Eye Faster Mass Merchant Study Presented to POPAI January 15, Making Mobile Eye Tracking Easy For Market Researchers

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1 Eye Faster Making Mobile Eye Tracking Easy For Market Researchers 2014 Mass Merchant Study Presented to POPAI January 15, 2014 Copyright 2014 Eye Faster, LLC

2 Table of Contents Research Background Methodology Executive Summary Detailed Findings Shopping Path/Track Purchase Timeline; Shopping Path Trends Aisle/Category/Shelf Category Summary; Noticing Shelf by Shelf Height; Brands Viewed by Category Display Performance Display Density by Departments; Shopper Viewing Density Analysis; Display Cluster Analysis; Display Heat Maps Key Conclusions and Implications Copyright 2014 Eye Faster, LLC 2

3 Research Background & Objectives Background POPAI is conducting a large shopper study encompassing 28 stores over all regions of the US and covering multiple retailers Eye tracking was conducted in 6 of these stores as part of the study Objectives Understand shopper behavior, particularly in relation to displays in the store Measure shopper behavior as shoppers naturally shop in different channels Use mobile eye tracking to observe and measure shopper behavior providing measurement at 3 levels of engagement Shopping Path/Track Aisle/Category/Shelf Display Engagement Integrate shopper behavior results with self-reported pre and post surveys Identify patterns of behavior and new insights Copyright 2014 Eye Faster, LLC 3

4 Copyright 2014 Eye Faster, LLC 4 Methodology Eye tracking research was conducted at 6 stores across 3 major retailers, for 204 total participants Target 1083, New York/New Jersey, 33 participants Target 373, Atlanta, 37 participants Meijer 263, Chicago, 25 participants Meijer 168, Kentucky, 33 participants ShopKo 731, Cincinnati, 27 participants ShopKo 87, Salt Lake City, 49 participants Shoppers were intercepted at the store and asked to perform their intended shopping trip while wearing Eye Faster Mobile Eye Tracking system Before shopping, participants were surveyed about their intended shopping trip After shopping, participants were surveyed by about the items they purchased

5 Executive Summary Planned vs. Unplanned Purchasing Unplanned purchasing declines in the last 20% of the shopping trip Unplanned purchasing makes up the majority of purchase Unplanned purchasing, and therefore purchasing in general, sharply declines during the last 20% of a shopping trip Shopping Path Tracking The shopping path is largely driven by the primary destination category of the shoppers, a consistent primary destination category creates concentrated paths through the store Shopper Behavior Leading To Purchase Getting a customer to pick-up a product has the highest correlation with the customer purchasing For most categories, the longer a customer spends in the category, the more likely the customer is to purchase Noticing a product in the category is not guarantee that a shopper will buy it, as it is only mildly positively correlated (R 2 =0.15) with purchasing products In contrast, 30% of all products held are purchased 56% of shoppers that hold a product in a category will buy a product in the category Purchasing increases to 62% if more than 1 item is held How Shoppers Shop Shelves Shoppers prefer to focus on products at slightly below eye level For bays with single categories and similar products, shoppers focus on products at slightly below eye level This pattern is altered by either mixing categories in bays or incorporating value sized packages in the same bay Display viewing frequency is largely a matter of the path shoppers take through the store If it is not on their path, they won t see it If it is on their path, they will notice it based on the time in that area and not the density of the displays in the area High traffic = high viewing, low traffic = low viewing Copyright 2014 Eye Faster, LLC 5

6 Executive Summary, Cont. Display Interaction and Shopping Display viewing frequency is largely a matter of the path shoppers take through the store If it is not on their path, they won t see it If it is on their path, they will notice it based on the time in that area and not the density of the displays in the area High traffic = high viewing, low traffic = low viewing Shoppers see a small portion of the displays in a store and for a brief time during any individual trip Typical shopper notices 32 displays This represents approximately 12% of the displays in a store Most notices are fairly brief, <1 second Highly noticed displays are not necessarily the best performing displays Highly viewed displays toward front of store on racetrack are noticed by 40% of shoppers who pass by However, these same displays have a product interaction rate of 0.4%, 1/10 th the rate of lesser viewed displays placed in the center of the store Display engagement is highest when the display is integrated with the adjacent aisle and products and is in the center of the store along the racetrack Displays with these conditions are only modestly seen (21% of shoppers) They are highly engaged (4.1% of shoppers) Copyright 2014 Eye Faster, LLC 6

7 Copyright 2014 Eye Faster, LLC 7 SHOPPING PATH/TRACK Retailer: All

8 % Purchases During Time Interval Purchasing Markedly Declines During Last 20% of Shop Most purchases occur at the beginning and middle of the shopping trip Purchasing drops off during the last 20-30% of the trip Unplanned purchases largely drive the overall purchasing timeline Specifically planned purchases occur early and decline throughout the remainder of the trip 16.0% Purchase Timeline - All Retailers 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% Generally Planned Specifically Planned Substitute Unplanned Grand Total 0.0% 0-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% % Percent of Time Into Shopping Trip Copyright 2014 Eye Faster, LLC 8

9 Destination Categories Alter Traffic Flow Shoppers paths are more focused when there is a clear destination category, in these 2 examples: Grocery In both cases, the path to and from Grocery is consistent among shoppers However, when there is no clear destination category, paths are less consistent with the only focused hotspot directly in front of checkout Pathways along Grocery Pathways to Grocery No Clear Pathway Copyright 2014 Eye Faster, LLC 9

10 Copyright 2014 Eye Faster, LLC 10 Shopping Path Trends All stores had a similar percentage of unplanned purchases in total Pathways along Grocery However, the most focused shopping path was associated with significantly less unplanned purchases in the last 20% of the trip Pathways to Grocery Meanwhile, stores with the least focused shopping paths had significantly more unplanned purchases during the last 20% of the trip No Clear Pathway

11 Copyright 2014 Eye Faster, LLC 11 AISLE/CATEGORY/SHELF Retailer: Target

12 Seconds Products Category Summary Shoppers spent the most time in Seasonal, though purchased relatively few items Study fielding conducted near Halloween, considerable space dedicated at some retailers to Halloween and Christmas Outside of Seasonal, Dairy, Bread Packaged, and Salty Snacks were the next longest shopped categories As the time in aisle increases, the likelihood of purchase increases* Products Purchased per Visitor Time in Category * R 2 =0.210, 95% confidence interval: R , without seasonal Copyright 2014 Eye Faster, LLC 12

13 Percent of Time Shopping by Holding vs. Shopping by Seeing In the categories where relatively few items were purchased (from previous slide candy, baking, and bars/fruit snacks), most of shoppers time was spent fixating instead of holding little holding, little purchasing In contrast, shoppers also spent little time holding dairy, salty snacks, and carbonated beverages, but purchased a higher number little holding, lots of purchasing Categories with lots of holding and more purchasing: crackers, coffee/tea 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Hold Fixate Copyright 2014 Eye Faster, LLC 13

14 Percent of Shoppers Purchase Funnel Fixating is the first step to purchase (not seen not bought) 56% of shoppers that hold a product in a category will purchase a product in that category 30% of all products held are purchased High Fixate/Notice does not necessarily translate into high purchase* Highly visited categories where Fixating leads to purchase: Cheese Packaged, Carbonated Soft Drink, Bread Packaged >40% of shoppers fixating purchase from the category Categories where Fixating and Reading does not lead to purchase: Prepackaged Fruit Snacks, Candy, Household Cleaners, Pasta <5% of shoppers fixating purchase from the category 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Fixate % Read % Hold % Purchase % * 95% confidence interval: R Copyright 2014 Eye Faster, LLC 14

15 Products and Brands Viewed Seasonal is a clear outlier; shoppers viewed many seasonal products, but only a few brands Categories in which shoppers viewed many brands: Carbonated Beverages, Salty Snacks, Dairy, and Candy Categories in which shoppers viewed many products from each brand: Seasonal, Bread- Packaged, Household Cleaners, suggesting few strong brands with broad product lines in these categories Median Brands viewed Product/Brand Ratio Copyright 2014 Eye Faster, LLC 15

16 Shoppers Notice Shelves At Slightly Below Eye Level Shoppers naturally look slightly to 25 degrees below eye level When the same type of products are distributed across multiple heights of a shelving unit, the products located in the middle shelves tend to receive most attention Here is an example from Bread-Packaged of how shoppers viewed the shelf The majority of the focus is on the 4 th shelf from the bottom, which is comfortably slightly below eye level The 3 rd shelf up, within the lower end of the comfortably below eye level zone, is the next most focused on shelf Bread-Packaged Copyright 2014 Eye Faster, LLC 16

17 Copyright 2014 Eye Faster, LLC 17 Altered Shelf Configurations Can Change Shopper Viewing Patterns However, when different categories of products are mixed within different heights of a shelving bay, the products in the middle shelf do not necessarily hold the most attention Oatmeal Pop Tarts Oatmeal Breakfast Drink Mix Pancake Syrup Pancake Mix Milk Chocolate Mix Coffee Creamers Almond Milk Brownies Donuts Muffins Grain Bars Muffins Muffins Cookies Brownies Baking, Bars and Pre-packaged fruit sacks, Cereal Hot/Cold, Packaged Sweet Baked Goods, Powdered Drink Mixes, Syrups Donuts Wafers/Cookies Cakes Also, if the products are of the same type but if there are a mix of value sized packages on the shelf with standard sized packages, then shoppers noticing can be drawn away from the center shelves Value Packs Value Pack Value Pack Value Sized Value Pack Large Sized Baking, Bars and Pre-Packaged Fruit Snacks

18 DISPLAY PERFORMANCE Retailer: All Copyright 2014 Eye Faster, LLC 18

19 Display Analysis Shoppers were exposed to 1,378 displays across 3 retailers and 6 stores Individual stores ranged from 95 to 349 displays Of these displays, 980 were seen by shoppers The typical shopper noticed 32 displays Because stores had widely varying counts of displays, the typical shopper noticed 12% of the displays in their store Noticing was brief for most, <1 second 366 displays had sufficient attention for analysis These displays were the most frequently viewed displays in each of the stores Of the top-viewed displays, the typical shopper saw 18 Of the top-viewed displays, participants shopped them for an average of 6.9 seconds Display performance was evaluated using a combination of: Density of displays by location Views of display by location 05F-04F Endcap (DSP-11MEJ-263-a) Shopper path taken through the store Displays were also grouped according to performance characteristics and then evaluated based on descriptive characteristics of the displays Copyright 2014 Eye Faster, LLC 19

20 Shopper Path Is Primary Driver of Display Noticing Shopper Path Endcap displays are the most common displays found throughout a shopper s pathway In general, shoppers notice displays in proportion to their pathway through the store Increasing density of displays does not increase the amount of time spent interacting with the displays If the shopper doesn t walk by it, the display is still not seen Display Noting Low Density DISPLAY DENSITY High Density Copyright 2014 Eye Faster, LLC 20

21 Copyright 2014 Eye Faster, LLC 21 Display Density Has Limited Shopper Path Impact Areas densely covered with displays still have no more views than the proportion of the shoppers that cross its path Low traffic, High Density, Low viewing Display Noting High traffic, Moderate Density, High viewing Low Density DISPLAY DENSITY High Density

22 Displays That Interrupt the Racetrack More Highly Noticed Shopper Path Bins in the racetrack receive disproportionately large attention compared to nearby endcaps Racetrack placement ensures consistent foot traffic Central placement makes the bins largely unavoidable Display Noting Bins Focus Attention Low Density DISPLAY DENSITY High Density Copyright 2014 Eye Faster, LLC 22

23 Display Cluster Analysis Displays were clustered by their performance and then analyzed according to descriptive characteristics to identify any significant differences in the characteristics of the displays in each cluster Display Performance Metrics Average % Shoppers Viewed Average Time Viewed Average % Shoppers Interacted with Product Display Descriptive Characteristics Location in store Display Characteristics Integrated Retailer Generic Signs Sale signs (with/without price) Product-Related Signage Freestanding Seasonal Themed Static Video Audio Motion Copyright 2014 Eye Faster, LLC 23

24 Displays Cluster Into Different Average % Shoppers Viewed Performance Levels Average Time Viewed (seconds) Average % Shoppers Interacted with Product % of Displays Cluster in Cluster C1: Few Saw, Intensely Shopped 1 7.6% % 2% Very few shoppers saw, but those who did shopped intensely % % C2: Some Saw, Poorly Shopped 50% Fair number of shoppers viewed, but shoppers paid less attention % % 20% % % 28% C3: Some Saw, Modestly Shopped Fair number of shoppers viewed, and shoppers paid more attention C4: Many Saw, Poorly Shopped Seen by many almost half of shoppers, but not shopped by many Overall 26.6% % 100% Overall for comparison C3 Some Saw, Modestly Shopped performs best They have about the same visibility as C2, but shoppers are more engaged with them (longer time viewed, more product interaction) 1 in 5 shoppers that view a C3 display interact with the display C4 Many Saw, Poorly Shopped seems to have the best visibility, but very low shopper engagement Copyright 2014 Eye Faster, LLC 24

25 Displays Heat Map Cluster Examples Cluster 1 Few Saw, Intensely Shopped Cluster 2 Some Saw, Poorly Shopped Meijer B-03B Endcap (DSP-7MEJ-263-B) Cluster 3 Some Saw, Modestly Shopped Shopko 87 - A31F-A32F Endcap (DSP-45SHOP-87-C) Cluster 4 Many Saw, Poorly Shopped Target A03 Endcap (DSP-67TAR-1083-B) Copyright 2014 Eye Faster, LLC Shopko X13 Bin (DSP-45SHOP-731-B) 25

26 % of Displays in Cluster Display Location Impacts Display Performance Displays placed on the Racetrack center of the store are significantly more likely to fall into Cluster 3 Some Saw, Modestly Shopped, the overall best performing cluster Highly visible, but low action displays in Cluster 4 Many Saw, Poorly Shopped are significantly more like to be located on the Racetrack Front End than other display clusters 50% 45% 40% 35% Display Location 30% 25% 20% 15% 10% 5% Cluster 1 Cluster 2 Cluster 3 Cluster 4 Grand Total 0% END OF AISLE - END OF AISLE - BACK OF STORE CENTER OF STORE END OF AISLE - FRONT OF STORE IN-AISLE RACETRACK - BACK OF STORE Location in Store RACETRACK - CENTER OF STORE RACETRACK - FRONT END RACETRACK - SIDE Statistically significant at 95% confidence level Copyright 2014 Eye Faster, LLC 26

27 % of Displays in Cluster C2 and C3 Display Location Differ By Primary Racetrack Location 30% 25% 20% 15% 10% 5% 0% END OF END OF AISLE - BACK AISLE - OF STORE CENTER OF STORE Display Location Clusters 2 vs. 3 END OF AISLE - FRONT OF STORE IN-AISLE RACETRACK - BACK OF STORE Location in Store RACETRACK - CENTER OF STORE RACETRACK - FRONT END RACETRACK - SIDE Cluster 2 Cluster 3 Both clusters were spread fairly evenly throughout the store, but most were somewhere along the racetrack (C2 Some Saw, Poorly Shopped 62%, C3 Some Saw, Modestly Shopped 60%) C3 Some Saw, Modestly Shopped had more displays along the racetrack in the center of the store Statistically significant at 95% confidence level Copyright 2014 Eye Faster, LLC 27

28 Percent of Displays within Cluster Copyright 2014 Eye Faster, LLC 28 Integrated Element Separates High Performance Clusters Different display elements were evaluated to explain the difference in performance between the clusters C3 Some Saw, Modestly Shopped, the best performing cluster, was significantly more likely than C4 Many Saw, Poorly Shopped and somewhat more likely than C2 Some Saw, Poorly Shopped to have an integrated display C3 Some Saw, Modestly Shopped had significantly more seasonal themed displays than C2 Some Saw, Poorly Shopped and C4 Many Saw, Poorly Shopped and more integrated displays than C4 Many Saw, Poorly Shopped C4 Many Saw, Poorly Shopped had significantly more freestanding displays than C3 Some Saw, Modestly Shopped and C2 Some Saw, Poorly Shopped 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Retailer Generic Signs Sale signs (with/without price) Product-Related Signage Freestanding Seasonal Themed Static Integrated Display Characteristic Statistically significant at 95% confidence level Cluster 1 Cluster 2 Cluster 3 Cluster 4 Grand Total Statistically significant at 90% confidence level

29 Copyright 2014 Eye Faster, LLC 29 KEY CONCLUSIONS & IMPLICATIONS Retailer: All

30 Key Conclusions And Implications Key Conclusions Unplanned purchasing declines in the last 20% of the shopping trip Unplanned purchasing makes up the majority of purchases Unplanned purchasing, and therefore purchasing in general, sharply declines during the last 20% of a shopping trip A primary destination category, such as grocery, focuses customer shopping path Stores without a primary destination have more variation in shopping paths Shopper make fewer unplanned purchases in the last 20% of the shop when they are in a store with a primary destination Display views are correlated most strongly with density of shopper traffic passing by Implications for Retailers As the shopper is reaching checkout, their unplanned purchasing is dropping-off dramatically Shoppers see the displays but they don t act Rather than trying to capture the last few unplanned purchases at checkout, we suggest researching how improving the shopping conclusion experience can increase return trips to the retailer, which will have far more impact on store sales Can reducing checkout time lead to increased return trips? How can the retailer provide a positive experience at the last moment of experience for the shopper? For retailers lacking a destination category, creating a destination category could lead to increased shopper visit frequency For retailers with a destination category, the destination category should require shoppers to traverse a large portion of the store In addition, the path to the destination category should pass by impulse purchase or high value categories, such as pharmacy and health & beauty Copyright 2014 Eye Faster, LLC 30

31 Key Conclusions And Implications Key Conclusions For most categories, the longer a customer spends in the category, the more likely the customer is to purchase Noticing a product in the category is not guarantee that a shopper will buy it In fact noticing products, is only mildly positively correlated (R 2 =0.15) with purchasing products, while noticing is required for purchase, it is not sufficient Getting a customer to pick-up a product has the highest correlation with the customer purchasing 30% of all products held are purchased 56% of shoppers that hold a product in a category will buy a product in the category Increases to 62% if more than 1 Shoppers prefer to focus on products at slightly below eye level For bays with single categories and similar products, shoppers focus on products at slightly below eye level This pattern is altered by either mixing categories in bays or incorporating value sized packages in the same bay Implications for Retailers Rather than the primary objective to be driving attention to the category, the primary objective should be to engage the customers that do pay attention to the category Engagement will increase time in category and increase the number of products held More products held lead to more purchases Engagement can be achieved through: Interactive displays (mechanical & electronic) On package promotions Integrated displays Store staff suggesting products so that the product is in the shopper s hands Where possible, a category should be oriented horizontally, with as limited vertical spread as possible For larger categories, placing value packages lower, shoppers looking for the value packages will search for them on lower shelves, and other shoppers will focus on the higher price per unit products placed in the center shelves Copyright 2014 Eye Faster, LLC 31

32 Key Conclusions And Implications Key Conclusions Display viewing frequency is largely a matter of the path shoppers take through the store If it is not on their path, they won t see it If it is on their path, they will notice it based on the time in that area and not the density of the displays in the area High traffic = high viewing, low traffic = low viewing Shoppers see a small portion of the displays in a store and for a brief time during any individual trip Typical shopper notices 32 displays This represents approximately 12% of the displays in a store Most notices are fairly brief, <1 second Implications for Retailers High value displays should be placed in high traffic areas In low traffic areas, we recommend low effort, low involvement displays, which do not change as frequently as other displays Use the display space for way finding, providing information, or assistance to the shoppers It is a low traffic area, the shopper is likely looking for something specific that is not obviously in other locations Help them find it Given the limited number of displays that an individual shopper sees and the limited time allocated by the shoppers to noticing displays, the goal of the display should be engagement over noticing Engagement needs to be encouraged rapidly and communicated clearly to the shopper Copyright 2014 Eye Faster, LLC 32

33 Key Conclusions And Implications Key Conclusions As with categories, engagement with displays, rather than merely viewing, is essential for purchase Highly noticed displays are not necessarily the best performing displays Highly viewed displays toward front of store on racetrack are noticed by 40% of shoppers who pass by However, these same displays have a product interaction rate of 0.4%, 1/10 th the rate of lesser viewed displays placed in the center of the store Display engagement is highest when the display is integrated with the adjacent aisle and products and is in the center of the store along the racetrack Displays with these conditions are only modestly seen (21% of shoppers) They are highly engaged (4.1% of shoppers) Implications for Retailers From these results, custom displays along the racetrack in the center of the store are the most likely displays to generate incremental sales 0.4% interaction rates, which then lead to a much smaller purchase rate suggest that the front of store, largely nonintegrated displays should be changed to minimized, especially in consideration of purchasing behavior and the decline in purchasing as shoppers approach the end of the shopping journey Copyright 2014 Eye Faster, LLC 33