IssueFebruary 2011                   The Social Shopper:                    A Lens into the Future of                     ...
EXECUTIVE SUMMARYFor retailers and product manufacturers, the               When it comes to creating a digital strategy, ...
contentsIntroduction.........................................................................................................
introductionFor retailers and product manufacturers, the              That is why, at Delvinia, we wanted to better unders...
survey findings                                                                   Figure 1.           Approximately how of...
2.   PRODUCT CATEGORIES INFLUENCE PRE-PURCHASE BEHAVIOURWhen it comes to researching products prior to                    ...
3. PRICE IS THE TOP CONSIDERATIONFinding the best price is critical for everyone and it represents the number one informat...
4.    OFFLINE CHANNELS ARE STILL PREFERRED FOR CONFIRMING AVAILABILITYOnly when it comes to checking the availability of s...
5.   CONSUMER REVIEWS ARE THE PREFERRED     CHOICE FOR VETTING PRODUCTSWord-of-mouth has always been a key factor in thepu...
Figure 6.          When you are shopping on a retail website, how important is each of                                    ...
6.   APPETITE FOR SOCIAL CONTENT EXTENDS TO MOBILENot only are shoppers increasingly using peer ratings and reviews to gui...
7.   CONSUMERS ARE INCREASINGLY     CLICKING IN-STOREAnother growing element of the mobile shoppingexperience is the use o...
digital Canadians:which are your customers?The analysis above illustrates typical uses of digital     Understanding which ...
SCENARIO 1: TOM SHOPS FOR A DIGITAL CAMERATom is a gadget junkie who is entirely at home online.   Next Tom plugs his pref...
SCENARIO 2: MOLLY BUYS GROCERIESMolly is a busy career mom with a three-year-olddaughter. She rarely has time for herself,...
implications for retailers andproduct manufacturersWhen it comes to creating a digital strategy, retailers   Highly social...
We invite product manufacturers to share these           With a rich knowledge of your consumer, you caninsights with thei...
conclusionsBy digging deep into consumer insights, retailers and       Retailers must also listen to their customers toman...
ABOUT DELVINIA                                              ABOUT THIS RESEARCHFounded in 1998, Delvinia is a digital stra...
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The Social Shopper: A Lens into the future of Retail Experiences

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The Internet and social media have created a landscape where consumers are a more significant force than ever before. And, digitally-savvy shoppers are leading the way. Our study around consumer use of digital technology — conducted through AskingCanadians™ — reveals that digital experiences are not only a key component in the purchase process; but digitally-inclined shoppers are fast becoming the consumers of the future.

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The Social Shopper: A Lens into the future of Retail Experiences

  1. 1. IssueFebruary 2011 The Social Shopper: A Lens into the Future of Retail Experiences Insights for your business
  2. 2. EXECUTIVE SUMMARYFor retailers and product manufacturers, the When it comes to creating a digital strategy, retailersimportance of knowing who their customers are—and and manufacturers need to ground their approach in ahow they shop—has never been more essential than it deep understanding of consumers, including the roleis today. As we all know, the Internet and social media the product plays in their lives and the experiencehave created a landscape where consumers are a they want to gain from buying it. It requires listeningmore significant force than ever before. to and learning from the consumer and establishing a response that demonstrates a desire to place them atThat is why, at Delvinia, we wanted to better understand the centre of the experience. As much as any productthe consumer-retailer/manufacturer relationship. or retail environment needs to communicate a uniqueWe asked ourselves: In a world with so many brand experience, to an even greater degree it needsavailable options, what should retailers and product to connect with the individual customer.manufacturers be doing to court this new consumer? In fact, highly social and digitally-inclined shoppers areBased on our research, we identified seven the lens into the future of retail experiences. Retailersmajor trends. need to find out what proportion of their customers are highly social users of technology, and from1. Digital dominates pre-purchase research there they can determine the urgency of integrating digital technologies into their customer experience.2. Product categories influence Understanding the retail experience through the eyes pre-purchase behaviour of those consumers will provide retailers a glimpse3. Price is the top consideration into the future of all customers. By digging deep into consumer insights, retailers4. Offline channels are still preferred for and manufacturers can better identify social and confirming availability time-starved consumers—those who are leading the5. Consumer reviews are the preferred choice way in the digital space. Those who fail to take their for vetting products cues from these connected shoppers are missing an opportunity. These are the customers of the future6. Appetite for social content extends to mobile and they will respond positively to efforts to connect digitally.7. Consumers are increasingly clicking in-store By sharing and acting on customer insights, retailersDelvinia’s proprietary AskingCanadians™ online and product manufacturers can leverage digitalresearch community has been collecting information media to create customer experiences relevant toabout the attitudes and digital behaviours of the needs of each consumer group. Just keep askingCanadians for the past four years. Digital behaviours the question: How does this experience validate andvary from product to product, but they also vary from reward my consumer? There are only a few on theperson to person. This is just one tool that confirms new digital frontier who really understand this.this. Understanding which behaviours are mostcommon amongst the consumers of a particularproduct or retailer, and then determining how thoseconsumers interact with that product or in that retailenvironment, is key. Insights for your business 2
  3. 3. contentsIntroduction............................................................................................................... 4Survey findings ..................................................................................................... 5–12Digital Canadians: which are your customers?.................................................... 13–15Implications for retailers and product manufacturers .......................................... 16–17Conclusions ............................................................................................................ 18
  4. 4. introductionFor retailers and product manufacturers, the That is why, at Delvinia, we wanted to better understandimportance of knowing who their customers are—and the consumer-retailer/manufacturer relationship.how they shop—has never been more essential than it We asked ourselves: In a world with so manyis today. As we all know, the Internet and social media available options, what should retailers and producthave created a landscape where consumers are a manufacturers be doing to court this new consumer?more significant force than ever before. To answer this question, we decided to start byConsumers have the ability to research products on getting to know them better. Which channel do theybrand and retail websites that provide buying guides, prefer at each stage of the buying process anddetailed product reviews and the ability to make why? Does this preference differ from product todirect comparisons. While price remains the number product, or retailer to retailer? Where does mobileone piece of information individuals search for online, come into play? Exactly how important is socialconsumer reviews and recommendations are sought media? These and many more questions were theout more often than any other item, including product focus of a survey we conducted with membersdetails, promotional offers, product availability and of our proprietary AskingCanadians™ panel inexpert opinions. November of 2010. Delvinia’s research revealed the following seven trends.Given the ease of access to online information,combined with the even greater scope of social mediadialogue, retailers and product manufacturers need toacknowledge that consumers—specifically digitally-savvy consumers—have greater control in the retailenvironment. And although that group may be small insize, it is growing rapidly. Insights for your business 4
  5. 5. survey findings Figure 1. Approximately how often do you research products online prior to making1. DIGITAL DOMINATES PRE-PURCHASE RESEARCH purchase decisions? 75% to 100% Less than 10% of the time of the timeOnline shopping is here to stay and online research 36% 6%is an integral part of the shopping experience. Sixty- 10% to 24% of the timeone per cent of Canadian shoppers surveyed say they 14%research products online prior to making purchasedecisions for at least one out of every two purchases(Figure 1)i. Furthermore, at least half of all shoppers 25% to 49% of the timereport that the Internet is their preferred channel, 20%over telephone and in-store, for six out of seven pre-purchase activities (Figure 2). 50% to 74% of the time 25% Base: Canadians who research purchases online, N=360. Figure 2. Which environment do you typically find most useful for completing each of the following activities? Direct purchasing a product 83% 13% 4% Determining whether an item is in stock / available 45% 32% 12% 10% Comparing prices 42% 51% 1% 7% Gathering information about the general product type 35% 49% 15% Gathering specific information about a particualar product(s) 35% 55% 9% Seeking coupons or other promotions 29% 53% 17% Trying to locate a store that carries the product 26% 58% 5% 11% Hearing recommendations or reviews 22% 56% 1% 21% In store On the internet Telephone No preference / I do not do this Base: Have purchased online in the past 6 months, N=500. Insights for your business 5
  6. 6. 2. PRODUCT CATEGORIES INFLUENCE PRE-PURCHASE BEHAVIOURWhen it comes to researching products prior to Beyond pre-purchase information gathering, consumersmaking a purchase, Delvinia finds that consumers of packaged goods in general, including pet productsare five times more likely to opt for the Internet over and health supplements, favour in-store interactionsthe in-store environment when shopping for home to satisfy most information needs, including productelectronics, media, and appliances – digital and recommendations and price comparisons.technological products in themselves. By contrast,shoppers prefer to conduct in-store research for morepersonal, consumable items like apparel, beauty andcosmetics, and groceries. In fact, consumers are 68per cent more likely to gather pre-purchase informationabout apparel in-store than online (Figure 3). Figure 3. Most useful channel for pre-purchase information gathering on a specific product by category 83% Home electronics or computers 15% 73% Media (books, music, videos) 19% Childrens toys baby products 69% 25% Household appliances or furniture 63% 31% Home decor and accessories 58% 32% 55% Health / nutritional products (e.g. supplements) 36% 44% Pet products 41% 40% Beauty and cosmetics 50% 34% Groceries 49% 32% Clothing 54% Internet In store Base: Have purchased online in past 6 months, N=500. Insights for your business 6
  7. 7. 3. PRICE IS THE TOP CONSIDERATIONFinding the best price is critical for everyone and it represents the number one information item that consumerssearch for on manufacturer and retail websites. In total, 93.1 per cent of respondents search for informationrelated to price, retail stores with the best price, or promotional offers online (Figure 4)ii. Figure 4. What information are you looking for when you research products online? Price 84.9% Consumer review / recommedations 65.0% Product specifications / details (colour, size, capabilities, etc.) 62.4% Retails Store(s) with best price 60.1% Promotional offers 57.3% Product availability 49.9% Expert opinions recommending the best product 48.4% Consumer reports 45.3% Retail locations 45.0% Ideas / solutions 35.0% New product launches 29.3% Other, specifiy 2.0% Base: Research purchases online, N=346 Insights for your business 7
  8. 8. 4. OFFLINE CHANNELS ARE STILL PREFERRED FOR CONFIRMING AVAILABILITYOnly when it comes to checking the availability of stock does online trail the in-store experience. (We also glimpsea continued role for the telephone.) Overall, only 32 per cent find the Internet useful in determining whether anitem is available or in stock at a particular store (see Figure 2 above). For some retail categories, this is moreconsequential than others. This is particularly true for furniture and large appliances, where timeliness andshipping are significant factors in making a decision to buy. Here, 46 per cent prefer to check in-store for productavailability, while 34 per cent of shoppers prefer to log on, and 17 per cent simply pick up the phone (Figure 5).In contrast, consumers of electronics and media share a strong preference for checking stock online, and areamong the least likely to wait until they are in a store to confirm product availability. For these buyers, if retailersfail to offer reliable stock information online, they also risk losing sales from those shoppers who prefer topurchase in-store. Figure 5. Preferred channel for determining if an item is in stock 56% Home electronics 23% or computers 15% 56% Media (books, 31% music, videos) 7% 43% Childrens toys, baby products 35% 17% 37% Home decor and 42% accessories 10% Household 34% appliances 46% or furniture 17% Health / 30% nutritional products 47% (e.g. supplements) 11% 18% Pet products 54% 13% 18% Clothing 56% 11% 17% Beauty and 59% cosmetics 14% 14% Groceries 63% 7% Internet In store Telephone Base: Have purchased online in past 6 months, N-500. Insights for your business 8
  9. 9. 5. CONSUMER REVIEWS ARE THE PREFERRED CHOICE FOR VETTING PRODUCTSWord-of-mouth has always been a key factor in thepurchase process, but the Internet has increasedits power ten-fold. In fact, for online shoppers, peerreviews are second only to price. Delvinia’s research “ Everyone likes to feel that they’ve made the best decision when shopping, and peer reviews are often a way for buyersfinds that 65 per cent of Canadian shoppers lookfor consumer reviews and recommendations while to confirm their choice—whether theyresearching online (see Figure 4 above). are mobile users or not. Retailers whoFrom the brand perspective, peer ratings and reviews use shelf space or in-store displaycan be uncomfortable because they require brands to to highlight constructive discussionsurrender control of their message. However, onsitediscussion allows shoppers to gather rich insight about products and their benefits caninto products with minimal effort, while delivering enhance the shopping experience andequally rich consumer feedback to brand and productmanagers, and retailers alike. In fact, peer feedback gain consumer trust, as they validate ”is so highly valued that consumers would prefer retail their desire to be informed.websites provide peer reviews over fancy tools tohelp them select products (Figure 6). Amy Sullivan V.P. Customer Insight Insights for your business 9
  10. 10. Figure 6. When you are shopping on a retail website, how important is each of the following features to you? Product information in comprehensive 66% 28% Shipping policy is easy to find and read 58% 29% Can locate stores near to you 56% 33% Can compare prices of different products 56% 35% Return policy is easy to find and read 27% 42% Provides store contact information 52% 35% Can compare features of different products on one site 46% 42% Can read consumer product reviews 45% 40% Can zoom in or rotate image of product 40% 40% Has selection tools to identify the recommended for you 27% 42% Very important Somewhat important Base: Prefer Internet over other channels for any part of the purchase cycle, N=462.Insights for your business 10
  11. 11. 6. APPETITE FOR SOCIAL CONTENT EXTENDS TO MOBILENot only are shoppers increasingly using peer ratings and reviews to guide their purchase decisions--their useis going mobile. Delvinia’s research finds that nearly one in five Canadian smartphone owners use their phonesto search for product recommendations while shopping (Figure 7). In fact, the number of smartphone users whosearch for this information rises dramatically to 40 per cent when iPhone owners are isolated. Figure 7. Which of the following activites have you completed online, using your smartphone, in the process of shopping? Take a picture of a product in-store 32.5% Locate a store that carries the product 26.6% Gather information about the general 24.9% product type Compare prices 23.2% Gather specific information about a 22.4% particular product(s) Find product recommendations or reviews 19.0% Contact customer service 16.9% Download a coupon or other promotion 13.5% Determine whether an item is in stock 11.0% Post to social network about a product 8.0% Directly purchase a product 7.6% Use a QR code to get product information 6.3% or a better price Post to a social network about a 5.5% purchase experience Write a product review / rate a product 4.2% None of the above 43.9% Base: Smartphone owners, N=237. Insights for your business 11
  12. 12. 7. CONSUMERS ARE INCREASINGLY CLICKING IN-STOREAnother growing element of the mobile shoppingexperience is the use of camera phones. Delvinia’sresearch finds that one-third of Canadian smartphoneowners have used their phone to take a picture of a “ Some consumers are using the in-store visit as an extension of browsing online. Using their mobileproduct while shopping (Figure 7). A further 9.7 percent cent have used their phone to post to a social phone to snap pictures of items as anetwork about their experiences. reference for themselves or to send to aHowever, many retail locations prohibit the use of friend or spouse is a common behaviour.cameras in-store, with the intention of ensuring the A quick snapshot of a product sentsecurity of merchandise and curtailing efforts to copyit illegally. For mobile-savvy shoppers, however, this home with the quick text message ‘iscan cause frustration and diminished loyalty, and this the right product?’ can save a lot ofimportantly, it can cost sales. Notes one individual ina discussion of the issue at Yahoo! Answers, “I takephotos in stores all the time. I use these photos toshow my wife what is on sale, or an item that I’d likefor her to return to the store later to check out.” He frustration later. Randy Matheson ” Director, Emerging Mediaconcludes, “Businesses cannot afford to alienatecustomers.”Retailers who want to connect with today’s shoppersneed to revisit these policies and weigh the risksagainst the consequences. While the pros and consmay vary from retailer to retailer, or even productto product, those in the business of serving young,digitally-savvy consumers in particular, need to findways to bridge this gap. Insights for your business 12
  13. 13. digital Canadians:which are your customers?The analysis above illustrates typical uses of digital Understanding which segments are most commonmedia in the purchase process. Digital behaviours amongst the consumers of a particular productvary from product to product, but they also vary or retailer, and then determining how thosefrom person to person. Delvinia’s proprietary consumers interact with that product or in that retailAskingCanadians™ online research community has environment, is key.been collecting the attitudes and digital behaviours ofCanadians for the past four years. This is just one tool At Delvinia, we help our clients understand this bythat confirms this. looking at a customer experience through the lens of a particular digital segment. For example, if a largeEvery year we collect data from more than 25,000 of proportion of an organization’s customer base areour panellists regarding their attitudes towards, and high social users of technology, we would look atusage of, digital technology. Working with Generation5 creating an experience that reflects their perspectiveMathematical Technologies, these responses have and brings them in touch with other consumers in thatbeen projected across every postal code in Canada, product category.providing the foundation for a segmentation modelusing Generation5’s mosaic clustering system based To illustrate this way of thinking we have created twoupon Canadians’ ownership versus social usage scenarios based upon the diversity of consumer/of technology. Overall, this segmentation clusters retailer relationships and the way customers usetogether into three large groups distinct from the digital media. Scenario 1 is typical of the savvy,average—social, time-starved and lagging. socially engaged consumer, while Scenario 2 reflects the life of a more time-starved consumer.Socially-engaged Canadians include those for whomtechnology is not just a means of keeping organized, Figure 8. Digital behaviour major segmentsbut it is also a lifeline to family and friends andto the digital universe at large. The time-starvedsegment includes groups of Canadians for whomtechnology is a means to an end. It is a tool to help Social Social usage of technologythem manage their hectic lives. They tend to owna number of devices, including smartphones, andare comfortable in the digital space, but their use oftechnology for social purposes is limited. Distinct Averagefrom each of these groups are the laggards. Theseindividuals tend to be late-adopters or do not own ed arvtechnology at all, they may be overwhelmed or st Lagging e- malienated by digital media and they rarely leverage it Tifor social or other purposes (Figure 8). Ownership of technology Insights for your business 13
  14. 14. SCENARIO 1: TOM SHOPS FOR A DIGITAL CAMERATom is a gadget junkie who is entirely at home online. Next Tom plugs his preferred make and model into aHe enjoys using his new toys as much as he enjoys couple of shopping sites to establish an acceptableshopping for them. Today he is in the market for a price range. He realizes that this will be a sizabledigital camera. investment, so he ultimately prefers to make the purchase offline, at a reputable shop within aHe begins by looking online to learn about new reasonable proximity. That way, he can handle thedevelopments in the technology. He wants to camera a bit before buying, and chat in-person withunderstand whether he should buy a digital SLR someone knowledgeable, who can help him out if heor a point and shoot. He does some reading on has any troubles later.websites for photography enthusiasts, including sitespublished by some of the established photography With all of this freshly gathered information in mind,magazines. Then he lobs a few questions out in he pulls up a map of camera retailers nearby andsome forums, hoping to reel in advice from a pro. links through to their sites to see who has the productThe users at one site point him to a Twitter feed from in-stock at his preferred price. Tom identifies Picsa photojournalist who also writes tech reviews. He Plus as having the best price and he has confirmedtakes in all the chatter with ease and enthusiasm. that they have the camera onsite. But the users atFrom his perspective, the more information the better. Shutterbug.com rave about the sales staff there, and they too have the camera available at a fair price. HeFinally, he decides to buy a digital SLR. Now he can buy it today! He drops by Shutterbug after workneeds to create a shortlist of brands and models and tries it out. Because he no longer needs to knowand get a sense of the investment he needs to put the basics about the camera, he has time to considerdown. He searches for digital cameras on Google some great auxiliary products recommended toand locates some sites with product reviews from him by the store staff. Tom completes his purchaseconsumers and experts. He zeroes in on a Leica, and and heads home for a weekend of shooting. Nowvisits the manufacturer site to learn more. The site he always consults the staff at Shutterbug when hegives him product specs, but it also recommends wants added insight.different models for different types of photographersand provides tips on how to get the best shotsunder different circumstances. He’s learning aboutlandscape photography, and becoming more intrigued.“ Making the transition seamless from the online experience to the offline experience is the challenge. If there’s a gap in service levels or a process misalignment, retailers lose credibility and consumers lose momentum. Sara Durning ” Director, Strategy & Experience Design Insights for your business 14
  15. 15. SCENARIO 2: MOLLY BUYS GROCERIESMolly is a busy career mom with a three-year-olddaughter. She rarely has time for herself, muchless to surf or chat online like some of her friends.She’s unlikely to shop online; there’s just too muchinformation to wade through and not enough time. Butshe’s not averse to technology. She has a smartphoneand a penchant for any app that helps her day gomore smoothly.On the weekends she shops for groceries andusually brings her daughter along. While at the storethis weekend, Molly refers to her grocery list onher smartphone and notices an alert that there is achildren’s mobile game from Fruity-O’s available forfree. The game was created by Fruity-O’s and madeavailable to shoppers by the retailer while in-store.Molly downloads it and offers it to her daughter.The game is subtly branded and it promotes healthyeating, so she feels good about letting her child play.While her daughter is preoccupied with the game,Molly is able to navigate the store with ease. “ Many years ago, not being able to get enough information about products and services was a pain point forAt the end of the game, Fruity-O’s offers a coupon consumers. Today, consumers have thealong with a message from the retailer, indicating opposite problem. They are overloadedwhich aisle has the product. Molly makes her way tothe correct aisle and picks up a box of Fruity-O’s on with disjointed pieces of information.her way out. At checkout, she shows the clerk the Consumers want a succinct andcoupon on her smartphone and receives a discounton the cereal. consistent presentation of product and service information. As a customerNot only did Molly enjoy some savings on this trip,but with her child occupied and her own hands free, experience advocate and a consumer, I ”Molly enjoyed a coffee from the in-store café, took look forward to seeing better.in the atmosphere, and treated herself to some newproducts that caught her eye along the way. She alsotold three friends about the experience before the Rosalina Lin-Allenweekend was over. Director, Client Strategy Insights for your business 15
  16. 16. implications for retailers andproduct manufacturersWhen it comes to creating a digital strategy, retailers Highly social and digitally-inclined shoppers are theand manufacturers need to ground their approach in a lens into the future of retail experiences. Retailersdeep understanding of consumers, including the role need to find out what proportion of their customersthe product plays in their lives and the experience are in fact highly social users of technology, and fromthey want to gain from buying it. It requires listening there they can determine the urgency of integratingto and learning from the consumer and establishing a digital technologies into their customer experience.response that demonstrates a desire to place them at Understanding the retail experience through the eyesthe centre of the experience. As much as any product of those consumers will provide retailers a glimpseor retail environment needs to communicate a unique into the future of all customers. If retailers don’t makebrand experience, to an even greater degree it needs an effort to understand these new consumers, they areto connect with the individual customer. missing the opportunity to connect with the customer of the future.Retailers and manufacturers can’t assume that allconsumers are alike. Remember, they vary in their For product manufacturers, we recommendcomfort levels with digital technology. Some shoppers connecting with consumers to understand drivers,feel empowered by all that the Internet has to offer, such as: What’s unique about his lifestyle thatwhile others are overwhelmed. compels him to buy the product? Which of the brand values resonate with her and why? What else isConsumers also vary in the experience they seek happening in their lives at the time that this productwhen buying different products. The information becomes relevant? What added value can the brandjunkie may want to cut to the chase when buying the provide to address complementary needs in the dailycritical item he needs today, but he may bask in the lives of my consumers? Are my consumers digitallydialogue for that more discretionary treat. Which engaged, and if so, how?consumer are you courting? Take a close look atthe intersection of your product with their life in thedigital space.“ Consumers’ expectations of brands have shifted in powerful ways. Brands can’t lead just by making more noise than the other guy. The other guy has changed. Interaction points have changed. Consumers are more empowered. It’s not about what you say; it’s about what you do and what other people say about it. Hoping they have nice things to say isn’t much of a strategy. Andrew Kinnear V.P. Customer Experience ” Insights for your business 16
  17. 17. We invite product manufacturers to share these With a rich knowledge of your consumer, you caninsights with their retail partners, and in turn then evaluate the experience through their eyes. Inencourage retailers to build on the insights by the two scenarios illustrated above, brand managersasking questions like: How do the needs addressed and retailers tapped into this knowledge to deliverby this product at home also find expression from an experience that reflects an appreciation of theirthe consumer when she’s in my store? What other consumers’ needs beyond the basics. Shutterbugneeds remain unmet that we can address? How do may have leveraged segmentation insights toconsumer attitudes toward this product extend to their help staff recognize Tom as an informed buyerattitudes about their preferred retail environment? and prosumer, and thus engage him in a richerWhat does this suggest about how the product can conversation. The makers of Fruity-O’s, together withbest be merchandized, priced and promoted through the retailer, understood all too well how stressfulmy store? How do my customers use digital channels grocery shopping can be with a busy toddler. Each ofto shop for the products I stock? How else are they them listened to their consumers and learned fromengaged online? How do they use mobile? them, considered their product category, and met them where they are at.We encourage clients to expand their dialogue withbusiness partners to establish a more comprehensiveunderstanding. Retailer/manufacturer collaborationonly increases the likelihood of success. By sharing Consumer digitaland acting on consumer insights, retailers and behaviourproduct manufacturers can leverage digital media toenhance the customer experience in ways that areuniquely relevant to their specific consumers andproduct category. Customer Product Brand Experience category StrategyIn short, at Delvinia the first step is always tolisten and learn—dig deep into consumer needs,attitudes and behaviours. We look for ways that theproduct brand and the retailer are linked throughthe customer online. These connections facilitate Channelthe creation of seamless, synergistic shoppingexperiences that help the customer solve a problem,spark an idea, or start a conversation. The grocery and cereal partners in particular showed tremendous innovation and a willingness to experiment, or play, with digital technology to connect with shoppers. They delivered a solution that employed Retailer Customer Product brand the lens we at Delvinia recommend. That is the lens that is found at the intersection of four critical inputs in to the retail experience: consumer digital behaviour, channel, product category and brand. That is to say, know who your customers are, how digitally engaged they are, how they leverage different channels when shopping for in your product category, and how they relate to your brand specifically. Insights for your business 17
  18. 18. conclusionsBy digging deep into consumer insights, retailers and Retailers must also listen to their customers tomanufacturers can better identify social and time- determine how to develop digital strategies thatstarved consumers—those who are leading the way in enable them to connect. Simply ignoring or refusingthe digital space. Those who fail to take their cues from to inhabit the digital world can result in mutualthese connected shoppers are missing an opportunity. consumer/retailer alienation, leaving both retailersThese are the customers of the future and they will and manufacturers to grapple with shrinkingrespond positively to efforts to connect digitally. consumer loyalty and sales. Get closer to these consumers by providing solutions and experiencesRetailers must also understand how each of these that reflect a knowledge of their lives overall, notgroups uses technology to interact with their merely as buyers of specific products or patrons ofproducts and must be receptive to the changing specific retail outlets. These consumers will rewardneeds and wants of their customers. They need to you for the risks you take. The social shoppers inrevisit the fundamentals of their business—product, particular will reward you with valuable feedback thatplace, price and promotion—and be prepared to you can use to learn and further refine your offer.adjust and respond effectively. But the power tomodify the old four P’s is no longer exclusively the By sharing and acting on customer insights, retailerspurview of the retailer or product manufacturer, and product manufacturers can leverage digitaland the context in which these decisions are made media to create customer experiences relevant toextends well beyond the in-store environment. the needs of each consumer group. Just keep asking the question: How does this experience validate and reward my consumer? There are only a few on the new digital frontier who really understand this.END NOTESi This data is derived from a separate proprietary survey conducted by Delvinia from September 28 to October 18, 2010 with a representative sample of 360 Canadians online.ii ibid Insights for your business 18
  19. 19. ABOUT DELVINIA ABOUT THIS RESEARCHFounded in 1998, Delvinia is a digital strategy and This proprietary survey was conducted fromcustomer experience design firm. With customer November 19 to 22, 2010 with a sample of 500insight capabilities powered by AskingCanadians™, Canadians who shop online. Respondents wereour online community of 160,000 Canadians, we sourced from Delvinia’s own AskingCanadians™are able to gain customer intelligence to fuel our panel. Established in 2005, AskingCanadians™ isaward winning strategy and design team. Delvinia is Canada’s most influential online survey communitydedicated to helping its clients in the financial, media, with a panel of more than 160,000 members acrosseducation, retail and technology sectors craft effective Canada. Joining the AskingCanadians™ panel isdigital solutions anchored in customer behaviour. free to Canadians who are in the age of majority in the provinces they reside, or have the permission ofOur mission is simple: create experiences that their parents or legal guardian. Qu’en pensez-vous™enrich people’s lives. We work in partnership with (www.quenpensez-vous.com) is the sister communityour clients to inspire new thinking and approaches in Quebec. www.askingcanadians.com is ownedthat deliver results. We believe digital platforms can and operated by Delvinia Data Collection for morecreate deeper connections between companies and information go to www.delvinia.com/askingcanadians.consumers; by focusing on relevancy, utility and Delvinia also wishes to acknowledge Shoptoitongoing engagement. We also believe that great (www.shoptoit.ca), which surveyed a sample of 360experiences are built in collaboration with the people customers about their online shopping behaviour, forthat use them and continually evolve to meet their their contribution to this report.changing needs.STAY TUNEDWatch for your invitation to the next Delvinia Webinarfeaturing more insights from our latest retail research,including case studies that bring the Delviniaperspective to life.Contact Delvinia today to discuss the significance ofthese insights for your business.Delvinia370 King St WestToronto, ONM5V 1J9www.delvinia.com Insights for your business 19

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