Shopper Behaviour - Shopper Insights

8/2/2019 Shopper Behaviour - Shopper Insights

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10 Shopper

Insights that You Must

Know and

Dos&

Don’ts



These shopper insights are importantbecause …

• Contribute to our knowledge andunderstanding of in-store shopperbehaviour

– Use this knowledge to adapt in-store environments

to better meet shopper needs

– Use this knowledge to help brand wins at the pointof sale

• Highlight the importance the store

environment has on the shopper – Better assess shopper needs when developing retail

strategies and category solutions

– Understand the implications of shopper insights



Where do these insights come from?

• Extensive shopper researchcarried by Zdology andResearch International Chinaacross a number of categories

– 100+ shopper researchprojects

– 3000 hours of in-store video

• Partnership projects with majorretailers



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3

5

7

9

Shoppers have difficulty making decisionsShoppers 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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4

6

8

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1. Shoppers have difficulty makingdecisions

• 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.

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1

0

20

40

60

80

100

120

1996 2000 2004 2006

Avg. # SKUs Carried by a Supermarket - Shampoo

Source: CCFA Chain Store Annual Report

• 46% shoppers spend3min+ in front of shelf

• 52% shoppers pick up3+ products

Source: Mini-Market Shopper Research




• 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 throughrelevant POS materials

• Train promoters on how to

facilitate shoppers‟ selectionprocess

Don’ts

• Assume shopper know how tochoose products

• Overwhelm shoppers with POP

materials!



• Shoppers want tomake a wise and

smart decision.• They also want to be

seen by peers asmaking the right

choice.

I Want “Cheap”

I Want “Value”

I Want to Be Smart!!!

2. Shoppers want to feel smart whenmaking decisions

2



Do you think theshopper will feelsmart with thispromotion?


2



• Shoppers want to make a wise and smart decision.

• They also want to be seen by peers as making the rightchoice.

Dos

• Focus on how to make shoppersfeel 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 afterthe sale (e.g. high-low pricestrategy)


2



3. 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: Only less

than 50% of shoppersare able to recall anyavailable POSM!

3



3. Shoppers’ limited ability to process too

much information

3Dos

• Stimuli need to be clear and

unambiguous• Create relevant in-store

communications that helpshoppers 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”



What’s this

brand?

4. Shoppers use memory to give meaningto objects

• Shoppers need to be given a clear stimulus in order toaccess their memory.4



What’s this

brand?

• Shoppers need to be given a clear stimulus in order toaccess their memory.


4



What’s this

brand?


4



• Shoppers need to be given a clear stimulus in order toaccess their memory.


4Dos

• Use visual stimuli that areconsistent with what shoppersknow for better memory retrieval

• Use existing pathways – colour,shape, font…

• Merchandising tools need tohave meaning

Don’ts

• Use non-standard font, colour orshape

• Use visuals that inconsistent with

those used in other channels: e.g.TV ad, print



5. Shoppers need consistent messages inand out of the store

5



• Shoppers need consistent messages to make thetransition from consumers to shoppers.

5. Shoppers need consistent messages inand out of the store

5Dos

• Use 360-degree communication

• Align above- and below-the-lineactivity

• In-store communication alsoneeds to be aligned withshoppers‟ needs and mission

Don’ts

• Don‟t break the dialogue at POS

by sending a different and/ orirrelevant message.



6. Discontinuity creates triggers to attractshoppers’ attention

• The mind ignores what it knows and focuses ondifferences6




• The mind ignores what it knows and focuses ondifferences6




6Dos

• 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 ondifferences



7. Shoppers recognize visual stimuli mosteasily

From “flashy” visuals …

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… to more subtle but

unique approaches.


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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 POS materials(shoppers won‟t read them!)



8. Shoppers use familiar segments tospeed up their selection process

8• Shoppers first sort out what is not relevant, thenchoose among the remaining products.




8Catfood

Cattreats/ toys

Catlitter

Pethealth

Dogwalking

Dogtreats/ toys

Dogfood

• Seven distinct category segments have been identified• Little association between cat and dog food• Pet health segment is associated with both cat and dog



• Shoppers first sort out what is not relevant, then chooseamong the remaining products.


8Dos

• Make it easy for the shopper tosort out what is and is notrelevant

• Organize products based on howshoppers make decisions

• Think about needs-based shelflayout

Don’ts

• Organize products on the shelf ina way that is not aligned withshoppers‟ selection logic.

• Organize the store in a way thatshoppers need to spend moretime to find the brand they want.



9. Shoppers’ tunnel vision and“boomerang” behaviour

• Shoppers have a tunnel vision whenviewing fixtures at eye level.

• Also, if they cannot find what they wanthalf-way down the aisle, they usually turn

round and leave the fixture.

Module 1 2 3 4 5 6 7 8

Shelf 1

2

3

4

5

6

7

8

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 ateye level.

• Also, if they cannot find what they want half-way down

the aisle, they usually turn round and leave the fixture.

9. Shoppers’ tunnel vision and“boomerang” behaviour

9Dos

• Place relatively weak brands ateye level, so they stand a betterchance to be noticed

• Place your brands close to themain entrance of the fixture

Don’ts

• Don‟t expect shoppers to go the

extra mile to find your brandbecause they won‟t!



10. Shoppers need to be reminded ofthe items they need

10Planned but not purchased

instant noodle Planned and Purchase instant

noodle Not planned but purchased

instant noodle

Impulse purchase rate analysis

Why? – In-store triggers

No

Yes

Closure rate analysis

Why? – In-store barriers

Details of preplan

Planned to buy instant noodle?

Yes

Purchased

instant noodle 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%




10Not planned but purchased

instant noodle

Impulse purchase rate analysis

Why? –

In-store triggers

26% Impulse Purchase

3

6

29

61

Reasons for Impulse Purchase - (%)

Base=All Hypermarket Impulse Purchasers

I was reminded by in-store stuff

It is on promotion now

Recommended by accompanier

Recommended by promoter




• „Breakfast solution‟ – “Squeeze a minute into your morning”

• Reminding shoppers to buytheir morning fresh juice withtheir newspaper.

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10• Simple “meal solution” approach. • Increasing value of purchase with pasta and cook sauces.



• Grouping categories in line with shoppers‟ logical

selection process triggers their memory and leads tomore sales – whether planned, unplanned or impulse.


10Dos

• Organize the fixture aroundshoppers‟ needs and mission to

make the most of their limitedtime at POS

• Create in-store solution centers

Don’ts

• Use secondary displays withillogical category adjacency

• Arrange the fixture based on

what makes sense to theCategory Manager!



Summing up

• Consumers and shoppers are twosides of the same coin, henceconsistency is needed in ourcommunications.

• The store environment has

enormous impact on shoppersand their behaviour.

• In order to influence shoppers toour advantage, understandingwhat makes them “tick” isfundamental.

• Therefore, shopper insights arekey to win “in the last mile”.



Thank you for your attention!

Documents

Shopper Behaviour - Shopper Insights