Shopper Insights: New Ways of Captivating Shoppers – Jim Lucas


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Changes in consumers and the retail landscape have completely transformed the shopping experience. Technology, social commerce, and especially mobile, are at the center of this change, directly impacting how consumers interact with brands both online and offline.

Les comportements changeants des consommateurs et du commerce de détail ont complètement transformé l’expérience d’achat. La technologie, les réseaux sociaux et plus particulièrement les téléphones mobiles sont au cœur de ce changement car ils influencent grandement la façon dont les gens interagissent avec la marque et ce, tant en personne qu’en ligne.

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  • Here’s ho w we think about it.The way people shop in one retail setting is often markedly different from others—shopper visiting a c-store for IC beverage or snack is markedly different than a shopper buying for future consumption.How they shop for gifts during holiday is usually different than the way they view a purchase for themselves.Game aisle has shoppers who know, use and love gaming 48 weeks a year; 4 weeks out of the year it is shopped by people buying for others!
  • Worked with retailers in many markets: Wilkinson’s, Lloyd’s (UK); MonoPrix(France); Migros (Turkey); Lotus, B&Q (China); Kroger, Walmart, CVS, Walgreens, Kmart and Best Buy (US).
  • MESSAGE IN A BOTTLE:Issey Miyake is about to bring a new retail concept to Tokyo’s Ginza district. The ElttobTep store, which takes its name from the phrase pet bottle, spelled backwards, opens its doors Friday. The first ElttobTep opened in Osaka in 2007 and this is the chain's second — and much smaller — outpost. The boutique carries an edited range of products from the house including jeans woven from a computer-generated pattern, Miyake’s signature Pleats Please collection and a selection of natural nail polish made from scallop shell powder from Kyoto-based S.Ueba & Co. Shoppers at the store can also order their own color-customized version of a BaoBao bag, a tote constructed of triangular tiles. Graphic designer Taku Satoh came up with the store’s interiors featuring whitewashed walls, exposed ceiling pipes and a quirky storefront window featuring an old dentist chair and antique barber’s pole twisting on its side.Issey Miyake Rolls Out New Retail Concept in TokyoIssey Miyake Rolls Out New Retail Concept in Tokyoby WWD Staff Posted Wednesday March 9, 2011From WWD.COM
  • The new store, dubbed the “Canadian Tire Automotive Store of the Future,” launched in Bowmanville, ON. Oct. 22 in a newly-constructed building that’s over 75, 000 square feet, making it one of the 15 largest stores out of 487 nationally. Similar concepts launched Nov. 3 in existing Orleans and Cambridge, ON. locations. Canadian Tire dealers can adopt the features that best suit the needs of their local markets.The concept incorporates a range of new elements, including a new service reception area with digital menu boards, an auto safety/baby area, and in-aisle digital product look-up technology and digital signage. New stores will also feature approximately 700 new SKUs predominantly in the electronics, cellphone accessories and trailer categories.Other shopper-friendly elements include a redesigned tire wall, which gives people better access to tires, with more merchandise placed at eye-level and turned-out tires so customers can touch and feel the treads and grooves. The tire wall area also includes tire look-up terminals where customers can access product information. There is also a new sound booth area called the Sound Stage, in which customers can test their in-car or marine audio entertainment systems.Read more:
  • TORONTO, ON – The Beer Store, the Ontario beer retail chain jointly owned by brewers Molson Coors, Labatt/AB InBev, and Sleeman/Sapporo, has announced via Facebook a new retail concept called The Beer Boutique.
  • Reflecting the brand's authority, the centerpiece of the store is 'The Shirt Bar,' a counter dedicated to shirting designed to make a task of finding the perfect shirt both easy and enjoyable.  Staffed by Ben Sherman's comprehensively trained experts in shirts, the shirtelier, it is here that customer's questions will be answered and shirting solutions delivered with a premium retail experience. Catering to the inquisitive hoards of shoppers to be found almost permanently in the creative heart of Toronto, the store windows are also something of an enticing showpiece.  Featuring a fully interactive display showcasing a selection of seasonal product, passerby can command articles of their choice to be brought to the forefront of the display where they will be shown 360-degrees in isolation, for their own inspection.
  • Wendy's customers in Etobicoke, ON will have the opportunity to try new menu items in an ultra modern setting as the company opens one of four new concept stores to be tested in North America. It is the first Canadian concept store for the company. Redhead Roasters proprietary blend coffee and fresh baked goods including oatmeal bars, cookies, muffins and brownies will be tested alongside a new customer ordering process, digital menu boards, new service staff uniforms and redesigned product packaging. The new restaurant concept has been designed to deliver more open space, brighter dining rooms with bigger windows and a variety of seating options from booths to high tops to cozy chairs around a fireplace. The new concept is also equipped with free WiFi. Customers will be able to view baking and prep areas, keeping Wendy's fresh food story front and centre.
  • The mobile-optimized Web site is designed to allow consumers to search, browse and buy products whether they are at home, on the go, or in a Heal’s store.
  • Ocado’s QR Code trail came on the heels of Tesco’s Korean adventure! Ocado is launching a 'virtual' high street shop with pictures of groceries.Customers scan the barcodes of products they want to buy using their smartphone - and the goods are delivered to the front doorRead more:
  • How does it work?In the subway stations consumers find oversized wallpaper or posters with product pictures and prices, simulating the look of real products on shelves in the actual drugstore. Consumers can then point their mobile phone at the QR code of desired products and it will automatically submit the order to the online store where they complete the order.  The consumer then receives a message from the delivering parcel service to confirm delivery time.  Apple iOS and Android phone users can download and use a simple free application for ordering, while other phones may require a QR code scanner be added.  Products and timingVirtual drugstore was launched on October 18, 2011 and will be available to Czech consumers until the end of 2011. P&G products have 90% shelf share in the first month. Products included are Ariel, Bonux, Dreft, Lenor, Jar, Pampers, Wella PS, H&S, Pantene, Old Spice, Gillette Venus, and Gillette Fusion ProGlide. More products – small electro, pet food, tea, coffee, and toys will be added in the coming months to facilitate consumers' needs before Christmas time. P&G, in addition to our innovative products, brings to consumers innovative shopping experiences too.   This takes us one step ahead of our competition and brings something new and innovative to the market.  We believe this breakthrough shopping concept will be successful in today’s busy world and modern technologies.
  • You probably remember how Tesco deployed virtual store display in Korean subways which lets you shop products by scanning QR codes. Now the Germans are adopting this approach and the drugstore Budnikowsky put posters shops at eleven busy railway stations around the country. They are made of images just like the Tesco’s ones and are selling products of Aliqua brand of natural cosmetics with the QR Codes resolving to the specific items.
  • Ace Hardware is running geo-targeted ads (w/in Pandora’s iPhone application) that lets consumers save money on products sold at locations closest to them.Deal of the day The Ace Hardware mobile ad reads “20% off. Almost Anything, Saturday, Feb. 25.” Additionally, the mobile banner ads feature the nearest Ace location.When consumers tap on the mobile ad, they are redirected to a mobile landing page that features a promotion – a 20 percent discount on almost everything consumers can fit into an Ace bag.
  • The creation of a ‘village’ around a ‘drive’ format is new to the world of retailing.Chronovillage is based on “click & collect” grocery service; customers drive in and pick up their order (Chronodrive). Makes it easier to shop “perishables” (Partisans du goût allowing shoppers pick their own fresh fruit and produce, the Paul bakery, a Nicolas wine shop, a Pizza parlor and a flower shop).
  • 4010 illustrates the increasing blurring of retail and art. This second 'community store' from Deutsche Telekom has just opened in the trendy city of Cologne. It's an attempt by the brand to build youth appeal with a gallery space that is more about experience than sales. Designed by Parat and branding agency Mutabor, 4010 Koln has the same ethos as the first concept in Berlin's Mitte: The store runs readings, showcases and workshops, and products are secondary to the relaxed and defiantly anti corporate atmosphere.However, where the Berlin store's design is urban and influenced by graffiti style, the Cologne store has a loft style flavour with Pop Art influences. The narrow, slightly awkward space has been given a bright graphic entrance, with stripes coloured in the magenta whose RAL code gives the brand its name (RAL 4010). The interior is themed as an atelier, so the furniture is made of trestles, stretcher frames and canvas. A graphic wall at the back is a constantly changing canvas of artwork. Who says mobile phone stores have to look dull and corporate?
  • What were the marketing objectives for this entry?Procter & Gamble's No. 1 objective was to maintain market share during the transformation of its liquid laundry detergents to a 2x concentrated formula. Because many shoppers make purchases based on how much (quantity) they will get for their money, P&G faced a significant risk for loss of share if the shopper viewed other non-concentrated detergents as better values. Therefore, the top priority was to educate shoppers that they would get the same value (same number of loads) by using 2x concentrated detergent as they did with their original non-concentrated detergent. For shoppers to understand why the change happened and embrace it, it was critical for P&G to also offer new and meaningful performance benefits as a result of compaction.
  • Shopper Insights: New Ways of Captivating Shoppers – Jim Lucas

    1. 1. Shopper Insights  New Ways of Captivating Shoppers Jim Lucas, Dir. Global Retail Insight and Strategy, Draftfcb Montreal March 8-9, 20123/15/2012 1
    2. 2. Introduction & Trends• Shoppers more planful– Pre-tail and In-store• Expanding number of shopping occasions• Changing role of store from Point-of distribution Destination status• Role of Shopper Marketing: – Demonstrate fit with lifestyle (relevance) – Make it easier to find right product for me (shop-ability)• Thinning of Attention – Visual literacy – Me-Here-Now• Why Zone Communications Approach makes sense 2
    3. 3. What’s a Shopper Insight?• Shopper insight goes beyond identifying “who” the shopper is, providing more depth about “why” the shopper behaves a certain way within a category, during a season or within or across specific retailers.
    4. 4. Several Muses can Help Drive Shopper Insights Shopper Store Brand5/11/2011 4
    5. 5. Great !nsightsdo 3 Things:• Inspire the team to look at the problem in a new way• Are the first, most important step in the creative process.• Help change behavior• Remove subjectivity from the process.• Based on observation of shoppers in the shopping context, and why they behave that way.
    6. 6. New Role for the Store• With the many changes in the retail market place, there is a renewed interest of understanding the role of the store within the shopping eco-system.• Two main goals of the eco-system from the perspective of the shopper: 1. Establish relevance to consumer’s lifestyles 2. Make it easier to shop3/15/2012 6
    7. 7. Shopping Visit aisle/section Interact with Choose store product Close purchaseGet on the list Next purchase Consume 3/15/2012 7
    8. 8. Importance of Visual Salience• “Thinning attention spans” require more respectful, sensitive approach to communication.• Two key learnings: – Print model  Visual salience model – 2-3 messages or elements can be communicated – Establish a message heirarchy 8
    9. 9. Visually PrioritizeEasy to Navigate Difficult to Navigate
    10. 10. Gutenberg Diagram No longer dominated by Gutenberg Diagram Visual strategy & objectives Visual salience creates areas that attract attention
    11. 11. Hobnob Wines: Shelf Blades Though the 2 shelf blades are laid out slightly differently, bottle + imagery draws most visual attention. QR code area also draws pretty well— about 50% view on first glance.
    12. 12. Zone Merchandising Evolution Know who the customer is, but also want to know when and where to deliver messages. Understanding where patrons are in their visit allows us to tailor the conversation to speak to them at the right time. Zones help us stage our story in a way that is relevant to consumer’s visit. Within each zone (aperture), patrons behave differently and seek to accomplish different things.
    13. 13. The Science of Shopping Shopper insight goes beyond identifying “who” the shopper is, providing more depth about “why” the shopper behaves a certain way within a category, during a season or within or across specific retailers. Understanding how consumers interact with in-store messaging is challenging given human memory and the short time frames and spatial compression. One of the most useful techniques for garnering insights is… ₋ Mobile eye-tracking—shoppers are fitted with glasses that record their behavior; ₋ This is often augmented by interviews where shoppers view and discuss their behavior (retrospective think alouds)—the why. ₋ “Over-the-Shoulder” utilizes iPhone to get insights directly from shoppers in the retail environment. Insights about broader behavior are developed from observational research and/or video- or sensor-recorded behavior.
    14. 14. Message Mapping: In-Store In-store Zone Role Vehicles/Area Aperture Get in her consideration set; Open to new ideas, inspiration, Pre-tail Advertising,, on her list. solutions. Transition to store expereince; the hello of the conversation; present an Transition Seed simple idea; remind Windows, Stancjions, etc. idea that catches their attention-- new, check out…, introducing, great value. Catch their eye; piques their interest; That looks great, make the purchase Vignettes, merchandising , Impulse Disrrupt routine irresitable; inspiring visuals, engaging displays copy; draw them emotionally; create the urge to buy! Where the patron makes purchase; Destination Make it easy to choose Price tags, rack/shelf signage. create a clear path to purchase; clear communication of benefit, price. Whats next; complete the Vignettes, merchandising , Plant an idea for the next visit;Bounceback/Cross-sell look. displays; sales associate. accessorize; if you like…try this… Reinforce, reassure purchase; Reassurance At the cashwrap; at home, etc. Reassure patrons that they have made reduce buyers remorse. a great purchase; RTB; social proof.
    15. 15. Pre-tail• Role: Get in her consideration set; on her list.• Apertures: Open to new ideas, inspiration or solutions.
    16. 16. Transition Role:Seed simple idea; remind. Aperture:Transition into Edgars experience; the hello of the conversation; present an idea that catches their attention-- new, introducing, remember how good…, value, great for occasion.
    17. 17. Impulse Role:Disrupt routine/habit. Aperture:Catch their eye; pique their interest; That Clusters of Mannequins serves as a looks good, ‘Like that look!; gateway to departments-Nordstroms Naples, Fla. Below, visual merchandising make the purchase tells the story. irresistible; visuals, engaging copy; draw them emotionally; create the urge to buy!
    18. 18. Destination• Role: Make it easier for the shopper to find the right product for her. How to shop HeatTech winter clothing (Uniqlo).• Aperture: Educate, aid, clear JC Penney’s new fair and square communication of pricing in-store. price/value. IKEA’s how to buy a pillow.
    19. 19. Bounceback/Cross-sell Role:Whats next? Aperture:Plant an idea for the next visit. All Saints iPads used in store to aid Complete the look. accessorization, fea ture catalog. Try this… Red and black striped blazer paired with basic black dress and gold star accessories complete fashion forward evening look (Edgars).
    20. 20. Reassurance Role:Reinforce, reass ure purchase. Macy’s denim reassures, provides Aperture:Reassure confidence by showing different fits Best Buy’s ‘Walk out working”, aids and patrons that they reassures shoppers. have made a great purchase; RTB; social proof.
    21. 21. Role of the Store• Make it worthwhile for the shopper to visit the store• Shoppers are more pragmatic, knowledgeable and discerning• Shoppers are demanding a more seamless retail experience and rise of digital (shopping ecosystem)• The demand for a more human retail experience3/15/2012 21
    22. 22. Destination Status5/11/2011 22
    23. 23. Backstory: Re-tale, Store-y• Backstory makes it easier to understand and remember3/15/2012 23
    24. 24. The ElttobTep Store in Tokyo: Issey Miyake New Retail Concept3/15/2012 24
    25. 25. Upside down Gap Store3/15/2012 25
    26. 26. Canadian Tire Launches New Auto Retail Concept• The new automotive concept store focuses on elevating the customer experience by providing a solutions- oriented approach to automotive needs, and providing customers with the information they need to make informed purchase decisions. 26
    27. 27. The Beer Store’s New Beer Boutique boutique/ 27
    28. 28. Tate + Yoko by Naked And Famous 9069 St-Laurent Montreal, Quebec Canada H2N 1M9• Over the holidays Naked & Famous Denim opened a new retail concept boutique called Tate + Yoko (Tate + Yoko translates to “Warp + Weft” in Japanese) in their hometown of Montreal.• The store features 40s and 50s aesthetics that inspire many of the labels, as well as the playful and tongue in cheek attitude Naked and Famous are known for: vintage comic book pages line the walls of the dressing rooms and there is ice cold Ramune soda in the old Pepsi cooler.• The shop itself is fitted almost entirely with vintage industrial fixtures as well as custom metal piping, hangers and racks. famous 28
    29. 29. Ben Sherman arrives in Toronto• Reflecting the brands authority, the centerpiece of the store is The Shirt Bar, a counter dedicated to shirting designed to make a task of finding the perfect shirt both easy and enjoyable.• Staffed by Ben Shermans comprehensively trained experts in shirts, the shirtelier, it is here that customers questions will be answered and shirting solutions delivered with a premium retail experience. its-arrival-in-toronto-presenting-a-new-retail-concept 29
    30. 30. Wendys Tests New Restaurant Concept in Canada• Wendys customers in Etobicoke, ON will have the opportunity to try new menu items in an ultra modern setting as the company opens one of four new concept stores to be tested in North America. It is the first Canadian concept store for the company. – Redhead Roasters proprietary blend coffee and fresh baked goods including oatmeal bars, cookies, muffins and brownies will be tested. – A new customer ordering process, digital menu boards, new service staff uniforms and redesigned product packaging. 30 restaurant-concept-in-canada
    31. 31. Extending the Store 31
    32. 32. JCPenneyStrengthens New Ad Campaign via M-commerce• The company is running audio and full page ads within Pandora’s iPhone application. JCPenney unveiled its new fair and square pricing last month.• Additionally, the initiative also includes one return policy, which lets consumers return any item, anytime and anywhere.• The mobile and audio ads running in Pandora explain the fair and square program and encourage consumers to take advantage.• When users tap on the mobile ads, they are redirected to the company’s mobile site where they can shop the latest men’s, women’s, home and bed and bath products. 32
    33. 33. Heal’s: Mobile Shopping• Furniture, lighting and home accessories store Heal’s has introduced a mobile commerce-enabled site that lets consumers search, browse and buy from its inventory.• Heal’slaunched its mobile commerce site to give consumers more options to shop its products no matter where they are.• Strategy is to provide valuable customers with access to Heal’s’ products anytime, anywhere from the convenience of their smartphones. 33
    34. 34. Glamour Unveils Apothecary Wall• Most recently, Glamour unveiled its Apothecary Wall that features products from Unilever and Juicy Couture.• The Apothecary Wall has SpyderLynkSnaptags next to each product. Users are encouraged to download Glamour’s Friends & Fans iPhone app to scan the mobile bar code and buy the featured product right then and there.• Thousands made purchases through app over the holidays. mobile-bar-codes-changing-the-way-consumers-shop 34
    35. 35. Toys R Us Virtual Store for Holidays• Toys R Us has rolled out a virtual store that lets consumers scan QR codes featured on billboards and shop the company’s 2011 Hot Toy List.• On-the-go commuters and travelers in the New York metro area can take part in the initiative. Billboards located in John F. Kennedy International Airport, LaGuardia Airport and nearly 40 NJ Transit Stations feature the showcased items.• The virtual stores were in place through Dec. 31. encourages-holiday-mobile-shopping-via-interactive-virtual-store 35
    36. 36. Ocado Technology• Brings Whole New Meaning to ‘Window Shopping. Ocado is launching a virtual high street shop with pictures of groceries.
    37. 37. P&G and introduced First Virtual Drugstore in Czech Republic mallcz-introduced-first-virtual-drugstore-czech- republic
    38. 38. Budnikowsky
    39. 39. Target-Jason Wu Host One-Day-Only Pop-Up Store in Toronto 39
    40. 40. Ace Hardware drives In-store Traffic via Geo-targeted Mobile Campaign• Ace Hardware is running geo-targeted ads (w/in Pandora’s iPhone application) that lets consumers save money on products sold at locations closest to them.• Deal of the day The Ace Hardware mobile ad reads “20% off. Almost Anything, Saturday, Feb. 25.” Additionally, the mobile banner ads feature the nearest Ace location. 40 drives-in-store-traffic-via-geotargeted-mobile-campaign
    41. 41. AuchanChronoVillage© Linéaires - 3/15/2012 41
    42. 42. Engage, Educate, Inspire & Expedite 42
    43. 43. Mango• Mango connects with a global shopper base via its by blog and engaging “What should I wear Mango” video mini-series. 43
    44. 44. “To elevate the world from mediocrity to greatness.” 44
    45. 45. • Uniqlo has devoted effort to product innovation, based customer feedback, rather than fashion trends. 45
    46. 46. Choice editor, Tastemakers, Curators &Content Creators• In the connected world, access to fashion has been democratized and store choice is boundless.• Creating a voice that breaks through the clutter and connects with the shopper is critical.• Retailers and suppliers must find ways to tell a compelling brand story as shoppers become more selective. Chico’s editor and style expert, Sher Canada, speaks to its• The store as choice editor, deployment of target tastemakers, curators, and content creators is important for connecting with shoppers and establish a new level of trust is elevated. 46
    47. 47. Experience 47
    48. 48. “I’ve always loved the way fruit andvegetables are displayed in a grocery store.” -Mark Constantine, LUSH’s Managing Director • Fresh • Handmade • Naked • Minimal preservatives 48
    49. 49. Mark’s Walk-in Weather Lab• Walk-in Freezer Lab converted a walk-in freezer into a “weather lab,” encouraging consumers to test out the retailer’s sub-zero outerwear, in temperatures dropping to minus 40 degrees C, and simulating wind chill.• Inside the fixture, a bar with a handle allows customers to grip and test the efficacy of gloves, a metal pan encourages testing of boots on an icy surface. 49
    50. 50. Icebreaker TouchLab, New York• This New Zealand adventure apparel brand has New Yorkers saying, “I can’t believe this is wool” 50 Source: VMSD, accessed April 4, 2011.
    51. 51. 4010 Telekom Shop, Cologne3/15/2012 51
    52. 52. Fairy Dish Liquid with Olay: Removes Grease, Helps Preserve your Hands Beauty Shelf topper Floor graphicShelf blade
    53. 53. Pampers Value Equations1 Pamper = 1 Night of Sleep
    54. 54. Nivea Invisible Deo: It is Black & White
    55. 55. Clinique Dark Spot Corrector
    56. 56. Laundry Concentrates Value Reassurance
    57. 57. IKEA:Finding the Right Pillow
    58. 58. Seattle’s Best: As Easy as 1,2,3,4,5Mild Bold
    59. 59. Store Shelf
    60. 60. Robitussin Relief Finder
    61. 61. Technology: Shopper Advocate• Increasingly complex technology• How can Best Buy demonstrate its leadership role as “shopper advocate” – 28% store visits ended with an average of $132 unspent from abandoned purchases driven by , limited store associate assistance, deal-habituated behavior, out-of-stocks and long check-out lines*• Shoppers doing more online research – 39% say smartphone affects purchase*• Product  Purpose * Source: Motorola Shopper Survey, January 2011. 61
    62. 62. Technology: Shopper Advocate 62
    63. 63. Technology: Shopper Advocate 63
    64. 64. Technology: Shopper AdvocateProduct specifications Customer reviews 64 Store availability
    65. 65. Takeaways• Shoppers are more planful• Experience provides better attachment to brand…• Product features  Purpose• Possessions  Experiences• Augers a new role for the store 65
    66. 66. New Role for the Store• How can POS marketing help us be successful in evolving the store’s new role?• Focus on the 2 main goals of the eco-system form the perspective of the shopper: 1. Establish relevance to consumer’s lifestyles 2. Make it easier to shop 66
    67. 67. Visual Merchandising: Marketing Lever & Sales Driver• Appealing look & feel is primarily intended to attract shoppers to the store or department; entice shoppers who came to the store for another reason.• Display Organization and Decision-support Signage makes it easier for shopper to find the products they want.• Cross-merchandising is a way to increase average basket size by driving unplanned purchases. 67
    68. 68. Look & Feel• Reputational: – Basis—actual or perceived basis for retailer or category (All American, Classic, Traditional) – Reputation—retailer or department’s image (Market leader, Recommended by Specialists) – Personality—key personality or character traits associated with retailer or department (Affordable fashion, Fashion Forward) 68
    69. 69. Look & Feel• Rational: – Shopping process benefits —how the shopping experience is perceived (well-organized, easy-to- make choices) – Relationship benefits —consistency of positive experience (choice editor, always fresh) 69
    70. 70. Look & Feel• Emotional: – Personal associations —how the store or category fits my lifestyle (for trendy people like me, – Internal emotions – how the store or department makes me feel (cool, comfortable) – Perceived value – perceived value of the proposition of store or category (premium, affordable) 70
    71. 71. Close• Exciting time of challenge to make the store a desired destination for shoppers• Understand and leverage the entire shopping eco- system• Many advantages flow from store as desired destination – Traffic – Conversion – Basket size• Better experience creates better brand connection, which helps strengthen the relationship with shoppers over time. 71
    72. 72. Twitter: @retailecologistEmail: 72