ISMI Expo Tenets of Shopper Marketing

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© 2010 The Integer Group®

TENETS OF SHOPPER MARKETING

OCTOBER 6TH, 2010

Craig Elston SVP, Insight & Strategy The Integer Group®

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www.shopperculture.com

@shopperculture

#ismiexpo

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SHOPPER MARKETING

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Source: The Integer Group®, 2010

Starts with a deep understanding of current shopper behavior, then employs any markeWng approach that appropriately engages shoppers to lead him/her to purchase -‐ on an on-‐going basis -‐ while building brand equity and driving business growth for both brands and retailers.

shopper markeWng

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Image courtesy of New Line Cinema

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Our Studies

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1,200 per month

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HABITS ARE IMPORTANT

WE’RE ALL RISK-AVERSE

THE ROLE OF SCHEMATIC NAVIGATION

WE’RE BAD AT COMPUTATION

OTHER PEOPLE’S BELIEFS MATTER

PEOPLE NEED TO DO THE

RIGHT THING

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Cogni=ve laws: informaWon processing

Social laws: interacWon

Psychological laws: thought & feeling

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© 2010 The Integer Group® Photo: The Integer Group®

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RIGHT THING


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Shoppers have a bias for the status quo, so habits change

slowly over Wme.

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CONCERNS ABOUT VALUE

+5%

+12%

Source: The Integer Group and M/A/R/C Research, 2007 - 2010

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Source: The Integer Group and M/A/R/C Research, 2007 - 2010

LOCATION IS A (slowly) DECLINING MEANING

43%

51%

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HABITUATION

Photo: The Integer Group®

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RIGHT THING


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Photo: AP

WE LOOK TO WHAT OTHERS DO TO GUIDE OUR OWN BEHAVIOR

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INFLUENCED BY OTHERS A LOT

Source: Simmons NCS/NHCS: Adult Full Year Studies

11%

12%

13%

14%

15%

MAY 06 -‐ DEC 06

JAN 07 -‐ JUN 07

JUL 07 -‐ MAR 08

APR 08 -‐ OCT 08

NOV 08 -‐ JUN 09

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Using the product Post-Tail™ Purchase

moment

Retail

Browsing, comparing, researching

and selecWng items

Pre-Tail™ Entering a store or

Web site

Research, word of mouth, trial

ALL ALONG THE PATH TO PURCHASE THE SHOPPER CONTINUUM™

= points of action, behaviors

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Shoppers belief’s must be understood before you can start to influence them.

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OTHER PEOPLE’S BELEIFS MATTER



PEOPLE NEED TO DO THE RIGHT

THING


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Shoppers tend to prioriWze avoiding the potenWal for loss, over pursuing

the potenWal for gain.

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The aisle/store was dirty

I always purchase what I go to the store looking for

The aisle was confusing/disorganized

The aisle was too crowded/too many people in the aisle

I couldn’t find the specific brand I was looking for

I couldn’t find the exact item, product or size I was looking for

The price was more than I wanted to pay

7%

12%

14%

16%

34%

56%

60%

0% 20% 40% 60% 80%

WHY SHOPPERS LEAVE AISLES EMPTY-‐HANDED

N = 1,215 Source: The Checkout 2010; The Integer Group & M/A/R/C Research; December 2009

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OVERCOMING LOSS AVERSION

Photo: In-store Marketing Institute

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INCIDENCE OF LIST PREPARATION

N = 1,203 Source: The Checkout 2010; The Integer Group & M/A/R/C Research; February 2010

SomeWmes 50%

Never 7%

Always 43%

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COUPONS JUSTIFY BRAND SELECTION

70%!use coupons to justify purchasing their pre-selected brand of choice.!

86% !feel that coupons are at least somewhat influential in choosing a brand.!

Coupon Influence on Brand


3%

11%

44%

28%

14%

Extremely influential Very influential Somewhat influential Not very influential Not influential at all

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We have to understand risk-‐aversion in order to know how to help the shopper overcome their perceived barriers.

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PEOPLE NEED TO DO THE RIGHT

THING


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SCHEMATIC NAVIGATION

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Aisle shot of toothpaste



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Entering a store or Web site

Purchase Using the product

CRM Segmented Email

NaWonal Print Ad

PromoWonal Packaging

Pre-‐Tail™

Retail

Post-‐Tail™

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RIGHT THING


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FOUR YEARS AGO Sustainability Organic

Green

Spend, spend, spend

TODAY Saving money Local

Save before you spend

MORE ALTURISTIC yet

CONSPICUOUS

MORE SELF-SERVING yet

CONSIDERED

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SAVING TRUMPS GREEN

0%

2%

4%

6%

8%

10%

12%

14%

Spring 2008

Fall 2008

Winter 2009

Spring 2009

Fall 2009

Winter 2010

WOULD PAY MORE FOR ENVIRONMENTALLY FRIENDLY PRODUCTS?

Source: Simmons NCS/NHCS: Adult Full Year Studies

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Photo: In-store Marketing Institute

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In the context of their lives, you have to understand what ‘doing the right

thing’ means to shoppers.

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RIGHT THING


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We all suffer from availability bias, a lack of mental availability that makes us bad at computaWon.

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AVAILABILITY BIAS

Aspirin Jelly bean Salt

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WE WANT OUR DEALS SIMPLE

14%

16%

24%

72%

75%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Discount off next purchase

Instant discount off mulWple items

Buy one, get different item free

Buy one, get same one free

Instant discount, on one item

They are convenient & useful

AcWvely search for coupons

Decide brand first, then find coupon

They take too much effort to use

Use coupons when I run into them

Find coupon first, then decide brand


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MENTAL AVAILABILITY

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Using the product Post-Tail™ Purchase

moment

Retail

Browsing, comparing, researching

and selecWng items

Pre-Tail™ Entering a store or

Web site

Research, word of mouth, trial

THE SHOPPER CONTINUUM™

= points of action, behaviors

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SIX TENETS

COGNITIVE FORCES Habits are important. The role of schematic navigation.

PSYCHOLOGICAL FORCES We’re all risk-averse. We’re bad at computation.

SOCIAL FORCES Other people’s beliefs matter. People need to do the right thing.

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QUESTIONS? Craig Elston SVP, Insight & Strategy

The Integer Group® +1.303.393.3474

[email protected]

Download or subscribe to The Integer Group’s white papers, presentations and editions of The Checkout at

www.shopperculture.com

ISMI Expo Tenets of Shopper Marketing

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