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Loyalty in The New Age of the Shopper
Richard NicollMD MENA Saatchi & Saatchi X
Shopper marketing fundamentals
CONSUMER MODE
Future-Focused
Reflective
SHOPPER MODE
In the Moment
On-Task
Source: Booz & Company Fall 2009 Survey of Consumer Spending and Shopping Behavior. Sample size n = 2,010
Shopper2.016%
Loyalists16%
Dealhunters21%
Laggards17%
• Greatest tendency to buy online across categories
• Price sensitive, with little brand or format loyalty
• High coupon usage
• Lowest average age
• Least likely to change brands or retail format
• Conducts both online research and purchase
• Highly skewed to men
• Highly price sensitive and heavy coupon users
• Low brand or format loyalty
• Lowest income
Channelsurfers20%
• Hunt for brands they love
• Likely to switch retailer to find brands at best prices
• Highest household income and education
• Low online engagement
• Lowest coupon usage
• Low brands or format switching
• Skewed female
• Oldest average age
Onlinewindowshoppers11%
• High research, but less likely to purchase online
• Modest price sensitivity and brand switching
• Highest proportion of home owners
Consumer Segment Profiles
57% of shoppers will switch channel or retailer if they find
better value
43% of shoppers are retailer loyal
Shoppers have become less loyal to retailers and channel
Now it’s a bigger and more complexconversation
1997 2005 20152010 2011
SocialCommerce
Online
In-store
Mobile
In-store In-store In-store In-store
Online Online
Mobile
SocialCommerce
Online
Mobile
We’ve been classically trained,but now we’re in a jazz ageRishad Tobaccowala, Chief Innovation Officer, Publicis
In the New age of the Shopper
Less loyalty than beforeMore choice than ever
Saatchi & Saatchi X
Shoppers can search out the best deals anywhere, even in front of shelf
In the New age of the Shopper
The power is shifting, from retailers and brands to Shoppers
BRANDS ARE OVER
A Lovemark isa product, service or entity
that inspiresloyalty beyond reason
3 Principles to win in the New Age of the Shopper
1 MAKE IT PERSONAL,MAKE IT RELEVANT
Make it about
In the New age of the Shopper
Don’t Start with technologyStart with the Shopper
In the New age of the Shopper
Shoppers are moving seamlessly between technologies, environments and communities to achieve their tasks
Saatchi & Saatchi X
Best Buy
In the New age of the Shopper
Brands that win loyalty, will be those who are truly loved for improving their customers lives
2 PROVOKE, DISRUPT, GET EMOTIONAL
In the New age of the Shopper
Reason leads to conclusionEmotion leads to action
27
“I've learned that people will forget what you said,people will forgetwhat you did,but people will never forget how you made them feel.”
Maya Angelou
In the New age of the Shopper
Brands that win loyalty, will be those who use emotion to overcome purchase barriers
3 BELIEVE IN THE TRUTH
In the New age of the Shopper
Things have changedThings have stayed the same
The mass market model we know is broken
McKinsey’s see a future where TV advertising in 2011 will be one-third as effective as it was in 1990
TV is forecast to be only 74% of US ad spend in 2011, from 90% in 1990
The digital revolution is transformingmarketing, entertainment and technology everywhere
CHANGE
In the New age of the Shopper
BUT…we should remember that people have been going shopping for thousands of years, not just to fulfill basic needs, but to participate in a shared experience with fellow human beings
In the New age of the Shopper
Brands that win loyalty, will be those who understand and harness the real power of human nature
In the New age of the Shopper
1. Make it personal. Start with the Shopper, they have the Power
2. Provoke Emotion, it will lead to action… and Sales
3. Harness the power of human nature. It remains constant in a changing world
Saatchi & Saatchi XAt the Heart of Shopping since 1997
