What does it take to make them buy? Lessons on building retail sales from each generation of customers

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September 17, 2013

What Does It Take To Make Them Buy?Key Lessons on Generating Business by

Generation

Creative Business Consulting Group www.cbc-group.net

The Old Consumer Purchase Funnel Has Become Outdated


• Learn How Today’s Consumers Shop

• What Motivates Each Generation Of Consumers To Spend Money Today

• Learn What Your Brand Can Do To Engage These New Consumers More Effectively

Seminar Objectives

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Consumers Want To Be Served • Almost 95% of Consumers Do Research Before

Shopping; In-Store Experience Validates Research • This Means Consumers Know Which Products And

Brands They Need Before They Enter The Store• Associates Must Now Focus on Interactions With

Educated Consumers

Convenience Creates Shopper Loyalty• Consumers Want A 24/7 Personalized Shopping

Experience Tailored To Meet Their Needs And Preferences.

Social Media Influences Purchases And

Engages Shoppers With Brands • 50% Of Consumers Submit Their Own Comments on

Brand SM pages• Consumers Are More Loyal To Brands They Have

Engaged With Online (40%)

How Does Today’s Consumer Shop?


How Does Today’s Consumer Shop?

Consumers Listen To Their Families

And Friends First

• Consumers Talk To Relatives And Friends About All Types Of Purchases

• They Read Independent Reviews When They Want To Know More About A Product

• Only 18% Of Consumers Rely On Retailers And Manufacturers Information To Make Purchase Decisions

How Does Your Brand Meet Todays’ Consumers Needs?


Shopper Motivation Has Changed; Today, It Is Not Always A Social Pursuit

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Purchase Decision Influences Are Different Between Generations


Purchase Decision Influences Are Different Between Gender


Shopping Patterns Are Different By Generation – Baby Boomers • Spend Extra Income On Products That

Make Them Feel Or Look Younger• More Educated/Informed Shopper • Have Discriminating Tastes --Discern

Products/Services Of Higher Quality

• Can Be Easily Distracted With Advertising

• 80% Are Online • 2/3 Use The Internet For Shopping• 90% Research Products And

Services

• 13% Of Them Buy Online Only Because They Don’t Like The Service They Receive In Retail Outlets.

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Shopping Patterns Are Different By Generation – Gen X

• Independently Minded When Making Purchase Decisions

• Conservative, Informed Shoppers; Focused On Price And Quality

• Motivated To Search For Purchase-related Information

• 37% Buy Brands On Sale (Vs. What They Really Want)

• Are Well Prepared For Their Shopping Trips. 69% Make Shopping Lists

• Opt For Products That Are Not Only Useful, But Also Functional


Shopping Patterns Are Different By Generation – Gen Y/Millennial

• Skilled At Using Internet tools and Apps To Find The Items They Want To Purchase

• Easily Locate The Best Deals Without Sacrificing Quality Or Convenience

• Likely To Turn To Their Friends And Family For Opinions

• Selects And Consumes Products That Help Them Blending In With The Crowd Or A Certain Group


Consumers Will “Listen” To Messages About Brands Via Facebook A Majority Of The Time

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Connecting On Consumer Terms Is The Key To Your Marketing Success

Customers Want To Stay Updated And Connected With Your Brand On Their Terms And On Sites They Use Daily


Consumers Listen To Family And Friends For Information About Brands – Just Because


Consumers Shop At THEIR Most Convenient Channel For Each Purchase Occasion

More Than Half Of The Sales From Walmart.com* Are

Picked Up At A Walmart Store.

*US Only

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Consumers Are Using Mobile Tools For Research And To Make Purchases

Source: Comscore, 2012

• 40% Of Smartphone Owners Use Their Phones For In-store Price Comparisons

• 4 Out Of 5 Consumers Use Smartphones To Shop

• 64% Of Smartphone Owners Are Now Using Their Mobile Devices To Shop Online

• Smartphones Will Influence 19 Percent ($689 Billion) Of U.S. Retail Store Sales By 2016*

• By 2014, Mobile Internet Is Predicted To Take Over Desktop Internet Usage

• Mobile Usage Accounts For 12% Of All Internet Usage Time


Consumers Have Changed How They Research Products• 93% Of Consumers Are Now

Researching Products And Future Purchases Online*

• 90% Of Consumers Are Utilizing Search Engines

• Half (45.9%) of US online shoppers researched products in-store, only to ultimately buy online*

• Consumers Look At 7.9 Different

Sources For Product Information

BEFORE Making Purchase

February 2012 ClickIQ

Nearly 50% Of Shoppers Believe They Are Better Informed Than

Store Associates. (Source: Motorola, 2013)


Consumers Have Changed How They Research Products• 93% Of Consumers Are Now

Researching Products And Future Purchases Online*

• 90% Of Consumers Are Utilizing Search Engines

• Half (45.9%) Of US Online Shoppers Researched Products In-store, Only To Ultimately Buy Online*

• Nearly 50% Of Shoppers Believe They Are Better Informed Than Store Associates. (Source: Motorola, 2013)

February 2012 ClickIQ

*Consumers Look At an Average of 7.9 Different Sources

For Product Information BEFORE Making Purchase

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What Tools Are Consumers Using For In-Store Research? Google Shopper

*BIA/Kelsey Group 2012

• Google Shopper App Is Available For The IPhone And Android Phones

• Lets Users Scan Product Barcodes And Compares The Price With Other Listings In Google’s Database

• Since This Is A Google Product, Each Listing Features Detailed Descriptions And Reviews, And It Has Directions And Contact Information For Nearby Stores Built Into It

• Google Offers Available On the App-People In Select Cities Can Find Promotions Going On Near Them.

Creative Business Consulting Group www.cbc-group.net*BIA/Kelsey Group 2012

• Free Price-check App That Lets Users Search By Scanning A Barcode, Snapping A Picture Or Saying Or Typing In The Product Name

• Available For IPhone And Android Users On Other Platforms, Including Blackberry And Windows, Can Use The Amazon Mobile App, Which Offers The Same Price-checking Capabilities, But Requires An Extra Click Or Two To Access Them Among Other Features In The App.)

• The Catch With Both Amazon Apps, Of Course, Is That They Only Check Prices On Amazon.

What Tools Are Consumers Using For In-Store Research? Price Check By Amazon

Creative Business Consulting Group www.cbc-group.net2012 Deloitte Retail & Consumer Spending Survey

• Shoppers Are Still Seeking Satisfying In- Store Experiences—it’s Just How And When They Decide To Open Their Wallets That Has Changed

• 61% Of Smartphone Owners Who Use Devices For Comparison Purposes Have Bought Goods In A Store

• Consumer In-store Mobile Activities Add To Rather Than Take Away From, In-store Sales

• Smartphone Users Are 14% More Likely To Convert In A Store Than Non-smartphone Users

The News Is Not All Bad - Consumers Are Still Looking For Personal Interactions

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How To Turn A Browser Into a Buyer? Merchandising• Creative/Interactive Displays Are Key

Advantage To In-store Experience• Optimally Display Products To Enhance

Shopping Experience

Marketing Programs • Encourage/Incent Shoppers To Buy

Immediately • Downloadable QR Codes• Google Shopping Paid Ads • Retailmenot (IPhone App) Offering Coupons• Facebook Offers

Location Based Marketing Programs • Offer Programs/Deals That Incent Customers

To Make In-store Purchase• Train Your Staff On How To Find These

Applications While They Are Working With The Customers To Insure Purchase Conversion


What Can Your Store Do To Meet Consumer Needs In 2013?Create Brand AdvocatesLet (Incent) Your Best Customers Spread The Word Via Social MediaUse Them As Educated Sales Associates To Create A Referral Network

How Do You Ensure They Add Value To

Your Brand?

• Make Sure They Have The Right Information. Leverage Their Social Shopping Power.

• Speak The Same Language (E.G., Are They Talking About You On Twitter? Tweet Back).

• Retraining Your Sales Staff To Find These Shoppers And Convert Them


What Can Your Store Do To Meet Consumer Needs In 2013?Create A Value Based Retail Culture In Your Store

• The Store’s Four Walls Have Dissolved. “Showrooming” Is Here To Stay. Pay Anyway You Want Pick Up In-store/Delivery Have Arrived

• Determine And Create Programs That Will Add Value For Your Customers

• Embracing The Newest Technologies

• Enable Wi-fi And Giving Sales Associates Tools That Mimic What Shoppers Use Every Day (Tablets)

• Create An Experience That Can’t Be Replicated Online

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It’s Not About What You Do, It’s About What You Offer

What Do Brands Need To Do To Stay

Emotionally Relevant?

• Create/Include Added-value Perks Beyond The Product You Sell

• Look For Ways To Be Truly Integrated Into Consumers’ Daily Lives

• Showcase How You Can Help Redefine/Refine Who They Are Or How People See Them

• Open Up New Opportunities That They Can’t Find On Their Own

What Can Your Store Do To Meet Consumer Needs In 2013?Evolve Your Brand To Meet Consumer Needs


Lynn Switanowski-Barrett is the Founder and President of Creative Business Consulting Group, (CBCG) a Boston based Retail Consulting firm.

CBCG Helps Retailers Understand:

•Business Opportunities Created By Using Social Media•How to Create Marketing Programs That Engage Customers•The Cost Saving Benefits Of Using Social Media•How to Create A Social Media Strategy for Your Business

Call Us Today And Learn How Your

Business Can Benefit By Using Social

Media

617 – 437- 9191

CBCG Is Here To Help If You Need It
