Showing posts with label consumer. Show all posts
Showing posts with label consumer. Show all posts

Saturday, November 3, 2012

Forget Engagement, Consumers Want Simplicity

Loved the recent article by Patrick Spenner in Forbes where he writes that brands are trying too hard to engage with consumers via social media and that marketers are generally pushing out too much information, causing people to over-think purchase decisions and making them more likely to change their minds about a product, be less confident in their choice and less likely remain loyal to the brand.

He commends that brands need to simplify the decision-making process, so much so that consumers actually think less about the decision. Marketers can do that in three easy ways by helping consumers: 
  • Trust the information they receive – providing recommendations by consumer advisors, ratings and reviews.
  • Learn effectively without distraction – simplifying the research process by offering clear and streamlined brand-specific product information targeted to each decision stage.
  • Weigh options confidently – making transparent buying guides and brand differentiated information easily available.
When used together, this approach is known as Decision Simplicity.

Not only is Decision Simplicity the number one driver of likelihood to buy, but the impact of simplifying purchase decisions for consumers is four times stronger than the favored marketing strategy of engagement.

Thursday, November 1, 2012

Online and Offline shopping experiences are blurring.


A new research from Google & Ipsos found that 80% of shoppers will research online for holidays shopping before making a purchase this season, and they switch devices to suit their needs. 

“For example, 51% of shoppers will research online and then visit the store to purchase, while 17% will visit a store first and then purchase online. Another 32% will research online, visit store to view a product, then return online to purchase. In short, the shopper’s journey looks less like a funnel and more like a flight map, and the lines between online and offline shopping experiences are blurring.” says Google Retail Industry Director, Todd Pollak.

This integration of the online and offline experiences offers great opportunities but also brings with it risks for all brands / retailers who are focussed on any one of the two formats. It is important to have a "hybrid" commerce strategy.


Monday, August 20, 2012

The changing profile of Indian retailers & AaramShop.

A typical Indian Neighborhood Grocer
Kamal Desai is the 2nd generation grocery retailer based out of Andheri West, in Mumbai. He took over day-to-day management and operations of his family-owned grocery store about 9 years ago.

The 9 years of running his store 1st hand and assisting his father since early childhood enables Kamal to reflect on changing trends in Indian retail and its opportunities and challenges over the last 4 decades with a level of expertise.

The changes have been happening over the years, but the last 7 to 8 years have been the most exciting and challenging. Based on what he saw around, he started off by doing minor modifications to the store layout since he took over – starting with creating self-service isles, better product displays and accessibility, in-store lighting and then going on to air-condition the store.

While the neighborhood that Kamal services has seen a steady population growth and income levels, it has also seen a change in consumers’ tastes – prompting Kamal to move away from commodities to brands. And while Kamal has a strong one on one relationship with a lot of consumers and almost a legendary service level efficiency for loyal consumers – he is facing an increasing challenge with the changing lifestyle of a number of his consumers and of course from the increasing competition from the modern trade outlets.

Saturday, July 14, 2012

"Clicks to Bricks" integration for FMCG brands' digital campaigns.

The growing importance of digital marketing is not lost on anyone. However, most brand marketers in the FMCG / CPG space find it difficult to justify the high engagement cost per consumer, especially because most current digital assets are restricted to creating awareness. 

There is now an option to change that. AaramShop has digitized the FMCG brands' existing last mile, thus enabling an integration of a “purchase now” prompt option within all digital assets. 

The consumers can now browse through all manner of digital communication, have the additional option to click on a “purchase now” tab, enabling them to order a brand from their preferred neighborhood retailer, who packs up and deliver in a matter of hours. 

Here is a neat example of seamless "Click to Brick" integration by Saffola (Marico Industries) giving its consumers a “purchase now” option on its website and at the same time it helps build a stronger bond with its channel by helping generate direct demand and action specific to the retailer outlets.

All digital assets of the brand like its websites, social media presence on platforms like Facebook, Pinterest, Twitter, etc, review sites, blogs etc and and digital marketing campaigns can be now made to perform harder for the marketing dollar spend, and go beyond the just feel good awareness.

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Friday, May 25, 2012

Digital Influencers of Brand Selection.

Here is yet another research that supports the need of multi channel marketing initiatives – especially from a digital perspective in the CPG / FMCG space. The fact that consumers have adopted the digital media in their daily life is not lost on anybody; however, it is important to understand that they use it in different ways and with different intentions.

The key for brands, marketers and manufacturers looking to capitalize on digital in the CPG environment, is to identify how each consumer group embraces digital media.


Clearly the 18 - 34 year old consumers are comfortable with digital technology and their use of digital resources has an impact on purchase. What is even more dramatic is the extent to which this group is influenced by product and brand recommendations from bloggers and social networking platforms. In-store digital touch screens and phone applications are also seen to address this group effectively and present immediate, high-impact brand marketing opportunities.

Another plus for marketers is that these digital-savvy consumers are often trendsetters and influencers in their own circles. Word-of-mouth and informal, viral marketing can make a huge impact on those that are fully engaged in digital media.

Tuesday, April 3, 2012

Where tomorrow‘s customers will place their trust.

One thing is clear: mass marketing has had its day. For decades people have consumed what they learned about through the constant barrage of advertising – and what was available in the shops. Retailers stripped their shelves of everything that only sold occasionally, in order to free up valuable shelf space for the real top sellers.

That is all in the past. In the new online economy of the “long tail”, providers increasingly earn their money with niche products. Thanks to limited costs for storage and for the “showroom”, it is well worth their while to offer the unusual and the quirky as well.

Consumers like niches. They no longer want to be one of the masses; they want to own things that are rare and unusual. Small groups of aficionados grow up – “social networks”, which replace the mainstream as a peer group.

These networks take over the job of communication. Information about “cool” new offers travels round in no time. Providers who want to be noticed in increasingly fragmented markets must therefore make themselves visible in these circles.

The explosion of choice makes heavy demands on consumers. To reduce the flood of information, they go along with a calculated risk: they trust the recommendations and tips of others. They increasingly take decisions for emotional rather than objective, factual reasons.

Sunday, January 29, 2012

70% impulse purchase - no more.

70% of the brand decisions are made in the last mile - we have been following this "theory" for years and I have written plenty about it on this blog. Retailers and brands have taken it for granted that attractive presentation and packaging profoundly influence most shoppers’ purchasing decisions. 

While Paco Underhill in his bestseller Why We Buy: The Science of Shopping, described supermarkets “as places of high impulse buying…. 60% to 70% of purchases there were unplanned, grocery industry studies have shown us.” These prompted retailers to devote ever growing resources to in-store promotion.

However, new(er) research by Wharton marketing professor David R. Bell differs with Underhill, describing the idea that most supermarket purchases are unplanned as something of an urban legend. In a new research paper, “Unplanned Category Purchase Incidence: Who Does It, How Often and Why,” Bell argues that the amount of unplanned buying is closer to 20%.

The above research is extremely significant and while I still believe that the "last mile is the new prime time" (when compared to the traditional TV prime time), there are a number of reasons for Prof. Bell's findings to be relevant today. One of the primary reasons is the emergence of the internet as the Zero Moment of Truth for brands and its impact on the First Moment of Truth in the store.

The shopper today walks into a store with far more per-purchase knowledge, recommendations & peer suggestions than was possible in the times when "Why we buy" was penned about 12 years ago. It is time to dump the 70% theory and focus on multichannel strategies and web-influenced retail sales.

Saturday, December 24, 2011

A Framework for Keeping CPG's Relevant Online

Came across this comprehensive and insightful essay by Jordan Julien. He has arrived at the insights based on examining internal documentation, and conducting ethnographic studies, from four different global CPG's and finding correlations. 
 
The synthesis of this work has culminated into "The Ecosystem of Understanding", a framework for keeping CPG's (and everyone else) relevant online.
Jordan been able to extract 5 insights common (as under) to every CPG he has worked with; even the most innovative.
  1. We don't know who we're talking to, but we like to pretend like we do.
  2. We don't know why we're talking to them, but we know we should be.
  3. We suffer from Shiny Object Syndrome.
  4. We're inconsistent, but we're learning.
  5. We're old, scared, and angry; but its only a matter of time before we're phased out.
Read more here

Tuesday, October 23, 2007

Consumer & the Brand : The break up

I thought this was a classic interpretation of the relationship (or lack of it) between the consumer and the brand. While I think it is entirely applicable to any one sided brand communication, it is also applicable to the patchy and ill-conceived 1-on-1 marketing campaigns.

Interesting that it had to come to us from Microsoft!!

Watch the video here.