Solving for Shopper

Many people in shopper marketing seem to think and act as if the shopper is the problem.  That’s a different and, in my opinion, incorrect way of putting the shopper at the center of the universe.

In Chapter 26 of the second edition of the book Shopper Marketing, Matt Nitzberg, an EVP from dunnhumbyUSA defines shopper marketing, when done well,  as “an expression of shopper-centered thinking and a deeply rooted shopper-centered culture.”

That’s number one on his list of five. Number five is “managed as a dynamic set of activities benefiting from continual measurement and improvement. ”

It’s a great chapter, full of frameworks to think about and use to build better shopper marketing practices. But, simply combining two key points in his definition premises gets me right back to my point. Solving for Shopper. Understand. Measure. Improve.

I’d ask you, as a practitioner, if you’re measuring improvement in sales in your category at retail, but ONLY if you’re also measuring an improvement in how the category (or your brand) is improving the shopper’s experience while shopping or life when he/she is using or consuming the products.  If all you can report is yes to the short term sales lift, you’re missing the whole point.

The shopper isn’t the problem. But she probably HAS one.  True shopper-centered culture means you’ve dug deep enough to understand the problem, and through your actions, are doing everything you can to alleviate it on her terms across her purchase experience. That is how you earn behavior change. When you can measure that type of improvement, which may take many versions of test and learn, you may actually be able to get to that elusive thing called loyalty.

It’s simple, yet we make it so hard. Matt lists eleven things that typically get in the way of the true promise of effectiveness in shopper marketing. In my twenty years, I’ve seen a lot of these things in play on a very regular basis.

As Matt Nitzberg says so eloquently in Chapter 26 of the Shopper Marketing book,  it’s important to understand how to stay on track with the shopper so shopper marketing doesn’t become “yet another way to rent market share from week to week.”

“Focusing on attempting to change shopper behavior through fairly irrelevant brand or store-centered initiatives must be subdued” in order to focus on the shopper, says Matt.

Those that do it well will use the continual cycle of test, learn, measure and improve to show results that reflect an ability to solve for the shopper’s problems. And that’s when the magic happens, and shoppers start sharing your stories, says ShopperAnnie.

FYI for my readers: I am NOT compensated in any way to write about this book. I did receive a complimentary copy of the book from the editors, based on my tenure in the industry. My choice to write about specific elements of the book reflects the passion points I have always supported; first and foremost a true commitment to face the shopper as the center of the universe.

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The fishy business of Shopper Marketing

I’ve got a voracious appetite for reading. This weekend I’m trying to catch up on a few industry reads. This morning I’m browsing through the 2nd Edition of Shopper Marketing, published by Kogan Page Limited in 2010 and updated in 2012. I like it because it has 36 chapters, each by a different professional from across the globe,  many of whom are colleagues and friends.

The subtitle of this new book is called “How to increase purchase decisions at the point of sale” but it’s hardly ironic that my favorite chapter is about what happens at home.  Because it is truly the day-to-day patterns of our everyday lives that shape not only what items we impulsively toss in the cart on a given shopping trip, but what brands become inscribed in our sub conscious brains as cultural preferences.

It’s also no surprise that Harvey Hartman wrote the chapter. Shopper marketers, especially those in insights areas of the discipline, tend to drone on about need states. Harvey, (whom I know and admire for his frankness) will tell you, correctly so, that experiences in our homes generate cultural tasks, not need states. In a nutshell, the study of culture trends and shifts matters greatly to all things shopper.

His story in the book gives me a fond memory AND true understanding of exactly why I used to buy Gorton’s fish sticks, and why, since picky eater toddler finally grew up, I no longer ever need to buy them again, but feel connected to the brand in a positive way.  It also explains why my husband continually sneaks regular Ritz crackers (and liversausage) into the cart despite the daunting nutrition label and its impact on his physical heart. The impact of Ritz crackers on his emotional heart is just to strong to resist.

At the end of the day, it behooves (love that word) every marketer who is accountable to the shopper (read as: ALL of us) to back away from thinking just about in-store behaviors. It’s prudent to move some of your research and personal reading time to understand the culture of preference and the impact of life at home to the deep-seated preferences we all bring with us to the stores.

The Hartman Group, encompassing a fine group of smart and intuitive humans that surround the always outspoken Mr. Harvey Hartman himself, have continually provided true depth and dimension to my reading and to my understanding of the fishy business of shopper marketing. They helped shape my non-stop shopper-centric focus in the business.

For now, I’m on to a chapter called Too Many Choices, a situation that actually prevents sales at the shelf. This chapter will likely explain why I love small stores and farmer’s markets!

What’s on your reading list?

 

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Hello Kitty

I’ve always been a fan of the Hello Kitty brand, mostly because the founders never “gave” the brand a positioning, It was always about letting the consumer define what it meant to her. I loved that.

Until yesterday, I was cool with that. But yesterday I wandered around the Chicago Cultural Center (which is an amazing space) during a break from the 8th Annual Marketing to Women Conference, into an exhibit that was a celebration of type and fonts and words. (very cool exhibit, btw)

Being a marketing woman for decades, I must say the exhibit was super engaging and I took a bunch of pictures and fully enjoyed the visual stimulation.

And then I found this image titled “Hell No Kitty” and it made me sad. Especially since some guy, named Zach Schrey, whoever he is (and I’m NOT googling him) exhibited this screen print he did in 201o of the Hello Kitty image.

a sad day for women

I’m sad because this was and is an iconic brand that always inspired women to create their own meaning, which is an uber-powerful concept, especially in marketing, where the norm is to push your brand meaning out and on to your target audience. Hello Kitty trail-blazed the idea that women, even young girls, had power to create meaning in the world.

And then,  some random guy who I don’t even know just trashes all that goodness with what he calls art, titled “Hell No Kitty.” All I can say is UGH! Well, I could say more but it might be profane.

I’m posting his “art” even though I don’t want to give him any press. But I am posting it so women might be inspired to rise up and say “HELL YES KITTY” as an anthem for women to make their own mark and their own meaning in the world of marketing today.

That is the inspiration I got from the 2012 Marketing to Women conference called She’s Got the Power. She does, and she is me and you and us. So let’s just use that power. Shall we? I plan to use mine by buying and gifting Hello Kitty merchandise to all the young girls I know. Will you join me?

 

 

 

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Is price the only answer to showrooming at retail? I think not.

If you touch retail in any manner in your profession, you’ve no doubt heard about “showrooming” – the practice of using a smartphone from a store aisle to check prices and potentially buy from another retailer or an online only retailer.

This practice isn’t going away, in fact I believe it will increase, causing a potential billion dollar problem for our nation’s retailers. Amazon is the most notable beneficiary of the dollars that leak out of both the retailer’s physical store and website.

This week, an article in the Wall Street Journal posed the thought that the only answer to this problem is price. The common belief is that retailers have to do whatever it takes to get their price points down to match Amazon. I SAY THIS IS CRAZY.  If price is the only rathole left for retailers to go down, I, for one, am going to call it a day and go work on a golf course driving the beverage cart. (my dream retirement job, in case you don’t know me that well).

Why do I feel this way? Because my years in the business of marketing strategy have taught me a few things about the almighty shopper, even those with the smartphone in their hands in the aisle.

First point. Price is important.There are a lot of shoppers who will flit from retailer to retailer for price. So let’s just give up now, right? WRONG.

There’s one solution on the table that makes sense in the digital world, and that is to use “near-field” communications to offer an in-aisle shopper a price-match to retain the sale in the store. “Offering people personalized prices through their mobile device may be the most effective way to beat showrooming,” said Anne Zybowski, director of retail insights for KantarRetail, a global consulting firm. But that practice has huge margin implications, for the likes of Walmart, Target and BestBuy, especially as showrooming behavior escalates.

BestBuy is on to a good old fashioned retail idea – incentivize the sales person to close the sale on the floor. Really.

If you are a student of human behavior, and I am, it’s clear that marketing should always intersect with anthropology. You’ll want to remember that for ages and ages, and still today, the number one influencer of purchase behavior is information from other people. Also known as word-of-mouth. Human influence. Yes, it can come from a smartphone in the aisle, in the form of ratings and reviews. The shoppers are absorbing content that influences their behavior from other humans. The smartphone is just the device to bring the content to them in a most convenient way! But really, it’s best from human to human.

REMEMBER THIS  - Over 70% of conversations that influence behavior take place face-to-face. Read this blog post from Keller Fay to see the details. Only 10% of it happens online.

REMEMBER THIS TOO – 75% of consumers say they will walk out of the store if they don’t have access to knowledgeable associates. And 80% of consumers say their shopping experience is improved when staff is eager to help. This comes from a whitepaper from Retail TouchPoints based on research conducted late in 2011.

AND THIS – 71% of retail executives say that shoppers want a meaningful experience with the sales associate as brand ambassador with strong product knowledge and the ability to up-sell and cross-sell for greater customer satisfaction and loyalty. This comes from a Deloitte Retail Survey in 2011.

Just consider those recent research results. I’ve been reading similar research for decades. So why is price the only solution to showrooming? It’s not.

Maybe if the retail show room actually was a showroom with people to “show shoppers” something, to perhaps participate in some face-to-face human influence, retailers might have a more powerful weapon against Amazon and other online only retailers. And they might just provide the kind of shopping experience shoppers crave. Fancy that.

Despite whatever is said about not being able to “afford” this human solution, I propose that it might just be worthy of a little more face-to-face discussion. I’d bring the chart below from Nielsen as Exhibit A.

Human conversation. Face to Face. A alternative solution to showrooming.

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The debate on using BIG DATA for retail insights!

Yesterday, the RetailWire discussion board posed some questions about the merits of using big data sets to gain understandings and insights into shoppers. Use of big data sets is a growing trend, in part because the data is available, and in part because advanced (and mega-fast) analytics truly can churn out a lot of information.

But the key is what is actually done with the data, both on the front-end query and the back-end actions taken from data outputs.

The comments are here in the link below. Whatever your job, if you touch retail in any manner, this is worth ten minutes of your time to read.

(In my humble shopper marketing opinion!)

http://www.retailwire.com/discussion/15911/braintrust-query-does-big-data-help-retailers-really-know-their-customers

 

 

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How to keep current on retail issues!

http://www.retailwire.com/blog/22531/anne-howe

Today, I’m posting a link (above) to my comments on the RetailWire discussion site. It’s a wonderful site, and I’m proud to have been a BrainTrust panelist for a number of years.

But this post isn’t about me. It’s about you.

I encourage you to read and participate in this daily discussion board. Anyone can post, not just the panelists. It’s great to see what everyone has to say. I use links to RW discussion boards all the time to keep up on issues and inform my clients.

Here is the link to the main site, so you can bookmark it for daily or weekly reading and posting.

http://www.retailwire.com/

 

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Windows into the Future

Occasionally, when I’m out and about, I’ll take photos and post my personal opinions about retail merchandising. If you find cool things and want to share them here, let me know and I’ll lend you a page here to do that!

Perhaps taking a page from the Ralph Lauren book of best-in-class story-telling at retail, BestBuy gets a “nice job” from ShopperAnnie on the window displays I ran across in downtown Chicago a few weeks ago. Dramatic in their styling, each tells a different lifestyle story, and two of three featured QR codes to embellish the information available to window shoppers.

My particular favorite is the kitchen window featuring Keurig coffee makers. Who knew you could get one of those at BestBuy? Perhaps I’m enamored more because I covet a Keurig. BestBuy not only tweaked my desire, but got on the list. Time did not allow me to explore the in-store presentation in the Chicago store, but I’ve got a trip to BestBuy on my brain to check it out. Do I dare hope to get an actual cup of coffee while in-store? If it were me, I’d make that event happen in-store and add, even on a temporary basis, a window cling with “come on in for a cup of coffee” on it.

Come on in for a cup of coffee!

I also liked the “photo story” window, although it may have been stronger if it featured an actual photo story.

Every picture tells a story, don't it?

The least impactful window, to me, featured tablets. In a category that’s hot, this display effort, while matching the visual theme of the other two, fell way short of creating any real desire. Maybe they’ll jazz it up a bit with the iPad 3 launch.

And by the way, enjoy the reflections of a bit of Chicago in the photos. It was a gorgeous sunny Saturday when we shopped Chicago.

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PayPal – Brand or Commodity?

Well. I just got an e-mail to take a survey about PayPal. I thought: “I use it, so why not take the survey?”

I think I flunked.  The invite told me it would take ten minutes, which I was willing to invest…but it only took two…..a sure sign of self-select termination survey research.

When I thought about it while answering the first few questions, the brand doesn’t really have a benefit to me other than it allows me to pay my tech service vendor with one-click.  I literally use it ONLY for that. When I answered the first two questions in that frank of a manner, the survey then stopped, and told me “Thanks, we have no further questions.”

Hmmmm. I have a sneaking feeling that in fact, PayPal might want to hear more about why I dumped its brand into a commodity category the moment I tried to find more than a convenience benefit and could not. I can’t recall thinking about wanting or trying to set up PayPal to be my go-to payment method for anything else. I have a (sort-of) positive feelings about the brand, but when pressed , those feeling are really not anything I’ve ever acted on.

The oddest thing is, as I dissect what just happened, I still can’t summon up any desire or reason to change things.

To think…how quickly what you might think is a brand can become just another commodity……..

 

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Thrilling!

I’ve spent many years in my career(s) being responsible for looking out the front window of the car, being responsible for having a view on what to think about next, and what to do about it. I’ve always called it the “So What, Do What” capability.

Now that I am an independent consultant, I find this to be the most valuable asset in my portfolio of services. Today’s pace of change is reminds me of a hot day in July a few years back, where I literally put the pedal to the metal and raced my little red BMW down the back road at 120+ mph. Windows open, wind in my face…..thrilling.

Scary? Sure, for the one second I thought about getting a ticket. But the thrill of the pace totally outweighs the fear. I’m not saying I’m going to race my car down that road again. But it sure is a thrill to be working in a space that feels so similar. 

 

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When she met Facebook

My oldest daughter graduated from high school in 2003. All during the fall of 2002, she anxiously awaited word from from her “only choice” school on admission. Once that was done, she again waited on the scholarship award date, and only then, in April of 2003, did we pay the deposit and SHE GOT THE COVETED denison.edu EMAIL ADDRESS. 

Because that was the ticket to getting on Facebook. Only college students with valid .edu emails were allowed. 

In 2003, Facebook was THE CONNECTION to your upcoming life of all new friends. And parents, siblings and nosy relatives were forbidden. Blind roommate choices became known entities, room decor was decided via Facebook.  Swim team cohorts, male and female, all connected via half naked pictures and award winning swim meet times – before they ever got in the pool. What a brave new world it was to be that transparent for all the college student world to see.

She is 27, the same age as Mark Zuckerberg. If only she had had trouble getting a date. She might have invented it herself. Who would have predicted that Facebook would ever be what it is today? Ah well, who needs $28 Billion, really?

Instead, off she went to Denison University in the fall of 2003, only to meet and still be connected in real life and via Facebook to students/friends from all over the world. Thanks, Mark, for the technology that keeps them all so closely connected. And thanks for letting the rest of us in.

Imagine how nice it was for my daughter today, on the day Facebook files for its IPO,  to read on Facebook and hit the LIKE and the SHARE button that her alma mater Denison was just voted the #3 most fun-loving schools in the country by Huffington Post!!

And P.S. – daughter number two attended the #2 most fun loving school…….no wonder they each have 1,000+ friends on Facebook!

 

 

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