Online Shopper Quotes

psychologists have shown that an individual’s choices and behavior can be influenced by “priming” them with particular words, sounds, or other stimuli. Subjects in experiments who read words like “old” and “frail” walk more slowly down the corridor when they leave the lab. Consumers in wine stores are more likely to buy German wine when German music is playing in the background, and French wine when French music is playing. Survey respondents asked about energy drinks are more likely to name Gatorade when they are given a green pen in order to fill out the survey. And shoppers looking to buy a couch online are more likely to opt for an expensive, comfortable-looking couch when the background of the website is of fluffy white clouds, and more likely to buy the harder, cheaper option when the background consists of dollar coins.11

Starting a little over a decade ago, Target began building a vast data warehouse that assigned every shopper an identification code—known internally as the “Guest ID number”—that kept tabs on how each person shopped. When a customer used a Target-issued credit card, handed over a frequent-buyer tag at the register, redeemed a coupon that was mailed to their house, filled out a survey, mailed in a refund, phoned the customer help line, opened an email from Target, visited Target.com, or purchased anything online, the company’s computers took note. A record of each purchase was linked to that shopper’s Guest ID number along with information on everything else they’d ever bought. Also linked to that Guest ID number was demographic information that Target collected or purchased from other firms, including the shopper’s age, whether they were married and had kids, which part of town they lived in, how long it took them to drive to the store, an estimate of how much money they earned, if they’d moved recently, which websites they visited, the credit cards they carried in their wallet, and their home and mobile phone numbers. Target can purchase data that indicates a shopper’s ethnicity, their job history, what magazines they read, if they have ever declared bankruptcy, the year they bought (or lost) their house, where they went to college or graduate school, and whether they prefer certain brands of coffee, toilet paper, cereal, or applesauce. There are data peddlers such as InfiniGraph that “listen” to shoppers’ online conversations on message boards and Internet forums, and track which products people mention favorably. A firm named Rapleaf sells information on shoppers’ political leanings, reading habits, charitable giving, the number of cars they own, and whether they prefer religious news or deals on cigarettes. Other companies analyze photos that consumers post online, cataloging if they are obese or skinny, short or tall, hairy or bald, and what kinds of products they might want to buy as a result.

Importance of price: Price is imperative for FMCG retailers, much more so than for manufacturers. Retailers must constantly keep their real prices competitive and put great effort into managing their price perceptions in the minds of their shoppers.

In February 2010, Ad Age reported that Wal-Mart had consolidated its stocked range of food bags from three brands, Ziploc, Glad and Hefty, down to the market leader, Ziploc, and their own Great Value private label offering.3 Pactiv, the makers of Hefty, gained the consolation prize of the contract to manufacture the Great Value products, whereas the owners of Glad lost their entire food bag business in Wal-Mart. Wal-Mart could do this easily as, unlike many other retailers, they consolidate all manufacturer payments into the buying price and pass on most of the benefit to the shopper in lower prices. Retailers who take manufacturer payments to their bottom line are sometimes unwilling to give up the short-term benefit of such payments for the longer-term return of better margins from their private label. The secondary brands that are targeted by private label are usually big payers of trade spend to make up for their lower level of consumer appeal versus the top brands.

in order to win more shoppers and boost their takings per shopper, retailers have been investing in store brands that are better than anything else on the market.

Consumers can now scan the code on the product when they are running low, and it will be ordered and delivered within hours to their home, completely side-lining all the tools and techniques of competing manufacturers who would wish to get the consumer to brand switch. Tesco’s Homeplus in South Korea also launched a campaign that engages shoppers to buy products using QR codes. Homeplus created virtual billboards of their store aisles in subway stations, allowing passengers to shop while they waited by scanning the products’ QR codes – the groceries being delivered when they arrived home. The goal of the campaign was to help Homeplus compete with the number-one retailer, E-MART, without increasing their store numbers. Since the launch, their online sales have increased 130%, making them the top online retailer in South Korea, and a close second offline.

shoppers were choosing on the basis of price alone – the brands were completely substitutable. To escape this death spiral, P&G decided to slash their brand portfolio and target each of the remaining brands at specific washing needs. Thus initially evolved separate brands for the washing of clothes, skin and hair, which further evolved over time into separate brands for work-clothes, delicates, colours, whites, oily skin, dry skin, sensitive skin, dry hair, oily hair, dandruff-laden hair, blonde hair, coloured hair ad infinitum.

Direct consumer contact is an advantage for retailers, as 70% of shoppers make purchase decisions in stores and are thus open to last-minute persuasion. The

unlike retailers, who control the store environment, manufacturers have to pay for every opportunity to communicate with their consumers in the minutes prior to the purchase decision: they have to spend money to stop their brands being forgotten. This has encouraged manufacturers to experiment with finding ways to have some kind of interaction with shoppers in-store.

Safeway developed a successful campaign in the United States to grow sales from light shoppers and increase sales from heavy shoppers. They sent a monthly newsletter to 1.2 million card holders. Those whom they identified as secondary shoppers (people who mainly shop somewhere else) received a coupon for departments they didn’t use, like the meat or produce section. Primary shoppers (people who mainly shop at Safeway) were also given coupons, but to less common areas, like the cookie aisle, as they already visited the main departments. The campaign was a huge success, increasing same-store sales and sales from secondary shoppers, plus it changed customer behaviour by converting secondary shoppers into primary ones. The campaign also improved Safeway’s image by going beyond a general discount to create targeted deals. They sent out 451 800 versions of their offering.

gaining shelfspace has become a more strategic challenge for manufacturers. Shelfspace has to be won by planning product offerings to satisfy not just consumers’ needs but also the retailers’ objectives. Because the retailer is overwhelmed with offerings that claim to have consumer appeal – that is now a given – it is in being seen to best meet the retailers’ needs that has become the battleground. Store management wants to increase category sales, improve average margins, provide a good range to shoppers and perhaps offer exclusive products, all the while looking to increase operational efficiency and reduce inventory costs by minimising the number of lines stocked and the workload involved in getting products on the shelf. Manufacturers now have to win shelfspace by working through these complex and sometimes conflicting needs.

Cullen’s model of selling top brands at cost then morphed into their being sold as loss-leaders, owing to the inexorable need to attract shoppers into grocery stores. This is why private label brands eventually reappeared: to counter the power of national brands upon which retailers were actually making a loss. The

A retailer facing competition from hard discounters or Wal-Mart cannot afford to lose their price-sensitive shoppers, because, as we saw in Chapter 2, retailers are sensitive to small changes in sales, and price-sensitive shoppers are a significant segment of shoppers. Dropping

Fresh produce and other ‘destination’ products can create a sustainable differential advantage, as they have the potential for deciding the destination of the shopper. Multi-segmentation, loyalty cards and pricing can also create differential advantages.

Once the shopper has been frustrated by three or four out-of-stock products, store loyalty may be insufficient to prevent a trip to another supermarket. If multiple stock-outs occur on the same shopping trip, the retailer faces Armageddon. This becomes apparent when a chain suffers a poor implementation of a new distribution system.

If the manufacturer can convince the retailer that delisting will hurt consumer satisfaction and possibly lead to store switching, then that will be second in importance to direct profits. As stores now segment their shoppers into groups relevant to their marketing effort (e.g. irregular stock-up shopper), manufacturers need to show how their presence, or their marketing activity, might matter to key shopper segments.

When ConAgra Foods launched the new pop-up bowl for their Orville Redenbacher’s Gourmet Popping Corn line, they used QR to direct shoppers to a short video that gave them more detail on the pop-up, trying to influence their buying decision at the point-of-purchase.

The aim is to find socially and legally acceptable ways of allowing price-sensitive shoppers to pay less, while leaving the less-price-sensitive customers to pay more, which is what manufacturers achieve with their portfolios of brands. Retailers can use their own quality brands, cheap and false brands and manufacturer brands to price discriminate. Coupons, price guarantees and convenience can also be used creatively.

All other things being equal, the retailer will have an advantage because of their direct contact with the shopper.

Retailers have four advantages over manufacturers when it comes to influencing consumers: the cost-effectiveness of their branding model, direct contact with shoppers, control of ‘point of purchase’ marketing variables and access to data on buying behaviour. Together, these make a potent mix.

if management is under pressure to deliver profits in the short term, quick-response promotions are a more attractive investment than design improvements. Short-term actions are also favoured in industries sensitive to changes in volume sales, like retailers. Shoppers tend to react more quickly to price promotions than to store layout changes.

a key part of their subsequent success was rooted in the insight that continuous improvement to the shopping experience rather than any one particular improvement had the potential to be a major competitive edge. Tesco’s improvements included their ‘One in front’ commitment to effectively abolish checkout line-ups, baby-changing and bottle-warming facilities, ATMs, escorted searches for product requests and priority parking for pregnant mums. It was not that one improvement was more successful than another; it was the relentless implementation of a never-ending stream of small improvements that steadily improved Tesco’s image relative to their competitors, who were left seemingly forever floundering in their wake. The scheme also got Tesco’s staff more engaged in service delivery and coming up with ideas for further improvements. ‘Every little helps’ helped Tesco attract over a million new shoppers in the period from 1990–1995.

This shows that price is imperative for all FMCG retailers. They must always do two things well: Be genuinely price competitive on the top 100 best-selling products where the shopper is most likely to make direct comparisons. Perpetually make efforts to manage their price image and must consider the impact of all marketing actions on that image. Wal-Mart still advertise their price Rollbacks even though everyone has known for decades they are good value.

mature markets are dominated by two phenomena: Product parity: When technological development plateaus, advantages created by technology disappear and competitors produce goods of almost identical quality, from washing-up liquid to computers to lipstick. New entrants, both manufacturers and private label, are able to jump quality learning curves by using outsourced manufacturing, which just further increases the pressure on the market leaders. As far as shoppers can judge, brands become mostly indistinguishable. This leads to substitutability, a death sentence for profits in any industry. There

But a retailer cannot slice and dice its customers at the brand level (i.e. chain) to the same degree. A retailer who seeks to target only 20% of the potential market is already on thin ice. Retail coverage (i.e. the physical footprint of a store’s catchment area) dictates the target audience for each store, which means that the audience is relatively heterogeneous: everyone who lives within the store catchment area. A large mainstream store has to generate volume at each unit level as most of the costs, such as building, staff and stock, are local; therefore, because of retailers’ sensitivity to small volume changes that we saw in Chapter 2, the more shoppers the better. Thus,

The retailer features them in advertising to generate store traffic, but once the shopper is in the store the retailer has every incentive via prominent merchandising to sell that person a competitive brand, one

Where the shopper’s appetite for variety, choice and novelty are greater, the specialisation of manufacturers into product categories gives them the critical mass and know-how to dominate the battle for mindspace.

A store specialising in fresh perishable items that the shopper cannot stock up on at home will generate more frequent visits and a higher store loyalty. This

Category management is something of a misnomer; category understanding may be a better goal. Category understanding should be an effort to see the market from the retail point of view, and offer brands/SKUs that retailers want to stock. The idea is not to sell to retailers what you want to produce, but produce what they want to sell and their shoppers want to buy.

Fast checkouts for people with fewer than 10 items are also an attempt to satisfy the top-up shopper segment.

Once sufficient concentration and merging have taken place, the winners hope to be free to establish a more orderly form of competition between themselves, one where they create differential advantages for their stores, so that ‘their shoppers’ no longer see one store as substitutable for any other.

Originally developed as a cost-saving efficiency tool, once all product categories adopted UPCs and computing became powerful and cheap enough to handle the unimaginable quantity of data, the benefits of retail information dwarfed the anticipated cost benefits from efficiencies. Real-time knowledge of sales at the item level dramatically illustrated the truism of knowledge equating to power, especially when the data could be measured at the individual shopper level through loyalty cards.

Although private label shoppers benefit from not having to pay for flashy advertising, private labels miss out on a key brand role: being vehicles for self-expression. It’s difficult to keep manufacturer brands in the must-stock category based on the price/quality spectrum, so they rely on creating desirable imagery that cannot be found in a retailer’s portfolio.

A well-planned category will satisfy the largest proportion of shoppers, actualise every potential sale and prompt unplanned purchases. Profits will be affected by the mix of sales: the range should price-discriminate, satisfying price-sensitive customers while earning higher margins from quality-sensitive shoppers. For many retailers, category planning also involves promoting their private label brands.

Your church’s online presence is the front door of your church. It has been said that people now visit your church up to ten times before they physically attend a worship service. Your first impression as a church is on social media. Your second impression is your mobile site. Your third impression is your church website. Your next impression is the parking lot/parking team (or lack of).

When people look for products and services online, they seldom convert on their first visit. In fact, depending on the industry, 95 to 98 percent of people leave a website without taking the desired business action, such as make a purchase, fill out a lead form, download software, and so on.

Last year, for example, Etsy acquired Grand St., an online seller of new electronics products. The Grommet, which is majority owned by Japanese e-commerce giant Rakuten, is another site dedicated to introducing shoppers to the latest inventions from small shops or individuals. Amazon has

How do online retailers use these insights about shopper visits? Moe: The next stage of research looks at differentiating between online shoppers not just according to what pages they are looking at, but by also actually examining the products they are interested in.7 In other words, what are the characteristics of the products they are searching for and interested in? And what are their ideal products? Building a model based on data from this research enables the retailer to estimate the probability of purchasing. For example, if someone looks only at a series of black shoes, you can infer that she has a clear preference for this color shoe. Someone else might be looking only at shoes in a certain price range.

Guests will visit you online before they visit you in person. Count on it.

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Amazon single-handedly—and permanently—raised the bar for convenience in online shopping. That, in turn, forever changed the types of products shoppers were willing to buy online. Need a last-minute gift or nearing the end of a pack of diapers? Amazon was now an alternative to the immediacy of brick-and-mortar stores.”4

According to leading industry sources, 82% of smartphone shoppers conducted "near me" searches. This means that sophisticated consumers want to find local businesses. Local SEO helps businesses accomplish that. If we add eCommerce to that business' online presence, we're more likely to increase sales even further since we make it easier for consumers to make purchases. Local SEO and eCommerce when used properly, and in tandem, can be powerful for the organized and committed business owner.

Prime is a way to change consumer shopping patterns, to turn the occasional online shopper into a person locked into the Amazon ecosystem who interacts with the company on a frequent basis. The idea is to make Prime so attractive and so easy to use that customers can’t imagine living without it. It’s the online equivalent of nicotine—a metaphor that Amazon would never use. It is addictive

E-commerce growth will spill over to online finance and fintech, disrupting the banks With so many customers in Southeast Asia who don’t use banks, one of the major opportunities will be e-commerce’s growth into financial technology

More than half of Mexicans older than six use the Internet, and 85 percent of those Internet users use social networks. However, only about a quarter of Internet users shop online.

Online retail is no longer an additional channel through which to sell products. It is becoming central to how companies research, develop, brand, and market their products.

91% of shoppers read online customer reviews.

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