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4 S I G H T
T O P L I N E
the journey to loyalty goes through
their hearts
Emotional Shoppers
© 2015 Foresight Momentum
= { E X P E R I E N C E + B E H A V I O U R + C U L T U R E + S Y S T E M S }
April 2015
TABLE OF CONTENTS
• EMOTIONAL LOYALTY OF CANADIANS …3
• WHAT IS EMOTIONAL LOYALTY? …4
• PROJECT BACKGROUND …5
• WOMEN’S FAVOURITE STORES …6
• MEN’S FAVOURITE STORES …7
• WHAT INFLUENCES SHOPPER EMOTIONS? …8
• WOMEN’S SHOPPING EMOTIONS …9
• MEN’S SHOPPING EMOTIONS …10
• EMOTIONAL CONNECTION METER …11
• SCORES BY SUPER-LOYAL SHOPPERS
…12
• P12M GROCERY STORE VISITS …13
• EMOTIONAL CONNECTION METER: GROCERY …14
• STORE LOYALTY CARDS & APPS …15
• APPENDICES …16
• ABOUT FORESIGHT MOMENTUM …19
EMOTIONAL LOYALTY OF CANADIANS
What do people expect when they shop? Good prices &
selection, wide aisles, fresh product, super service, free
delivery? What do people want, deep inside their
hearts, when they come to the store? Why they love
some stores and care less about others?
This 4SIGHT topline report summarizes the findings of
our recent Canadian Shopper survey about emotional
loyalty & connection. Here are a few ideas for retail
brands that want to build stronger emotional loyalty:
 Excel at the basics, deliver excellent 360 customer
experience, differentiate your brand.
 Offer something beyond commodity: surprising,
unexpected, enabling, empowering, cool, etc.
 Build one-on-one relationships and social dialogue.
 Appeal to deep value-expressive and ego-defensive
human motives.
 Build marketing content inspired by shopper
emotional territories.
 Elevate the Loyalty game: expand beyond loyalty
points, test targeted content, offer solutions – not
deals, appeal to heart and higher values.
 Elevate the Digital game: go beyond a digital flyer,
test micro-targeting, content marketing, geo-
targeting, beacons, etc.
If you find these insights useful or intriguing, and want to learn more,
please contact Lana Novikova at lana@foresightmomentum.com or
416.702.7837.
We offer complimentary lunch-n-learns, affordable custom research,
custom analytics, strategic consulting, and ½ day training workshops.
© 2015 Foresight Momentum PAGE 3
4 S I G H T
T O P L I N E
Markets run on an enormous amount of
unspoken and often unnamed consumer
motive.
(by Future Foundation, 2014)
WHAT IS EMOTIONAL LOYALTY?4 S I G H T
T O P L I N E
*Source: Russell-Bennett, Rebekah, Härtel, Charmine E.J., & Worthington, Steve (2013) Exploring
a functional approach to attitudinal brand loyalty. See Functions description in the Appendix.
Brand
Loyalty
Behavioural
Dimensions
“I do”
Attitudinal
Loyalty
Cognitive
Dimensions
“I think”
Utilitarian
Function
Knowledge
Function
Emotional
Dimensions
“I feel”
Value-
expressive
Function
Ego-
defensive
Function
“I always buy the same
brand of milk on
autopilot. I never think
about it twice.”
“This grocery store
has good prices,
decent selection
and convenient
location.”
“I have done
extensive research
on car brands when
I bought my first
Ford. It served me
well. I buy same
brand ever since.”
“I care about my
family’s health and
the planet. I choose to
buy organics and
know where our
meats comes from.”
“I want to look and
feel great. Some
brands help me
feel that way. I am
worth it.”
© 2015 Foresight Momentum PAGE 4
PROJECT BACKGROUND
 We reached out to 300 urban shoppers from
Toronto and Vancouver – both men and women of a
wide age range, with kids or without, most with $40K+
income*.
 We asked them to name three of their favourite stores
and three words that describe what they feel while
shopping there.
 Then we applied a new “emotional connection”
meter – two very simple questions designed to
measure the quality and the depth of connection
between an individual and a brand.
© 2015 Foresight Momentum PAGE 5
4 S I G H T
T O P L I N E
* Please see Household Composition and Income Charts in the Appendix.
WOMEN’S FAVOURITE STORES
© 2015 Foresight Momentum PAGE 6
4 S I G H T
T O P L I N E
Women’s
Favourite
Stores in
P12M
(475 stores
mentioned
UNAIDED;
n=172)
TJX stores
(11% of all
mentioned incl.
Winners,
HomeSense,
Marshals)
On-line
Retail
(7% - Amazon,
1% Ebay)
Branded
Apparel
(27% inc. Gap,
Forever21, H&M,
Old Navy, Banana
Republic, etc.)
Costco
(5% of all
mentioned)
Walmart
(9% of all
mentioned)
Target
(2%)
Sephora
(2% of all
mentions)
Grocery
stores
(13% of all
mentioned)
Top 5
Banners
Mentioned:
1) RCSS
2) No Frills
3) Loblaw's
4) Safeway
5) Longos &
Metro
Depart.
Stores
(4% incl. Bay
& Sears)
Book
Stores
(2%)
Shopper’s
Drug Mart
(3%)Home
Improvement
(3%)
Women love to
shop
- They enjoy branded
clothes and shoe
stores.
- Women love the
“discovery” of
browsing for ideas and
great deals at Winners
and Home Sense.
- Wal-Mart, Amazon
and Costco are their
top bargain choices.
- 13% of all the
“favourite stores”
mentioned by women
are Grocery stores.
13
%
MEN’S FAVOURITE STORES
© 2015 Foresight Momentum PAGE 7
4 S I G H T
T O P L I N E
Men’s
Favourite
Stores in
P12M
(384 stores
mentioned
UNAIDED;
n=133)
TJX
stores
(2%)
On-line
Retail
(10% - Amazon,
5% Ebay of all
mentioned)
Branded
Apparel
(11% of all
mentioned)
Costco
(6% of all
mentioned)
Walmart
(12% of all
mentioned)
Target
(2%)
Grocery
stores
(16% of all
mentioned)
Top 5
Banners
Mentioned:
1) No Frills
2) RCSS
3) Loblaw's
4) Safeway
5) Metro &
Food Basics
Depart.
Stores
(9% incl. Bay
& Sears)
Electro-
nics
(8%)
Shopper’s
Drug Mart
(1%)
Home
Improve-ment
(7%)
Men love
shopping just as
much
- They love e-shopping on
Amazon and Ebay.
- Electronics and Home
Improvement stores come
up high on the list, yet
hardly get mentioned by
women.
- Clothes are important to
men, but not as much as
they are to women.
- 16% of all the “favourite
stores” mentioned by men
are Grocery Stores.
16
%
I. Objective factors
Such as store category, channel, banner/brand,
floor layout, shelf layout, aisle width, fixture
design, store environment (light, smell,
temperature, sound, parking lot, bathrooms, etc.),
in-store communication, product, pricing,
assortment, package design, promotions, etc.
II. “Human” factors
Such as her/his personality type and demographics, state of
mind or mood, needs, desires, habits, her perceptions of the
Objective or Situational factors (ex.: “unaware,” “indifferent,”
“negative,” “positive”), hormone-based sensory type, shopping
style, price sensitivity, biological factors (vision, physique,
height, etc.) & more.
III. Situational factors
Such as time of day, weather, how busy or not she/he is at
the moment, commute, in-store service, shopping occasion,
shopping mission, budget, store atmosphere, exposure to
pre-trip communication/social media messages, etc.
WHAT INFLUENCES SHOPPER EMOTIONS?
4 S I G H T
T O P L I N E
© 2015 Foresight Momentum PAGE 8
Shopping experience is the
sum total of every interaction a
consumer has with your store
before, during and after the
transaction, the sum total of an
individual’s perceptions &
feelings of your organization.
It's based on all the direct and
indirect interactions she has
with you.
Pine and Gilmore, The Experience Economy
WOMEN EMOTIONS
© 2015 Foresight Momentum PAGE 9
4 S I G H T
T O P L I N E
Interesting emotional
territories to explore:
1. Positive affect & excitement
2. Relaxation & ease
3. Inspiration & engagement
4. Satisfaction
5. “Clever bargain hunter”
6. Look & style
7. Convenience & comfort
8. Surprise & curiosity
9. Being in control
10.Accomplishment
11.Visual appeal & design
12.Relief
13.Reward
14. A hero / winner
15. Special & pampered
16. Creativity
17. Anticipation
18. Freedom to explore
19. “Like a kid in a candy shop”
20. Creative
0 10 20 30 40 50 60 70 80 90
Happy/delighted/good/enjoyment/fun
Relaxed/nice/calm/easy/content/peaceful
Excited/over-joyed/thrilled/amaizing/dazzled/exhilarated
Sa sfied/pleased/fulfilled/impressed/empowered
Inspired/Interested/engaged/s mulated/enthusias c/
"Clever bargain hunter" (price-conscious/frugal/thri y)
A rac ve (classy/trendy/in style/cool/fashionable)
Comfortable/convenient
Surprised/curious & intrigued
In control/organized/prac cal
Fine quality/high class/sophis cated
Confident
Overwhelmed
Valuable/valued/appreciated/important
Accomplished/Pleasure from things done/produc ve
Efficient/smart/intelligent
Clean
Energe c/energized
Good choice/selec on/variety
Money savvy/well spent
Visually appealling/Art/visual/style/nice pictures/info
Like a kid in the candy store
Relieved
Sexy
Rewarded (love loyalty points)
Family me
Finally I found it!
Feel desire
Pampered/special
Compe ve
Crea ve
Eco-friendly
An cipa on/expectant
Fast
Flexible
Focused
Free to explore
Fresh
Friendly
Healthy
Jealous
Learn a lot
"Like I wasn't ge ng ripped off"
"Like a winner"
Like my needs were being a ended to
Lucky
Made for me
No rush
Pre y
Safe
Sporty
Trust
Welcomed
Within budget
Young
MEN EMOTIONS
© 2015 Foresight Momentum PAGE 9
4 S I G H T
T O P L I N E
Interesting emotional
territories to explore:
1. Positive affect
2. Inspiration & intrigue
3. Relaxation & peace
4. Just fun
5. Thrifty fun
6. Appreciated & valuable
7. Respect
8. Stylish & cool
9. Freedom
10. Accomplishment
11. Beauty & design
12. Creativity
13. Prestige
14. Success
15. Challenge
16. Liberation
0 10 20 30 40 50 60 70 80 90
Happy/good/great/enjoyable/nice/pleasure
Interested/Inspired/Intrigued/Surprised/Engaged/
Excited/Amazed/ecsta c/elated/fantas c/awed/facinated
Easy/relaxed/calm/peaceful
Fun
Saving money/Value/frugal/ge ng a good deal/Economical
Convenient
Sa sfied/Fulfilled
Thri y/cheapest prices
Comfortable
Fast/Quick
Experienced/smart
Appreciated/welcomed/valuable/respected/Looked a er
Stylish and cool
Energe c/refreshed
Free
Friendly
Safe
Proud/Accomplished
Beau ful / Colourful
Canadian
Clean
Crea ve
In control "I had op ons"
Knowledgeable
Pres ge/Privileged
Powerful/mighty
Successful/Rich
Worthy
At home
"Big"
Casual
Challenged
Chores
Determined
Equipped
Helpful
Libera ng
Op mis c
Organized
Produc ve
Relief
Rewarded
Unique
Informed
EMOTIONAL CONNECTION METER
4 S I G H T
T O P L I N E
© 2015 Foresight Momentum PAGE 11
 Net Promoter Score (NPS) is a well-accepted single
measure of customer loyalty. With all its pros and cons, it is
useful for businesses, and easy for responders to answer,
even on mobile.
 Emotional Loyalty goes deeper than other Loyalty types,
and is a complex concept to understand, let alone to
measure – whether with a traditional survey or new neuro-
and implicit research tools.
 We set up to find a simple way to measure and track
Emotional Loyalty. First question is a simple 5-point-scale
rating of connection between the responder and the
brand/product.
 Then, using Neuroscience and Cognitive Psychology, we
identified 12 key types of emotional connection.
 We validated each type of connection and a corresponding
image with an in-house research using text and quantitative
analysis.
 The new measure – Type of Connection - adds depth,
substance and “colour” to the Emotional Connection Score.
SCORES BY SUPER-LOYAL SHOPPERS*
4 S I G H T
T O P L I N E
PAGE 12
Emotional
Connection score:
4.1 out of 5
Type of connection:
“SATISFIED
BUSINESS
CONNECTION”
Emotional
Connection score:
3.7 out of 5
Type of connection:
“SATISFIED BUSINESS
CONNECTION” &
“JOYFUL AFFECTION”
Emotional
Connection score:
3.7 out of 5
Type of connection:
“FRIENDSHIP &
ADVENTURE” and
“SATISFIED BUSINESS
CONNECTION”
© 2015 Foresight Momentum
Emotional Connection
score:
4.1 out of 5
Type of connection:
“SATISFIED BUSINESS
CONNECTION” &
“COMFORTING HUMAN
CONNECTION”
* “Super-loyal”
shoppers are
responders who
named the store as
one of their
favourites (unaided)
P12M GROCERY STORE VISITS
4 S I G H T
T O P L I N E
© 2015 Foresight Momentum PAGE 13
 We picked 12 grocery banners popular in Toronto and Vancouver, and asked if
our responders shopped in each banner in the past 12 months.
 Then we asked responders to rate each banner using the Emotional Connection
Meter.
EMOTIONAL CONNECTION METER: GROCERY
4 S I G H T
T O P L I N E
© 2015 Foresight Momentum PAGE 14
Costco Fortino
s
IGA Loblaw
s
Longo’s Metro Overw. RCSS Safewa
y
Sobeys W-Mart Whole
Foods
3.6 3.3 2.9 3.5 3.4 3.2 3.7 3.6 3.3 3.1 3.5 3.3
1.8 1.3 1.4 1.7 1.2 1.4 1.2 1.8 1.6 1.5 2.1 1.4
P12M
Visitors
Non-
Visitors
* Connections scores are based on ratings from 5 (“Very connected/Close”) to 0 (“Very disconnected/Far”);
sample size 70+.
 As expected, shoppers who visited a banner in the
past 12 months, rated their connection with the banner
much higher than those who did not visit it.
 The higher the score, the closer is “reported” emotional
connection to the store.
 On page 12, we showed the scored of 4 stores given
by the super-loyal shoppers, that range between 3.6
and 4.1. We can use it as a “high bar” measure.
 We intend to release more studies in different
categories utilizing this simple tool that measures the
“heart” of emotional loyalty between your brand and
your shopper/consumer. Stay tuned!
STORE LOYALTY CARDS & APPS
 According to a 2015 Yahoo study, 22 million Canadians
(90%) have on average 4 loyalty cards.
 93% of our urban responders use “store” cards regularly;
most of them use 1 to 4 cards.
 Though almost half urban shoppers regularly use store
apps, there is an untapped opportunity to get on smart
phones of 40% who currently don’t have or don’t use
apps.
© 2015 Foresight Momentum PAGE 15
4 S I G H T
T O P L I N E
APPENDIX: HH COMPOSITION & INCOME
© 2015 Foresight Momentum PAGE 16
4 S I G H T
T O P L I N E
APPENDIX: FUNCTIONS OF BRAND LOYALTY4 S I G H T
T O P L I N E
*Source: Russell-Bennett, Rebekah, Härtel, Charmine E.J., & Worthington, Steve (2013)
Exploring a functional approach to attitudinal brand loyalty.
COGNITIVE:
Utilitarian
Function
•The utilitarian function is
based on evaluating
alternatives on performance
criteria and then selecting a
brand that meets those
requirements.
•The utilitarian function is
roused through experience
rather than verbal information
(WOM); thus, consumers that
repurchase brands are likely
to be satisfied with their
experiences using the brand,
rather than hearing about the
performance of the brand.
•The utilitarian function leads
to attitudinal brand loyalty
when a brand is proven to be
value for money, or the best
‘deal’, owing to the
consumer comparison of its
attributes with competitive
brands.
•Consumers who are loyal for
utilitarian reasons are
responsive to brand
performance messages, but
are also opportunistic –
always looking for a better
deal and comparing utilities.
COGNITIVE:
Knowledge
Function
•This function involves the
mental organization of
complex information in a
meaningful way to assist
people to make decisions
easily and without having to
refer to the detailed attribute
information that was originally
used.
•This function is the driving
force behind the rational side
of loyalty for high ticket
purchases like cars,
computers and real estate.
•The knowledge function is an
explanation for why highly
experienced consumers tend
to stay loyal to a brand.
•It allows consumers to have a
readily established base of
heuristics and schemes, and
results in maintenance of
existing brand choices.
•Consumers perceive the
knowledge function as
reducing cognitive effort by
buying a brand that was
mentally categorized as top
of mind, considered
trustworthy and reliable, and
was as a result of a long
history of using the brand.
EMOTIONAL:
Value-expressive
Function
•The underlying motivation
represented by this function is
the need to buy brands that
are consistent with, or express,
one’s values.
•The brand is used as a symbol
for self-expression.
•Consumers perceived the
value-expressive function as
allowing them to make
buying behaviour congruent
with lifestyle, aspirations,
values, ethics and loyalty to
region or country-of-origin.
•Powerful consumer trends of
Health & Wellness, organics,
local food, Fair Trade, Green
consumption, and others are
fueled by the value-
expressive function.
•Food retailers and food
service businesses that stand
out on the basis of their
values have a big marketing
advantage to create deep
and passionate loyalty and
evangelism, command
premium prices, and establish
long-lasting relationships with
the community (ex.: Whole
Foods, Trader Joe’s,
Wegmans, Chipotle, etc.)
EMOTIONAL:
Ego-defensive
Function
•This function is predicated on
Freudian defense
mechanisms that help people
deal with emotional conflict
and feel better about
themselves, and thus, relates
to personal identity.
•The ego-defensive function is
being served when the
consumer perceives buying
the brand as contributing to
their esteem or boosting their
ego.
•Consumers perceive the ego-
defensive function as a way
to show others how far they
have come in their lives,
bolster self-esteem, and
improve self image.
•This function does not involve
much planning, is quite
spontaneous and reactive.
•Many luxury brand purchases
are driven by this function.
•The value-expressive and
ego-defensive functions often
overlap, especially on sub-
conscious level, for example,
choosing to drive a Toyota
Prius in a “green”
neighborhood could be both
about your “green” value
and an ego-defense.
© 2015 Foresight Momentum PAGE 17
FOOD FOR THOUGHT
4 S I G H T
T O P L I N E
© 2015 Foresight Momentum PAGE 18
It is no longer about the physical connection of products with consumers.
This is simply a point of entry. Far more important is the “mind”
connection… In order to fulfill consumer demands, we must first determine
how to make our value offering so powerfully satisfying that it actually
changes the consumer’s brain chemistry… it must be so mentally and
emotionally compelling that at the mere mention of the brand or retailer or
service, the consumer’s brain releases a shot of dopamine, which triggers
an instant desire to get or go to that brand.
It is achieved when a retailer/brand/service creates a strong psychological
and physical response that operates on a subconscious level… and that is
typically not readily understood or necessarily recognized by the consumer.
Simply stated, a brand or store has a neurological connection with
customers if they approach the store visit as they would a visit to a home of
a good friend. The trip requires almost no effort because they know it is
going to be a fun and enjoyable experience.
Robin Lewis & Michael Dart
It’s one thing to satisfy people’s interests, give them what they want.
But people’s lists of what they want are endless. That builds
situational satisfaction, but not enduring emotionally-based
satisfaction. To get people to really buy into you as an idea,
something has to be part of the mix which in beyond commodity. You
have to give people something surprising and let them take it as a
provocation to explore something about themselves and about
experience that was beyond expected. It’s a SELF-EXPENSION
ISSUE – not satisfaction issue.
Dr. Bob Deutsch on the Buzz Council, 2014, Youtube
ABOUT FORESIGHT MOMENTUM
We focus on answering four fundamental
questions: WHO, WHY, WHEN and WHERE
behind consumer desires and shopper decisions,
so you can focus on HOW to optimize your
marketing and innovation strategies and build your
brands. We partner with you to connect the dots
and help you optimize your marketing
effectiveness.
Foresight Momentum is a new Integrated
Consumer Insight Consultancy in Toronto.
Passionate experts in the fields of human insight,
predictive analytics, psychology, neuroscience,
technology and business, we offer full-service,
integrated market research and analytics
solutions.
© 2015 Foresight Momentum www.foresightmomentum.com lana@foresightmomentum.com

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4SIGHT_EMLoyalty Study_April2015

  • 1. 4 S I G H T T O P L I N E the journey to loyalty goes through their hearts Emotional Shoppers © 2015 Foresight Momentum = { E X P E R I E N C E + B E H A V I O U R + C U L T U R E + S Y S T E M S } April 2015
  • 2. TABLE OF CONTENTS • EMOTIONAL LOYALTY OF CANADIANS …3 • WHAT IS EMOTIONAL LOYALTY? …4 • PROJECT BACKGROUND …5 • WOMEN’S FAVOURITE STORES …6 • MEN’S FAVOURITE STORES …7 • WHAT INFLUENCES SHOPPER EMOTIONS? …8 • WOMEN’S SHOPPING EMOTIONS …9 • MEN’S SHOPPING EMOTIONS …10 • EMOTIONAL CONNECTION METER …11 • SCORES BY SUPER-LOYAL SHOPPERS …12 • P12M GROCERY STORE VISITS …13 • EMOTIONAL CONNECTION METER: GROCERY …14 • STORE LOYALTY CARDS & APPS …15 • APPENDICES …16 • ABOUT FORESIGHT MOMENTUM …19
  • 3. EMOTIONAL LOYALTY OF CANADIANS What do people expect when they shop? Good prices & selection, wide aisles, fresh product, super service, free delivery? What do people want, deep inside their hearts, when they come to the store? Why they love some stores and care less about others? This 4SIGHT topline report summarizes the findings of our recent Canadian Shopper survey about emotional loyalty & connection. Here are a few ideas for retail brands that want to build stronger emotional loyalty:  Excel at the basics, deliver excellent 360 customer experience, differentiate your brand.  Offer something beyond commodity: surprising, unexpected, enabling, empowering, cool, etc.  Build one-on-one relationships and social dialogue.  Appeal to deep value-expressive and ego-defensive human motives.  Build marketing content inspired by shopper emotional territories.  Elevate the Loyalty game: expand beyond loyalty points, test targeted content, offer solutions – not deals, appeal to heart and higher values.  Elevate the Digital game: go beyond a digital flyer, test micro-targeting, content marketing, geo- targeting, beacons, etc. If you find these insights useful or intriguing, and want to learn more, please contact Lana Novikova at lana@foresightmomentum.com or 416.702.7837. We offer complimentary lunch-n-learns, affordable custom research, custom analytics, strategic consulting, and ½ day training workshops. © 2015 Foresight Momentum PAGE 3 4 S I G H T T O P L I N E Markets run on an enormous amount of unspoken and often unnamed consumer motive. (by Future Foundation, 2014)
  • 4. WHAT IS EMOTIONAL LOYALTY?4 S I G H T T O P L I N E *Source: Russell-Bennett, Rebekah, Härtel, Charmine E.J., & Worthington, Steve (2013) Exploring a functional approach to attitudinal brand loyalty. See Functions description in the Appendix. Brand Loyalty Behavioural Dimensions “I do” Attitudinal Loyalty Cognitive Dimensions “I think” Utilitarian Function Knowledge Function Emotional Dimensions “I feel” Value- expressive Function Ego- defensive Function “I always buy the same brand of milk on autopilot. I never think about it twice.” “This grocery store has good prices, decent selection and convenient location.” “I have done extensive research on car brands when I bought my first Ford. It served me well. I buy same brand ever since.” “I care about my family’s health and the planet. I choose to buy organics and know where our meats comes from.” “I want to look and feel great. Some brands help me feel that way. I am worth it.” © 2015 Foresight Momentum PAGE 4
  • 5. PROJECT BACKGROUND  We reached out to 300 urban shoppers from Toronto and Vancouver – both men and women of a wide age range, with kids or without, most with $40K+ income*.  We asked them to name three of their favourite stores and three words that describe what they feel while shopping there.  Then we applied a new “emotional connection” meter – two very simple questions designed to measure the quality and the depth of connection between an individual and a brand. © 2015 Foresight Momentum PAGE 5 4 S I G H T T O P L I N E * Please see Household Composition and Income Charts in the Appendix.
  • 6. WOMEN’S FAVOURITE STORES © 2015 Foresight Momentum PAGE 6 4 S I G H T T O P L I N E Women’s Favourite Stores in P12M (475 stores mentioned UNAIDED; n=172) TJX stores (11% of all mentioned incl. Winners, HomeSense, Marshals) On-line Retail (7% - Amazon, 1% Ebay) Branded Apparel (27% inc. Gap, Forever21, H&M, Old Navy, Banana Republic, etc.) Costco (5% of all mentioned) Walmart (9% of all mentioned) Target (2%) Sephora (2% of all mentions) Grocery stores (13% of all mentioned) Top 5 Banners Mentioned: 1) RCSS 2) No Frills 3) Loblaw's 4) Safeway 5) Longos & Metro Depart. Stores (4% incl. Bay & Sears) Book Stores (2%) Shopper’s Drug Mart (3%)Home Improvement (3%) Women love to shop - They enjoy branded clothes and shoe stores. - Women love the “discovery” of browsing for ideas and great deals at Winners and Home Sense. - Wal-Mart, Amazon and Costco are their top bargain choices. - 13% of all the “favourite stores” mentioned by women are Grocery stores. 13 %
  • 7. MEN’S FAVOURITE STORES © 2015 Foresight Momentum PAGE 7 4 S I G H T T O P L I N E Men’s Favourite Stores in P12M (384 stores mentioned UNAIDED; n=133) TJX stores (2%) On-line Retail (10% - Amazon, 5% Ebay of all mentioned) Branded Apparel (11% of all mentioned) Costco (6% of all mentioned) Walmart (12% of all mentioned) Target (2%) Grocery stores (16% of all mentioned) Top 5 Banners Mentioned: 1) No Frills 2) RCSS 3) Loblaw's 4) Safeway 5) Metro & Food Basics Depart. Stores (9% incl. Bay & Sears) Electro- nics (8%) Shopper’s Drug Mart (1%) Home Improve-ment (7%) Men love shopping just as much - They love e-shopping on Amazon and Ebay. - Electronics and Home Improvement stores come up high on the list, yet hardly get mentioned by women. - Clothes are important to men, but not as much as they are to women. - 16% of all the “favourite stores” mentioned by men are Grocery Stores. 16 %
  • 8. I. Objective factors Such as store category, channel, banner/brand, floor layout, shelf layout, aisle width, fixture design, store environment (light, smell, temperature, sound, parking lot, bathrooms, etc.), in-store communication, product, pricing, assortment, package design, promotions, etc. II. “Human” factors Such as her/his personality type and demographics, state of mind or mood, needs, desires, habits, her perceptions of the Objective or Situational factors (ex.: “unaware,” “indifferent,” “negative,” “positive”), hormone-based sensory type, shopping style, price sensitivity, biological factors (vision, physique, height, etc.) & more. III. Situational factors Such as time of day, weather, how busy or not she/he is at the moment, commute, in-store service, shopping occasion, shopping mission, budget, store atmosphere, exposure to pre-trip communication/social media messages, etc. WHAT INFLUENCES SHOPPER EMOTIONS? 4 S I G H T T O P L I N E © 2015 Foresight Momentum PAGE 8 Shopping experience is the sum total of every interaction a consumer has with your store before, during and after the transaction, the sum total of an individual’s perceptions & feelings of your organization. It's based on all the direct and indirect interactions she has with you. Pine and Gilmore, The Experience Economy
  • 9. WOMEN EMOTIONS © 2015 Foresight Momentum PAGE 9 4 S I G H T T O P L I N E Interesting emotional territories to explore: 1. Positive affect & excitement 2. Relaxation & ease 3. Inspiration & engagement 4. Satisfaction 5. “Clever bargain hunter” 6. Look & style 7. Convenience & comfort 8. Surprise & curiosity 9. Being in control 10.Accomplishment 11.Visual appeal & design 12.Relief 13.Reward 14. A hero / winner 15. Special & pampered 16. Creativity 17. Anticipation 18. Freedom to explore 19. “Like a kid in a candy shop” 20. Creative 0 10 20 30 40 50 60 70 80 90 Happy/delighted/good/enjoyment/fun Relaxed/nice/calm/easy/content/peaceful Excited/over-joyed/thrilled/amaizing/dazzled/exhilarated Sa sfied/pleased/fulfilled/impressed/empowered Inspired/Interested/engaged/s mulated/enthusias c/ "Clever bargain hunter" (price-conscious/frugal/thri y) A rac ve (classy/trendy/in style/cool/fashionable) Comfortable/convenient Surprised/curious & intrigued In control/organized/prac cal Fine quality/high class/sophis cated Confident Overwhelmed Valuable/valued/appreciated/important Accomplished/Pleasure from things done/produc ve Efficient/smart/intelligent Clean Energe c/energized Good choice/selec on/variety Money savvy/well spent Visually appealling/Art/visual/style/nice pictures/info Like a kid in the candy store Relieved Sexy Rewarded (love loyalty points) Family me Finally I found it! Feel desire Pampered/special Compe ve Crea ve Eco-friendly An cipa on/expectant Fast Flexible Focused Free to explore Fresh Friendly Healthy Jealous Learn a lot "Like I wasn't ge ng ripped off" "Like a winner" Like my needs were being a ended to Lucky Made for me No rush Pre y Safe Sporty Trust Welcomed Within budget Young
  • 10. MEN EMOTIONS © 2015 Foresight Momentum PAGE 9 4 S I G H T T O P L I N E Interesting emotional territories to explore: 1. Positive affect 2. Inspiration & intrigue 3. Relaxation & peace 4. Just fun 5. Thrifty fun 6. Appreciated & valuable 7. Respect 8. Stylish & cool 9. Freedom 10. Accomplishment 11. Beauty & design 12. Creativity 13. Prestige 14. Success 15. Challenge 16. Liberation 0 10 20 30 40 50 60 70 80 90 Happy/good/great/enjoyable/nice/pleasure Interested/Inspired/Intrigued/Surprised/Engaged/ Excited/Amazed/ecsta c/elated/fantas c/awed/facinated Easy/relaxed/calm/peaceful Fun Saving money/Value/frugal/ge ng a good deal/Economical Convenient Sa sfied/Fulfilled Thri y/cheapest prices Comfortable Fast/Quick Experienced/smart Appreciated/welcomed/valuable/respected/Looked a er Stylish and cool Energe c/refreshed Free Friendly Safe Proud/Accomplished Beau ful / Colourful Canadian Clean Crea ve In control "I had op ons" Knowledgeable Pres ge/Privileged Powerful/mighty Successful/Rich Worthy At home "Big" Casual Challenged Chores Determined Equipped Helpful Libera ng Op mis c Organized Produc ve Relief Rewarded Unique Informed
  • 11. EMOTIONAL CONNECTION METER 4 S I G H T T O P L I N E © 2015 Foresight Momentum PAGE 11  Net Promoter Score (NPS) is a well-accepted single measure of customer loyalty. With all its pros and cons, it is useful for businesses, and easy for responders to answer, even on mobile.  Emotional Loyalty goes deeper than other Loyalty types, and is a complex concept to understand, let alone to measure – whether with a traditional survey or new neuro- and implicit research tools.  We set up to find a simple way to measure and track Emotional Loyalty. First question is a simple 5-point-scale rating of connection between the responder and the brand/product.  Then, using Neuroscience and Cognitive Psychology, we identified 12 key types of emotional connection.  We validated each type of connection and a corresponding image with an in-house research using text and quantitative analysis.  The new measure – Type of Connection - adds depth, substance and “colour” to the Emotional Connection Score.
  • 12. SCORES BY SUPER-LOYAL SHOPPERS* 4 S I G H T T O P L I N E PAGE 12 Emotional Connection score: 4.1 out of 5 Type of connection: “SATISFIED BUSINESS CONNECTION” Emotional Connection score: 3.7 out of 5 Type of connection: “SATISFIED BUSINESS CONNECTION” & “JOYFUL AFFECTION” Emotional Connection score: 3.7 out of 5 Type of connection: “FRIENDSHIP & ADVENTURE” and “SATISFIED BUSINESS CONNECTION” © 2015 Foresight Momentum Emotional Connection score: 4.1 out of 5 Type of connection: “SATISFIED BUSINESS CONNECTION” & “COMFORTING HUMAN CONNECTION” * “Super-loyal” shoppers are responders who named the store as one of their favourites (unaided)
  • 13. P12M GROCERY STORE VISITS 4 S I G H T T O P L I N E © 2015 Foresight Momentum PAGE 13  We picked 12 grocery banners popular in Toronto and Vancouver, and asked if our responders shopped in each banner in the past 12 months.  Then we asked responders to rate each banner using the Emotional Connection Meter.
  • 14. EMOTIONAL CONNECTION METER: GROCERY 4 S I G H T T O P L I N E © 2015 Foresight Momentum PAGE 14 Costco Fortino s IGA Loblaw s Longo’s Metro Overw. RCSS Safewa y Sobeys W-Mart Whole Foods 3.6 3.3 2.9 3.5 3.4 3.2 3.7 3.6 3.3 3.1 3.5 3.3 1.8 1.3 1.4 1.7 1.2 1.4 1.2 1.8 1.6 1.5 2.1 1.4 P12M Visitors Non- Visitors * Connections scores are based on ratings from 5 (“Very connected/Close”) to 0 (“Very disconnected/Far”); sample size 70+.  As expected, shoppers who visited a banner in the past 12 months, rated their connection with the banner much higher than those who did not visit it.  The higher the score, the closer is “reported” emotional connection to the store.  On page 12, we showed the scored of 4 stores given by the super-loyal shoppers, that range between 3.6 and 4.1. We can use it as a “high bar” measure.  We intend to release more studies in different categories utilizing this simple tool that measures the “heart” of emotional loyalty between your brand and your shopper/consumer. Stay tuned!
  • 15. STORE LOYALTY CARDS & APPS  According to a 2015 Yahoo study, 22 million Canadians (90%) have on average 4 loyalty cards.  93% of our urban responders use “store” cards regularly; most of them use 1 to 4 cards.  Though almost half urban shoppers regularly use store apps, there is an untapped opportunity to get on smart phones of 40% who currently don’t have or don’t use apps. © 2015 Foresight Momentum PAGE 15 4 S I G H T T O P L I N E
  • 16. APPENDIX: HH COMPOSITION & INCOME © 2015 Foresight Momentum PAGE 16 4 S I G H T T O P L I N E
  • 17. APPENDIX: FUNCTIONS OF BRAND LOYALTY4 S I G H T T O P L I N E *Source: Russell-Bennett, Rebekah, Härtel, Charmine E.J., & Worthington, Steve (2013) Exploring a functional approach to attitudinal brand loyalty. COGNITIVE: Utilitarian Function •The utilitarian function is based on evaluating alternatives on performance criteria and then selecting a brand that meets those requirements. •The utilitarian function is roused through experience rather than verbal information (WOM); thus, consumers that repurchase brands are likely to be satisfied with their experiences using the brand, rather than hearing about the performance of the brand. •The utilitarian function leads to attitudinal brand loyalty when a brand is proven to be value for money, or the best ‘deal’, owing to the consumer comparison of its attributes with competitive brands. •Consumers who are loyal for utilitarian reasons are responsive to brand performance messages, but are also opportunistic – always looking for a better deal and comparing utilities. COGNITIVE: Knowledge Function •This function involves the mental organization of complex information in a meaningful way to assist people to make decisions easily and without having to refer to the detailed attribute information that was originally used. •This function is the driving force behind the rational side of loyalty for high ticket purchases like cars, computers and real estate. •The knowledge function is an explanation for why highly experienced consumers tend to stay loyal to a brand. •It allows consumers to have a readily established base of heuristics and schemes, and results in maintenance of existing brand choices. •Consumers perceive the knowledge function as reducing cognitive effort by buying a brand that was mentally categorized as top of mind, considered trustworthy and reliable, and was as a result of a long history of using the brand. EMOTIONAL: Value-expressive Function •The underlying motivation represented by this function is the need to buy brands that are consistent with, or express, one’s values. •The brand is used as a symbol for self-expression. •Consumers perceived the value-expressive function as allowing them to make buying behaviour congruent with lifestyle, aspirations, values, ethics and loyalty to region or country-of-origin. •Powerful consumer trends of Health & Wellness, organics, local food, Fair Trade, Green consumption, and others are fueled by the value- expressive function. •Food retailers and food service businesses that stand out on the basis of their values have a big marketing advantage to create deep and passionate loyalty and evangelism, command premium prices, and establish long-lasting relationships with the community (ex.: Whole Foods, Trader Joe’s, Wegmans, Chipotle, etc.) EMOTIONAL: Ego-defensive Function •This function is predicated on Freudian defense mechanisms that help people deal with emotional conflict and feel better about themselves, and thus, relates to personal identity. •The ego-defensive function is being served when the consumer perceives buying the brand as contributing to their esteem or boosting their ego. •Consumers perceive the ego- defensive function as a way to show others how far they have come in their lives, bolster self-esteem, and improve self image. •This function does not involve much planning, is quite spontaneous and reactive. •Many luxury brand purchases are driven by this function. •The value-expressive and ego-defensive functions often overlap, especially on sub- conscious level, for example, choosing to drive a Toyota Prius in a “green” neighborhood could be both about your “green” value and an ego-defense. © 2015 Foresight Momentum PAGE 17
  • 18. FOOD FOR THOUGHT 4 S I G H T T O P L I N E © 2015 Foresight Momentum PAGE 18 It is no longer about the physical connection of products with consumers. This is simply a point of entry. Far more important is the “mind” connection… In order to fulfill consumer demands, we must first determine how to make our value offering so powerfully satisfying that it actually changes the consumer’s brain chemistry… it must be so mentally and emotionally compelling that at the mere mention of the brand or retailer or service, the consumer’s brain releases a shot of dopamine, which triggers an instant desire to get or go to that brand. It is achieved when a retailer/brand/service creates a strong psychological and physical response that operates on a subconscious level… and that is typically not readily understood or necessarily recognized by the consumer. Simply stated, a brand or store has a neurological connection with customers if they approach the store visit as they would a visit to a home of a good friend. The trip requires almost no effort because they know it is going to be a fun and enjoyable experience. Robin Lewis & Michael Dart It’s one thing to satisfy people’s interests, give them what they want. But people’s lists of what they want are endless. That builds situational satisfaction, but not enduring emotionally-based satisfaction. To get people to really buy into you as an idea, something has to be part of the mix which in beyond commodity. You have to give people something surprising and let them take it as a provocation to explore something about themselves and about experience that was beyond expected. It’s a SELF-EXPENSION ISSUE – not satisfaction issue. Dr. Bob Deutsch on the Buzz Council, 2014, Youtube
  • 19. ABOUT FORESIGHT MOMENTUM We focus on answering four fundamental questions: WHO, WHY, WHEN and WHERE behind consumer desires and shopper decisions, so you can focus on HOW to optimize your marketing and innovation strategies and build your brands. We partner with you to connect the dots and help you optimize your marketing effectiveness. Foresight Momentum is a new Integrated Consumer Insight Consultancy in Toronto. Passionate experts in the fields of human insight, predictive analytics, psychology, neuroscience, technology and business, we offer full-service, integrated market research and analytics solutions. © 2015 Foresight Momentum www.foresightmomentum.com lana@foresightmomentum.com

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