New Metrics of Shopper Marketing
Transcript of New Metrics of Shopper Marketing
TM Confidential
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New Metrics of Shopper Marketing: Understanding Impact of In-Store Decisions
Chicago, Illinois October 3, 2012
Tom Sullivan President
Kyle Reynolds Former Director
Category Management & Insights
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Shopper Marketing 101
If you don’t pass it,
you won’t see it,
you can’t buy it!
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Shopper Marketing: New Metrics
Tracking the
Path to Purchase
PATH
Measuring the
Moment of Truth
TIME
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Capturing Video of Shopper Behavior
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On-site servers convert video to data
Unobtrusive ceiling-mounted cameras
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GSI-1 Step 2: From Video to Data Software converts video into precise data on shopper behavior by segments
Demographic Segmentation Behavior Tracking
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From Data to Metrics and Insights
BY PRIMARY or SECONDARY LOCATION; Zone, Aisle, Department, Category
BY TRIP TYPE, MARKET SEGMENTATION, DAY TIME, BASKET SIZE
Traffic (Path)
Shopper (Path)
Shopping Time (Time)
Navigation Time (Time)
Conversion (Path, POS)
Shopper Leakage (Path, POS)
Share of Shopper (Path)
Traffic Flow/Direction (Path)
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VideoMining Store Panel
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PANEL
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Center Store
Department
Category
Brand
Total Store
Center Store MegaStudy™
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Center Store: Your New Priority?
75% of Total Store Sales
79% of Total Store Profit
9 Source : Re-Think the Center Store Jan 2011, Willard Bishop
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Time Is Money!
Perimeter Shopping,
5min 5 secs, 39%
Center Store
Shopping 2min 16
secs, 18%
Navigation2min, 39
secs 21%
Check-Out,
2 min 55 secs 23%
Total Trip Time (12 min 56 secs)
CS Basket $18.80
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100 Store Customers
75 Center Store Shoppers
79 Center Store Traffic
48 Center Store Buyers
27% of Customers SHOP but DON’T BUY
from Center Store
The Center Store Opportunity
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Beer/Wine: Path to Purchase
299,406 11% Share of SHOPPER
144,765 7 % Shopper Conversion
2,102,295 100 % Store Traffic
Dept. Shoppers
Aisle Traffic
Dept. Buyers
Department Traffic 712,871 42% Share of TRAFFIC
712,871 42% Share of TRAFFIC
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Moment of Truth
Beer/Wine: Navigation & Shopping Time
54.5 Seconds
21.4 Seconds
35 Minute Trip Total Shopping Trip
Dept. Shopping Time
Total Department Time
Dept. Buyers
Dept. Navigation Time
33.1 Seconds
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Traffic: The First Step to Sales
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Personal Care
Pet Care
Health Care
Beauty Care
Baby Care
Coffee/Tea
Home Care
Breakfast
Natural/Organic
Paper Products
Bread/Roll
Soup
Snacks
Shelf Stable Beverages
Frozen
Beer & Wine
Traffic Count per 100 Store Customers
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Shoppers: The next step, engagement
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Personal Care
Pet Care
Health Care
Beauty Care
Baby Care
Coffee & Tea
Home Care
Breakfast
Natural/Organic
Paper Products
Bread/Roll
Soup
Snacks
Shelf Stable Beverages
Frozen
Beer & Wine
Shoppers (engaged) Traffic (did not engage)
Counts based on per 100 customers
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Baby Care
Pet Care
Natural/Organic
Personal Care
Beauty Care
Coffee & Tea
Health Care
Home Care
Paper Products
Soup
Breakfast
Beer & Wine
Bread/Roll
Snacks
Frozen
Shelf Stable Beverages
Buyer Count Shopper Leakage
Shopper Leakage: The #1 Opportunity!
Counts based on per 100 customers
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Shopper Leakage
Two Types of Leakage:
Channel/Competitive Leakage (Traditional): Your Shopper is a category buyer, but neither shops the
category nor buys it in your store
Shopper Leakage (New): Your Shopper shopped your category but did not buy
anything on that trip
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21%
50%
14%
20%
20%
60%
50%
57%
71%
38%
50%
64%
69%
69%
75%
82%
79%
50%
86%
80%
80%
40%
50%
43%
29%
63%
50%
36%
31%
31%
25%
18%
Baby Care
Pet Care
Natural/Organic
Personal Care
Beauty Care
Coffee & Tea
Health Care
Home Care
Paper Products
Soup
Breakfast
Beer & Wine
Bread/Roll
Snacks
Frozen
Shelf Stable Beverages
Buyer Conversion % Shopper Leakage %
Shopper Leakage: The #1 Opportunity
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Shopper Conversion: The Payoff!
3.45
5.97
7.33
10.48
12.87
20.04
22.95
24.96
28.25
32.20
33.15
36.18
62.92
79.94
106.08
120.26
Natural/Organic
Personal Care
Beauty Care
Baby Care
Soup
Pet Care
Coffee & Tea
Health Care
Breakfast
Home Care
Paper Products
Bread/Roll
Snacks
SS Beverages
Frozen
Beer & Wine
Shopper Conversion $ per 100 Store Traffic
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Shopper Leakage: Follow the Money
13.26
15.30
16.08
17.13
20.04
21.45
22.12
23.88
24.15
24.96
28.25
28.60
29.32
35.36
37.56
68.72
Paper Products
Coffee & Tea
Bread/Roll
SS Beverages
Pet Care
Soup
Natural/Organic
Personal Care
Home Care
Health Care
Breakfast
Snacks
Beauty Care
Frozen
Baby Care
Beer & Wine
Shopper Leakage $ per 100 Store traffic
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Total Shopping Time: Time is Valuable
Total Time In Department (sec)
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
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Total Time in Dept (sec) Leakage pct
Shopping Time vs Leakage: Make it Count
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Bakery Shopper metric indices are strong
Department
Traffic Response Index
($/Department Traffic)
Shopper Response Index ($/Department
Shopper)
Shopper Penetration Index
Time Efficiency Index ($/minute)
Space Productivity Index ($/ft)
Baby Care 74 130 39 132 67
Baking 110 101 131 106 207
Beauty Care 55 83 67 86 67
Books/Magazines/Cards 145 84 73 41 46
Bread/Roll 445 126 126 111 228
Breakfast 174 127 88 104 108
Canned Food 103 96 132 105 99
Cocoa/Coffee/Tea 74 111 93 145 126
Condiments/Gravies/Sauces 113 101 150 105 152
Ethnic Food 32 48 56 54 78
Frozen 148 130 149 129 106
Health Care 87 110 120 103 89
Home Care 77 97 115 103 85
Natural/Organic 16 30 25 50 82
Shelf Stable Beverages 190 121 148 114 125
Paper Products 129 120 135 124 110
Personal Care 84 94 64 90 71
Pet Care 97 153 90 145 73
Snacks 106 89 134 90 103
Soup 84 75 83 75 106
Total Alcoholic Beverages 555 400 124 362 342
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Center Store Shopper Behavior Scorecard
The index has been generated based on center store average excluding Total Alcoholic Beverages and Bread due to high basket size and frequent purchases, respectively.
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Center Store
Department
Category
Brand
Total Store
Center Store MegaStudy™
Actionable Insights: Bakery Department
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Fresh Bakery Category Metrics
# 1 Household Penetration
# 2 Purchase Frequency
Most Frequently Consumed
# 3 Dollar Sales
# 2 Profit Generator (#1 Center Store)
An Efficient Use of Real Estate
Heavily concentrated in Grocery Channel
Sandwiches
Valuable Transaction Builder
# 1 Meal Solution at both Lunch and Dinner
Before we partnered with VideoMining, we had some great information about the Bakery Category, but it wasn’t very actionable
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The addition of VideoMining to our insights toolbox unlocked a world of new possibilities to help us build our category story
Store Traffic 338,329
Buyers 40,170
Category Traffic 112,351
Shoppers 52,469
33%
47%
76%
Face Recognition Software Identifies and Tracks Shoppers
Records when
people stop and
face the shelf and
if they buy.
purchase
Yields Heat Maps of Shopper Behavior Robust Conversion Analytics
Sales Advantage (IRI)
Assortment Drivers (IRI)
Open Panel Access (IRI)
Featurevision
dunnhumby
TNS Shopper 360
Spectra
(IRI + Nielsen data)
VideoMining
Dechert-Hampe
Decision Insights
Miller Zell
Kantar
Symphony IRI
Willard Bishop
NPD
Mintel
Yankelovich
N’L Grocery Assc.
Synovate
Nielsen
Smart Revenue
Research Partners Tools
Insight Providers
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29%
37%
41%
42%
45%
50%
55%
58%
63%
68%
79%
Jam/Jelly
Water
RTE Soup
Hot Cereal
Condensed Soup
Salty Snacks
Breakfast Bars
RTE Breakfast
Chilled Juice
SS Juice
Bread
Source: Video Mining 2010, Major West Coast Retailer
Bakery has the highest Shopper to Buyer Conversion rate*
Shopper-to-Buyer Conversion: Benchmark Categories
*“Shoppers” refers to the store patrons who actively interacted with the category, including those who had visual as well as physical interaction.
“Buyers” refers to the shoppers who made a purchase from the category, and is tied to POS data.
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Source: Video Mining East Coast Retailer December 2010, Center Store
But only 55% of Shoppers who enter the store enter the Bread Aisle
45% of store
traffic
not exposed
to Bakery
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Store Traffic
41%
27%
Bread Aisle Traffic
Retailer A
Bakery
on Perimeter
Bakery aisle traffic 52% higher when located on the perimeter
+ 52%
Retailer B
Bakery
on Interior
Source: Video Mining 2010
Store Traffic
Bread Aisle Traffic
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71% Shoppers enter from BACK…
Beer Snacks
Charcoal,
Summer Picnic Bread/Rolls
Sweet
Goods
Front of Store Back of Store
25%
46%
7%
22%
Direction of Entry
Beer Snacks
Charcoal,
Summer Picnic Bread/Rolls
Sweet
Goods
40%
29%
8%
24%
Direction of Exit
69% Shoppers
exit to BACK.
Shopping patterns have changed
Source: Video Mining East Coast Retailer December 2009
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228 231 229212
315
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Sara Lee Keebler Nabisco Lays Pepsi Coke
Buyers
End Cap Performance Comparison
Source: Video Mining End Cap Study July 2010
Routine Categories can drive units on end-caps
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Shoppers
Store Traffic
Buyers
Bread/Rolls Traffic
Baseline (no endcap)
Bread Aisle Performance
11%
Shoppers
Store Traffic
Buyers
Bread/Roll Traffic
Test (with endcap)
11%
And it’s all incremental to the Bread Aisle
In other words, the Bakery End Cap was INCREMENTAL to the Bread Aisle
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Bakery Category taking too long to shop
Total Time In Department (sec)
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Our Recommendation: Aisle Reinvention
Phase I - Organize
Organize the aisle based on how consumers shop
Segment sets preferred to vendor sets
Correct segment flow
Phase II - Optimize
Optimize assortment
Duplication reduction
D.O.S. driven space allocations
Phase III - Innovate
Occasion based merchandising
Innovative fixtures / Signage and visual cues
Aisle End caps
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Impact of Category Reset
Significant drop off following reset from type to vendor set
Weekly shopper-buyer
conversion average = 61% Reset period: significantly lower
shoppers and buyers (weeks 48-51)
Weekly Path to Purchase Trend: Bread
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41.9%
37.1%
27.0% 26.9%
19.1%
10.8% 9.6% 8.4% 7.2% 6.6% 6.6% 6.6%
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VideoMining was instrumental in helping Sara Lee catapult into the top 10 for Insights and CatMan
Source: Kantar Retail PowerRanking 2010
Which manufacturers provide you with the most helpful
consumer/shopper insights and category management? (% Retailers Rating Among Top 3 Manufacturers)
-6.1 +0.8 -1.9 +1.6 +0.8 -8.5 +3.7 +4.3 +2.0 -5.9 +1.3 +1.5
Sara Lee moved from 16th place in ’09 to 8th place in ‘10
2010 PoweRanking®
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New Metrics of Shopper Marketing: Understanding Impact of In-Store Decisions
Chicago, Illinois October 3, 2012
Tom Sullivan President
Kyle Reynolds Former Director
Category Management & Insights