Winning with Shoppers Today: Understanding How People Shop
All across the industry, retailers and brands are asking, “How do I effectively market to shoppers today?” It’s a good question to ask. Effective marketing begins by understanding people and their behavior. How and why do people shop the way that they do?
Meet today’s shopper. PeopleShop takes a close look at more than 13,000 shoppers across Europe and North America to better understand shopper behaviors and motivations. Shopping journeys have become much more complex. Emerging channels have shifted shopping patterns. Consumer segments, such as Latinos, have become much more dominant and therefore important.
This presentation provides an in-depth understanding of:
· How shoppers think and act differently in different countries
· The six important shopper archetypes and how their shopping needs and channels vary
· How shopping behavior varies depending on the category and the risk/reward associated with a purchase in the category
· Latino shoppers, the importance of this group and how to effectively influence their purchases
· Shopper journeys today, trends in online and offline shopping, and how to effectively reach shoppers across channels
3. Nick Jones
Lilia Arroyo Flores
Molly Garris
Enrique Márquez
EVP, RETAIL PRACTICE LEAD
SVP, STRATEGY DIRECTOR
DIRECTOR, DIGITAL STRATEGY
SVP, STRATEGY DIRECTOR
5. A Shared Problem Today"
Awareness"
New News"
Relevance"
Likeability"
Distinctiveness"
6.
7.
8. Which shoppers matter most?
What modes do these
shoppers exhibit?
What needs should I address
in each of these modes?
Which touch points should I
use to address these needs?
13. Archetypes: I am.
..
..
se.
Mod
Points: I u
The 6 Shopper
es: I do...
Archetypes"
Touch
N e e d s : I n e e d ...
14. What We Mean By Archetypes"
A shopping mindset rather
than a specific individual.!
!
!
15. THINKERS" FEELERS"
Seek information Seek fun and
to help validate pleasure from
decisions! Strategic
rateg
rateg Passi
a
ass
as
Passionate shopping!
Save
Saver
ave
ve
er Exp
Explo
Expl
Explorer
DY
TREN
Qual
Quality
ual
a Opportunistic
tunis
uni
un
un
Seek
Seek
Seeker
ee
ek ntur
nture
nture
tu
Adventurer
Dollar
llar
llar
r Habit
Habitual
ab
b
Defaulter
ulte
u te
ulter Sprin
Sprinter
pri
DOERS"
Seek to minimize time and money spent!
16. I am a THINKER" I am a FEELER" I am a DOER"
Strategic Opportunistic Dollar
Saver Adventurer Defaulter
Layers multiple saving Bargain shops just Looks to the
strategies to for spontaneous fun lowest price to
maximize value simplify decisions
PRICE
Quality Passionate Habitual
Seeker Explorer Sprinter
Checks for quality Shops for the Defaults to usual
credentials thoroughly experience and to choices to minimize
and diligently discover new trends time and effort
EXPERT
17. A World Of Difference"
Strategic Passionate Opportunistic
Saver Explorer Adventurer
137 129 140
Strategic Dollar Opportunistic Quality Passionate
Saver Defaulter Adventurer Habitual Seeker Explorer
122 129 121 Sprinter 175 122
126
Functionally Driven" Emotionally Driven"
Note: Index vs. total.!
18. It’s Important We Remember"
The same person can be
a different archetype in a
different category!
22. FROM: Opportunistic" TO: Dollar Defaulter"
Adventurer"
226" 158"
146"
92" 122"
82" 81"
58"
67" 35"
34" 27"
PRICE
DY
TREN TREN
DY
OA! DD! PE! SS! QS! HS! DD! HS! OA! SS! QS! PE!
Bargain shops for spontaneous fun! Looks for the lowest price or
regular brand to simplify decisions!
Note: height based on % size of segment index vs. total!
23. FROM: Opportunistic" TO: Strategic Saver"
Adventurer"
226" 167"
92" 145"
95"
82" 81" 75" 68" 45"
67"
34"
DY
TREN
DY TREN
OA! DD! PE! SS! QS! HS! SS! QS! PE! OA! DD! HS!
Bargain shops for spontaneous fun! Researches, creates multiple
strategies to save money and !
retain quality!
Note: height based on % size of segment index vs. total!
24. FROM: Opportunistic" TO: Passionate Explorer"
Adventurer"
226" 222"
92" 158"
82" 81" 128"
67" 59" 57"
34" 44"
DY
TREN
OA! DD! PE! SS! QS! HS! PE! QS! SS! OA! HS! DD!
Bargain shops for spontaneous fun! Seeks to discover and experience
new trends, quality and value.!
Note: height based on % size of segment index vs. total!
25. Q: "But how can that happen?"
A: "How people regard a category
affects their mindset & behaviour
towards that category"
31. What We Mean By Modes"
Discrete activities that people
undertake while shopping!
!
32. Eight Dominant Modes (I Do)!
42%" 29%"
Learning! Pit-Stopping!
Doing due Filling-in for an
diligence! immediate need!
38%" 27%"
Go-Getting! Re-Stocking!
On a specific Replenishing
task! many items!
37%" 23%"
Bargain Cruising!
Hunting! Passing time
Scouting! for fun!
for deals!
29%" 14%"
Exploring! Changing!
Engaging and Altering !
discovering! an existing
decision!
41! Note: % of people who engage in the trip!
33. Archetype "
[I am]!
Strategic Quality Dollar Habitual Opportunistic Passionate
Saver Seeker Defaulter Sprinter Adventurer Explorer
Learning!
Go-Getting!
Bargain Hunting!
Pit-Stopping!
Exploring!
Re-Stocking!
Cruising!
Changing!
Note: DARK – Dominant | MEDIUM - Prevalent | WHITE - Absent
38. What We Mean By Needs"
Motives and goals people have
in various shopping modes.!
!
!
!
!
39. 8 Basic Shopper Needs (I Want)!
Functional! Rational! Emotional!
38%
50% " Information! 25% "
Best Price! To validate a Treat!
Find best savings! decision ! An escape
or indulgence !
35% " 36% "
Flexibility! Advice! 19% !
Convenient access Unbiased expert Inspiration!
24/7 ! input ! To express my
individuality !
39% "
Efficiency!
To minimize time and
effort !
35% "
Special Offers!
Exclusive or
limited offers !
% of people who express the need !
40. Needs"
[Vary By!
Archetype] !
Strategic Quality Dollar Habitual Opportunistic Passionate
Saver Seeker Defaulter Sprinter Adventurer Explorer
Best Price!
Efficiency!
Special Offers!
Flexibility!
Information!
Advice!
A Treat!
Inspiration!
Note: DARK – Dominant | MEDIUM - Prevalent | LIGHT - Absent
42. Opportunistic " Needs"
Adventurer"
Shopping to express individuality
226" (230)!
Deal Hunter!
!
Trend Watcher! Part of the fun of buying a product
! is immersing myself in the store
Social Shopper! environment (174)!
!
Impulse Purchases! I shop to feel savvy or
! victorious(154)!
Touch / Feel Product!
! I enjoy “hunting” for great bargains
Spontaneous Fun! and deals (124) !
OA"
44. Opportunistic " What She
Adventurer" Doesn't Need"
226"
Deal Hunter!
! Research (62)!
Trend Watcher!
! Expert sources (69)!
Social Shopper!
! Peer Info (70)!
Impulse Purchases!
Sustainability (72)!
!
Touch / Feel Product! Quality (85)!
!
Spontaneous Fun! Convenience (88)!
OA"
45. It’s Important We Remember"
Like Modes… "
!
Needs vary by category because the
RISK REWARD and Archetype vary
by category!
46. When She Redesigns Her Kitchen…"
Passionate Explorer" Needs"
228" Expert recommendation (160)!
Researcher!
Reviews & peer reco’s (152)!
!
Get extra perks or services (151)!
Quality Obsessed!
!
Trend Follower! Impress others (192)!
! Be inspired (179)!
Eco Correct!
!
High End Brand! Feel sense of accomplishment (171)!
! Validate my decision (161)!
Price Insulated! See, touch, try a demo product (148)!
PE" !
49. What We Mean By Touch Points"
Tools and channels people use to meet their
shopping needs!
!
Some are physical e.g. specific store types!
!
Others are digital, traditional and even human!
!
!
!
!
50. Touch Points (I Use) 40 Touch Points "
59% "
Broadcast Media! 61% " 59% "
Passive media! Value Center! Expert Sources!
One-stop
discount retailers!
64%"
Promo Vehicles!
Tools that deliver !
news and offers!
32% "
56%" 55% "
Tools to interact Specialized Retail!
and share! Local Shops!
51. Touch
Points"
[I use]!
Strategic Quality Dollar Habitual Opportunistic Passionate
Saver Seeker Defaulter Sprinter Adventurer Explorer
Promotional
Vehicles!
Value Centers!
Expert Sources!
Broadcast Media!
Specialized Retail!
Local
Shops!
Engagement
Tools!
56. Key Findings"
1. Archetype effects everything"
!
People fall into six distinct shopping archetypes (mindsets) that
effect how they view and shop a given category.!
2. "Shopping journeys typically involve more than one mode"
""
"High risk and high reward categories have much longer and
more complex journeys than we imagined.!
Risk Reward, Quantitative, n=5000 regular brand users and brand decision makers !
57. Key Findings"
3. Multiple, rather than singular needs are the norm for
shoppers regardless of category."
""
"Every archetype has dominant and secondary needs, so not all
are of equal importance to you or them.!
4. Not every archetype is created equally when it comes to
touch points."
!Every archetype does not require the same number of touch
points to influence behaviour.!
!!
Risk Reward, Quantitative, n=5000 regular brand users and brand decision makers !
62. Which SHOPPERS matter most! Drive Efficiency!
!
What MODES these shoppers exhibit!
What NEEDS have to be addressed! & "
!
Which TOUCH POINTS matter most! Effectiveness!
67. Hispanic population growth projected to outpace ethnic
groups over the next 40 years
Projected U.S. Population Growth from 2010 - 2050
+167%
+142%
+42% +1%
+56%
White
Total Non-Hispanic Black Asian Hispanic
Source: Nielsen State of the Hispanic Consumer Report: The Hispanic Market Imperative
68. U.S. Latinos are 52 million strong
2010-2015 Estimates
1,151,228 born every year
95,936 born every month
3,152 born every day
131 born every hour
Source: Geoscape: American Marketscape Data Stream 2010 Series
69. Hispanics are a young population
Median Age
17.6 17.3
17.1 28 37
15.6
14.0 13.6
12.6 12.8
11.8
11.4
percentage
10.6 10.5
8.7
7.8
6.8
5.6
3.6
2.3
< 5 years 5 to 14 15 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 to 74 75
years years years years years years years years +
Non-Hispanic Whites Hispanics
70. Latinos are young and connected
Watch 33 hours Send/receive 941 Stream 6:15 hours
of TV per week texts per month of video per month
Source: Nielsen
73. Hispanics are the 13th largest economy in the world
Ahead of ...
Poland Argentina Greece
Israel South Africa Netherlands
Source:Selig center of Economic Studies/University of Georgia 2009
Central Intelligence Agency-World FactBook
74. Hispanics have enormous purchase power
51 million 50% growth
Hispanics in in purchasing
the U.S. power by
2015
2010 2015
$1 Trillion buying $1.5 Trillion buying
power power
Source: 2012 Nielsen State of the Hispanic Consumer Report
83. Shopping is complex
“In order to win with Latino Shoppers,
brands need to understand the Mindset
and Strong Heritage that influences the
way they eat, clean, cook, and ultimately
how they buy and consume goods.”
Source: Forbes, “Big Data Shows Hispanics Will Change Business Models”
87. The playground
45% 45%
375 index 284 index 32% 36%
200 index
338 index
I enjoy shopping like to hear &
I like to try new I want to be the give opinions &
with my children
products 1st to have it. write reviews
Multi- Multi- Multi- Multi-
generational sensorial dimensional touchpoint
90. Mindsets Typically shopped
Pharmacy Beer Cereal
“needs”
Index Laundry Dairy Canned
Food
To General
Market
125
Packaged
Meat Soda Fresh
Cell Sports
Phones Equipment
Index Fashion
“wants”
Electronics
To General
Market
139
Kitchen Cosmetics
Redesign
93. The Challenge
They go to different stores
to accomplish their goals.
But they can be one
and the same person.
Habitual Passionate
Sprinter Explorer
94. The opportunity: save time shopping to spend time shopping.
Capture both mindsets and be
the place that helps Hispanics
take care of their
“basic needs” so they can
spend time on their
“fun wants”.
All in the same store.
97. Shopping is a social activity
48%
29% 37% 155 index 36%
217 index 200 index
290 index
Shopping is meant to Social media is
Word of mouth the key enabler Share opinions
be done with others
is key of collaboration and reviews
104. Recommendations
Social influencers bring
inspiration and possibilities
105. Recommendations
Leverage peer-to-peer’s influence
before, during and after the purchase
42
106. Recommendations
Make it easy for her to see what her friends like
Uniqlo digital hangers show how many
people like each garment
43
107. Mobile & social media
Make it easy for her to see what her friends like
Help people by using Help a few experience
technology to bring the latest products
trends to life
44
110. Value does not mean buying cheap. It means
getting more than what you pay for.
61% 55%
139 index
145 index
49% 48%
45% 258 index 200 index
128 index
The like to touch, feel They judge product
Won’t buy a product Multi-touchpoints They want to get
over lower quality and smell a product quality by product
inform decisions tailored advice and
even if it is on sale before buying packaging
when shopping recommendations
Multi-
touchpoints
Not willing to inform better Trust their Visual cues Recommendations
compromise decisions senses matter
are important
112. Making the right choice is serious
business
A wrong purchase Wants as much
Wants to make sure decision carries information as
she gets more than frustration as she possible to make
she pays for feels she is sure she makes
affecting her family safe bets
113. Before going to the store In the laundry aisle
“I leave detergents for the
“I find out about
end. It is my space to smell
products from TV.”
and have some time for
myself. It is like choosing a
personal perfume that you
“I need to know the wear on your clothes.”
product, know it will give
results, it is what I want.”
“I make sure a product “I start to read the details of the
works, or I look for products that interest me - the
someone to talk to me packaging, the pictures...”
about the product.”
120. Reward her for influencing others
Tesco Share and Earn gives users rewards for sharing
their purchases
Give her more incentive to share
121. You are leaving money on the table.
Having a Hispanic strategy won’t
alienate. It will enhance your
mainstream strategy.
Lead. Learn. Enlarge.
1+1=3. Use differences to discover,
validate or bring dimension to your
findings.
The new mainstream is already here.
181. There’s no silver bullet.
In order to get ahead, start by:
‣ Better understanding your shoppers,
their behaviors and needs
‣ Activate the right touch points
‣ Implement tests to gather actionable learnings
182.
183. Nick Jones
Lilia Arroyo Flores
Molly Garris
Enrique Márquez
EVP, RETAIL PRACTICE LEAD
SVP, STRATEGY DIRECTOR
DIRECTOR, DIGITAL STRATEGY
SVP, STRATEGY DIRECTOR
nick.jones@arcww.com
lilia.arroyo-flores@leoburnett.com
molly.garris@arcw.com
enrique.marquez@lapizusa.com
312.220.4533
312.220.6391
312.220.5228
312.220.5433