Jim Lu­cas

ROI is an in­evitable jar­gon in the mar­ket­ing lex­i­con. But what about the shop­per ROI? Let’s hear it from the ex­pert.

Point of Purchase - - CONTENTS - 1 Liz Craw­ford, The Shop­per Econ­omy.

As

we continue to see the shift in power to­ward con­sumers, shop­per ROI—what the shop­per gets for her/ his in­vest­ment of time, money or ef­fort looms large. Ro­hit Bhar­gava (Au­thor of Likeo­nomics) de­fines rel­e­vance “… [as] not only about get­ting some­one to care about some­thing; it is get­ting them to care about it right now.” This can be summed up thus: 1) Es­tab­lish the ba­sis for rel­e­vance. While it is easy for most of us to enu­mer­ate things we like/dis­like, love/hate, for the most part we are in­dif­fer­ent to the ma­jor­ity of things in the world. For ev­ery ad we love/ hate, there are prob­a­bly hun­dreds we are sim­ply in­dif­fer­ent to. Be­gin by un­der­stand­ing what our tar­get cares most about. Should also fo­cus on the rea­sons for why they should care. 2) Equally im­por­tant in to­day’s era of hy­per-rel­e­vance, is get­ting peo­ple to see the rel­e­vance of a con­ver­sa­tion, prod­uct/ser­vice or at this point in time or point in con­sumer/shop­per’s life. It clear that onus is now on mar­keters to de­liver. Shop­pers/ con­sumers have will­ingly given more per­sonal in­for­ma­tion than ever be­fore (Face­book, twit­ter, loy­alty pro­grams, etc.). But the hope, the ex­pec­ta­tion is that this in­for­ma­tion be used to present them with mes­sag­ing that is more

is rel­e­vant, con­ver­sa­tions that they care about and of­fers that oc­cur at just the right time. In the new ex­change, shop­pers/ con­sumers ex­change be­hav­ior (e.g., at­ten­tion, en­gage­ment, pur­chase, loy­alty, ad­vo­cacy) for rel­e­vance. This means pro­vid­ing shop­pers with new forms of value. Shop­pers/con­sumers are mo­ti­vated by a range of val­ues to care “now”—e.g., re­mind, sim­plic­ity, nov­elty, con­ve­nience, so­cial proof, ur­gency, added-value, per­ceived worth of re­la­tion­ship, sim­plic­ity of earn­ing/ re­deem­ing, en­hanced so­cial sta­tus, af­fil­i­a­tion, al­tru­ism). These value go well be­yond dis­counts in es­tab­lish­ing how well we know our con­sumers and how good we are at mo­ti­va­tional con­ver­sa­tions with con­sumers/ shop­pers. While there are many ex­am­ples of pro­grams de­liv­er­ing rel­e­vance, two of my fa­vorite pro­grams il­lus­trate both the im­por­tance of rel­e­vance and what it looks like at work. The first is an ex­am­ple of how mar­keters go about es­tab­lish­ing rel­e­vance. The sec­ond is an ex­am­ple of cre­at­ing a sense of ur­gency (car­ing about it now). 1) Amer­i­can Ex­press’s “Link, Like Love” pro­gram is driven by an ap­pli­ca­tion on Face­book which de­liv­ers card­mem­ber deals, ac­cess and ex­pe­ri­ences based on the likes, in­ter­ests and so­cial con­nec­tions of con­sumers/ shop­pers and their Face­book friends. Now in its sec­ond year,” Link, Like, Love” ap­pears to continue de­liv­er­ing on rel­e­vance for mem­bers—get­ting more rel­e­vant along the way! 2) To in­crease sales dur­ing the lunch pe­riod, E-MART (largest re­tail chain in Korea) de­cided to launch a unique ex­pe­ri­ence to its cus­tomers; that lasted only dur­ing the lunch hour. Es­sen­tially a sun­dial QR code, only read­able from 12:00 to 1:00, due to the po­si­tion of the sun. Con­sumers who scanned the QR Code were di­rected to the E-MART on­line store and re­ceived $12 coupons for prod­ucts to be de­liv­ered in their homes. The quickly ex­panded to 36 lo­ca­tions in Seoul, of­fer­ing more than 12,000 vouch­ers, in­creas­ing mem­ber­ship by 58% and sales by 25% dur­ing the lunch hour. In the “me-here-now” mar­ket­place, rel­e­vance is the new ROI for which mar­keters are re­spon­si­ble. It is the crit­i­cal cur­rency of the ex­change be­tween con­sumers/shop­pers and brands and re­tail­ers. This rep­re­sents an op­por­tu­nity for brands and re­tail­ers to col­lab­o­rate on de­liv­er­ing rel­e­vance in ex­change for be­hav­ior!

Shop­pers/con­sumers are mo­ti­vated by a range of val­ues to care “now”— e.g., re­mind, sim­plic­ity, nov­elty, con­ve­nience, so­cial proof, ur­gency, added-value, per­ceived worth of re­la­tion­ship, sim­plic­ity of earn­ing/ re­deem­ing, en­hanced so­cial sta­tus, af­fil­i­a­tion, al­tru­ism). These value go well be­yond dis­counts in es­tab­lish­ing how well we know our con­sumers and how good we are at mo­ti­va­tional con­ver­sa­tions with con­sumers/ shop­pers

Jim Lu­cas Ex­ec­u­tive VP, Global Di­rec­tor, Re­tail In­sight and Strat­egy Draftfcb

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