“How much money should I spend on consumer marketing versus shopper marketing?” It’s a question I’m often asked by clients and at conferences. They question is sometimes phrased differently (“what percentage of my spend should go in-store”; “What is the best split between above-the-line and below-the-line spend?”). The answer is “it depends”: every situation is different. Different brands, different consumers, different shoppers, different channels. But there is one factor that is critical to answering this question. Its critical to understanding where to spend your money. In fact this piece of shopper understanding is critical to the creation of any shopper marketing activity. To influence a shopper in any way, we first need to understand what decision making authority the shopper has.
Shoppers won’t make decisions they are not authorized to make
Most approaches to shopper marketing and in-store activities ignore this. Most shopper research protocols ignore it too (have you ever seen research where the respondent HAS TO BE ‘the main decision maker’? Yup – happens a lot, and therefore completely ignores the possibility that the shopper might NOT be the one who decides! Anyone who prescribes to a definition of shopper marketing that ignores the reality that sometimes the shopper isn’t the consumer is going to miss this too. Too often the assumption is that once the shopper marketer has identified who their target shopper is, and which stores they can be found in, all that remains is to create a brilliant in-store marketing mix and the purchase is won. Sadly that simply isn’t always true. The shopper may be interested, may even be won over, but unless they have the authority to make that decision, there and then in the store, then unfortunately most shoppers won’t make the decision.
When the shopper isn’t able to make a decision
If you don’t believe me, check out this amusing video. This is what happens when the shopper has no purchase decision making authority (and I know this happens, I’ve been in this exact situation myself!)
Shopper decision making authority varies hugely
Let me illustrate with a few more examples. A housewife shops on behalf of the entire family. In her basket may be products for the entire family; products for her husband, and products for herself. Let’s look at the products she buys for the family. The choice of vegetables she buys may be completely up to her – she has complete authority over the decision. When it comes to meat, she can choose between chicken and pork, but can’t buy fish as the kids don’t like it. When it comes to the bodywash she buys for her husband, she knows that he will use whatever she buys, and so she has complete freedom to pick up whatever she finds. But when it comes to the beer he drinks she knows he likes Heineken, so she won’t switch brands no matter how persuasive the in-store marketing campaign is. She chooses a deodorant for her teenage daughter, and whilst she won’t choose a new brand without talking to her daughter first; she will try a new variant within the brand that she thinks her daughter might like. She wouldn’t consider switching deodorant variants for her teenage son however – he’s hormonal at the moment and it simply isn’t worth the hassle.
All the above is fictional, of course (though is pieced together from real conversations with real shoppers); but shoppers do make different decisions in different categories, and the scope of the decisions they make is determined by the authority vested in them by – among other things – the consumer. Understanding how this concept works is critical for shopper marketers: clearly persuading a shopper to make a decision that they are not authorized to make is less likely to be as effective as working on an authorized decision.
Understanding shopper decision making authority requires a focused understanding of the target shopper
For the shopper marketer to have a hope of cutting through this, they need to clearly understand which shoppers they are targeting. Then, crucially, whether the shopper is the consumer or not. Then the shopper marketer then needs to understand what behavioral change is required of the shopper, and whether or not the shopper has authority to make that decision. If the shopper does not have that authority; then the marketer will struggle in any attempt to persuade them in-store. Instead, the shopper marketer should focus on persuading whoever does hold that authority – perhaps the consumer, or the budget holder – before investing against the shopper.
Understanding shopper decision making authority is key to making smart marketing investments
In this omni-channel world, all marketers (both consumer AND shopper) must understand that decisions are complex, and are made in different ways in different circumstances. Decision making authority sometimes lies with the consumer, sometimes with the shopper; sometimes a mix of both. To market effectively, it is key to understand who is the decision maker for the decision you wish the shopper to make. The shopper might be able to choose a variant, or a pack size, but not the brand, for example. Or the shopper could just as easily be able to choose the brand but not the flavor (yesterday I went shopping and my daughter asked for cheese crisps! As long as I got the flavor right the rest was up to me). Armed with this knowledge shopper marketers can target in-store battles they can win: increasing the chances of shopper marketing success.
If we are to get the balance right between consumer and shopper marketing investments and activities we can’t assume that the consumer is the shopper. We can’t assume that all decisions are up for grabs at the point of purchase, either. In the same way, however, we can’t assume that the shopper is a powerless automaton just buying whatever the consumer wants. Consumer marketing isn’t all powerful. One of my favorite examples of shopper marketing demonstrates this perfectly. P&G clearly knew that the decision making authority for their target market lay with the shopper rather than the consumer!
If you’d like to learn more about understanding shoppers and creating powerful shopper marketing and in-store activities, or how to blend shopper understanding into your omnichannel planning, check out our training programs now, or get in touch to discuss your specific situation and needs.
Image: Flickr
