Shopper Marketing ROI – Can it Help Boost Your Retail Sales?
Retail stores have progressed a long way in terms of efficiency. Planogram and store layouts are not merely a means of depicting aesthetical ability. The layout plays a pivotal role in stimulating parts of the consumers’ brain to purchase goods and service. It’s all part of the experience. Using soothing scent, playing background music to […]READ MORE >>
Retail stores have progressed a long way in terms of efficiency. Planogram and store layouts are not merely a means of depicting aesthetical ability. The layout plays a pivotal role in stimulating parts of the consumers’ brain to purchase goods and service. It’s all part of the experience. Using soothing scent, playing background music to set the mood, using colored lights for appropriate luminance, and appealing visual cues influence customers to reach out for their wallets. Although customers may have their pre-determined shopping list, they end up impulse buying more often than not. It’s amazing when you think that billions of dollars are spent on advertising products in the real world, and yet when consumers step to the store, decisions are made instantly when they see products on the store. Shopper marketing focuses on driving such behavior. Today, increasing shopper marketing ROI is not only limited to brick and mortar stores but also the e-commerce sector. So how can shopper marketing help boost sales?
Sell to the actual shopper
There is a fine line between a shopper and a consumer. Nevertheless, the line does exist. In a microscopic view, consumers use the products; whereas, shoppers buy. Shoppers buy the product for their children, husband, wife, or friends. They buy based on what they think others might need. So it is essential to understand what really drives such shoppers to buy from a particular brand or a product. It is also necessary to know what stops them from buying a certain brand and how they perceive the pricing.
Know your brand
Every brand spends millions of dollars on market research to know how customers perceive their brand. However, it is essential to have the same level of understanding as it influences shopper choice. Not every brand is created equal; some shoppers are driven by price, some by brand image, others by trust and quality. One tactic that always works is when brands drive up the benefit but bring the costs down. People may have their favorite brand of beer, and when the brand is not available, they may choose not to buy beer at all.
Retail stores are always facing the pressure to control their costs as they operate in a very tight margin. One way to drive the efficiency is by collaborating with retail partners. Understanding their workings can help react to customer behavior and economy changes and bring in new opportunities. For instance, Kraft and Wal-Mart partnered together to create simple mealtime ideas banner, which offered shoppers affordable and delicious meal solutions. The program used advertising mediums such as POP materials, sampling, emails, print ads, and in-store screens to increase visibility, which increased shopper marketing ROI.
Understanding shopper segments
No two shoppers are identical. They differ in terms of demographics, behavior, psychographics, and geography. Retailers should understand customer segments better to tailor their offering towards a particular segment. For instance, the age factor decides what kind of chocolates customers prefer. Segmentation should not be limited only to demographics, since shoppers with frugal financial mindset may not opt for premium products even if they fall in the same age category.
Customer behavior is always evolving, and so is the retail landscape. Retailers should constantly evaluate their shipper marketing performance to address changes in the environment. It prepares them for any unforeseen changes in the customer behavior or the economy.
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