Worldview of Shopper Marketing!
One concept, many approaches. Shopper marketing minus the theory is indeed morphing into many shapes world over. Thus in this space we capture the varied perspectives, practices and thoughts related to shopper marketing. Read on to know what we have this time. Making Sense of Shopper marketing – A look at how multi-channel, campaigns influence sales and extend reach
Shopper marketing has reached a tipping point. Marketers can no longer rely on converting shoppers into buyers the old-fashioned way. Shopper marketing is at a crucial intersection: consumers are rapidly adapting their purchase behavior, while brands are quickly trying to understand that behavior. Shopper Marketing campaigns become cost effective and more successful if agencies and brands can adapt. In order to build on its potential, campaigns must evolve beyond siloed, endemic buys, and develop into multichannel strategies that are capable of running seamlessly across the media ecosystem and feeding into offline territories.
Advertisers and agencies typically treat in-store, display and mobile campaigns as separate parts of their overall strategy, each with an individual spend. Each platform has exceptional strengths: for display, heavy research capabilities allow consumers to digest information rapidly; for in-store, coupons, interactive media and mobile capabilities influence the point of decision; and for mobile extensions, geo-fencing and strategic targeting capabilities allow for higher performance. Combined in a single holistic campaign, in-store, all three can work together to deliver an ROI while increasing the opportunity to influence a sale. However, the current lack of a fluid structure along the path to purchase has led to segmented marketing messages. The alignment of messaging throughout the path to purchase can lead consumers to make decisions online and drive more in-store purchases.
To help quantify the impact, Longboard Media took a look at display campaigns with mobile extensions while analyzing against in-store data provided by various retail partners. Through this study, several key questions were addressed:
Does the combination of display and mobile improve efficiency?
What sort of influence does research activity have on in-store purchases?
What are the benefits of digital Shopper Marketing campaigns?
What are the key influencers along the path to purchase? Key Findings
85% of shoppers are researching products online.
40% of the time, a shopper selects a brand prior to entering a store.
There are dozens of influencers along the path to purchase:
– Display: Paid media, product placement, product reviews and social media.
– Mobile: Geo-fencing, store targeting, couponing and barcodes.
– In-store: SOS, coupons, collaborative media, displays and signage.
Price, brand preference and product reviews play a large part in a consumer’s selection.
In-store mobile extensions can increase display reach by 10-20%.
Retail sites are becoming large players in the e-commerce marketplace.
THE PATH TO PURCHASE IS FRAGMENTED
The above model starts with a trigger, prompting the demand for a certain product. The path to purchase ends with the trigger itself being fulfilled. From demand to satisfaction, the shopper will go through a series of interconnected actions, each with an outcome that prompts another action. The path to purchase is no longer linear. In fact, most actions are happening at the end of the funnel, and this is where Shopper Marketing is most effective … a late funnel media buy. If we look at the path to purchase this way, we get a better sense as marketers of the new drivers within the decision-making process, or journey. Understanding a shopper’s journey can help marketers develop communication strategies that are more effective and ultimately, lead to a purchase. Marketers need to observe the actions that a consumer makes while understanding on the backend the cause of these actions.
Opportunities to Reach Consumers Along Path to Purchase
Agencies and brands will continue to shift portions of their digital budgets and in-store budgets to address the changing path to purchase.
Changes in technology and shopper behavior have changed the path to purchase. Pre- purchase research and digital campaigns on shopping and retail sites are having a quantifiable impact on brick and mortar purchases. Even more noticeable is the use of mobile devices and tablets while consumers are shopping in-store. Consumers are using the devices to check out product details, compare prices and find a local retailer. A growing trend among mobile usage in-store is the opportunity to buy instantly — moving the consumer from consideration, to purchase at any moment.
Shoppers Conducting Research - Outof-Store
Analyzing the new path to purchase allows marketers to improve communication strategies that target consumers at the right time, right place and with the right message.
More and more, consumers are spending good chunks of time preparing for their trips to retailers and making decisions before they even enter the store. As the digital gap widens, marketers have new opportunities and new ways to target consumers while they are in the act of making a purchase decision, or
researching with the intent to enter a store and make a purchase.
Marketers must continue to produce programs that target consumers while they are in the act of browsing or making a brand decision. Furthermore, when shoppers are looking for a product online, they don’t always make a brand decision. In fact, before they enter a store, they may have selected a few brands to research, allowing them to continue the evaluation once in front of the product.
FACTORS INFLUENCING BRAND EVALUATION SETS:
Consumer shopping engines
Bottom line: Brands and agencies need to take advantage of digital Shopper Marketing if they want to influence purchase decisions in the store as most consumers are planning their purchases before they even step foot in a retail store.
Factors Influencing Shoppers
The growth of digital media campaigns has led to shoppers coming to retail stores not only more prepared to make a decision, but well informed on product specifications and consumer reviews. The most effective way for marketers to communicate with active shoppers is to customize content such as e-newsletters, digital media and social media to foster a relationship with the consumer.
Other factors that are continually influencing a shopper’s in-store selections are brand preference, product characteristics, low cost, websites/blogs and coupons. Understanding what drives consumers to a retailer will contribute to the growth of channel categories and help marketers get a better understand of when they should be communicating with consumers: out of store, in store…. or both?
Dual Platform Campaigns Enhance Reach
As consumers diversify how they digest shopper media beyond display media and embrace an ever- wider array of screens such as mobile / tablet devices, advertisers need to adjust their campaigns accordingly. By complementing a display campaign with a concurrent mobile campaign, advertisers can expand their reach to multiple screens, and help reinforcethe brand’s message while substantially increasing campaign performance. Longboard Media ran a $520,000 mobile extension on top of a custom $560,000 display campaign on our network with a premier advertiser and found that reach of habitual and deal shoppers was increased by close to 10 percentage points.
Average Frequency Increases
The division of the media landscape allows for operational regularity. Consumers are generally exposed to a brand message 3 or less times, but when campaigns are run on multiple platforms, such as display and mobile, the ability to target consumers and hit them with a brand message increases almost two fold.
Shopper Marketing as a Tactical Capability
Insight is key to measurement at every stage of the path to purchase. The current challenge facing agencies and brands is to put clarity to how multi-channel campaigns and strategies can work together. Shopper marketing should be measured as a tactical capability, with one function working off the next, unilaterally. Measuring Shopper Marketing campaigns unilaterally involves the cohesiveness of three key areas:
Analytics: Collect data throughout the funnel and understand how that is translating to sales on a retailers end.
Integration: How do analytics support the planning and measurement at each stage of the funnel? And for each campaign?
Technology: Utilization of new shopping technologies such as mobile and tablet devices and integrating them into campaigns. Measurement on the back-end.
Digital Shopper Marketing clearly has enormous potential and continues to gain momentum among brands looking to test larger budgets. Digital Shopper Marketing must continue to deliver comprehensive returns on investments, and must be multi-channel and no longer a single silo. Shopper marketing must be developed into a strategic marketing capability and it must intersect with every
other action and step along the path to purchase. Finally agencies and brands need to institute an effective measurement strategy that assists in understanding the efficiency of campaigns. As digital Shopper Marketing continues to grow and gain favorability among brands, its time for marketers to stop thinking about the platforms as separate pieces to the puzzle, but rather one ad-hoc program that fluidly works together