TECTONIC SHIFT: Forget consumers. Forget customers. Today it’s about the shopper.
C2C: Consumers aren’t just talking to each other, they are selling, trading, advising one another
INCONSPICUOUS CONSUMPTION: Increasingly retailers and shoppers are finding ways to lighten the load
MAN-SUMERISM: The rise of male shopping behavior
re-aligning around digital shopper realities
Percentage of brand marketers who think:
need a more formalized process to measure digital
shopper effects
getting more data with DSM than with traditional
marketing efforts
need to establish better planning processes for
DSM campaigns
better linkage between media results
and sales results
excited at the new opportunities to measure DSM
45%80%
67% 54%
42%
source: SHS Digital Shopper Marketing Benchmarking Interviews of CPG Executives, 2011
the real purchase funnelThe real purchase funnel is chaos. But increasingly, we can reveal where shoppers go at each stage of the purchase journey- and identify where the greatest patterns are to engage them along their decision path.
• Each green line represents one individual shopper
• Clearly, shoppers do not behave in programmed, linear modes
• Shopper path is NOT a funnel
the real purchase funnelBrands must understand the most common purchase paths
Entry points reveal where shopping begins
Circles indicate most used information sources
Color indicates degree of influence of information sources
USED A SEARCH ENGINE VISITED RETAILER /
STORE WEBSITE
COMPARISON SHOPPED ONLINE
SPOKE WITH
SPOUSE
RECEIVED SALESPERSON
DEMO
READ CONSUM-
ER REVIEW ONLINE
the ecology of shopper dialogueSocial media has re-written the rules of trade, opening up a world where shoppers can buy, sell, and trade... to each other.
B2B & B2C,meet C2CB2B & B2C,meet C2C
smart shopper platforms Access to information is making shoppers smart – really smart. Knowldege sharing sites are increasing in sophistication and number. Forget Google or Wikipedia- these sites are the future of decision making, accessible by shoppers at every step of the purchase journey.
Here, Decide.com tells shoppers if they should
purchase or wait for prices to drop.
Fooducate rates food products based on nutritioinal and expert information.
consumer curated catalogueBurgeoning photo sharing site Pinterest has been called a place to “shop without money.” But it’s also a self created consumer catalogue and showroom.
next gen marketplaceOnline craft site, Etsy has provided artists and craftmakers with a thriving marketplace to sell their goods. Smart retailers like WestElm are inking deals to bring online shoppers to their stores by featuring and selling Etsy artist goods.
Etsy is the 58th most popular website in the USA
source: appapeal.com
pop up retail 2.0A confluence of trends has produced a thriving “pop up” economy. Whereas previously pop up stores and kiosks were the domain of big brands seeking to expand their foot print, today they are led by entreprenurial mini-preneurs.
“The maker economy allows amateurs to seamlessly become professionals and test their concepts before investing in brick-and-mortar.”
Nicholas Russel CEO, Ephemeral Labs
disintermediating brands Shoppers aren’t just talking to each other about brands, they are creating their own products and services - and disintermediating brands in the process.
On any given night in NYC, social travel site, AirBnb has more rooms booked than the largest hotel in NYC.
- over 10 million nights booked- 192 countries- 168 million Social Connections
source: airbnb.com
C2C: the new sales forceSan Francisco start up, Quri enables brands to tap a nationwide, shopper-powered mobile field force that intends to be a scaleable solution for brands to measure and optimize in-store.
Needle is a promising Fan-sourcing Sales Platform that recruits and trains passionate brand fans to provide real-time sales support via the cloud.
mobile computing + geo location + shopper field force = real time intelligence
loyalty, brand equity, “keeping up with the joneses”...
What do they all have in common? They are all casualties of the recession and the need for people to re-evaluate what matters most. Inconspicuous consumption, where maximizing resources is a primary driver of purchase decisions, is the reality.
average monthly spend on
groceries up $27 from 2007 to
2011.
two in five shoppers
purchasing more store brand or generic items
three in 10 respondents cut back on bakery items, candy, desserts and
magazines/books/DVDs
one in four have cut back on
prime cuts of meat/seafood
$27source: MaxPoint Interactive, conducted by 3IGInsight
eco packaging Reinforce differentiators. In unexpected places. Ketchup is ketchup… and a way to conserve resources.
Puma’s sustainable shoe box and reusable bag looks cool and saves: - 8,500 tons less paper - 20 million Megajoules of electricity - 1 million litres less of fuel oil used and 1 million litres of water - 275 tons of plastic
store brand equityMore than half of grocery shoppers now regularly buy store brands across all categories of groceries.
the one exception:Pet Food
Strong perception of store brand quality and fewer think store brands for those on tight budget
good alternative to name brands
2008 2009
quality as good as name brands
usually extremely good value for the money
some are higher quality than name brand
for people on tight budgets and can’t
afford the best
don’t feel comfortable
serving to guests
333738
201817
111111
2011
717474
636565
677069
source: Nielsen Homescan Panel Views Survey
recycling at retailThrifty IS mainstream. Goodwill Industries and Savers are aggressively expanding nationwide, causing reluctant retailers to take notice.
- Number of resale shops has increased by 7% in past year
- Goodwill hit $4 billion in revenue in 2011 (10% growth since 2007)
- 20% of people shop in thrift stores regularly, compared with 14% in 2008
source: USA Today
invisible but powerfulRetailers are using lightweight and invisible technologies like Euclid Elements to better able their sales associates to engage with their best customers.
Saks Fifth Avenue teamed up with start up Euclid Elements to create a
smartphone app that would be loaded on associates’ phones and would
identify when loyal shoppers (who had opted in) entered the store, and would tell the associate where in the
store they were located using the customer’s mobile wifi signal.
loyalty is not a free t-shirtShoppers want more than just free ‘stuff.’ Savvy retailers and brands are shifting from extrinsic to intrinsic rewards - rewarding all shopper interaction, instead of just purchase.
Most loyalty members are unsatisfied with the value of loyalty programs (grocery/drug most satisfied at only 42%).
18average number of loyalty programs per US household: less than half are active:
source: Colloquy: The Art and Science of Building Customer Value, April 2011
PROGRAM OPT-IN
RECOGNITION/FAME
SOCIAL CURRENCY
A VOICE IN BRAND DECISIONS
VIRTUAL GOODS
EXCLUSIVE ACCESS
THE NEW LOYALTY:
8
of women out-earn their male spouses1
of men are OK with it280%
At the height of the recession, unemployment was more than 2% higher for men3
men
recessionary residuals
39%
While the job market for men has recently improved, the lasting effects of the recession, have altered the traditional “provider” paradigm.
2006
4.6
2007 2008 2009 2010 2011 2012
4.6 4.7 4.5
6.15.4
10.4 10.5
8.69.4
8.4 8.3 8.18.1
women
sources: 1: Bureau of Labor Statistics, May 2012; 2 Men’s Health ManScan Study, conducted in partnership with GfK Roper Reports, released March 2012; 3: Bureau of Labor Statistics
of men are the primary grocery shopper in
the household1
of men say they equally share in house cleaning2
of men agree being a man = doing what is
necessary to keep the household running3
“renaissance man” revisitedWhether by choice or need, being exposed to new roles such as child care, shopping and household activities has created a new generation of men who embrace their new roles and the impact they can make.
40% 44% 86%
sources: 1: KSDK, St. Louis, MO study released Feb. 2012; 2: Men’s Health ManScan Study, conducted in partnership with GfK Roper Reports, released March 2012; 3: Spike Network’s “State of Men” study, released April 2012
feel their LIFE is the same or better than it was prior to the recession
feel their FINANCIAL situation is the same or better than it was prior to the recession
beyond the 9–5 grindMen increasingly evaluate their successes in life in areas beyond career and finance.
67% 42%
source: Spike Network’s “State of Men” study, released April 2012
men shop differently “Subscription Commerce” sites such as Trunk Club, Mr. Porter and Manpacks address men’s expanded interest in style and grooming, while P & G is setting up “Man Aisles” within physical stores. All focus on conveniently solving a need.
SHOPPING ACTIVITY: functional
PURPOSE: solve a problem/need
PRIORITIES: convenient, informative
men don’t just shop. they buy.
Whether by choice or obligation, men are doing more shopping than they have in the past. Disenfranchised no longer, they are empowered by technology and a growing recognition of the contributions they make.
average spent “yesterday” in stores, gas
stations, restaurants, or online1:
increase in men’s clothing sales last year2:
increase in men’s facial care sales last year…
yes, facial care3:
$81$59
8%
2% 11%MENWOMEN MEN’SWOMEN’S
sources: 1: Gallup, June 2012; 2: IBM Global Business Services, 2012; 3: NPD Group
men research, women share
Males use more sources on average than females, but tend to share less than females after purchase.
average source node usage:
MALES (n=2004) FEMALES (n=2999)
average number used:
SMOT participation i.e. sharing information about purchase with F&F or via Facebook, Twitter, etc:
source: Shopper Sciences, Google ZMOT study, 2011
17%
11.6
56% 61%
10.2
15%
marketing to menAt home and in store... men are increasingly shopping for themselves and their families. Empowered by technology, men have embraced mobile and social media to conveniently inform their decisions.
MAKE IT EASY: Shopping is need based for most men. The process should be simple and direct.
BE INFORMATIVE: Product info, reviews, comparisons, availability and store information.
HAVE FUN, BUT DON’T INSULT: A recent Huggies campaign backfired for implying Dads were unfit parents.
26%
72%research price online before making a purchase1
more likely than women to scan a barcode in store2
men are favoring digital sources—and not their televisions—whenlooking to be entertained3
sources: 1: Spike Network’s “State of Men” study, released April 2012; 2: Scanbuy, 2012; 3: AskMen.com “The Great Male Survey” May to July 2012
76%
LIZ ROSS President, North America BPN101 E. Erie, 10th FloorChicago, IL 60611 312-799-4101 [email protected]
DOUG JOHNSON SVP, Customer Experience & Shopping Insights BPN101 E. Erie, 10th FloorChicago, IL 60611 312-799-4104 [email protected]
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