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Digital Shopper Marketing
1. Digital Shopper
Marketing
Evolution Insights analyst David Oates explains why
digital media is set to shape the world of shopper
marketing.
What is Digital Shopper smartphones and their
“Essentially, DSM Marketing? applications (‘Apps’);
encompasses any and barcodes / RFID and
everything with a digital Digital Shopper Marketing associated scanning
characteristic(s) that (DSM) is a new term in the devices; digital coupons
and loyalty cards; digital
features, or can feature, in retail arena, but what does
it actually mean? POS / signage / interfaces
a shopper’s path to (e.g. in-store TV).
purchase. “ Essentially, DSM
encompasses any and
everything with a digital Given the breadth of this
“DSM can manifest almost characteristic(s) that definition, it is no
anywhere i.e. in store, at features, or can feature, in exaggeration to say that
a shopper’s path to DSM can manifest almost
home or on-the go, and
purchase. anywhere i.e. in store, at
almost any time i.e. home or on-the go, and
before, during or after the almost any time i.e. before,
The current DSM landscape
actual purchase itself.” is a transient and nebulous during or after the actual
one, which is no wonder purchase itself.
given that ‘Digital’, in this
context, relates to both What are the benefits?
physical elements (e.g. PCs
and touchscreens) and As DSM can play such an
content elements (e.g. important role in
websites and blogs). influencing shoppers, the
challenge for
While a bulletproof manufacturers and retailers
definition is elusive, is to understand and utilise
however, the DSM space is it.
broadly seen to comprise
the following: retailer and For these organisations, the
manufacturer websites and benefits of DSM are
brand microsites; social obvious; it offers not only
media (e.g. Facebook, the opportunity to engage
Twitter, Blogs, and Virals); with the shopper,
mobile phones and SMS;
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2. but also to feature more channelling shoppers (e.g.
“Any discussion of DSM
prominently in their the recent Cadbury Creme
should start with the decision criteria. Egg and Kellogg’s Krave
internet, which is the campaigns are both good
linchpin of many DSM However, considering its examples).
initiatives. ” broad nature, it is easy to
imagine that marketers are Social media
somewhat daunted by the
prospect of including DSM Social media exists in an
“But it is no longer within their remit, let ever-increasing number of
sufficient for alone trying to align it with forms, from established
Facebook, Blogs and
manufacturers and company strategy.
Twitter to more recent
retailers to just ‘tart-up’ developments like the
their websites and So what does it mean for location-based Gowalla
promotional microsites ” marketers? and foursquare networks.
Any discussion of DSM While these social media
“Successful organisations should start with the formats differ, their
will be those that choose internet, which is the relevance to DSM remains
to target, feed and linchpin of many DSM the same i.e. that they put
initiatives. As internet consumers more in control
respond to social media
usage has continued to of brands, allowing the
and its many apostles..” evolve over recent years, it former to ‘make or break’
is no longer sufficient for the latter in a matter of
manufacturers and hours. While this may
retailers to just ‘tart-up’ represent an inconvenient
their websites and truth for many marketers,
promotional microsites successful organisations
every few years. will be those that choose
to target, feed and respond
Natural engagement with to social media and its
such sites varies many apostles.
enormously, so to reach
shoppers modern DSM In future, good brand
techniques must instead management will include
adopt a more holistic view aspects of social media
of the internet and its that will help it to create
capabilities. For example, new, and leverage existing,
more savvy organisations loyalty by capturing
are now using tools such as consumers (as “friends”,
social media to work with “fans-of” or “followers”)
their traditional channels and turning them into
in capturing and shoppers.
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3. Smartphones and loyalty all found to their detriment
“Integration with mobile is with their now aborted in-
also at the forefront of this Traditional retail marketing store TV offerings. These
branch of DSM, as tools such as loyalty cards well publicised examples
exemplified by emerging and discount coupons, are have caused many to think
smartphone scanning also relevant to DSM. that the use of digital
signage in retail was a false
applications, which enable
For example, mobile and dawn but, if done right, the
the user to perform on- smart phones can potential to use it across
the-spot price circumvent the need for the retail space remains
comparisons and/or physical cards and coupons huge.
product reviews.” altogether, by displaying
codes on-screen via SMS or An extension of digital
‘Apps’. Although these signage in the retail
digital tools are currently environment is interactive
at an early stage of interfaces, which include
development, it is easy to WiFi, projected displays,
imagine that they have an kiosks, and information
inherent advantage due to points for product
their ease of retention, recommendations and
transfer and use. promotions. Integration
with mobile is also at the
Certainly, early evidence forefront of this branch of
points to usage/ DSM, as exemplified by
redemption rates that are emerging smartphone
far higher than traditional scanning applications,
alternatives. which enable the user to
perform on-the-spot price
Digital signage comparisons and/or
product reviews.
Digital signage/ interfaces
are another way in which Ultimately, the challenge
retailers and brands can for digital signage is to
communicate with actually enhance the
customers in store. shopper's in-store
experience. As opposed to
Communications are playing generic
targeted at shoppers when promotional videos on a
they are in ‘full shopping loop, there are emerging
mode’, but successfully opportunities to spotlight
engaging shoppers who specific products and
have such little dwell-time features, and to provide
is challenging, as Tesco, value-adding information
Asda and Sainsbury’s have
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4. to shoppers at the point of opportunity to reach
“Retailers themselves are decision. shoppers with digital
a media platform in their signage, interactivity,
own right, offering brands Some initiatives even websites links, free
an opportunity to reach promise to go further by samples and sponsored
shoppers with digital using way-finding content. The fact that
technology to pinpoint digital signage, and DSM in
signage, interactivity,
specific individuals and general, can bring mutual
websites links, free engage them with tailored benefits to retailers and
samples and sponsored offers; but this is pie-in- manufacturers should act
content.” the-sky thinking for the as an incentive for them to
short-term and there are work together more
more obvious and closely.
attainable developments
“DSM has the capability to to expect in the coming Return on Investment
act as a powerful tool for years. For example,
Walmart in the US created
determining ROI.” While retailers and
the ‘Smart Network’, which
uses digital signage manufacturers recognise
throughout stores to the growing importance of
communicate relevant DSM, some initiatives are
content to shoppers that easier to justify than
can be tailored by store, others, which raises the
screen, day and time. tricky consideration of
Return On Investment
The Walmart example (ROI).
highlights that digital
signage initiatives DSM has the capability to
have to be endorsed and act as a powerful tool for
then managed day-to-day determining ROI. For
by the retailer, which example, a mobile
presents something of an messaging service
obstacle for many informing customers
manufacturers, particularly browsing store aisles could
in countries where the also provide useful
retail environment is less information on sales
radical than in the US. conversion.
Speaking more broadly, it is However, seeking ROI
worth noting that retailers measurability for its own
themselves are a media sake can be dangerous
platform in their own right, since firstly, not all
offering brands an measureable DSM
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5. initiatives will be profitable A bottom up approach?
“The holy grail for DSM is and secondly, not all
to be able to create profitable initiatives will be The holy grail for DSM is to
content, measure it, measureable. This presents be able to create content,
interpret it, then change it something of a Catch-22 measure it, interpret it,
accordingly situation, since most DSM then change it accordingly,
programmes will only be but because the pursuit of
sanctioned after a robust this ideal can introduce
financial business case has cold and hard-nosed ROI
been given.
“Many DSM initiatives demands, it can also
target digital savvy constrain innovation.
In the heavily integrated
shoppers with an
world of DSM, it is difficult Perhaps a more subtle way
‘innovator’ or ‘early enough to disassociate the
adopter’ profile, but the of approaching DSM is to
different elements, let adopt a ‘bottom-up’
potential of the remaining alone to measure the approach, which has
and largely untapped extent to which they shopper perceptions and
market is huge.” contribute to ROI. needs at its core. The
impact of this approach on
For example, consider a building brands over time
shopper who first reads a could still be measured,
product recommendation and would instead create a
on a blog, then spots a more strategic set of goals,
microsite promotion linked as opposed to simply
to a Smartphone voucher tactical ones.
that is only redeemable at
Tesco, before downloading It is no surprise that
it, using it and telling five traditional consumer
friends about it on loyalty is fast becoming an
Facebook. How do you old-fashioned concept.
measure the extent to Consumers are more fickle
which these different DSM than ever, given their
elements contributed to increasingly hectic
the sale? lifestyles and such a heavy
bombardment of
The answer is you can’t, marketing messages and
but it doesn’t make any of promotions. It will be
the contributive elements interesting to see how
any less valid, as they were retailers and
all integral to engaging the manufacturers adapt to
shopper through the path- this constantly changing
to-purchase. shopper behaviour and
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