10 Shopper Insights that You Must Know and Dos

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10 Shopper Insights that You Must Know and Dos
Donts
Ken Zhang, ZdologyJavier Calvar, RI China
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These shopper insights are important because

• Contribute to our knowledge and understanding of
  in-store shopper behaviour
• Use this knowledge to adapt in-store environments
  to better meet shopper needs
• Use this knowledge to help brand wins at the
  point of sale
• Highlight the importance the store environment
  has on the shopper
• Better assess shopper needs when developing
  retail strategies and category solutions
• Understand the implications of shopper insights

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Where do these insights come from?

• Extensive shopper research carried by Zdology and
  Research International China across a number of
  categories
• 100 shopper research projects
• 3000 hours of in-store video
• Partnership projects with major retailers

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10 SHOPPER INSIGHTS

• Shoppers have difficulty making decisions
• Shoppers want to feel smart when making decisions
• Shoppers limited ability to process too much
  information
• Shoppers use memory to give meaning to objects
• Shoppers need consistent messages in and out of
  the store
• Discontinuity creates triggers to attract
  shoppers attention
• Shoppers recognize visual stimuli most easily
• Shoppers use familiar segments to speed up their
  selection process
• Shoppers tunnel vision and boomerang behaviour
• Shoppers need to be reminded of the items they
  need

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1. Shoppers have difficulty making decisions
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• More choices, more difficult to make a selection
• It is very common for shoppers not to know
  exactly what they want.
• Shoppers need information/education to make a
  decision.

Few Choices
Excessive Choices
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1. Shoppers have difficulty making decisions
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Avg. SKUs Carried by a Supermarket - Shampoo

• 46 shoppers spend 3min in front of shelf
• 52 shoppers pick up 3 products

Source CCFA Chain Store Annual Report
Source Mini-Market Shopper Research
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1. Shoppers have difficulty making decisions
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• More choices, more difficult to make a selection
• It is very common for shoppers not to know
  exactly what they want.
• Shoppers need information/education to make a
  decision.

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2. Shoppers want to feel smart when making
decisions
I Want Cheap

• Shoppers want to make a wise and smart decision.
• They also want to be seen by peers as making the
  right choice.

I Want Value
I Want to Be Smart!!!
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2. Shoppers want to feel smart when making
decisions

• Do you think the shopper will feel smart with
  this promotion?

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2
2. Shoppers want to feel smart when making
decisions

• Shoppers want to make a wise and smart decision.
• They also want to be seen by peers as making the
  right choice.

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3. Shoppers limited ability to process too much
information
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• The mind can only process 5-7 pieces of
  information
• Thousands of stimuli exist in a store
• Some information is compressed
• Some information is screened out
• Too much information leads to lock out

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3. Shoppers limited ability to process too much
information

• The mind can only process 5-7 pieces of
  information
• Thousands of stimuli exist in a store
• Some information is compressed
• Some information is screened out
• Too much information leads to lock out

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4. Shoppers use memory to give meaning to objects
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• Shoppers need to be given a clear stimulus in
  order to access their memory.

Whats this brand?
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4. Shoppers use memory to give meaning to objects

• Shoppers need to be given a clear stimulus in
  order to access their memory.

Whats this brand?
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4. Shoppers use memory to give meaning to objects
Whats this brand?
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4
4. Shoppers use memory to give meaning to objects

• Shoppers need to be given a clear stimulus in
  order to access their memory.

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5. Shoppers need consistent messages in and out
of the store
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5. Shoppers need consistent messages in and out
of the store

• Shoppers need consistent messages to make the
  transition from consumers to shoppers.

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6. Discontinuity creates triggers to attract
shoppers attention
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• The mind ignores what it knows and focuses on
  differences

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6. Discontinuity creates triggers to attract
shoppers attention
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• The mind ignores what it knows and focuses on
  differences

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6. Discontinuity creates triggers to attract
shoppers attention

• The mind ignores what it knows and focuses on
  differences

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7. Shoppers recognize visual stimuli most easily
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From flashy visuals
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7. Shoppers recognize visual stimuli most easily
to more subtle but unique approaches.
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7. Shoppers recognize visual stimuli most easily
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Whats this ?
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7. Shoppers recognize visual stimuli most easily

• Shoppers can process information in visual form
  (e.g. pictures) much more easily than words.

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8. Shoppers use familiar segments to speed up
their selection process

• Shoppers first sort out what is not relevant,
  then choose among the remaining products.

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8. Shoppers use familiar segments to speed up
their selection process

• Seven distinct category segments have been
  identified
• Little association between cat and dog food
• Pet health segment is associated with both cat
  and dog

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8. Shoppers use familiar segments to speed up
their selection process

• Shoppers first sort out what is not relevant,
  then choose among the remaining products.

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9. Shoppers tunnel vision and boomerang
behaviour
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• Shoppers have a tunnel vision when
• viewing fixtures at eye level.
• Also, if they cannot find what they want half-way
  down the aisle, they usually turn round and leave
  the fixture.

Corridor side
Eye level
of interaction
6 - 10
4 - 5
3 or below
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9. Shoppers tunnel vision and boomerang
behaviour

• Shoppers have a tunnel vision when viewing
  fixtures at eye level.
• Also, if they cannot find what they want half-way
  down the aisle, they usually turn round and leave
  the fixture.

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10. Shoppers need to be reminded of the items
they need
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100
Planned to buy instant noodle?
No
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74
Yes
Purchased instant noodle or not?
No
12
Yes
62
Not planned but purchased instant noodle
Planned but not purchased instant noodle
Planned and Purchase instant noodle
Details of preplan
Closure rate analysis
Impulse purchase rate analysis
Changed Plan or not?
Why? In-store triggers
Why? In-store barriers
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Yes
Why? In-store impacts
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10. Shoppers need to be reminded of the items
they need
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26 Impulse Purchase
Not planned but purchased instant noodle
Impulse purchase rate analysis
Why? In-store triggers
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10. Shoppers need to be reminded of the items
they need
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• Breakfast solution Squeeze a minute into
  your morning
• Reminding shoppers to buy their morning fresh
  juice with their newspaper.

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10. Shoppers need to be reminded of the items
they need
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• Simple meal solution approach.
• Increasing value of purchase with pasta and cook
  sauces.

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10. Shoppers need to be reminded of the items
they need

• Grouping categories in line with shoppers
  logical selection process triggers their memory
  and leads to more sales whether planned,
  unplanned or impulse.

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Summing up

• Consumers and shoppers are two sides of the same
  coin, hence consistency is needed in our
  communications.
• The store environment has enormous impact on
  shoppers and their behaviour.
• In order to influence shoppers to our advantage,
  understanding what makes them tick is
  fundamental.
• Therefore, shopper insights are key to win in
  the last mile.

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Thank you for your attention!
Ken Zhang, ZdologyJavier Calvar, RI China