.

• The shop itself is fitted almost entirely with vintage industrial fixtures as well as custom metal piping, hangers and racks.

http://blog.stylesight.com/denim/new-store-tate-yoko-by-naked-and-famous

9069 St-LaurentMontreal, QuebecCanada H2N 1M9

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Ben Sherman arrives in Toronto

• Reflecting the brand's authority, the centerpiece of the store is 'The Shirt Bar,' a counter dedicated to shirting designed to make a task of finding the perfect shirt both easy and enjoyable.

• Staffed by Ben Sherman's comprehensively trained experts in shirts, the shirtelier, it is here that customer's questions will be answered and shirting solutions delivered with a premium retail experience.

http://www.newswire.ca/en/story/862433/ben-sherman-announces-its-arrival-in-toronto-presenting-a-new-retail-concept

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• Wendy's customers in Etobicoke, ON will have the opportunity to try new menu items in an ultra modern setting as the company opens one of four new concept stores to be tested in North America. It is the first Canadian concept store for the company. – Redhead Roasters proprietary blend coffee

and fresh baked goods including oatmeal bars, cookies, muffins and brownies will be tested.

– A new customer ordering process, digital menu boards, new service staff uniforms and redesigned product packaging.

http://www.newswire.ca/en/story/865719/wendy-s-to-test-new-restaurant-concept-in-canada

Wendy's Tests New Restaurant Concept in Canada

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Extending the Store

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JCPenney Strengthens New AdCampaign via M-commerce

• The company is running audio and full page ads within Pandora’s iPhone application. JCPenney unveiled its new fair and square pricing last month.

• Additionally, the initiative also includes one return policy, which lets consumers return any item, anytime and anywhere.

• The mobile and audio ads running in Pandora explain the fair and square program and encourage consumers to take advantage.

• When users tap on the mobile ads, they are redirected to the company’s mobile site where they can shop the latest men’s, women’s, home and bed and bath products.

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• Furniture, lighting and home accessories store Heal’s has introduced a mobile commerce-enabled site that lets consumers search, browse and buy from its inventory.

• Heal’s launched its mobile commerce site to give consumers more options to shop its products no matter where they are.

• Strategy is to provide valuable customers with access to Heal’s’ products anytime, anywhere from the convenience of their smartphones.

Heal’s: Mobile Shopping

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Glamour Unveils Apothecary Wall

• Most recently, Glamour unveiled its Apothecary Wall that features products from Unilever and Juicy Couture.

• The Apothecary Wall has SpyderLynk Snaptags next to each product. Users are encouraged to download Glamour’s Friends & Fans iPhone app to scan the mobile bar code and buy the featured product right then and there.

• Thousands made purchases through app over the holidays.

http://www.mobilecommercedaily.com/2012/02/23/are-mobile-bar-codes-changing-the-way-consumers-shop

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Toys R Us Virtual Store for Holidays

• Toys R Us has rolled out a virtual store that lets consumers scan QR codes featured on billboards and shop the company’s 2011 Hot Toy List.

• On-the-go commuters and travelers in the New York metro area can take part in the initiative. Billboards located in John F. Kennedy International Airport, LaGuardia Airport and nearly 40 NJ Transit Stations feature the showcased items.

• The virtual stores were in place through Dec. 31.

http://www.mobilecommercedaily.com/2011/12/05/toys-r-us-encourages-holiday-mobile-shopping-via-interactive-virtual-store

Ocado Technology

• Brings Whole New Meaning to ‘Window Shopping'.Ocado is launching a 'virtual' high street shop with pictures of groceries.

http://news.pg.com/blog/innovation/pg-and-mallcz-introduced-first-virtual-drugstore-czech-republic

P&G and Mall.cz introduced First Virtual Drugstore in Czech Republic

Budnikowsky

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Target-Jason Wu Host One-Day-Only Pop-Up Store in Toronto

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Ace Hardware drives In-store Traffic via Geo-targeted Mobile Campaign

• Ace Hardware is running geo-targeted ads (w/in Pandora’s iPhone application) that lets consumers save money on products sold at locations closest to them.

• Deal of the day The Ace Hardware mobile ad reads “20% off. Almost Anything, Saturday, Feb. 25.” Additionally, the mobile banner ads feature the nearest Ace location.

http://www.mobilecommercedaily.com/2012/02/28/ace-hardware-drives-in-store-traffic-via-geotargeted-mobile-campaign

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Auchan ChronoVillage

© Linéaires - www.lineaires.com

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Engage, Educate, Inspire & Expedite

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Mango• Mango connects with a global shopper base

via its by blog and engaging “What should I wear Mango” video mini-series.

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“To elevate the world from mediocrity to greatness.”

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• Uniqlo has devoted effort to product innovation, based customer feedback, rather than fashion trends.

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Choice editor, Tastemakers, Curators & Content Creators

• In the connected world, access to fashion has been democratized and store choice is boundless.

• Creating a voice that breaks through the clutter and connects with the shopper is critical.

• Retailers and suppliers must find ways to tell a compelling brand story as shoppers become more selective.

• The store as choice editor, deployment of tastemakers, curators, and content creators is important for connecting with shoppers and establish a new level of trust is elevated.

Chico’s editor and style expert, Sher Canada, speaks to its target

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Experience

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“I’ve always loved the way fruit and vegetables are displayed in a grocery store.”

-Mark Constantine, LUSH’s Managing Director

• Fresh• Handmade• Naked• Minimal

preservatives

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Mark’s Walk-in Weather Lab

• Walk-in Freezer Lab converted a walk-in freezer into a “weather lab,” encouraging consumers to test out the retailer’s sub-zero outerwear, in temperatures dropping to minus 40 degrees C, and simulating wind chill.

• Inside the fixture, a bar with a handle allows customers to grip and test the efficacy of gloves, a metal pan encourages testing of boots on an icy surface.

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Icebreaker TouchLab, New York

• This New Zealand adventure apparel brand has New Yorkers saying, “I can’t believe this is wool”

Source: VMSD, accessed April 4, 2011.

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4010 Telekom Shop, Cologne

Shelf topper

Floor graphic

Shelf blade

Fairy Dish Liquid with Olay: Removes Grease,

Helps Preserve your Hands Beauty

Pampers Value Equations1 Pamper = 1 Night of Sleep

Nivea Invisible Deo: It is Black & White

Clinique Dark Spot Corrector

Laundry Concentrates Value Reassurance

IKEA:Finding the Right Pillow

Seattle’s Best:As Easy as 1,2,3,4,5

Mild Bold

Store Shelf

Robitussin Relief Finder

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• Increasingly complex technology • How can Best Buy demonstrate its leadership role

as “shopper advocate”– 28% store visits ended with an average of $132 unspent

from abandoned purchases driven by , limited store associate assistance, deal-habituated behavior, out-of-stocks and long check-out lines*

• Shoppers doing more online research– 39% say smartphone affects purchase*

• Product Purpose

Technology: Shopper Advocate

* Source: Motorola Shopper Survey, January 2011.

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Technology: Shopper Advocate

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Technology: Shopper Advocate

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Product specifications

Customer reviews

Store availability

Technology: Shopper Advocate

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Takeaways

• Shoppers are more planful• Experience provides better attachment to

brand…• Product features Purpose• Possessions Experiences• Augers a new role for the store

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New Role for the Store

• How can POS marketing help us be successful in evolving the store’s new role?

• Focus on the 2 main goals of the eco-system form the perspective of the shopper:1. Establish relevance to consumer’s lifestyles2. Make it easier to shop

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Visual Merchandising: Marketing Lever & Sales Driver

• Appealing look & feel is primarily intended to attract shoppers to the store or department; entice shoppers who came to the store for another reason.

• Display Organization and Decision-support Signage makes it easier for shopper to find the products they want.

• Cross-merchandising is a way to increase average basket size by driving unplanned purchases.

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Look & Feel

• Reputational:– Basis—actual or perceived basis for retailer or

category (All American, Classic, Traditional)– Reputation—retailer or department’s image

(Market leader, Recommended by Specialists)– Personality—key personality or character traits

associated with retailer or department (Affordable fashion, Fashion Forward)

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Look & Feel

• Rational:– Shopping process benefits —how the shopping

experience is perceived (well-organized, easy-to-make choices)

– Relationship benefits —consistency of positive experience (choice editor, always fresh)

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Look & Feel

• Emotional:– Personal associations —how the store or category

fits my lifestyle (for trendy people like me, – Internal emotions – how the store or department

makes me feel (cool, comfortable)– Perceived value – perceived value of the

proposition of store or category (premium, affordable)

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• Exciting time of challenge to make the store a desired destination for shoppers

• Understand and leverage the entire shopping eco-system• Many advantages flow from store as desired destination

– Traffic– Conversion– Basket size

• Better experience creates better brand connection, which helps strengthen the relationship with shoppers over time.

Close

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Twitter: @retailecologistEmail: jim.lucas@draftfcb.com