360 Degree Shopper Marketing: Engagement, Loyalty, In-Store Decisions & Neuroscience
Last Thursday (on November 1st), POPAI (Point of Purchase Advertising International) organized a webinar entitled “From Insight To Activation: Putting POPAI’s Shopper Engagement Study Into Action. Lessons in Loyalty, In-Store Decisions & Neuroscience”.
POPAI was founded in 1936 and it is a global trade association with 1,400 member companies in 45 countries. It is the premier source of learning, knowledge and future-oriented research for the marketing at retail industry, as it provides resources, education, ideas and advocacy to the marketing at retail professional.
POPAI was founded in 1936 and it is a global trade association with 1,400 member companies in 45 countries. It is the premier source of learning, knowledge and future-oriented research for the marketing at retail industry, as it provides resources, education, ideas and advocacy to the marketing at retail professional.
The webinar shared the latest findings from the 2012 Shopper Engagement Study, where 2400 shopper (across the four major census regions of USA) intercept interviews took place across the supermarket program. A sub-set of 210 shoppers (from the 2400) wore an unobtrusive eye-tracking/EEG monitor device. You may download their reports from the website. For this study, the team gathered 3 different companies:
Shopper Sense – Providing shopper insights and strategy with over 20 years of consumer and shopper behavior, in-store marketing and retail research experience. (Read more about Winning the In-Store Purchase Decision Game: Five Critical Measures to Uncover Shopper Marketing Opportunities)
SmartRevenue – Creating solutions based on technologies that support shopper insights to identify shopper segments, need-states, purchase drivers, trip-types, navigational patterns and closure rates; specialized in quantitative ethnography, market research, shopper insights, and in-store solutions.
Sands Research – As one of the leading providers and innovators in the growing field of neuromarketing services, they have offices, labs, and partners around the world and offer a unique service to its clients and the advertising community.The objectives of the study were:
• Measure the level of pre-store vs. in-store purchase decisions by product category
• Quantify the purchase interest “lift” generated by display type for each product category
• Profile the amount and characteristics of specific types of displays present in-store
• Profile shopper segments by POP engagement and other salient segments
• Understand the characteristics of the shopping trip and perceptions of “store shopability”
• Measure the level of pre-store vs. in-store purchase decisions by product category
• Quantify the purchase interest “lift” generated by display type for each product category
• Profile the amount and characteristics of specific types of displays present in-store
• Profile shopper segments by POP engagement and other salient segments
• Understand the characteristics of the shopping trip and perceptions of “store shopability”
The traditional model they have used for this study was also the core methodology, involving 3 key component. So the study included a pre-shop investigation which included questions about planned purchases and also capture general shopping behavior information (tells what they plan to buy and what pre-store media they’ve used), and a post-shop investigation where register receipts were scanned to capture purchase information and probe on items purchased; this step also gathered shopper perceptions of the store’s shopability (tells them what they actually bought and shows discrepancy in self-reporting; allows us the opportunity to probe about a few purchases focusing on those that were not planned or accounted for at the beginning of the trip). There was also a P.O.P. audit that captured P.O.P. materials present in each store each morning prior to the start of interviewing (display type, location, placement, other variables, category and brand the display is advertising, static vs. motion, product vs. no product, whether it is interactive or not, whether it has video or audio).
Methodology (Neuroscience in marketing – Eye Tracking and EEG Monitoring)
• Track shoppers’ store navigation patterns
• Measure the degree to which shoppers notice, engage with, and emotionally respond to display types
• Identify display types and locations that generate the most impressions
• Categorize display types/qualities that drive positive and/or negative responses
• Document search patterns and navigational strategies shoppers use to find and select products
All participant experience some degree of anxiety with regard to wearing the gear in the store, but this anxiety diminishes rapidly within the first 30 – 60 seconds upon entering the store.
The Anatomy of an Eye Fixation
They were interested in investigating the following aspects:
- Eye Fixation – What is the shopper looking at – fixtures, displays, signage, other shoppers. Dwell time on an object was 200 ms and 70, 000 eye fixations have been examined.
- Purchase Fixation (fixation sequence preceding to a purchased item) – What is the shopper looking at and buying. How does the brain respond?
- Rejection Fixation (exploratory fixation sequence followed by rejection of product) – What is the shopper looking at and not buying? How does the brain respond?
Today’s Shopper Profile
- women dominate the aisle (75%)
- nearly two-thirds of shoppers are 45+
- 50% have college degrees
- 51% working full time
Shopper Segments Profiles
Timed Stressed – Shopper who feels pressured from not having enough TIME and seems to be always in a hurry. Adding to the time pressures are perceived budgetary constraints although this group is not low income.•Skews younger (18-44) and full time employed
•Doesn’t use circulars or coupons
•Describes self as easily tempted
•Likely to be shopping with children
•Least consistent use of written list
•Second highest percent basket purchased on impulse (70%)
•Highest total basket average ($67)
Explorer – A shopper who enjoys seeing what new products are available, browsing the store in general and getting inspiration for meals while shopping.•Heavy use of circulars to drive retailer choice
•High receptivity to stores with quality private label products as well as perceived variety of product types and package sizes
•The most satisfied shopper on for overall satisfaction
•Describes self as impulsive and easily tempted
•Skews older (55+) and lower income (<45K)
•Highest percent impulse basket (72%)
•Most weekly trips
•Longest time in store
Trip Planner – A shopper whose goal is to get the shopping trip over with and executed according to plan.•Fewest number of trips per week
•Most retailer loyal
•Most consistent use of written list
•Low circular use
•Not interested in bargain hunting
•Describes self as controlled and retrained
•Skews male and older (55+)
•Lowest percent impulse basket (67%)
•Shortest time in store
•Most accurate in predicting total spend
Bargain Hunter – A shopper defined by the willingness to shop around for the lowest price.•Least retailer loyal
•Most likely to use pre store media to plan trip
•Highest circular use
•Highest coupon use
•The least satisfied shopper on overall satisfaction
•Skews “taking care of the household”
•Most likely to NOT purchase an item she planned to buy pre store
•Lowest total basket average ($54)
In-Store Decision Rates
Specifically Planned Purchases – Purchases the shopper specifically identified by name in a pre-shopping interview and bought.
Generally Planned Purchases – Purchases that were referred to generically in a pre-shopping interview, but not named by brand.
Unplanned Purchases – Purchases that were not mentioned in the pre-shopping interview and bought on impulse.
Substitute Purchases – Purchases that were specifically identified by name in a pre-shopping interview, but actual purchase reflected a substitute of brand or product.
Walk Away Rates
By Shopper Segments: Time Stressed (18%), Explorer (20%), Trip Planner (15%), Bargain Hunter (20%)
By Gender: Men (20%), Women (18%)
Eye Fixations in Store
More fixations are made towards rejected purchases than those items going into the basket. It is clear that the shoppers spend substantial time exploring alternatives. Even planners and list makers have baskets that are two thirds full of items where the decision was made in store. This explains why the lions share of eye-fixations are made towards products that are rejected purchases. If you would like to find out the eye fixation rates for all categories of goods, check POPAI report.
In-Store displays collect a large share of eye-fixations. While 13% may not seem like a large number it is actually quite significant when put in the context of eye-fixations where products, signage, structures, and other shoppers are all competing for the shopper’s attention.
Emotional Valence Scores – A Crash Course in Neuroscience
Meet the Frontal Lobe – Emotional Valence Score (EVS) of Sands Research (A bigger response on the left frontal lobe is a positive response and a bigger response on the right frontal lobe is a negative response.)• Positive v. Negative Emotional Response
• First Discovered in Depression Research
• Substantial Confirmatory Academic Publications
• Finding: Positive Emotional Response equals Purchase
• Finding: The Tropicana Effect
Reading the data
The Neuromedia movies displays the scene camera with eye-tracking data in the upper left, NES score with the overall engagement, EVS with the Emotional Valence below, and the real time neural activity on the right. These movies allow researchers to play and pause the stimulus at any point to gain insight into what the shopper is experiencing, i.e. creating certain types of engagement, and to what degree.
Category Breakout
Factor analysis was used to develop an aggregate score reflecting overall ease of shopping for each shopper visiting one of the 20 key departments. A high ease of shopping score is reflective of a department where the product organization allows shoppers to assess the variety of options available to them and select the item they need. A high score on this measure indicates that shoppers do not find the section confusing or dread shopping there.
Factor analysis was used to develop an aggregate score reflecting overall ease of shopping for each shopper visiting one of the 20 key departments. A high ease of shopping score is reflective of a department where the product organization allows shoppers to assess the variety of options available to them and select the item they need. A high score on this measure indicates that shoppers do not find the section confusing or dread shopping there.
- High Shopability Score: Soft Drinks (89), Condiments (66), Refrigerated Juice (42)
- Low Shopability Score: Candy (-92), Personal Care (-73), Frozen Foods (-63)
- High End Neuro Engagement: Beverages (4.1), Canned Goods (4), Health & Beauty (3.6)
- Low End Neuro Engagement: Paper & Plastic (2.7), Meats & Cheese (2.2), Produce (2.2)
- High Emotional Valence: Snacks (29.7), Beverages (29.3), Alcoho (3.6)
- Low Emotional Valence: Health & Beauty (-5.4), Meats & Cheese (-6.7), International (-18.7)
Findings
- POPAI report also presents an important finding: Decisions are made on the first fixation.
- Fixate Pre-buy is the first fixation on the to-be-purchased item – the brain responds positively.Fixate Final Buy is the last fixation of the to-be-purchased item – the brain responds positively, but less so.
- Fixate reject is a consideration not followed by a purchase -the brain responds negatively.
- The decision and the anticipated feeling of reward is not at the shelf level, it is with the first glance.
- Pavlov is still right! We are conditioned creatures anticipating reward.
- Manufactures should think in terms of appearance of the product from a distance.
- Avoid visual clutter – visual noise decreases product selection.
- Shoppers are happiest when they see the product early on in the search.
- Good foreground / background separation increases the likelihood of a purchase.
- Emotional Valence by the shopper segment: Explorer (17.0), Bargain Hunter (-13.0), Time Stressed (-3.6), Trip Planner (-15.9).
Considering the observations from the study, POPAI also offered some advices:
1. Think about increasing your in-store campaigns & locations
We know today’s shopper underestimates his/her spend upon entering the store. Take advantage of this opportunity by gaining greater visibility for your products utilizing in-store displays in both category and cross-merchandising when possible.
2. Make sure your in-store communication is quick, visible & informative
We know today’s shopper feels a lot of pressure on his/her time. Coupled with a propensity for making more fill-in type trips it’s important that you gain visibility for your brand and communicate the benefits and value proposition in a quick and easy to understand manner. Try adhering to Frasier’s Rule of 3, 4, 5,
Readable in “3 seconds”, from “4 paces away” and in “5 words or less”
3. Don’t reinvent the wheel, borrow from the best in class
Take a step back when looking at category management and see what other categories are doing that help propel them to the top in terms of shopability. Every category has room for improvement so whether you at the top of the Ease of Shopping Scorecard or the bottom you can always improve category management and sales.
1. Think about increasing your in-store campaigns & locations
We know today’s shopper underestimates his/her spend upon entering the store. Take advantage of this opportunity by gaining greater visibility for your products utilizing in-store displays in both category and cross-merchandising when possible.
2. Make sure your in-store communication is quick, visible & informative
We know today’s shopper feels a lot of pressure on his/her time. Coupled with a propensity for making more fill-in type trips it’s important that you gain visibility for your brand and communicate the benefits and value proposition in a quick and easy to understand manner. Try adhering to Frasier’s Rule of 3, 4, 5,
Readable in “3 seconds”, from “4 paces away” and in “5 words or less”
3. Don’t reinvent the wheel, borrow from the best in class
Take a step back when looking at category management and see what other categories are doing that help propel them to the top in terms of shopability. Every category has room for improvement so whether you at the top of the Ease of Shopping Scorecard or the bottom you can always improve category management and sales.
Fascinating data on the expensiveness of market research, which in my opinion, is the biggest omission in the marketing cycle.