How We Make a Difference in a Omnichannel World

Transcription

1 How We Make a Difference in a Omnichannel World

2 Consumer Distraction Path to Purchase Evasive Media Behavior Outreach of Consumers What is Normal?

3 Stores Lose Traction Across All Facets of Shopping Some of the biggest declines on key value-oriented aspects of shopping, and even some experiential factors 91% 87% Shoppers Who Indicate Store Is Best Venue for Key Aspects of Shopping, 2015 vs (among all primary household shoppers) % 71% 68% 65% 63% 61% 65% 57% 60% 60% 58% 52% 52% 52% 50% 49% 45% 43% 33% 28% Employee interaction Shopping to reflect values Shopping in one place Purchasing high-quality products Source: Kantar Retail ShopperScape, March 2015 and March 2016 Having fun/enjoying myself Minimizing spending Feeling like I got "good deal" Completing shopping quickly Discovering new products/ brands Stress-free shopping Having access to info 3

4 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Focus on Minimizing Spending Has Dropped Over the Years As alternative values, like a desire for stress-free shopping, continue to trend upward What Matters to Shoppers (% ranking factor among top four most important when shopping in general) 68% 64% 65% 62% 60% 58% Spending as little money as possible Feeling like I got a "good deal" Having as stress-free a shopping experience as possible Source: Kantar Retail ShopperScape, January 2014 September

5 Interconnected world Customers changing expectations of the shopping experience Changing consumer decision making process Increased data for insights into consumers behavior The POWER to know

6 Importance of Connecting Insight on consumers shopping behaviors Appeal to customers underlying motivations and values Stand out from the crowd

7 Consumer Connections Reaching consumers wherever they are, on whatever device they may be using Mix of online and offline Mobile sites Purchase frequency and marketing campaign

8 Buy Most In Store Buy Most In Store Buy Most Online Buy Most Online Mapping Shopping Approaches Today General Food/Groceries Showrooming Digital 2% 6% Shop Most In Store Shop Most Online Shop Most In Store Shop Most Online Bricks & Mortar Webrooming 89% 3% Source: Kantar Retail ShopperScape, March 2016 and Kantar Retail analysis

9 Online Activities Offline Activities Although Online Represents Small Portion of Consumables Sales, Shoppers Are Increasingly Digitally Engaged Along the Path to Purchase Pre-Trip Preparation for Grocery Shopping Trips, 2014 vs (percent of primary HH shoppers who say they engage in activity before all/most trips) Make handwritten shopping list Look at printed circular for retailer(s) I plan to shop Select paper/printed coupons to take with me on shopping trip Look at printed circulars to decide where to shop Make a shopping list on a retailer's Web site Look at online circular for retailer(s) I plan to shop Look at online circulars to decide where to shop Search for coupons online Load electronic coupons onto frequent shopper card Look online for recipes or meal inspiration Look at record of my shopping history on retailer web site 7% 8% 10% 10% Arrows indicate statistically significant difference between time periods (95% confidence level) Source: Kantar Retail ShopperScape, February 2014 and February % 35% 25% 30% 24% 26% 20% 26% 19% 46% 48% 46% 44% 39% 41% 67% 68%

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11 Consumer Decision Making A brand s success depends on an understanding of the omni channel universe Consumers want the best of both worlds from on-line and in-store Consumers want to shop the way that best fits their lifestyles or preferences Consumers expect brands and retailers to establish connections

12 The Future is Data It is not just having the data Real Marketing Power is what you do with the data

13 The Future is Data Data and technology needs to be leveraged to: Understanding consumers actions and insights Breakthrough with messages Increase customer engagement through meaning Increase customer loyalty and advocacy Integrated data Data can allow us to deliver cohesive experiences across touch-points

14 Target Market Importance of reaching the target Know them Understand Purchase Behavior Media Consumed Loyalty Buying habits Target Audience Know your insights Product Life Cycle Path to Purchase Purchase Habits

15 Attracting Attention in a Distracted World Break through to grab attention Surprise the consumer Search for the consumer insight Earn the Customer Attention Use messages and incentives that bring joy Tell Stories We don t have 30 seconds to be interrupted, but we have 30 minutes to hear a great story - Nick Woodman: Storytelling + Brand Marketing

16 Omnichannel Campaign Performance Synergies Reaching the consumer at multiple points increases the impact of the targeted programs. Test vs Control % Sales Increase 12% 10% 15% Online Ads Only In-Store Coupons Only Online Ads + In-Store Coupons Targeted online advertising enhances the impact of similarly targeted instore coupons Desktop ads + mobile ads had a synergistic impact among the in-store target audience

17 Brand X Cross Channel Advertising Impact Incremental Dollars per Exposed HH $2.42 $1.00 $1.15 $1.13 In-store Coupons Only In-store Coupons + Desktop Ads In-store Coupons + Mobile Ads In-store Coupons + Desktop Ads + Mobile Ads Desktop or mobile ads increase incremental sales among the in-store coupon audience by 13% to 15% Desktop ads in addition to mobile ads had a synergistic impact with this OTC 17 brand, improving incremental sales among the in-store coupon target by 142%

18 Data and Understanding are the Future Big Data, Deep Insights Analytical mindset Integrate data Holistic view of a population

19 Our Role Know the target Understand how the consumer s shop Right place and right time Customizing messages Cohesive experience Right People Right Place Right Time Right Message

20 Conclusion Changing, evolving, and adapting Measuring success Messaging and promotions are critical Focus on insights from the data

21 Thank You Contact Info: Patti Mandel