Shopper marketing has undergone a metamorphosis since the advent of digital marketing, evolving into an omnichannel approach designed to reach shoppers at all touch points, according to new research from The Association of National Advertisers (ANA), conducted in partnership with market research firm GfK.
What’s more, this metamorphosis will have a direct impact on customer engagement and customer loyalty.
Loyalty360 caught up with Mike Kaufman, Senior Vice President, Brand Activation, ANA, to find out more about this metamorphosis.
What has caused this metamorphosis in shopper marketing and how will it impact customer engagement/customer loyalty?
Kaufman: Shopper marketing – like all marketing disciplines – is changing in seismic proportions never seen before. This is happening largely because consumers, enabled by digital technology, have more information on products and services at their fingertips and more ways to satisfy their needs. And not only is the quantity of information constantly expanding—so is the quality. Marketers have more granular data about their customers than ever. Still, a problem remains in that marketers can’t always access or analyze this glut of data effectively enough to break through the clutter and motivate purchase. As a result, companies are continuously working to align their resources, and understand the most critical points of influence on shoppers. This insight will elevate their ability to best connect with their consumers on their terms, in their preferred manner, and at the most relevant moment of consumer need or interest. If marketers can deliver this value, their ability to drive customer engagement and customer loyalty will lead to more sustainable customer relationships.
What do in-store visits have to do to mirror the effectiveness of online shopping so as to deliver a seamless experience?
Kaufman: Customers are in control of the shopping experience and they have high expectations. As a result, brands and retailers need to continue to use their assets—whether bricks and mortar, ecommerce, social media, or otherwise—to provide value, convenience, and consistency to demonstrate they value the customer relationship and understand their customers’ journey. Online is preferred to brick and mortar shopping largely due to convenience and selection, while the brick and mortar stores are preferred for their ability to let a shopper touch and feel products and to deliver a more complete experience. Each channel needs to leverage their strengths while offsetting their weaknesses. The emergence of “click and collect” in which consumers buy or order goods from a store's website and collect them from a local branch, is an excellent example of this. But even more important is experience consistency in which the shopper’s experience both online and in person is as close to being the same as possible so that a consumer feels they are always having a consistent relationship with a brand.
How do you define shopper marketing?
Kaufman: One of the reasons we continue to drive the conversation in this vital pillar of Brand Activation is the fact that people continue to ask this question – or they don’t ask it and the definition is not consistently understood across an organization. We believe, and our research supports the concept, that the primary purpose of shopper marketing is to drive a win-win-win for shoppers, brands, and retailers. This means that shopper marketing must be strategically rooted in influencing shopper behavior via levers that go beyond price and placement and deliver unique, insights-based shopper solutions. Brands that embrace this to the benefit of their category, retail partners and of course shoppers then drive integration across other marketing disciplines in order to deliver strategic, insightful plans across consumer, shopper and trade marketing efforts.
What are marketers doing well in this area and where do the challenges lie?
Kaufman: Organizations are increasingly understanding that shopper marketing is starting to overcome the perceptions that once limited its potential effectiveness. According to ANA research, about 70% of marketers view shopper marketing as a strategic imperative that can motivate and engage consumers to deliver short-term shopper conversion and long term business building. In order to accomplish this, however, organizations need to continue to align the resources to achieve results – and this is where we still see room for improvement.
Mobile is so huge now. How will mobile fit in new shopper marketing campaigns now and in the future?
Kaufman: The reality is that mobile is huge. But it also is so intertwined with all of digital and social – that it has become the biggest challenge (and biggest opportunity) for organizations to integrate with all areas of marketing, not only shopper. It continues to evolve and has created an expanding shopper channel. As part of that integrated customer journey it will only increase in importance. Accordingly, shopper marketers must continue to embrace these areas and continue to incorporate them into their plans – particularly in managing the customer experience. Therein lies the challenge with mobile: It can sometimes provide laser focused targeting, but it can’t deliver the reach of other media. Success comes in finding the right balance between leveraging mobile as part of an overall shopper marketing campaign with other tactics that provide more reach.