Shopper marketing is gaining momentum as consumer and trade marketers recognize the potential to gain sustainable results in terms of profitability, brand value, and customer relationships. And that’s great! We’re thrilled that the industry is waking up to the reality that the old system isn’t working. But a common misconception we’re seeing is that these same marketers see shopper marketing and in-store marketing as one and the same. And that is a gross misconception!
You’ve probably heard the statistics being touted as a majority of purchasing decisions being made in-store. We’ve seen numbers like 55 percent, 63 percent, and 71 percent. Pick a number..
What do these numbers mean? Well, here are a few things to consider:
- In-store influence varies from category to category. In some categories, like baby milks, more than 90% of shoppers purchase the brand they intended to buy when they entered the store; in effect, there was no in-store influence. Research has shown us that, in some categories, shoppers spend about 27 seconds choosing FMCG in-store, so how much impact is the store environment having?
- The statistic is nebulous. Does this mean that 71 percent of shoppers make all of their purchasing decisions in-store, or do shoppers as a whole make 71 percent of their choices in the aisles? Can you afford to guess the interpretation?
- If you rely on in-store to make your impact, you’ve waited too long. The reason that shoppers make quick decisions is two-fold. Either (1) they have been so influenced by the brand’s marketing message that they go straight for the product; or (2) they have been completely unimpressed with any particular brand so the choice doesn’t matter, which means they will often choose the cheapest, if there is no other distinction.
Many shopping trips begin in the home. Shoppers make decisions before they get to stores (which store to go to, for example). Websites and forums encourage people to research before they even get to the store. In some categories people research at home, go to a store, then go back home to surf again, before finally buying something. In fact, the path to purchase for your brand will have numerous steps. At each one, there may be a barrier to overcome. Before investing in the very last step, it would be wise to invest in understanding the whole path and to identify where your dollars are likely to generate the most return.
In store marketing is the tactic. Shopper marketing is the strategy. Unfortunately like most things in retail not enough time (if any) is dedicated to strategy with day to day tactics steering the ship
Hi Ken,
Thanks for this. Whilst I agree to some extent, I’m not sure I would totally (and all of this is caveated with the fact that everyone seems to use the term strategy differently).
Firstly, I’d agree completely that shopper marketing is and should be strategic, and if more time was spent on shopper marketing strategy then the world would be a better place. Unfortunately most people are stuck in a rut with running tactical promotions, which don’t fit a strategy (as there often isn’t one).
Where I would disagree is that ‘shopper tactics’ are limited to in-store: there are plenty of opportunities to be tactical outside the store (and what is done inside the store can be strategic too!).
As you say, if more efforts were made to create an holistic shopper marketing strategy, that understood the entire shopper journey (not just in-store) and then created activities which steered, supported and influenced shoppers towards purchase, then ROI would improve, shopper satisfaction would improve, and brands would grow.
All the best, and thanks again for reading and contributing.
Mike
Agree. I’m always horrified when I ask retailers to write their strategy down during workshops for a given department or category. Often blank pages all round…