Win the Hearts, Minds and Wallets of Shoppers

By: Michael Palmer

Shopper Marketing – what is it?  It’s a way to capture shopper’s minds, hearts and wallets.   With so many of shopper’s decisions being made at the shelf (up to 70% some research reports) and on impulse (up to 68%) it is critical to use the retail market as a channel to connect with consumers.  There is an opportunity to both drive consumption and build brand equity.

But what is Shopper Marketing – all marketing stimuli, developed based on a deep understanding of shopper behavior, designed to build brand equity, engage the shopper (i.e., a consumer in ‘shopping mode’), and lead him/her to make a purchase …this definition is from Deloitte, working in conjunction with the GMA.

But does shopper marketing work?  It sure does.  American Eagle stores in a study conducted by Indiana University’s Kelley Business School found that they could drive sales of men’s clothing up 23% without spending a dime.

Studying men, AE discovered that they were uncomfortable picking up and interacting with merchandise because they were afraid they would not be able to refold it nicely and put it back on the shelf.  So AE started displaying men’s clothing in piles, not neatly folded.  Men now feeling comfortable picking up items did so regularly. 

Men also have trouble deciding what goes well together, so AE place a number of manikins dressed in different clothing combinations next to the merchandise they were trying to move.  And pow, deciding what to buy was no longer a mystery. 

The insight here – understand your customer, learn how they shop, then make that experience more comfortable, enjoyable, easier.  AE did all three and were rewarded with a tremendous same store sales increase without having to spend any marketing dollars.  What can you do to make shopping for your brand more fun, easier, or faster?

Technorati tags: shopper marketing retail marketing American Eagle store