If anyone was in any doubt that shopping is undergoing one of its biggest shifts since the invention of self-service, the unveiling of Amazon’s new offline store surely nails it. This store is evidence that shopping in the 21st century isn’t just about a move online. It is about shoppers finding that they have more choice of what to buy and where to buy than ever before. More importantly, shoppers love having that choice. It appears that shoppers are now in charge. It stands to reason, therefore that shopper marketing, is now more critical than ever to consumer goods success.
Turning the tide on one-stop shopping
For arguably six decades shopping and retail seemed to be following a single simple trend of consolidation towards one-stop shopping. Big-box retailers rolled up the High Street butcher, baker (and possibly the candlestick maker!) with the rest of grocery. The added newspapers, magazines, books, music, flowers, appliances. Financial services and opticians followed. There seemed no end to the trend.
And then things started to change. This trend began to reverse.
Amazon’s latest move is an indicator of this. A recognition that their megalithic online store simply doesn’t meet the needs of every shopper, all of the time. Yes, there is a sad irony that Amazon is emulating to some extent the Independent book stores that it helped force out of business, but it is also an indication that all might not be over for the specialist, or the independent.
Sales of music through independent stores in the UK is up 44% this year. The total number of independent stores on the British High Street has grown steadily for the last six years. Shoppers are realizing that the range and experience offered by superstore generalists and online stores isn’t right for everyone. The Internet enables and democratizes niche marketing, allowing businesses that were dying out a few years ago to find new markets.
Shoppers have choice, and are choosing where to spend their time and money. Many may be happy with a hyper market experience. Others love online. Increasingly shoppers are learning to mix and match: to use different channels for different products, the exact opposite of the one-stop shop. A shopper today might choose to buy basics from a discounter, meat and cheese from local specialists, personal care online. The shopper now has choices.
Different shoppers buying different things in different channels. All very exciting for shoppers, but what are the implications for shopper marketing, and what should shopper marketers do about it?
Shopper marketing – Focus on your target shopper
It is difficult to be everything to everyone. Marketing is about targeting and shopper marketing is no different. To succeed we need to focus on the shoppers we are most interested in, and those that are most likely to be interested in
Shopper marketing – Focus on targeted channels
Not all channels are equal. While all shoppers are certainly using all channels, the same may not be true of our target shoppers. Prioritizing the channels where our target shoppers can be influenced, and then making sure we win there is key
Shopper marketing – Recognize the things change rapidly
Shoppers can change their behavior as quickly as it takes to open up a pop-up shop. Often the move to a new channel isn’t a slow gradual process: a tipping point occurs and significant shifts happen. Marketers need to be on top of these trends, by understanding shoppers (as opposed to consumers)
By understanding what our target shoppers are looking for from a shopping experience it is possible to evaluate how effective their current channel choice is compared to their needs. The bigger the gap between their needs and their current experience, the more likely they are to switch channels as soon as a new offer is available.
We’re right in the middle of the most significant change to consumer goods and retail in a generation. At the heart of it lies the shopper. If you’re not investing in understanding shoppers, or not integrating shopper marketing into your strategies – well – don’t say I didn’t warn you!
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Image: Amazon
