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 anotherINCONSPICUOUS CONSUMPTION:Increasingly retailers and shoppersare finding ways to lighten the loadMAN-SUMERISM:The rise of male shopping behavior
two states:using & deciding What drives shoppers to say “yes”?USING: DECIDING:
rise of shopper marketing$50BANNUAL SHOPPER MARKETING AND GROWING source: GMA/Booz
re-aligning around digitalshopper realitiesPercentage ofbrand marketers 67% 54%who think: need a more formalized need to establish better process to measure digital planning processes for shopper effects DSM campaigns 80% 45% 42% excited at the new getting more data with better linkage opportunities to DSM than with traditional between media results measure DSM marketing efforts and sales results source: SHS Digital Shopper Marketing Benchmarking Interviews of CPG Executives, 2011
the real purchase funnel The 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 funnel Brands must understand the most common purchase paths READ CONSUM- ER COMPARISON REVIEW Entry points reveal ONLINE SHOPPED ONLINE where shopping begins SPOKE WITH SPOUSE Circles indicate most used information sources RECEIVED SALESPERSON Color indicates degree DEMO of influence of information USED A SEARCH VISITED RETAILER / sources ENGINE STORE WEBSITE
the ecology of shopper dialogue Social 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 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 catalogue Burgeoning 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 marketplace Online 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 2.0 “The maker economy allows amateurs to seamlessly become A confluence professionals and test their concepts before of trends has investing in brick-and- mortar.” produced a thriving Nicholas Russel CEO, Ephemeral Labs “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.
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 force San 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. mobile computing + geo location + shopper field force = real time intelligence Needle is a promising Fan-sourcing Sales Platform that recruits and trains passionate brand fans to provide real-time sales support via the cloud.
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 two in five three in 10 one in four have spend on shoppers respondents cut cut back ongroceries up $27 purchasing more back on bakery prime cuts of from 2007 to store brand or items, candy, meat/seafood 2011. generic items desserts and magazines/books/ DVDs $27 source: MaxPoint Interactive, conducted by 3IGInsight
eco packagingReinforce differentiators. Inunexpected places. Ketchupis ketchup… and a way toconserve 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 equity More than half of grocery shoppers now regularly buy store brands across all categories of groceries. Strong perception of store brand quality and fewer think store brands for those on tight budget 2008 2009 2011 good alternative 71 to name brands 74 74 quality as good 63 as name brands 65 65 the one exception:usually extremely good 67 Pet Food value for the money 70 69some are higher quality 33 than name brand 37 38 for people on tight 20 budgets and can’t 18 afford the best 17 don’t feel 11 comfortable 11 serving to guests 11 source: Nielsen Homescan Panel Views Survey
recycling at retail Thrifty 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 powerful Retailers 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 asmartphone 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-shirt Shoppers 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. average number of loyalty programs per US household: 18 8 less than half are active: Most loyalty members are unsatisfied with the value of loyalty programs (grocery/drug most satisfied at only 42%). THE NEW LOYALTY: SOCIAL CURRENCY A VOICE IN BRAND EXCLUSIVE DECISIONS VIRTUAL ACCESS GOODS PROGRAM OPT-IN RECOGNITION/FAME source: Colloquy: The Art and Science of Building Customer Value, April 2011
recessionary residuals While the job market for men has recently improved, the lasting effects of the recession, have altered the traditional “provider” paradigm. At the height of the recession, unemployment was more than 2% higher for men3 of women out-earn 39% men women their male spouses1 10.4 10.5 9.4 8.6 8.4 8.3 8.1 8.1 6.1 5.4 4.6 4.6 4.7 4.5 80% of men are OK with it2 2006 2007 2008 2009 2010 2011 2012 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
“renaissance man” revisited Whether 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%of men are the primary of men say they of men agree being a grocery shopper in equally share in man = doing what is the household1 house cleaning2 necessary to keep the household running3 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
beyond the 9–5 grind Men increasingly evaluate their successes in life in areas beyond career and finance. feel their LIFE is the feel their FINANCIAL same or better than situation is the same or 67% it was prior to the 42% better than it was prior recession to the recession 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 increase in men’s clothing increase in men’s facial “yesterday” in stores, gas sales last year2: care sales last year… stations, restaurants, yes, facial care3: or online1: 8% $59 $81 2% 11%WOMEN MEN WOMEN’S MEN’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. MALES (n=2004) FEMALES (n=2999)average source nodeusage: 17% 15%average numberused: 11.6 10.2SMOT participationi.e. sharing informationabout purchase with 56% 61%F&F or via Facebook,Twitter, etc: source: Shopper Sciences, Google ZMOT study, 2011
marketing to men At 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: research price onlineShopping is need based for most men. 72% before makingThe process should be simple and direct. a purchase1BE INFORMATIVE:Product info, reviews, comparisons, more likely thanavailability and store information. 26% women to scan a barcode in store2HAVE FUN, BUT DON’T INSULT:A recent Huggies campaign backfired men are favoring digitalfor implying Dads were unfit parents. sources—and not their 76% televisions—when looking 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
LIZ ROSS DOUG JOHNSONPresident, North America SVP, Customer Experience & Shopping InsightsBPN BPN101 E. Erie, 10th Floor 101 E. Erie, 10th FloorChicago, IL 60611 Chicago, IL 60611312-799-4101 312-799-4104Liz.Ross@bpnww.com Doug.Johnson@bpnww.com