Consumer Insights Overview - Premium Retail Solutions
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Transcript of Consumer Insights Overview - Premium Retail Solutions
Premium Insights.Understand the market and your customers with strategic, actionable data and
analytics.
Premium Insights offerings.Premium offers eight unique Insights products.
eCompShopMarket
Intelligence
Product Optimizatio
n
Retail Diagnostic
s
Consumer Experience
Product Perception &
Recommendation
Consumer Journey
Market Trends
Consumer journey.Understand the path to purchase from consideration through purchase and product use.
• Understand and compare consumer shopping behavior across channels • Find out where consumers shopped and why• Identify purchase drivers and profile purchasers• Map consumer purchase decision process• Understand information sources and their impact• Identify pain points, likes and dislikes of purchased products• Learn about the post-purchase experience
Case study: Identifying key drivers along the path.
Case study: Identifying key drivers along the path.
Customer Experience.Understand the shopper’s experience through observations and intercepts.
• Observe how consumers shop• Dwell time, interaction with
products, signage, and store associates, path to the bay
• Intercept customers while shopping
• Real-time feedback• Understand purchase drivers,
project• Eliminate research bias as data
not based on recall• Compare experience across
retailers
Spent time shopping the bay (whether or not they ultimately
made a purchase)
Picked up product(s) that they needed immediately
60%
40%
64%
36%
58%
42%
How Consumers Shop
< 1 1 2 3 4 5 6 7 8 9 10 15 18 20 25 300%
4%
13%9%
2%
33%
2% 2% 3%0%
19%
10%
0% 2% 1% 1%1%
10%6%
12%
1%
31%
0% 1% 0% 0%
24%
8%
0%4%
1% 1%
Time spent shopping bay (minutes)
Yes No
26%
74%
20%
80%
39%61%
Receive assistance from store associate?
Yes No
68%
32%
58%42%
67%
33%
Purchase product associate recommended?
Lowe’sHome DepotHardware stores
Product Perception & Recommendation.Measure in-store rate of recommendation, perceptions, and awareness.
• How frequently do associates recommend brand or model?
• What is associate brand awareness?
• What are perceptions of brands?
• What do associates know about product (features, installation, compatibility, use, accessories)?
• Use of data: • Identify need for training• Measure impact of in-store
programs• Compare data across
retailers
Brand A
Brand B
Brand C
Brand D
Brand E
Brand F
None
81%
67%
34%
20%
18%
3%
3%
57%
49%
15%
11%
7%
4%
13%
Associate mention and recommendation
Recommended Mentioned
Very dif -ficult
Difficult Neutral Easy Very easy
0%6%
23%
56%
15%
With the customer in mind, how does Associate rate assembly?
Not at all familiar
Slightly familiar
Somewhat familiar
Moderately familiar
Extremely familiar
3%
6%
27%
38%
26%
Associate familiarity with EZ Connect
Yes, whenever appropri-ate; 67%
Some-times; 28%
No; 5%
Do Associates recommend EZ Connect?
Product Optimization.Identify opportunities to improve product features
• Identify consumer challenges and pain points associated with product use
• Use data to design new features that offer solutions to fill a void or improve customer experience
• Identify attributes that most impact purchase decision
• Get data that can support marketing messages on product packaging, on store POP, and in media
The straps get twisted and tangled be-tween uses
Hard to release the ratchet
Hard to feed the strap into the ratchet
The ratchet pinches my fingers
Ratchet handle is too small for my hands
Takes too long to load and unload
I usually forget how to operate it
54%
46%
28%
23%
18%
10%
9%
Challenges associated with use
Easy to load strap into ratchet
Handle forbigger hands
New features address
challenges consumers face
Quicker, easier loading
Attribute Very to mostly important
Not a factor in decision
Life (hours) 78% 5%Output of light/ wattage equivalency 79% 4%Energy savings 70% 6%Technology of light bulb 65% 4%Price 75% 5%Energy star rating 61% 8%Color of light (e.g., warm, daylight) 62% 7%Aesthetics / Look of bulb 46% 10%Color Rendering Index (“CRI”) 43% 16%Warranty 39% 15%Brand 38% 9%
Important attributes when purchasing a
light bulb
Product Optimization.Derive consumer preference and willingness to pay for features and benefits
• Identify what consumers value
• Through a series of choice questions, we derive consumer preference for features and benefits (e.g., size, warranty, brand, design, power)
• Vary prices to draw price adoption curve / amount consumers are willing to spend
Description Two-Stage gas snow blower
None of these
options
Clearing Width/ Intake Height
24 in. clearing width 21 in. intake height
Chute Rotation 205 degrees
Chute Operation Joystick Crank Manual
Price $699 $699 $699
Manual rotation
CrankJoystick
$699, $699, $699 $699, $674, $659 $699, $649, $619
46% 41% 36%23% 22%
29%16% 21% 21%15% 16% 14%
Case 1: Case 2: Case 3:
17 18 19 20 21 22 23 24 2530%40%50%60%70%80%
Price / Share Curve
Price Point
Perc
ent A
dopti
on
Product Optimization.Test new concepts
• Measure likelihood to buy• Draw adoption curve• Identify target retail price
point to maximize sales• Understand unaided price
expectation• Identify perceptions on
product’s value and uniqueness
Definitely would not
buy
Probably would not
buy
Might or might not
buy
Probably would buy
Definitely would buy
14%11%
27% 29%
18%14% 13%
19%
34%
21%
Likelihood to buy (no retail)
Consumers Contractors
47% / 55% Definitely-probably would buy
Price Point Contractor Consumer$9 - $10 82% 76%$11 - $12 80% 73%$13 - $14 78% 69%$15 - $16 70% 64%$17 - $18 61% 60%$19 - $20 53% 56%$21 - $22 38% 47%$23 - $24 33% 37%$25 or more 27% 29%
Likelihood to buy at various retails
• This concept tested very well compared to our concept testing index
• Contractors and consumers expect to pay average of $24.62 and $26.41, respectively
• However, once product is under $20, likelihood to buy is strong (53-56%)
• 69-71% of respondents say they like the product
• 62-65% say it is different from other products in the market
Retail Diagnostics.Determine what is working or not working in retail
Sales not meeting forecast?
Higher than normal returns?
Want to learn from outperforming stores?
• Identify, quantify, and understand the why behind in-store performance
• Focus on retail levers for success to determine what is driving / hampering sales
Merchandising Execution: In stock, set to planogram, POP displayed
Assortment: Right products, brands, placement, prices
Rate of Recommendation: Associate recommendations and knowledge
Customer Satisfaction: Ratings and reviews, product returns
Shopping Experience: Ease of shopping, delivery, installation, special order
Point of Sale Information: Packaging, signage, videos, online integration
Retail Levers for Success
Market Intelligence.Understand category size, share, and competitive landscape.
• Capture share of shelf and compare between retailers and across regions
• Estimate category size using variety of data sources
• Understand retailer and brand share• Insights into in-store promotions,
displays, events, etc.
2011 2012 2013 2014
13% 16% 17% 12%3% 6% 2% 5%5%
9% 6% 5%6%2% 6% 9%2%
22% 22% 18%32%
15% 17% 20%
39% 30% 30% 31%
Competitive Landscape: Retailer share
Home DepotLowesWalmartOnline (incl. Amazon)CostcoTargetOther
Don't recallOther
TCPFeit
OSRAMUtilitech
Lighting ScienceCree
EcoSmartSylvaniaPhilips
GE Lighting
20%3%4%5%6%7%
8%9%10%
13%29%
41%
Brand share
2 Pack 4 Pack 6 Pack 8 Pack 12 Pack 16 Pack 24 Pack 32 Pack
20%
28%
16%
23%
16%13%
6%
1%
21% 21%
13%
31%
24%
12%
7%
3%
Penetration of Pack Size
Walmart Drug stores
eCompShop – An Advanced Price Shop Tool
Fast, accurate on-demand price shopInteractive Excel worksheets to filter and sort by any attr ibuteAdvanced mapping algorithm increases efficiency of future shopsIdentify gaps in retai lers’ assortments
Web-based visual ization toolBe more efficient and effect iveStay on top of competit ion
The Home DepotAssortment
Brand American Standard American Standard American Standard KOHLER American Standard KOHLER KOHLER Delta American StandardSKU # 615584 1001709410 207179 1002160408 1001764464 981150 1000002117 1000053030 $615,356.00
Model # 3186.128ST.020 3376128ST.020 3378.128ST.020 K-45983-0 3378AB128ST.020 K-15409-0 K-45979-0 C41903T-WH 2586.128ST.020Retail $188.00 $188.00 $188.00 $188.00 $198.00 $198.00 $198.00 $199.00 $199.00Finish White White White White White White White White White
Bowl Shape Round Round Elongated Elongated Elongated Round Elongated Round ElongatedBowl Height 16.5 16.5 16.5 16.5 16.5 16.5 16.5 16.5
Gallons per Flush 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.1# of Pieces 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0
Flush Type Single Single Single Single Single Single Dual Single SingleRating 4.2 4.8 4.4 4.5 4.4 4.4 4.1 2.5
Number of Reviews 323 23 353 34 25 406 113 145
LOWESAssortment
Brand KOHLER American KOHLER American American AmericanModel # 14799-0 700AA101.020 45989-0 710FA.101.021 3381.216.020 2793.128NT.020
Retail $189.00 $189.00 $199.00 $199.00 $199.00 $209.00Finish White White White Off-white White White
Bowl Shape Elongated Elongated Elongated Elongated Elongated ElongatedBowl Height 16.50 16.50 16.50 16.50 16.50 16.50
Gallons per Flush 1.28 1.28 1.60 1.28 1.60 1.28
Flush Type Single Single Dual SingleRating 4.5 4.5 4.5 4
Number of Reviews 23 103 64 242 73 66
MENARDSAssortment
Brand Eljer Eljer Mansfield American
Flush Type Single Single Single SingleRating
Number of Reviews
Breadth GAP in Lowe's
Assortment
Breadth GAP in Lowe's
Assortment
Price GAP in THD
Assortment
Breadth GAP in Lowe's
Assortment
Breadth GAP in Lowe's
Assortment
Market Trends.
Incandescent CFL Halogen LED
47%42%
7% 4%
38%42%
10% 9%
37% 41%
9%13%
26%32%
7%
34%
Market trend: LED adoption at expense of incandescent and CFL
Jul-10Feb-11Jun-11Apr-12Apr-13Feb-14May-15
Brand A Brand B Brand C Brand D None
57%49%
15%7%
13%
57% 56%
12% 14%7%
Associate rate of recommendation
April August December
Brand B conducted associate training in May - Dec
6%
43%
20%11% 8%
13%
Design preference
• All things change…Technology improves, consumer preferences shift, brand perceptions change, new players enter the market, purchase behaviors change
• Measure consumer perception and adoption of new technologies
• Track associate awareness and recommendation of brands
• Predict best-selling designs• Impact marketing, training,
operations, product development, and strategy.
View evolving trends with regularly scheduled insights.
None
Category ExperienceMuch of our business is made up of repeat business from existing clients.
Product CategoriesLED lighting
Mobile phonesBathtubs & showers
Shower doorsVirtual reality
Decorative lightingDecking
HammersMechanics hand toolsTool aprons and rigs
Fireplaces
Tablets / eReadersConsumer Electronics
Knee padsIrrigation
Tape MeasuresWelding
Water coolersLight bulbs
Industrial rackingMedicine cabinets
Rolled wire and post
BatteriesMoulding & trim
ShedsTelevisions
Snow blowersWind turbines
Kitchen cabinetsOn Star
Tub and Sink DrainsSecurity doors and
windowsGrills
LaddersPet containment /
kennelsFencing
Tie down ratchetsSurge protectors
Bath fansWork glovesGeneratorsFasteners
Grill thermometersLandscape lighting
How we get there.
The Premium approach.
• Customization.
• Quantitative research. Online surveys and targeted panels
• In-store research. Audits, customer and associate observations, customer intercepts and secret shops
• Qualitative research. Focus groups and individual interviews
• Strategy. Working closely with clients to integrate data and insights to all aspects of development and marketing
• Experience. What sets us apart from the rest. We know retail
Marthe SouzaVP, Consumer Insights and Business Development
5000 Highlands Parkway, SE, Suite 270Smyrna, GA 30082
premiumretailsolutions.com
[email protected] 678.279.8250
c 404.964.9584