10 Shopper Insights that You MustKnow and dos & don’ts
A Wine Adaptation
Jim Fortune [email protected]
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Shoppers have difficulty making decisions
Shoppers want to feel smart when making decisions
Shoppers’ limited ability to process too much information
Shoppers use memory to give meaning to objects
Shoppers need consistent messages in and out of the store
Discontinuity creates triggers to attract shoppers’ attention
Shoppers recognize visual stimuli most easily
Shoppers use familiar segments to speed up their selection process
Shoppers’ tunnel vision and “boomerang” behaviour
Shoppers need to be reminded of the items they need
10 SHOPPER INSIGHTS
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Start with a fact not an insight –something that often seems to be
overlooked for wine
• More choices, more difficult to make a selection• It is very common for shoppers not to know exactly what
they want.• Shoppers need information/education to make a decision.
1. Shoppers have difficulty making decisionsShoppers have difficulty making decisions1
1. Shoppers have difficulty making decisions1
0
200
400
600
800
1000
1200
1996 2000 2004 2006 2008
Avg. # SKUs Carried by a Supermarket - wine
• 46% shoppers spend 3min+ in front of shelf
• 52% shoppers pick up 3+ products
Source: speculative data for example
Shoppers have difficulty making decisions1
• More choices, more difficult to make a selection• It is very common for shoppers not to know exactly what
they want.• Shoppers need information/education to make a decision.
1Dos
• Education in store through relevant point of sales materials
• Train promoters on how to facilitate shoppers’ selection process
Don’ts• Assume shopper know how to
choose products• Overwhelm shoppers with point
of purchase materials!
1. Shoppers have difficulty making decisionsShoppers have difficulty making decisions1
• Shoppers want to make a wise and smart decision.
• They also want to be seen by peers as making the right choice.
Shoppers want to feel smart when making decisions2
Do you think the shopper will feel smart with this promotion?
2Shoppers want to feel smart when making decisions2
• Shoppers want to make a wise and smart decision.• They also want to be seen by peers as making the right
choice.
Dos• Focus on how to make shoppers
feel that they’ve made a smart decision rather than on the deal per se
• Emphasize “Smart Choice” in promotional activities.
Don’ts• Disappoint shoppers, even after
the sale (e.g. high-low price strategy)
Shoppers want to feel smart when making decisions2
Shoppers’ limited ability to process too much information
• The mind can only process 5-7 pieces of information • Thousands of stimuli exist in a store:
– Some information is compressed– Some information is screened out
• Too much information leads to “lock out”
Result: less than 50% of shoppers are able to recall any available point of sale marketing!
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Dos• Stimuli need to be clear and
unambiguous• Create relevant in-store
communications that help shoppers make the right choice
Don’ts• Overwhelm shoppers with clutter
in store and on the shelf
• The mind can only process 5-7 pieces of information • Thousands of stimuli exist in a store:
– Some information is compressed– Some information is screened out
• Too much information leads to “lock out”
Shoppers’ limited ability to process too much information 3
What’s is the brand?
Shoppers use memory to give meaning to objects
• Shoppers need to be given a clear stimulus in order to access their memory.
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Is this brand?
• Shoppers need to be given a clear stimulus in order to access their memory.
Shoppers use memory to give meaning to objects4
What’s this brand?
Shoppers use memory to give meaning to objects4
• Shoppers need to be given a clear stimulus in order to access their memory.
Dos• Use visual stimuli that are
consistent with what shoppers know for better memory retrieval
• Use existing pathways – colour, shape, font…
• Merchandising tools need to have meaning
Don’ts• Use non-standard font, colour or
shape• Use visuals that inconsistent with
those used in other channels: e.g. TV ad, print
Shoppers use memory to give meaning to objects4
Shoppers need consistent messages in and out of the store5
SHIRAZ excels at deliveringthe sort of BENEFITS that
customers truly desire.
• Shoppers need consistent messages to make the transition from consumers to shoppers.
Dos• Use 360-degree communication• Align above- and below-the-line
activity• In-store communication also
needs to be aligned with shoppers’ needs and mission
Don’ts• Don’t break the dialogue at point
of sale by sending a different and/ or irrelevant message.
Shoppers need consistent messages in and out of the store5
• The mind ignores what it knows and focuses on differences
6Discontinuity creates triggers to attract shoppers’ attention6
Discontinuity creates triggers to attract shoppers’ attention
• The mind ignores what it knows and focuses on differences
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Dos• Enhance shelf design &
merchandising tools by using: – Different shelf layouts– Different lighting intensities– Different flooring – Curved designs– Different colour patterns
Don’ts• Design without any discontinuous,
stimulating element
• The mind ignores what it knows and focuses on differences
Discontinuity creates triggers to attract shoppers’ attention6
Shoppers recognize visual stimuli most easily
From “flashy” visuals …
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… to more subtle but unique approaches.
7Shoppers recognize visual stimuli most easily7
Shoppers recognize visual stimuli most easily
What’s this ?
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• Shoppers can process information in visual form (e.g. pictures) much more easily than words.
7Dos
• Use pictures/visuals• Simple words such as SAVE,
SALE, FREE…
Don’ts• Use wordy text in point of sale
materials (shoppers won’t read them!)
Shoppers recognize visual stimuli most easily7
Shoppers use familiar segments to speed up their selection process8
• Shoppers first sort out what is not relevant, then choose among the remaining products.
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RedWhite
Sparkling
BottleBIB
CaseRegional
Specialoccasion
inc.imports
ChilledAmbient
Specials
• How many distinct category segments in your local store?
• Little association between some groups• Specials segment is associated with all
Shoppers use familiar segments to speed up their selection process8
• Shoppers first sort out what is not relevant, then choose among the remaining products.
Dos• Make it easy for the shopper to
sort out what is and is not relevant
• Organize products based on how shoppers make decisions
• Think about needs-based shelf layout
Don’ts• Organize products on the shelf in
a way that is not aligned with shoppers’ selection logic.
• Organize the store in a way that shoppers need to spend more time to find the brand they want.
Shoppers use familiar segments to speed up their selection process8
Shoppers’ tunnel vision and “boomerang” behaviour
• Shoppers have a tunnel vision when viewing fixtures at eye level.
• Also, if they cannot find what they want half-way down the aisle, they often turn round and leave the fixture.
Module 1 2 3 4 5 6 7 8 Shelf 1
2345678
Eye level
6% - 10%
4% - 5%
3% or below
Corridor side
% of interaction
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• Shoppers have a tunnel vision when viewing fixtures at eye level.
• Also, if they cannot find what they want half-way down the aisle, they often turn round and leave the fixture.
Dos• Place relatively weak brands at
eye level, so they stand a better chance to be noticed
• Place your brands close to the main entrance of the fixture
Don’ts• Don’t expect shoppers to go the
extra mile to find your brand because they won’t!
Shoppers’ tunnel vision and “boomerang” behaviour9
Shoppers need to be reminded of the items they need10
Planned but not purchased wine Planned and Purchase wine Not planned but purchased wine
Impulse purchase rate analysis
Why? – In-store triggers
No
Yes
Closure rate analysis
Why? – In-store barriers
Details of preplan
Planned to buy wine?
Yes
Purchased wine or not?
Changed Plan or not?
Why? – In-store impacts
Yes
74%
26%
12%62%
33%
No
71% of shoppers make their final purchase decision in store!
100%
(example data only)
Not planned but purchased wine
Impulse purchase rate analysis
Why? – In-store triggers
26% Impulse Purchase
3
6
29
61
Reasons for Impulse Purchase - (%)
I was reminded by in-store stuff
It is on promotion now
Recommended by accompanier
Recommended by promoter
Shoppers need to be reminded of the items they need10
• Food-wine matching –talked about, rarely displayed
• Reminding shoppers with some label cues.
Shoppers need to be reminded of the items they need10
• What’s wrong with pairing?• Increasing value of recognition and purchase.
Shoppers need to be reminded of the items they need10
• Grouping categories in line with shoppers’ logical selection process triggers their memory and leads to more sales – whether planned, unplanned or impulse.
Dos• Organize the fixture around
shoppers’ needs and mission to make the most of their limited time at point of sale
• Create in-store solution centers
Don’ts• Use secondary displays with
illogical category adjacency• Arrange the fixture based on
what makes sense to the Category Manager!
Shoppers need to be reminded of the items they need10
Summing up• Consumers and shoppers are two
sides of the same coin, hence consistency is needed in our communications.
• The store environment has enormous impact on shoppers and their behaviour.
• In order to influence shoppers to our advantage, understanding what makes them “tick” is fundamental.
• Therefore, shopper insights are key to win “in the last mile”.
Thank you for your framework & sharing goes
to
Ken Zhang, ZdologyJavier Calvar, RI China
Images courtesy of web sites and more formal open access material such as FLICKR and SlideShare
Thank you
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