There is no doubt that a great retail marketing strategy is born from a solid understanding of your shopper. Understanding their needs and purchasing behavior is essential to fostering a relationship that results in purchase, repeat purchase and eventually brand loyalty.
It is no secret that shoppers are inundated with product offerings and means of purchase, including in-store, online and mobile. Shoppers today are making a staggering number of their purchasing decisions in person – at a physical store. In fact, the number of shoppers making in-store purchasing decisions has increased from 70% in 1995 to 76% in 2012.
More often than not, the decision making process doesn't start until a shopper sees the product in-store and is face-to-face with your retail maketing strategy. The way that product is displayed, and the marketing materials available, is important to encouraging shopper purchase and increasing sales.
The following pages highlight key retail marketing insights found during the 2012 Shopper Engagement Study performed by Popai – The Global Association for Marketing at Retail.
Understanding the in-store decision making process is fundamental to retail marketing. In fact, the in-store decision rate reached an all time high of 76% in 2012 – showing shoppers plan less but make more decisions at the shelf.
However, "unplanned" purchases as a specific category are down. Most shoppers said impulse purchases happened as a result of remembering a certain item was needed or there was a sale.
|Specifically Planner||Purchase the shopper specifically identified by name in a pre-showing interview and bought.|
|Generally Planned||Purchases that were referred to generally in a pre-shopping interview and bought by brand.|
|Unplanned||Purchases that were not mentioned in the pre-shopping interview and bought on impulse.|
|Brand Switch||Purchases that were specifically identified by name in a pre-shopping interview, but actual purchase reflected a substitute of brand or product.|
More than 1 in 6 purchases are made when a display with that brand is present in the store.
In 1995, 47% of displays were placed in secondary locations. But this number reached 60% in 2012 as retailers tweaked their retail marketing strategy to take better advantage of cross-promotion; they put displays away from the more common home aisle.
In the study conducted by Popai, half of surveyed shoppers recalled seeing at least one display, with end caps and free-standing displays being recalled most frequently. It is also important to note that 13% of all recorded eye fixations were drawn to in-store displays. Considering the field of eye-tracking and neuroscience, this is impressive.
The graph to the left breaks down the type of display most noticed by shoppers.