SHOP FLOOR; THE NEW PRIME TIME. Trend No 6

6. BRAND DECISION ARE MADE IN THE LAST MILE;

As many as 70% of brand decisions are made in the “last mile”. 70% and growing.

This research finding was 1st published by POPAI, and has been substantiated over years by a number of other studies including our own research using some of our last mile tools into various product categories. What is interesting is that in a lot of cases the percentage is higher.

What this indicates however is alarming. This percentage effectively indicates spillage (even gross wastage) of media buying costs which are not being successful or effective in generating real sales.

I am sure we have all experienced the magic of the last mile, whenever we have stepped out to pick up something like a washing machine, or a TV or a refrigerator – we leave our homes with a fair understanding of the product category, the top five brands in the category and our intended brand purchase, however, magically most of us come back with a different product – 70% of us do it time and time again.

Reasons why shoppers switch brands are multiple however almost all of them are centered on effective usage of last-mile consumer touch-points by some brand when compared to others.

Last-mile touch points are multiple & diverse ranging from product pricing, POSM quality, share of display, quality of experience, quality of salesmanship to basic issues like brand presence. All these combined create a last-mile experience which ensures brand switches.

On a number of brands our studies show us a significant “intent of purchase” of the brand amongst consumers when they walk in to the store – thereby indicating obvious good work done on the awareness & interest creation front by the advertising, however, significant negative shift in the actual purchase.

The fact that an in-effective last mile can be a bleed on the success is well understood, however, not all brand managers seem to understand how to address the issue in effective and measureable ways.

SHOP FLOOR; THE NEW PRIME TIME. Trend No. 5

5. “ROBO” IS FOR REAL;

It is well understood that the consumer is spending a lot of time online, in a lot of cases much more time than what he spends in front of the TV set or reading print. And this share of time is increasing at a feverish pace.

When online the consumer does his research on the brand, this research can be a combination of self driven or could be triggered by peers on his social networks.

The more expensive the purchase, the more involved and extensive the research.

This is far more relevant because this is where the consumer spends time engaged in the category, seeking and deciding what alternatives he has options of. This is when is willing to form opinions and is willing to read and listen to referrals.

Most importantly, this is one dialogue process where the consumer is completely in control – he not only chooses the time and level of dialogue, if he does not like what he sees he can merely click it away and move else where.

The consumer is not closed to any brand in this stage – he is in fact in a “SELL TO ME” mindset, which has been well captured by Yahoo and exploited to the fullest by Google by their huge success of Adwords platform. This process is radically different from the one way communication which he gets subjected to in a TVC, print ad or a hoarding.

Putting up the brands’ TVC on Youtube.com is not the answer, ensuring that the brand participates in the “search” journey – by providing access to relevant data & information on brand comparison of features, USPs, costs, etc, and enabling communication with the user community and engaging with the user community - is the answer.

While brand owners have started spending an increased percentage of their budgets online (and is growing) – for a number of brands that spend still is backed by the “awareness creation” thought process, rather than focusing on the consumers search for information journey.

This integration of shopping with technology is real. 87% of US consumers research products online before buying them in person or in a store.

However across categories…the major buying still happens off line.

ROBO = Research Online Buy Offline.

This is not limited to B2B products or big ticket purchases like computers, phones or cars, but extends across all categories.

The consumer spends his research time comparing features, absorbing user experience reviews, understanding costs.

All this before he heads out in the last mile, to check out the physical experience and then buy.

To get into the consumers mindset, presence in the last mile needs to be preceded with relevant presence in the online search process.