SHOPPER MARKETING
SECTION ONE
SECTION TWO
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Why Is Shopper Marketing Gaining Momentum?
Past Shopper marketing has become a widely practiced and transformational
approach in the consumer goods industry, says a new survey.
Ninety-five percent of those responding to the survey are actively engaged in
Shopper Marketing, with more than eight of ten (82%) saying the emerging
discipline is vital to their company’s success. Half of the respondents say
Shopper Marketing is driving innovation, and more than six of ten (63%) say it
is driving collaboration with retailers.
The online Futurescope survey by GfK Interscope polled over 300 industry
practitioners representing retail, food, beverage, personal care, healthcare, beauty, general merchandise and electronics. The survey was established in 2006 to profile the attitudes, approaches, and best practices of practitioners as they activate Shopper Marketing.
“Shopper Marketing is starting to drive innovation and we‘re starting to get results. Those are all great things for the future,” says Alison Chaltas, Executive Vice President with GfK Interscope. She defines Shopper Marketing as “strategy- and insight-driven in-store or retailer-specific marketing that includes some form of equity-building messaging.”
The survey found that financial investment in Shopper Marketing continues to increase. Three of four respondents (76%) reported that their company devotes at least 5% of its marketing budget to Shopper Marketing - compared to 69% last year and 56% in 2009.
This upward trend will likely continue. When asked if Shopper Marketing will get significantly more resources and focus, 28% say that is already happening, while nearly half of the respondents (47%) predict more investment within the next two years.
“More resources are expected to come,” says Chaltas. “As we formalize and become an institution, the budgets follow.”
Apparently, so will confidence in the discipline. More than six of ten (63%) of respondents believe their company is capable or rising to the top tier of Shopper Marketing leadership - up from56% of those saying so in 2009.
The research found that digital/mobile technologies are exploding with lots of testing being conducted. Internet coupons/offers is the leading tactic currently in use, say half (52%) of survey respondents. Thirty-seven percent list mobile websites, with a third of respondents each naming QR codes on in-store displays and POP, coupons sent to mobile phones and participation in retailers’ mobile marketing.
More than half of respondents say such advances in digital/mobile tactics will shift power to shoppers by empowering them to the detriment of manufacturers and retailers. A third (33%) say that’s already happening, while more than a quarter (27%) say it will happen within two years. Finally, two of three respondents (65%) “agree” or “strongly agree” that digital/mobile will transform shopper behavior in the next four years.
“That’s a big number,” says Gary Schanzer, Executive Vice President at GfK Interscope. “But almost everybody says we lack best practices for leveraging digital/mobile in store. We haven’t learned enough yet. We have to have a lot more trial, a lot more understanding of what works and what doesn’t work. So there’s a big opportunity in the industry.
“The place to start is with the commitment of people, organizations and resources,” he continues. “We have long way to go. There is lots of room to grow and get better as an industry.”
Other results of the survey underscore that notion:
- 33% of those responding to the survey say they are dedicating less than 1% of their marketing budgets to digital/mobile
- 48% “disagree” or “strongly disagree” with the statement that their organization is prepared to manage impact of digital/mobile
- 53% “disagree” or “strongly disagree” with the statement that their organization dedicates adequate focus and resources to leveraging digital/mobile.
“Shopper intimacy fuels Shopper Marketing success,” said Chaltas. “A robust shopper insights foundation is key. However, there is a shopper insights capability gap. Only half of respondents (48%) say their organization’s shopper insights foundation is strong, but nine of ten (88%) say shopper insights is “important” or “extremely important.”
Shopper intimacy is increasingly elusive, according to Chaltas. The industry has gone from a simple, linear progress of pre-store, in-store, in-aisle to a multi-stage web of evaluating, sourcing, selecting, maximizing, and advocating. Along the way, there is a “dizzying array of shopper touch points” from online, mail, in-store and word of mouth.
“All of the touch points are impacting that shopper throughout the day - pre-shop and post shop - and you need to think about these not as consumer touch points, but shopper touch points,” she said.
For more information, visit www.interscopellc.com.
Click on the LinkedIn logo to join the new Shopper Technology Institute Discussion Group
SECTION THREE
