“Shopper Marketing” has become jargon: everyone talks about it, but no one can quite agree what it means. Instead of worrying about definitions, our newest white paper shifts the conversation to the broader context: designing better shopper experiences. Simple? Yes, but with endless adaptive possibilities and implications, we think this take on shopper marketing has got a shelf-life to last.

1. DESIGNING A BETTER
SHOPPING
EXPERIENCE:
MAKING SHOPPER MARKETING WORK
FOR CONSUMERS AND BRANDS

2. TABLE OF CONTENTS
REALITY CHECK IN AISLE THREE: SHOPPERS WANT MORE Page 3
Liz Bigham
SHOPPER THROUGH A BRAND EXPERIENCE LENS Page 6
Richard Vincent
WHO’S AFRAID OF SHOWROOMING? Page 10
Hanah Holpe
SHOPPERS DON’T COME FIRST – RETAILERS COME FIRST Page 14
Matt Pensinger
TALK TO JACK Page 18
ABOUT JACK Page 19
DESIGNING A BETTER SHOPPING EXPERIENCE /2

3. Reality check in aisle three: Shoppers want more
Liz Bigham
At various points I’ve heard predictions about how a new
innovation would make an old experience obsolete. Email
was going to make FedEx go out of business; webcasts
and virtual events were going to be the death of event
marketing; and user-generated ads were going to expose
agencies as dinosaurs.
In fact, new innovations force people, brands and
companies to ask what their core value is – and give them
a chance to recommit to providing that core value in new
and better ways. So FedEx still delivers assurance (even if
it dramatically expanded from the delivery business); event
marketers balanced what can only happen live (visceral
connection, networking, serendipity) and enhanced that
experience with new media; and agencies have refocused
on the enduring value they uniquely offer – strategic brand
and consumer insight and brilliant creativity.
New innovations force
Another favorite adaptive example: National Public Radio
(NPR) was one of the most prolific contributors of iTunes
people, brands and companies
podcasts and has generally been ahead-of-the-curve in
bringing their content to digital and all kinds of
to ask what their core value is.
DESIGNING A BETTER SHOPPING EXPERIENCE /3

4. Reality check in aisle three: Shoppers want more
other platforms. Because they define their value through Take this reality check: focus on the value you uniquely
great content, not a channel (“radio”), they’ve been hugely deliver, and figure out how to do that better. Because as
successful where other media brands have struggled to our research shows, consumers aren’t satisfied with the
stay relevant or even stay in business (the fact that NPR shopping experience – they want more.
isn’t an ad revenue model does help).
Last year, as part of Jack Morton’s first Best Experience
In each instance, a “threatened” category or brand Brands report, we learned that among all the categories of
re-aligned around its core value and had the confidence experience, two areas had the biggest gaps between how
to define that value as broadly as possible. important consumers said they were and how well they
said brands were actually delivering. Those two areas?
Behind the marketing industry’s current focus on “shopper How brands treat consumers when they’re in market (the
marketing” there’s a similar opportunity for both retail shopper experience) and how brands treat them after
brands and brands that sell through retail channels – they’ve bought (the customer experience). Some of the
and that’s a lot of brands. biggest pain points in the shopping experience should be
the easy ones: “providing an easy and efficient shopping
experience”, “making it easy to shop whenever and
wherever I want”, “understanding my needs”.
DESIGNING A BETTER SHOPPING EXPERIENCE /4

5. Reality check in aisle three: Shoppers want more
There’s no question: experience is important to consumers. To help brands address this gap in aisle three, a focus of
Almost nine in ten participants in our research said the Jack Morton’s forthcoming Best Experience Brands research
uniqueness and differentiation of brands’ experiences (due in January 2013) will be probing the factors that
matter when it comes to consideration – the fundamental most influence positive outcomes in shopper experience.
“shopper” mindset. Even better, 78% said they’d pay more Stay tuned – and read on for recommendations and best
for a unique experience. practices from Richard Vincent, Hanah Holpe
and Matt Pensinger.
Fixing the shopper marketing gap – understanding that
shoppers want more and redesigning your experience to If you’d like to receive early notification of our next Best
provide it – is a signal opportunity for both retail brands Experience Brands global consumer research, reach me at
and brands that sell through retail channels. liz_bigham@jackmorton.com.
There’s no question:
experience is important
to consumers.
Liz Bigham is SVP Director of Brand Marketing,
based in Jack Morton’s New York office
DESIGNING A BETTER SHOPPING EXPERIENCE /5

6. Shopper through a brand experience lens
Richard Vincent
It seems you can’t turn around these days without someone
hailing the importance of shopper marketing. Pretty much
every brand has their own shopper journey model, and
in a world of big data they are seeking to understand the
interconnectivity of communications on that journey. But
talk to marketers and you’ll hear a multitude of definitions
of just what shopper marketing is. Speak to marketing
agencies and you’ll find an even wider and truly confusing
array of definitions.
It’s “the last three feet”, “the moment of truth”, “the
aisle engagement”, “all about sales”, “the promotional
messaging to seal the deal”. All of these definitions are
partially right if taken within a wider context – that of the
consumer state of mind, motivation and behaviour.
Talk to marketers and you’ll hear a multitude of
definitions of just what shopper marketing is.
DESIGNING A BETTER SHOPPING EXPERIENCE /6

7. Shopper through a brand experience lens
But as a brand experience agency we have a simple Second, shopper marketing is not just about a particular
definition of shopper. It goes something like this: sector such as CPG or FMCG. Shopper thinking, moving a
consumer towards a sale, is relevant across all categories.
Shopper marketing is all touch points, at any stage of a To use a personal example, I drive a BMW; I’ve had
consumer journey that help a consumer move towards a three over the past 10 years. I consume BMW marketing
sale. And that has at least two important implications that messages but I’m not in the market at present so I’m not
shift us from traditional definitions of shopper. on a shopper journey, just in brand consumption mode.
Next year I’ll probably replace my car and buy something
First, it’s not just about shopping aisles and in-store. newer. Between now and then I’ll move from brand
Mobile and tablets will continue to completely reshape the consumption mode to shopper mode and start my journey
definition of shopping “environments” beyond standard towards my next purchase. When I move into shopper
e-commerce thinking. And by our definition, “shopper” is mode I will have a new level of interest and engagement
as relevant to search and location-based mobile strategy as over my general brand consumption. I’ll be looking for
it is to aisle messaging and retail incentives. It’s about all engagement that moves me towards my next vehicle.
the engagements and the experiences that move a person
towards a sale. So what does this mean for marketing planning? It
means that we need to map consumer engagement and
experience from both a brand and a shopper perspective.
Comprehension and engagement with messaging will
change depending on which state of mind the consumer is
in and their place in the journey. The trick is to understand
the most influential route and the black holes that will take
DESIGNING A BETTER SHOPPING EXPERIENCE /7

8. Shopper through a brand experience lens
a shopper in the wrong direction (away from your brand Why is a brand experience agency talking shopper?
and towards a competitor). If a consumer is in shopper
mode the online searches they make will differ from when We know that personal experience has the most impact
they are in brand mode, as will the questions they ask on consumer decisions. If I have a brand experience that
friends or information they consume and seek in social gives me the opportunity to interact with a product, it can
media. The areas of the web site they will focus in on will move me from brand consumption into shopper mode with
change and so too will their likelihood of getting involved remarkable speed. If I’m already in shopper mode, that
with the brand at an event or in store. experience can close off any black holes that might send
me to a competitor. And in the absence of that personal
experience, receiving a recommendation from a friend
who has had such a personal experience is the next best
spark. After that is recommendations from third parties
(90% of which is not happening online
but rather face-to-face).
We also know that brand experiences go deeper and
last longer, meaning that consumers carry experiences
into their shopper state. We also know that by linking
experiences with other engagement media in a consumer
journey creates a multiplying effect on impact.
DESIGNING A BETTER SHOPPING EXPERIENCE /8

9. Shopper through a brand experience lens
So we can immediately see the relevance of brand
experience to shopper marketing: experience helps We must build experiences
to cement and inform purchase decisions quickly and
decisively. Consequently, as a brand experience agency
away from the store...to drive
with a focus on shopper we need to do three things: consumers along their journey
1. We must seek to understand the consumer to purchase.
journey and the key points of consumer influence.
We need to recognize the “black holes” in the
journey to ensure these are plugged.
2. We need to ensure the brand experience within
the shopping environment, whether physical
or digital, serves to enhance the message and
crystalize the offer. An experience is 3D, real and
immediate and can therefore significantly
impact sales metrics.
3. We must build experiences away from the store
(physical and virtual) that are designed to drive
consumers along their consumer journey towards
their purchase moment their “first moment of truth”. Richard Vincent is Head of Consumer in
Jack Morton’s London office.
DESIGNING A BETTER SHOPPING EXPERIENCE /9

10. Who’s afraid of showrooming?
Hanah Holpe
Recently there’s been much ado about the threats to brick-
and-mortar retail of so-called “showrooming” – consumers
looking at merchandise in-store, leaving empty-handed,
Change can be scary.
then buying online for less money – leading some
marketers to panic (needlessly, I’d argue) about how
technology will affect their business rather than embracing
change. Yes, the change is dramatic, and change can be
scary. But even as “traditional brick-and-mortar” becomes
obsolete, “retail” will grow ever stronger if retail brands
apply the lesson of other major business model disruptions:
adapt or die.
Retailers need to stop fearing new technologies that
threaten their existing business models and start focusing
more on integrating them in their core brand experience.
Consumers aren’t going to stop using technology to source
product reviews, receive offers, and find better deals.
What retailers need to think about is how their entire
brand experience (both in-store and online) can shorten
the path to purchase via a differentiated and empowered
experience – one that will incentivize consumers to not only
buy in-store, but also to buy now and return to buy more.
DESIGNING A BETTER SHOPPING EXPERIENCE /10

11. Who’s afraid of showrooming?
This means that retailers need to go further to ensure that
they offer consumers the absolute best and frictionless
shopping experience. Everything matters: smartphone
app, merchandising, employee interaction, lighting, smell,
music, check-out experience. According to Forbes, 82% Take Walmart: their proprietary app allows consumers
of consumers prefer to shop in-store where they can touch, to build a shopping list before their trip, discover and
feel, and interact with the products they’re looking to buy. “clip” coupons, map the aisle-by-aisle journey once in the
The challenge now is to leverage the newest technologies store, scan items in-aisle to check the price, and integrates
to give consumers all they need to make an informed with WalMart.com to ship any items to the consumer that
purchase and incentivize the immediate gratification aren’t currently in stock. Consumers can use their phone
of buying now. Instead of seeing technologies such as to pay and bypass the check-out line. By taking a holistic
Amazon’s PriceCheck as a threat, retailers should think approach and leveraging technology to enhance the in-
about how they can create similar technology-enhanced store experience, Walmart can drive consumers through
shopping experiences that steward consumers through the the front door and all the way to checkout
entire shopping journey. (and back again).
Thinking about a consumer’s path to purchase is a great And it’s not just about sales, specials, and daily deals.
place to start. More and more, it’s not a straight path at all: Jack Morton research shows that 75% of consumers
it’s a circular journey of brand engagement that generates would actually pay more if they knew the brand they
both loyalty and ultimately sales. At best, all along that were engaging with would give them a differentiated
journey are seamless, additive experiences that reinforce experience. Consumers become loyal to a retail brand not
core brand attributes. just because of the products you carry but also because of
the experience they have while they’re engaging with you.
DESIGNING A BETTER SHOPPING EXPERIENCE /11

12. Who’s afraid of showrooming?
So what are some ways retail brands could create • Act as a brand butler: Anticipate shoppers’ needs
differentiated shopper experiences? As a marketer and a from start to finish. For example: my local grocer
shopper, here are some of my recommendations of better has dedicated parking spots for expectant and new
in-store shopping experiences that could drive sales: mothers (great) but not a dedicated checkout line
(not as great).
• Focus on service: Educated staff that work with • Be present for (all) the occasions that matter to (all)
consumers to find solutions and provide guidance your shoppers: Many retailers do a great job of
will drive sales and loyalty. building experiences around obvious occasions like
• Provide price guarantees: Don’t lose a sale due to weddings, sporting events and holidays. But there
cheaper prices from Internet retailers. Create policies are a lot of other life occasions – quinceañeras,
that allow for immediate price matches if a consumer graduations, first jobs, first homes –
shows you a place where they can get it when brands can be present.
more cheaply. • Make life easier – especially for holiday shopping:
• Invest in product training to drive sales: People that Every year I dread carrying presents (which for
genuinely “get” products will sell more of them. security reasons can’t be wrapped) on flights to
For items like consumer devices, it’s a no-brainer visit family and friends. There must be millions of
to provide focused product training. For example, shoppers out there who’d be truly grateful to retail
we’ve created programs for a mobile device maker brands that would allow them to buy online at
to train its carriers’ retail employees on new devices; home, then pick-up in-store at their final destination.
those employees’ sales were 25-50% higher Variations on this theme would also work. What if
than other staff. urban consumers were given better local delivery
options? What if you could both buy and ship from
the brick-and-mortar retail store in a more seamless,
time-efficient way?
DESIGNING A BETTER SHOPPING EXPERIENCE /12

13. Who’s afraid of showrooming?
Retail brands don’t really have a choice about embracing
change. From my conversations, I sense they know that. Act as a brand butler:
Still many are fearful and moving too slowly to create
evolved, holistic shopping experiences like those I’ve
Anticipate shoppers’ needs
described. Let’s look to history for instruction. What from start to finish.
happened when companies reacted to past disruptions
with fear? Not pretty. But, for example, what if the US
Postal Service had had the foresight to embrace email as
the future of communication and weave that into its core
experience? At the time, it would have been radical, but
now it doesn’t seem so far-fetched. Retail brands should
embrace the technologies they fear and focus on creating
a better shopper experience.
Hanah Holpe is a Creative Strategist in
Jack Morton’s Chicago office.
DESIGNING A BETTER SHOPPING EXPERIENCE /13

14. Shoppers don’t come first – retailers come first
Matt Pensinger
Brands and retailers
need to build on
their partnerships
now more than ever.
I once heard a very smart marketer say that “Customers in the right way, to the right shoppers. And all that
don’t come first – employees come first.” I believe he meant depends on brands’ success in first engaging retail
that if you don’t treat your people right and give them the partners – treating them right and giving retailers the
tools to promote your brand, your customer tools to promote products.
experience will suffer.
In our view, the first step to success in shopper marketing is
Arguably, this analogy also works in the realm of shopper. engaging the retail channel and taking smart steps to build
Because behind every compelling consumer shopping a differentiating brand position with the range of retail
journey there are a myriad of trade and retail channel stakeholders from buyers to sales associates.
touchpoints that brands must navigate in order to get their
products on a physical or virtual shelf at the right time,
DESIGNING A BETTER SHOPPING EXPERIENCE /14

15. Shoppers don’t come first – retailers come first
Today’s brutal environment means retailers are
tremendously hungry for growth – and ready to partner. The first step to success in shopper
Brick-and-mortar retailers are pressured to improve margins marketing is engaging the retail
and revenue per square foot, and they’re constantly
evaluating ways to reset their product assortments to find
channel and taking smart steps
any edge. Online, retailers face challenges to differentiate to build a differentiating brand
and drive consistent traffic and shopping cart checkouts position with the range of
beyond flash sales and free shipping offers. And retailers
of every kind are working harder to ensure that shoppers
retail stakeholders.
feel connected to the customer experience they provide –
not just to the brands they sell.
All of this creates a world where retailers, from grocery to
dollar and big box, are demanding more and more from
their suppliers. Looked at more optimistically, it also means
that they’re open for new ideas. Brands and retailers need
to build on their partnerships now more than ever, and
find ways to merge their interests in ways that speak to
shoppers by enhancing their experience – pre- store,
in-store and post-purchase.
DESIGNING A BETTER SHOPPING EXPERIENCE /15

16. Shoppers don’t come first – retailers come first
The most successful brands work with their retailers to build 2. Build plans around your mutual interest in
a better experience for shoppers at the point of purchase growth – Reactionary and generic price promotions
by embracing the following principles: have been replaced with customized, long-term
planning between brand manufacturers and
retailers designed to fulfill each side’s need to
1. Lead with insights about your shared target
cultivate consumer loyalty over time. Acknowledging
consumer — Retailers are not at a loss for consumer
the shared mission of building brand equity
and shopper data, but sifting through it to unearth
and ongoing shopper loyalty is now allowing a
the actionable insights that drive sales is an
new level of shopper marketing partnership that
unending task. They’re always looking to further
is centered on delivering holistic value (retail
understand their shoppers, and to make connections
experience + brand experience) to the consumer. In
between their pre-store behavior and what will
addition, smart brands are looking for opportunities
delight them in their aisles. More and more,
to launch big initiatives to their retailer customers
manufacturers are sharing deeper explorations into
outside of line reviews and annual planning sessions
their consumers as a way to not only show how
in order to stand out as partners who can deliver
their actionable insights drive brand and product
new growth opportunities.
innovations but to also educate retailers about
category growth opportunities (even outside their
brands), demonstrating a committed partnership to
the retailer while also differentiating
from the competition.
DESIGNING A BETTER SHOPPING EXPERIENCE /16

17. Shoppers don’t come first – retailers come first
3. Invest in people to create in-store advocates – The success of shopper marketing is defined by the process
It’s time to look beyond product assortment and and experience for how a consumer finds, compares
merchandising to the critical role people play and ultimately transacts for a product. By building
in delivering a great shopper experience. More and deepening partnerships across the retail channel,
brands are partnering with retailers to develop brands have the opportunity to fully articulate their value
and deliver training and front-line associate brand proposition and build advocacy in the process.
engagement programs that drive sales conversion.
These efforts improve the shopper experience by
allowing retailer employees to better (and more
passionately) educate consumers on products and
their benefit (think of the task of quickly helping a
consumer to differentiate features and benefits of
today’s smart phones) and communicate facts such
as ingredients or other product benefits.
Matt Pensinger is SVP, Managing Director in Jack
Morton’s Chicago office.
DESIGNING A BETTER SHOPPING EXPERIENCE /17

18. THIS IS JUST PART OF
THE CONVERSATION.
HERE ARE A
TALK TO JACK
FEW WAYS TO
Liz Bigham
E: liz_bigham@jackmorton.com
TALK
T: +1-212-401-7212
Read our blog at blog.jackmorton.com
Follow us on twitter @jackmorton
TO
Visit us online at jackmorton.com
JACK

19. ABOUT JACK MORTON JACK MORTON WORLDWIDE IS A
GLOBAL BRAND EXPERIENCE AGENCY WITH OFFICES ON
FIVE CONTINENTS. OUR AGENCY CULTURE PROMOTES
BREAKTHROUGH IDEAS ABOUT HOW EXPERIENCES CONNECT
BRANDS AND PEOPLE – IN PERSON, ONLINE, AT RETAIL AND
THROUGH THE POWER OF DIGITAL AND WORD OF MOUTH
INFLUENCE. WE WORK WITH BOTH BTOC AND BTOB CLIENTS TO
CREATE POWERFUL AND EFFECTIVE EXPERIENCES THAT ENGAGE
CUSTOMERS AND CONSUMERS, LAUNCH PRODUCTS, ALIGN
EMPLOYEES AND BUILD STRONG EXPERIENCE BRANDS. RANKED
AT THE TOP OF OUR FIELD, WE EARNED OVER 50 AWARDS FOR
CREATIVITY, EXECUTION AND EFFECTIVENESS LAST YEAR. JACK
MORTON IS PART OF THE INTERPUBLIC GROUP OF COMPANIES,
INC. (NYSE: IPG).
© Jack Morton Worldwide 2012