Tuesday, July 21, 2015

Uncovering Aisle Shopper Myths

How can you drive impulse purchases? Red Bull continues to explore this concept in order to optimize their presence. Together with DataMining representatives, Laura-Lynn of Red Bull North America they presented a compelling story about in store shopping.

There is an art to it. The art is very basic:

  • Tempt by being in their path- analysze the store consumers and segments
  • Be relevant- what are the needs of the demographic in store- do they want your product?
  • Timing is right- what are the dynamics of the store- proximity plays a key role in placement. 
Red Bull worked with a team to monitor every second of every consumers' shopping trip. Each segment is different - males vs. females, millennials vs. boomers, etc. To complicate things even more- these trends change by channel. 




5 Myths about Center Store Shoppers:
  1. Center store is primary stop for many shoppers
    • This is not true  - the majority of shoppers are looking for products that are actually in the perimeter
      • 18% shop center store  vs. >50% Shop perimeter
    • What does this mean? Perhaps use messaging on the perimeter to drive traffic to center store..
  2. Shoppers spend more time center store 
    • Most time is navigation followed by 28% of the time spent on the perimeter while only 22% of time is spent in center store. BUT- 75% of spending is made in center store- so how can we make this more relevant to shoppers to drive even more purchase in this shorter amount of time spent here which amounts to about 3 minutes in grocery? 
  3. Shoppers engage longer with center store categories 
    • People spend just 23 seconds on average shopping center store. How can you engage in that short period of time? 
  4. If they come they will buy
    • Not necessarily true - for ever 100 people walking into a store, only 6 buy from a perimeter category. This is even less for center store categories. 
    • This creates an opportunity- when people don't shop a category it's tough to convince. BUT if people already shop the category, it's quite easy to convince them to make this purchase. 
  5. Front of store end caps are more effective
    • High traffic does not equal sales. The conversion rate for category shoppers actually making a purchase is 44% for front end caps while BACK END CAPS show 58%. 
Janel Parker, Market Research Consultant at SKIM, an international consultancy and marketing research agency, has a background in Marketing and Psychology from Cornell University. Her previous experience at a social media agency combined with her knowledge from SKIM provide for a unique understanding of the relationships between social media and marketing. She can be reached at j.parker@skimgroup.com.

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