Digital Strategy

The Marketing Funnel:

AWARENESS > CONSIDERATION > CONVERSION > LOYALTY

Back in the day, advertising ruled the day, but the digital world unlocked all sorts of innovation and all sorts of new ways of communicating and sharing great products and brands such that the industry became less reliant on broadcast media, which concurrently was becoming less and less effective with the fragmentation of media…the result was, what was an incredible means of communicating at the top of the funnel became less effective and more expensive.

Today, far more money is spent on “Shopper Marketing” (Shopper marketing is a discipline that focuses on improving the shopping experience for consumers in order to drive sales both in-store and online at the point-of-purchase).

This marketing discipline is different from traditional advertising and promotion. Shopper marketers focus on making last-minute appeals to shoppers at the very moment they’re considering buying, while other forms of marketing try to increase overall awareness and affinity for a brand or product.

People love to speculate that brick-and-mortar stores are dying. In an effort to keep shoppers going to stores, shopper marketing is a key strategy used by many companies that sell consumer packaged goods.

What is Shopper Marketing?

Shopper marketing involves the strategic design and planning that influences how consumers interact with products in a store. Elements like store layout, scent, and lighting are intentionally crafted to encourage purchases.

Shopper marketers study how people behave while shopping to understand their decision-making processes.

For instance, when you find yourself in the coffee aisle, faced with various brands, choosing one can be tricky, especially when they’re similar in price. What leads you to pick a particular coffee? This is where shopper marketers employ a range of strategies.

Shopper Marketing Strategies

How does shopper marketing enhance both sales and brand recognition? Effective campaigns utilize multiple tactics to connect with shoppers throughout their buying journey.

Displays

Strategic signage and displays can draw shoppers in and simplify their shopping experience. Eye-catching end-cap displays, for example, help shoppers avoid getting lost in a crowded aisle.

Marketers can install end-of-aisle, freestanding, or product containers to display items. They can also use interactive, animated, or static digital displays. These are all branded and designed to draw the eye and separate the product from competitor alternatives.

Displays are a great opportunity to improve brand recognition and build loyalty.

Demos

Many shoppers, including myself, enjoy in-store demos. Costco excels in this area, offering daily tastings right next to the products for sale. This not only alleviates the fear of buyer’s remorse but also generates excitement, often leading to a purchase.

Ambiance

Grocery stores use music not just for atmosphere; research shows that 90% of shoppers are more likely to return to a store that enhances the shopping experience with music, visuals, and appealing scents. From the coffee aisle to the bakery, these sensory elements draw customers in and drive sales. Shopper marketing initiatives can help integrate these experiences to keep customers coming back.

Embrace Their Inner-Child with Contests, Sweepstakes, and Promotions

Injecting fun and urgency into the buying journey is a great way to improve the customer experience. Contests, sweepstakes, and promotions create opportunities for people to get something in exchange for engaging with a brand. And brands are likely to get something back in return – a third of entrants sign up to receive further marketing communications.

Social Media Marketing

With smartphones always in hand, shoppers frequently browse social media while in stores. Implementing geo-targeted ads that appear in users’ feeds when they’re nearby can effectively engage potential customers.

Shopper marketing is a specialized approach that influences consumers right at the point of purchase. Without it, shoppers might go through the motions without making thoughtful choices, causing businesses to lose out on sales opportunities. By adopting a shopper marketing strategy, you can effectively engage potential customers and turn them into enthusiastic advocates for your brand.

To learn more about Straydog’s Social Media services, leap over to our Social Media Marketing page.

Why is Shopper Marketing Effective?

• It’s data-driven. Shopper marketing strategies use accurate and relevant customer data so marketers can understand shopper behavior, preferences, and habits. This lets them craft campaigns that deliver the right message at the right time and connect with their target audience. But just 26% of global marketers are fully confident in their audience data. For shopper marketing to be effective, it’s crucial to have tools that can capture and store data safely as well as provide analytics.
• It influences customers at the right time. When customers are shopping online or in-store, it’s easier to capture and hold their attention. Nearly 80% of shoppers will go to a store to buy when they have an item they need or want immediately. If they see the right campaign, offer, or competition while shopping, they’ll engage with it and will be more likely to make a purchase.
• It adds a personal touch. Marketers can personalize shopper marketing to customer preferences. Taking promotions as an example, if basket data shows a customer buys diapers and formula, you could offer a discount on baby-related products. 87% of shoppers say knowing they got a good deal is important to them when deciding which brand or retailer to buy from. Personalized offers are a great way to build brand trust and increase perceived value.
• It’s omnichannel. Shopper marketing tactics span the digital and physical so you can meet shoppers where they are. Send a promotion through a retail app, email about an event, create an in-store display to showcase a new product, and more. Make the most of every channel and ensure your messages are consistent so customers get a seamless experience.

Some of the best Shopper Marketing Campaigns:

1. Naked Juice – Live Naked campaign

Naked activated an in-store element of their Live Naked campaign to drive new and repeat purchases of their juice at the point of sale. They attached a coupon to every bottle, inviting customers to show the brand how they use the product. Harnessing user-generated content showed their customers authentically enjoying their products and encouraged continued participation and purchases. It connected to their existing customer base, attracted new customers, and sparked interest in new flavors.

The campaign resulted in a 26% sales lift year on year.

2. Coca-Cola’s “Share-a-Coke campaign

It first launched in Australia back in 2011. That summer, consumers bought more than 250 million named bottles and cans in a nation of less than 23 million. Being able to sip a drink with their name on it made Coke even tastier, and the campaign has since launched in more than 70 countries. It truly connected with the hearts and minds of consumers.

3. Starbucks’ Payment App

Starbucks developed an app that customers can use in-store or online. The app:

• Allows users to order ahead, pay, and browse the menu
• Gives users points every time they buy which they can redeem against future cups of coffee
• Sends users notifications when new products are released
• Invites users to special events and sends customized ads with deals relevant to their location

In 2018 it was the most popular mobile payment app. In 2018, 23.4 million people used the Starbucks app to make a point-of-sale purchase. Starbucks also use receipt validation to reward their customers.

How to build a Shopper Marketing campaign:

To succeed at CPG shopper marketing, you first need to succeed at capturing, storing, and understanding your customer data. Once you understand your customer behavior and preferences, start to build out a shopper marketing strategy tailored to their needs.

Don’t do everything at once – pick a couple of methods to engage shoppers online and in-store, and measure your results. And use a shopper marketing tool (and learn more about shopper marketing agencies) to support your efforts. Choosing the right solution can help you to manage and automate your shopper marketing campaigns so it’s easier to deliver seamless and engaging customer experiences.

So, how do you build awareness?

Traditional methods like B2B marketing, conferences, and advertising for small businesses are either ineffective or too costly now.

Resources are shifting from marketing to product development. Ultimately, if you can create a product that’s ten times better, people will talk about it. Therefore, the top talent in a company should concentrate on improving the product, rather than solely on marketing efforts as they did in the past.

Think of Starlink, truly a revolutionary product that is changing the world: Disruptive, scalable and relevant. Consumers have been flocking to this product in massive numbers, because it is game-changing…..More on Starlink in later.