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