MARKET WATCH
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Spire Develops New Approach to Customer Segmentation
Essence Segmentation is a new and unique type of segmentation Spire that aims to give retailers and manufacturers a competitive advantage by providing deeper insights into shopping behavior. With this program, Spire takes a “you are what you buy” approach by segmenting households by Lifestage/Lifestyle, based on detailed item-level analysis of purchase patterns across the store.
Each household is scored into segments within nine Essence Dimensions, including Family Type, Affluence, Gender/Age, Health/Wellness, Cooking Style, Ethnicity, Pets, Dieting Style and Special Dietary Needs. Based on the combination of scores across these nine dimensions, households are placed into one of 40 detailed Essence Segments.
This kind of micro-level segmentation lets retailers and manufacturers answer questions such as:
- Which stores serve shoppers with similar lifestyles/lifestages?
- How can our merchandising/assortment be tailored within each store cluster to better address our shoppers’ needs?
- Which of our shoppers are Health/Wellness driven, and what type of strategic wellness program would best meet their needs?
- Which shoppers would be the highest potential targets for our new products?
“We believe the ‘you are what you buy’ approach has broad utility across multiple strategies and initiatives for both our retailer partners and manufacturers” said Mike McMahon, President, Spire.
Essence Segmentation is designed to add value to both retailers and manufacturers, and provides an invaluable tool to help the latter develop highly relevant shopper marketing programs. Companies gain the ability to improve the results of their highly targeted marketing program executions. Store clusters can be developed based on stores that serve a similar mix of Essence segments. And planograms and product assortments can be tailored to shoppers in each store cluster.
“Understanding the spectrum of shopper needs is key to success today. To be effective, you have to get beyond demographics to really understand what’s important to the shopper, and what influences their daily decision-making. Essence Segmentation provides this deep insight into shoppers.” said Megan Margraff, Chief Analytic Officer, Spire.
For more information, visit www.spirenow.com, or contact Spire at info@spirenow.com or 203.916.1780.
The Loyalty Leap Hits Best-Seller Lists in First Week
Recognized throughout the loyalty-marketing industry for his success and expertise, it is no surprise that LoyaltyOne President and CEO Bryan Pearson has already landed on multiple best seller lists with his first book, The Loyalty Leap: Turning Customer Information into Customer Intimacy.
The book ranked at No. 5, No. 3 and No. 10 on the New York Times, USA Today and Wall Street Journal non-fiction best-seller lists, respectively. It was the No. 2 book on the Wall Street Journal’s hardcover business book list. Officially launched Thursday, May 10, The Loyalty Leap is available in bookstores and online at Amazon.com (U.S. and Canada), Barnes & Noble, Indigo, Books-A-Million and Indiebound and is available for download on iTunes or Kindle.
Pearson says his original goal in publishing The Loyalty Leap was to “shift the conversation about customer data from the marketing department to the boardroom, and eventually to the front lines where the consumer lives.” And Pearson knows a thing or two about collecting and using customer data. His company operates the AIR MILES Reward Program, North America’s leading coalition loyalty program with a 70% household penetration rate in Canada.
Pearson will be a keynote speaker at the 4th annual LEAD Marketing Conference Oct. 1-3 in Chicago. To learn more about The Loyalty Leap and see the preliminary reviews, visit www.pearson4loyalty.com.
Deeper Insight, More Efficiency for Online Advertising Available
A new purchase-based targeting solution for CPG advertisers from Catalina Marketing aims to improve the efficiency of digital media by identifying key buyer audiences based on in-store purchasing and engaging them wherever they are online. Catalina BuyerVision incorporates the firm’s shopper understanding and analytics into campaign planning and measurement to drive improved performance.
The solution addresses a major opportunity for advertisers to improve efficiency and sales lift by focusing their messages on high-potential buyer audiences. For example, a study just released by Catalina shows that a key subset of category buyers and a key subset of brand buyers are, respectively, 3.8 and 5.8 times more likely to try new products. Catalina officials say its new solution has the expertise to leverage insights from shopper data prior to a launch to find the specific buyers most likely to buy a new product.
Online advertising powered by purchase-based targeting has been proven to work. Analysis of more than 600 campaigns across numerous categories has shown an average sales lift of 22% per campaign.
Chris Henger, Executive Vice President of Catalina's Digital Solutions,” said “we can share with brands and their media planners and buyers our unmatched, real-time consumer and brand insights. We also are the only multi-channel solution able to reach the same audiences with online advertising integrated with an in-store campaign to maximize volume, drive trial or reinforce loyalty. This creates a true surround sound consumer messaging opportunity for a brand to direct to its most valuable set of buyers.”
McKesson, eBay, Peapod.com in Keynotes at GS1 Connect Conference
Executives from McKesson Corporation, eBay, Peapod.com, and Darden Restaurants will take the stage in a keynote session June 5, 2012, at the annual GS1 Connect Conference hosted by GS1 US.
Taking place June 5-7 in Las Vegas, the conference, with the theme, “Business Moving Forward,” provides education for professionals on information standards and other issues affecting digital commerce and supply chains.
Joining GS1 US Chief Executive Officer Bob Carpenter in the kickoff general session will be: Jim Thomas, Vice President, Darden Restaurants; Amit Menipaz, Senior Director, Global Product Management, eBay; Mark Walchirk, President, McKesson Specialty Health; and Tim Dorgan, Vice President, General Manager of E-Merchandising, Peapod.com.
“This is a unique combination of industry leaders covering critical, front-burner issues,” said Carpenter. “Attendees will benefit from their views on information standards in support of business-to-business and business-to-consumer functionality for today and tomorrow. Small businesses and large businesses alike will get a lot out of this program.”
The conference theme refers to companies’ use of GS1 standards to help them better understand where their products and assets are, develop insights on business processes, and to better meet their customers’ needs. More than a thousand professionals will converge at GS1 Connect for a user-driven program focused on business-oriented tracks and more than 60 sessions and workshops, many of them focused on the consumer packaged goods, retail, healthcare, fresh foods, apparel and hardlines industries.
Smart Balance Awarded for Effective Trade Promotion Technology
Smart Balance, maker of better-for-you margarine substitutes, flavored popcorn, and peanut butter,
has been selected as a “Standout Small to Mid-Sized Business” by Consumer Goods Technology (CGT) Magazine. The publication recognized Smart Balance for its aggressive and highly effective growth strategies and its ongoing efforts to leverage technology to enhance promotional planning across its expanding brand portfolio of health and wellness products.
“We offer our congratulations to Smart Balance for their many achievements and wish them continued growth and success,” says Lorne Schwartz, CEO of TradeInsight, global provider of trade promotion management solutions. “Incorporating and adhering to trade promotion management best practices and processes can provide mid-sized companies in this industry with a strategic competitive advantage. TradeInsight is proud to provide Smart Balance and all of our clients with a market leading technology solution that further enables them to make the best possible business decisions to grow their brand and ultimately strengthen their position in the market.”
For more than 25 years, Smart Balance has strategically introduced and continually expanded the distribution of its product mix to give consumers better options and healthier alternatives. While the health-conscience manufacturer is most known for its buttery spreads, Smart Balance competes in multiple product categories and relies upon TradeInsight’s suite of TPM solutions to track, manage and analyze the effectiveness of its trade spend activities.
More Smartphone Users Redeem Coupons on Their Device
Four-in-ten smartphone users (40%) have redeemed a coupon on their mobile device, says a new Coupon Cabin.com survey. In addition, nearly one-third (29%) of them search for coupons on their device at least once a month, with 40% of U.S. adults ages 18-34 doing the same.
Wide ranges of coupons are popular with smartphone users. In fact, nearly three of four (72%) said they are at least somewhat likely to use a mobile app that offers savings with different types of coupons (for example, online codes, grocery, non-grocery). When asked what types of coupons they have redeemed on their smartphones, users said the following: Daily deals (41%), grocery coupons (39%), online coupon codes (34%), printable coupons (29%), freebies such as free samples or coupons toward free trial of items (24%), and other non-grocery coupons (23%).
To meet the demand for mobile coupon use, CouponCabin.com has launched a free all-in-one, coupon app that allows users to access coupons in every coupon category, including grocery, printable for in-store use, and online codes for hundreds of online retailers. In addition, users of the CouponCabin app will find gas price comparisons, amazing deals on must-have products, free samples and coupons for local stores and restaurants.
“Unlike many other coupon apps, we're excited to share this all-in-one app that offers basically every type of coupon you'll ever want," said Scott Kluth, CEO and Founder of CouponCabin.com. "As we continue to grow, we've learned that our users are hungry for an app that puts the power of quality couponing in the palm of their hands, and our new app does just that - and more!”
Grocery Execs Underestimate Online Research in Path to Purchase
Most grocery executives don’t understand how digital research influences actual consumer behavior, according to the results of an on-site survey at the recent Food Marketing Institute (FMI) trade show in Dallas.
Only 20% of the hundred retail executives polled by Maxpoint Interactive think consumers use digital mediums to prepare for their shopping trips. However, recent research by BIGinsight found that 90% of consumers regularly research products online before purchasing them in store.
“As more consumers are increasingly using digital mediums to prepare for their in-store shopping experience, it was interesting to see a varying point of view from grocery executives around these changing shopper behaviors,” said Gretchen Joyce, chief operating officer at MaxPoint Interactive. “The combination of our research and BIGinsight’s report provide great insights into how consumers now make purchasing decisions and the role that digital plays in those decisions. We’ve learned that consumers are doing more research online before buying in the store, shopping closer to home and are highly influenced by incentives and coupons. Grocery retailers should take these key points into consideration as they build new marketing and advertising campaigns.”
Foodies Flock to Smartphone Apps, Social Media
With the growing penetration of smartphones, mobile phone applications are quickly becoming the go-to source for countless daily tasks, including finding grocery deals, according to The NPD Group, a leading market research company. NPD food market research also finds that tech-savvy consumers are using the Internet and social media to hunt down recipes, shop for food, and connect with their favorite food brands.
NPD’s National Eating Trends, which continually tracks all aspects of eating behaviors in the U.S., finds coupon apps are used by about 25 million Americans each month, and this happens most frequently in households with children. The foods these app couponing families consume more often skew towards kid friendly staples like eggs, cold cereal, bacon, sausages, macaroni and cheese, soup, and fruit juice.
More than half of U.S. consumers are aware of Groupon, the localized deal-of-the-day website, and about one in five consumers receives emails regularly from the service, according to National Eating Trends. Roughly the same proportion claims to read through the emails at least monthly — equating to more than 60 million U.S. consumers.
While cookbooks are still the top source for recipes, the digital age has brought recipes to anyone with Internet access. Over the last year, about half of Americans accessed the Internet to get their recipes. In a recently released NPD report entitled, Recipes Are Cooking, most other traditional recipe sources have been declining in usage, while Web sites such as allrecipes.com and epicurious.com have become top destinations for consumers in need of cooking ideas.
Nine Out of Ten Shoppers Make Impulse Purchases
Despite a shopping list being a tool to stay on budget and eliminate unnecessary purchases, research shows that nine out of ten shoppers still buy items not on their list, says The Checkout, an ongoing shopper behavior study conducted by The Integer Group and M/A/R/C Research.
Of these shoppers who purchase off-list items, 66% say the reason was a sale or promotion, 30% say they found a coupon, and 23% say they simply wanted to pamper themselves.
“Our data shows that 61% of off-list shoppers purchase an additional one to three items,” said Craig Elston, senior vice president, Integer. “This shows that if you reach a particular shopper at the right moment with the right message - for example, using in-store signage to play into their desire to pamper themselves - it can end with that item being added to their basket.”
When it comes to list-making, 61% of shoppers are influenced primarily by the brand of product they currently use, 57% report that coupons influence their list, and 56% say store ads or circulars influence their list. However, when shoppers are making lists, they typically do not write down brand names of a product, they write the product type. This means that although they may have their brand of choice in mind, there are factors that can influence a shopper to select one brand of a product over the other, telling marketers they need not worry that a shopping list excludes certain brands or creates a barrier to purchase.
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