Rich Lundvall, partner with Landfall LLC, presented theses slides at the Retail Merchants Association's First Friday Forum on Friday, February 3, 2012 at The Westin Richmond, Richmond Virginia. Nearly 200 people were in attendance for this presentation.
3. The shopping experience
• Trips, traffic and ticket size vs. a great shopping experience
• Can the two coexist and even thrive?
• What’s influencing this?
Landfall LLC 3
4. The macro landscape:
Shopping and shoppers are changing as we speak
• Shopping is becoming more transparent, social and easy.
• Shopper behavior is becoming more complex and is being impacted
by new economic and non-economic factors.
• System wide shakeout is on its horizon, some will fall, some will
stumble and some will thrive.
• Basics of retail have been over innovated for bottom-line results.
Landfall LLC 4
5. The macro landscape:
Shopping and shoppers are changing as we speak
• Yesterday’s solutions weren’t about convenience or saving time.
• Today Shoppers expect more.
• Shopping has become a “blood sport”
Landfall LLC 5
6. Budgets
• Money, Time AND Frustration
– “All Innovation comes not from market research or carefully
crafted focus groups but from really pissed off people.”
Tom Peters
Reimagine?!
Landfall LLC 6
7. Retailer vision – predictive analytics
“..not just giving them what they
want, but giving them what they
might want next.”
Mindy Grossman, CEO HSN
Demand Desire
What are your What are your
Shoppers shoppers
looking to buy? looking to do?
Landfall LLC 7
14. All shoppers are not created equally
• Shoppers are different
• Information needs are different
• Information does not necessarily equal experience
• A great experience can change the game
Landfall LLC 14
15. Who’s doing it right?
Sales per square foot:
$2,974
$5,646
$1,820
$1,731
Landfall LLC 15
22. First of all….
• Just what is “Shopper Marketing”
– "The use of strategic insights into the shopper
mindset to drive effective marketing and
merchandising activity in a specific selling
environment."
– This said it’s a lot more than you may think
• It sure isn’t what it was 10 or fifteen years ago
Landfall LLC 22
27. Getting back to basics
1. General consumer AND shopper profile
2. Specific analysis of key barriers around the shopper’s journey
3. Strategic mandates that drive transformation: recognizing brand role
of channel/department, product category and individual brands
4. Current state and desired future state of the four buying pillars
SEES FEELS THINKS DOES
Landfall LLC 27
28. The Psychological Drivers of Shopping
What makes them tick?
• A set of idealized emotional benefits consumers desire from buying
experience
• They drive behavior by creating the motivation to shop
• Favorable conditions for purchase behavior
• Standards for judging shopping experiences, brands and purchase channels.
Vocation Hobby
SELF-
MASTERY DREAMING SECURITY SANCTUARY CONNECTION SPORT PLAYTIME
CREATION
Self- Learning Possibility Preparedness Escape Bonding Adventure Creativity
Reflection
Performance Inspiration Replenishment Therapy Belonging Hunt Entertainment
Status
Sharing Ambition Nesting Relaxation Caretaking Competition Stimulation
Bragging
Hope Heritage Strategy Regression
Rights
Values
Landfall LLC 28
30. Make the journey easier for me…
Navigation
• Help me understand where I
am and where I need to go,
then get me there easily.
• Help me get to the products
that are right for me.
Landfall LLC 30
31. Make the journey easier for me…
Education
• Anticipate my questions and
tell me about products and
services you offer.
• Explain complex tasks and
categories.
• Explain what’s in it for me.
Landfall LLC 31
32. Make the journey easier for me…
Inspiration
• Encourage me.
• Give me ideas.
• Help me solve problems.
Landfall LLC 32
33. Getting started…..
• Know your shoppers
• Baby steps
– Store/site vs. category
• Test and measure
Landfall LLC 33
Notas del editor
All shoppers have budgets. This said they aren’t confined to dollars. Time attention and frustration are equally important factors in the shopping equation.My client’s brief me with objectives like “grow sales”, “build trial”, “drive upsell”, or “show my product as solution.” These are all purchase-driven dynamics that happen in a retail moment of truth but we must deliver these results in a fashion that will surprise and delight our shoppers
As you would expect Amazon is still the 900 lb. gorilla but is still a fraction of the $410 billion TOTAL revenue of Walmart.Walmart should be doing far more in the on-line space but their shopping experience is cumbersome (frankly, a lot like their bricks and mortar experience).Staples and Office Depot- Understanding and knowing their SOHO targetApple- A winner on both fronts
So what’s the difference between a consumer and a shopper? By it’s very name consumption happens after the buying decision is made. The act of consumption is a critical piece of the path to purchase but it is only that, apiece. Shoppers are on task and in the moment. They research, make lists hunt select, deselect assess share the list goes on. So what’s driving them today?
Fred and Ginger videoSo, you’re ready to take on the task of planning for the retail experience. But I should warn you. It’s not necessarily easy. There’s an old saying about Ginger Rogers. That she had to not only be able to dance like Fred Astaire, but do it backwards and in heels.That’s a bit of what it will be like as try to drive strategic, yet creative, experiences at retail. You’re going to have to follow all the steps traditionally involved, but perhaps approach the dance from a slightly different direction
Monty Python- Pope and Michelangelo short
How well do you really know your shoppers?You may see them everyday and see what they buy but are you really understanding what they need and what they want to do? Baby Steps: Improving your shopper’s experience doesn’t require a complete transformation of your site or store. Category by category, shopper segment by shopper segment.Test and measure: I wish I had a dollar for every time I’ve heard “ we tried that and it didn’t work” and yet there is little data to show for the results. Make sure you’re testing and measuring the right things!And finally, if you would like to get started I would invite you to attend the RMA’s lunch and learn seminars where we’ll take a deeper look at how to develop these programs and put them to work for your business.