A peep in­side the gro­cery shop­per’s mind and her bas­ket

Progressive Grocer (India) - - Contents - By Premjit Mo­ha­p­a­tra

How can re­tail­ers at­tract more cus­tomers to their store, con­vert them to buy­ers, and get a fair share of their bas­ket?

The re­tail en­vi­ron­ment to­day is char­ac­terised by con­stant and in­tense com­pe­ti­tion. Ev­ery re­tailer wants a higher share of the cus­tomer’s wal­let. An AT Kear­ney re­port calls In­dia the nu­mero uno re­tail des­ti­na­tion in 2017 but it also says that the com­pe­ti­tion is set to in­ten­sify in the fore­see­able fu­ture. Most re­tail­ers will be con­fronted with the chal­lenge of at­tract­ing more cus­tomers to their store, con­vert­ing them to buy­ers, and get­ting a fair share of their bas­ket.

Mar­ket con­sul­tancy and re­search firm Neilsen, with a wealth of ex­pe­ri­ence in un­der­stand­ing con­sumer be­hav­iour and re­tail, has come out with a study ti­tled the Three Piv­ots of Retailing, which de­tails in­ter­est­ing facts that a re­tail busi­ness in In­dia needs to look at in or­der to be suc­cess­ful. The study also pro­vides valu­able in­sights into the mind of the con­sumer.

Three piv­ots of retailing

• In­creas­ing the num­ber of foot­falls

• In­creas­ing the fre­quency of peo­ple com­ing to the store

• In­creas­ing the bas­ket size of cus­tomers In­creas­ing the num­ber of foot­falls is about be­ing in the right lo­ca­tion. For iden­ti­fy­ing the lo­ca­tion, the pa­ram­e­ters to be keep in mind are to look at areas where you have the high in­come or the af­flu­ent or the mid in­come con­sumers. High af­flu­ence areas mean high po­ten­tial for the re­tail store to meet its objectives. So the first step is to iden­tify the con­sumer af­flu­ence level out there and iden­tify the con­sumer po­ten­tial. The next is to ac­count for re­tail po­ten­tial, which is a com­bi­na­tion of re­tail den­sity out there and re­tail sales hap­pen­ing there. The im­por­tant thing to keep in mind when con­sid­er­ing in­come is the change in con­sump­tion bas­kets.

“Iden­ti­fy­ing the con­sumers and the lo­ca­tion where you can find the in­tended foot­falls starts with defin­ing who and what your con­sumer is. This de­scrip­tion is ar­rived at by look­ing at their in­come. At Neilsen, we use a lot of method­olo­gies to es­ti­mate in­come. We don’t ask about the in­come, we es­ti­mate it. We ask about ex­pen­di­ture, we look at the sav­ings rate and then es­ti­mate the in­come,” says Peeyush Ba­j­pai, Di­rec­tor, Mi­cro­mar­ket­ing & Eco­nom­ics, Nielsen In­dia.

To­day, one could get a lot of eco­nomic sig­na­tures from spa­tial data (maps & satel­lite im­agery) to un­der­stand the con­sumer around the catch­ment area. But iden­ti­fy­ing the lo­ca­tion is not enough. You may have the best lo­ca­tion, right prod­uct, staff and ev­ery­thing else but it’s all about get­ting more cus­tomers to walk in and more fre­quently. Per­suad­ing them to spend more in the store is equally im­por­tant. But for all of this to hap­pen, it is paramount to un­der­stand how a shop­per’s mind works be­cause it is this kind of un­der­stand­ing that will bring in the sales.

Iden­ti­fy­ing the con­sumers and the lo­ca­tion where you can find the in­tended foot­falls starts with defin­ing who and what your con­sumer is. This de­scrip­tion is ar­rived at by look­ing at their in­come. — Peeyush Ba­j­pai Di­rec­tor, Mi­cro­mar­ket­ing & Eco­nom­ics, Nielsen In­dia

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