on shopping in evolution

Brace yourselves: men discover mobile shopping

Stop faking it: get real with your shoppers

It’s all about me now (not you):shoppers dictate the rules of engagement

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For our latest Windows report we turn our attention to

the changes taking place in the retail sector, with

social media and mobile commerce driving whole new

opportunities for the businesses involved in retail. We

look at how these communication trends are impacting

on shopper behaviour, and offer a perspective on how

businesses should grasp the opportunities.

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Welcome to another edition of ‘Windows’ - a series of online reports from shopper

research specialists Shoppercentric. In each issue we research a hot topic of

relevance to retailers and manufacturers and analyse the issues involved.

ased on 1,000 interviews with UK adults who have access to the internet for

personal use and use social media nowadays, together with focus groups

and expert interviews, we aim to provide a new perspective on the commercial

impact of the changes taking place.

This ezine is designed to give you some of the overall themes and insights

from our study. If you would like further information, or to have access to

the full report, please email: evolution@shoppercentric.com

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CONTENTS4

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The Gender Divide

Brands Finding a Voice

It’s About More Than a Sale

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The GenderDivide

hould we be surprised that boys will be boys and girls will be girls? Probably

not, but this isn’t just about knowing there is a gender divide, it is about businesses understanding the nature of it and building the learnings into targeted marketing plans.

In the context of our research the gender divide can be defined as follows:

Boys are playing with the toys – 38 percent having a smartphone (compared to 29 percent of women)

The girls are getting sociable – 60 percent using Facebook (compared to 52 percent of men)

The use of social networking and mobile commerce in the business context is still in its early stages of development. Yet, as these figures are suggesting, even now businesses should take account of the gender divide within the approaches they take to these new media.

If we focus on the boys first, we see that they are not only playing with their mobile devices, the earlier adopters are already using these tools to make shopping a more positive experience. Given we know that 31 percent of men find shopping a chore, who would have thought that we would associate men with positive shopping experiences!

The beauty of smartphones is that they allow boys to do what they do best – investigate / explore – in the context of physical stores. Those using smartphones are getting out of the house and hitting the shops. Once there they are using the connectivity of their mobile devices to give them all the advantages of the internet, but in bricks & mortar stores.

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Platforms used nowadays % By gender

Retailer websites

Price comparison websites

Facebook

You Tube

Interest group websites

Consumer review websites

Other phone apps

Phone apps that support shopping

7278

6263

5260

5951

3743

2719

2014

148

Young men in particular are excited about the potential of mobile commerce. They see it as putting knowledge at their finger tips, and giving them immediate feedback that empowers their purchase process. They now have the ability to compare prices on the move, which short circuits their previous shopping habits. Instead of being tied to a computer at home they can get out into the shop whilst their mobile device gives them the sense of security that they will still get the best price: “I can pull their website up on my phone (when in-store) and I’ll guarantee you I will get a cheaper price online” 25-34 yr old.

The ability to haggle on the spot is a critical shift in the power relationship between shoppers and retailers. “Shoppers want to seek out the best price, and this is where mobile technology will become more important.” Bernd Larsen Linde, Director of global trade marketing, Lego(Source: Marketing Week, 28/01/2011)

For women sociability is the key. We’ve always known that this is a fundamental part of shopping for women, with 22 percent of women saying they like to make shopping a social event with their friends: “going shopping with my friends is part of the fun – you know, ‘do I look good in this’”.

Male

Female

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Now this sociability is spilling over into their use of the internet – being more likely than men to use Facebook and interest group websites. Surely then social media offers an opportunity for retailers and brands to engage more deeply with female customers online.

Yet, here is another interesting facet of the gender divide: whilst the mobile commerce trend seems to have made a real connection with men who talk about how the novelty and enjoyment provides genuine value; most women have yet to engage with businesses through social networking. In fact only 21 percent of women have communicated with retailers via Facebook compared to 27 percent of men.

So of the two trends which we believe will have considerable impact on the retail landscape a very clear gender divide is emerging:

Mobile commerce looks to be able to offer a strong opportunity for businesses to facilitate the shopping process for men by playing up on the ‘boys and their toys’ mindset to get men into the shops. Done well, marketing strategies based on mobile commerce can directly influence transactional behaviour

Social media should suit the inherent sociability of women and their interest in shopping, but what’s being done commercially on social media networks has yet to make that connection

21st Century Communication

With all the tools now available to communicate with each other it is no surprise to see that a loose set of rules seems to be developing among young users in terms of which tools are appropriate for which set of people they want to ‘talk to’:

with each group, but they tend to be the tool that feels most comfortable for that group, and we can become uncomfortable when people step outside these ‘rules’:

Facebook as a friend

Facebook as a friend

emerging ‘rules’ in mind when developing their communications plans, particularly with reference to the tone of voice that would be

Brands findinga voiceF

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or brands the social media platform offers an opportunity to talk directly to

shoppers. In fact, social media hangs the carrot of direct access in front of brands which would explain why so many brands are creating a Facebook presence. And yet there are so many ‘buts’ to the idea of brands on social networks – not least the obvious shopper response:

The reason why brands want to be on social networks is the very same reason why shoppers struggle to understand why they are there: the direct connection with the target audience.

Shoppers just aren’t used to talking directly to brands, and so it’s almost as if they don’t know what brands could possibly have to say to them that would be of interest or that they don’t already know.

Interestingly there is more permission for retailers to be on Facebook than brands (27 percent have interacted with retailers via Facebook versus only 17 percent with brands). It is most likely that the physical presence of retailers on the high street means we are used to dealing directly with them.

That said social media could be a hugely powerful tool as it has the potential to allow brands to find their voice in a way that doesn’t require using a commercial medium or relying on a retailer to act as the messenger.

It all sounds so easy, and yet the challenges are evident:

websites – we just don’t have the same impetus to talk directly to brands as we do to talk directly with retailers

of brands using social media, compared to 18 percent saying the same of retailers

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There seems to be a fundamental barrier in our minds as to why we should communicate directly with a brand, or why a brand would want to communicate directly with us. That doesn’t mean we won’t communicate with brands, it simply means that brands need to work hard to set up a meaningful connection. Brands need to think about what they want to share with the shopper, not just what they want to get out of the conversation. And they need to work on the basis that they have to seek out these connections rather than assuming shoppers will come to them.

Those shoppers who have decided to follow brands on social media (9 percent of our sample) were looking for tangible benefits such as: new news; exclusive prices / products / discounts; competitions. But they are also looking for fun, which shouldn’t be a surprise given this media is about having fun.

The challenge for businesses used to keeping a tight rein on brand marketing is to inject fun into their Facebook activity – and to keep that fun fresh.

So for brands to create meaningful connections in the social media space:

that they are making relevant connections and relationships with their target universe that stand a chance of making an impact on people’s behaviours over time

market rather than assume the market will find them

space which generates curiosity in the brand, and gives a reason for shoppers to keep coming back

their brand space within the social context of this new media

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And that means a business needs to understand what the target market wants or needs from them.

Whilst there is a lot of pressure to ‘just do it’, to just get involved because everyone else is, that would be a mistake. Businesses should think about:

platforms

the broader marketing / communications plan

these platforms should take

All about me (the shopper)

One of the key themes emerging in our research was that these new tools are not about what shoppers can do for business, but about what business can do for shoppers – brand to me not me to brand. Yet much of the chatter in the commercial world has been about commercial opportunities: social media as a CRM tool; explaining an ethical positioning; selling products; or monitoring what people say about a company.

As previously discussed social networking has developed as a personal tool, a way of keeping in touch on a social level. The numbers now involved make the commercial opportunity obvious, but that opportunity will be achieved only through a real understanding of what shoppers want from businesses in this space.

Equally, mobile commerce is based on a personal tool – a phone. So the most engaging commercial applications are those which give something to the shopper e.g. phone apps or internet access on the move. Yet when the commercial world forces itself on the user, it can be rejected “I was at the match (Wales v Australia) and my phone just kept pinging with messages from sponsors. I wanted to watch the b****y match, not answer advertising!”

To make the connection that engages shoppers a business needs to focus on giving the shopper something that will keep bringing them back.

Attitudes towards Businesses using Social Media% Total sample (1000)

To sell products

To see what customers are saying

To find out more about their customers

To stand out from their competitors

To connect with people like me

To bring the brand to life

To tell me something new

To help me have some fun

5426

3423

2924

2518

2523

2320

2232

712

Why shoppers THINK companies do it What shoppers WANT from companies on it

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It’s aboutmore than a sale?

ne of the reasons we decided to look at the impact of social media on

shopping was because we were hearing concerns from retailers that the huge spend they were allocating to social media wasn’t delivering sales. They were starting to question their investment in social media.

Perhaps the question isn’t about whether to invest in social media or not, but about the targets that are being set by businesses.

If we look at why shoppers contact businesses on social media, vs looking at their websites we can see why retailers are so frustrated – only six percent use social media to make a purchase.

O Reasons for making contact with companies% Total sample (1000)

To make a purchase

Researching what to buy

To get news about new products

To find the best prices

To get loyalty rewards

To access reviews

To get vouchers / offers / discounts

To make a complaint

To get news about the company

To find out what others have bought

To share thoughts / join a forum

To feel part of a group

5113

458

447

4312

4310

2615

1429

1232

5910

636

3811

426

Company Websites Social Media

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But at the same time, the retailers’ frustration seems rather short sighted. Rather than assume social media will deliver an actual sale, they should consider all other benefits which could lead a shopper to make a sale in-store or via the website, such as news about new products or variants, loyalty rewards, vouchers/offers, and finding out what others have bought.

And so we reach the conclusions of our research:

1. That businesses should see social media and mobile commerce as platforms for communication.

2. That these communication platforms should be part of the overall marketing and communication plan.

3. And that as with all marketing mechanics and communication media they should be seen as opportunities to target shoppers at different stages in the purchase journey in order that the result of these combined efforts is the sale, rather than expecting one tool to achieve that job in isolation.

CONTACT

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Alice Synge:alice.synge@shoppercentric.commobile: + 44 (0) 7977 579 076

evolution@shoppercentric.com

or visit our web site at:www.shoppercentric.com

Our series of Windows reports are a small partof the research service we provide to clients.If you would like to know more about how we canhelp your business better understand shoppers’ attitudes,needs and behaviours please contact us.

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