TNS Stop Interrupting Shoppers

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  • 8/10/2019 TNS Stop Interrupting Shoppers

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    Opinion Leader

    Stop interrupting shoppers

    Finding faster growth: new customers

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    To broaden product consideration and growsales, category managers and shopper marketersmust abandon disruption and focus on helping

    shoppers find what they are looking for.

    Stop interrupting shoppers

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    Retailers and manufacturers dont draw up planograms

    for fun. And at the risk of sounding cynical, they dont

    usually draw them up just to make shoppers lives

    easier. Their objective is, naturally enough, a more

    self-interested one: most planograms aim to influence

    shoppers decisions, affecting what they buy and

    increasing the amount that they spend. As such they

    embody an assumption: that shoppers are actually

    making decisions in-store, considering choices and

    weighing up options. The problem is that for most

    shoppers and most purchases, this assumption is very

    wide of the mark.

    Choosing or searching?

    TNS has spent more than 20 years observing shopper

    behaviour. And all of that observation points to one

    overriding conclusion: for the majority of shoppers, the

    purchase process has little to do with decision-making;

    it has everything to do with finding something that

    the shopper has already decided to buy. Purchasing

    data show that 69 percent of supermarket shoppersbuy the same brand as they did last time they

    purchased from a category and 45 percent buy

    exactly the same product. In case you think this

    only applies to pre-planned purchases, 66 percent

    of confectionery shoppers in supermarkets (about

    as impulsive as supermarket purchasing gets) have

    already decided on the brand they will buy when they

    enter the store.

    Shoppers spend the vast majority of their time at

    the shelf searching for the product they know they

    want and when they are busy searching for specific

    products they are not open to influence; in fact,

    they are effectively blind to anything not relevant

    to the task in hand. An experiment by Shopology

    proved just how difficult it is to distract shoppers

    when they are in search mode. Researchers placed a

    pack of beer in the middle of a cereal shelf and then

    videoed shoppers reactions to it. Youd think this was

    attention-grabbing and disruptive; in fact, hardly any

    shoppers even noticed the beer. The fact is that when

    shoppers are in search mode, they dont see whatthey are not looking for.

    The price of disruption

    The approach that most category managers and

    shopper marketers take to this challenge is to

    interrupt the search and attempt to jump-start

    a consideration process, inviting the shopper toconnect with the category. From a superficial look at

    Stop interrupting shoppers

    69%of supermarket shoppers buy the same

    brand as they did last time

    45%of supermarket shoppers buy exactlythe same product

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    Stop interrupting shoppers

    somewhat counter-productive: if shoppers find the

    item they were looking for quickly wont they just

    walk away from the category without considering

    anything else? In fact, TNSs research shows the

    opposite: shoppers that find their first item quickly

    are more likely to buy additional items from the same

    category. When a shopper finds their first item within

    10 seconds, the average number of items going into

    their basket jumps markedly.

    The fact is that within most categories, decidedshoppers have the potential to become open

    shoppers, but only once the initial search process

    has been completed quickly and without frustration.

    Lets take the example of a woman shopping for

    shampoo. Her everyday family shampoo is her priority

    and something she buys time and time again. Her

    choice has been decided long before she entered

    the store. The faster she can locate it, the more time

    she will spend considering the benefits of other

    shampoos in front of her; she may well end up tryinga new product or putting more than one option into

    When a shopper finds their first item within 10seconds, the average number of items going intotheir basket jumps markedly.

    0-10

    4.48

    2.78 2.91

    3.06

    2.572.29

    11-20

    Time taken to select first product (seconds)

    21-30 31-60 60-120 120+

    Numberof itemspurchased

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    Stop interrupting shoppers

    her basket. If, on the other hand, she spends over

    a minute looking for her family shampoo, then she

    will probably walk away as soon as she has it in her

    basket. And if the initial search takes too long, she

    might well walk away thinking they can all make do

    with body wash this week.

    When we know that most purchases are decided in

    advance, we have a clear goal for organising categories

    to increase sales. The simple fact is that merchandising

    has to cater to decided shoppers first and foremost.

    The science of de-selection

    When searching, the decided shopper interacts

    with the shelf at a category rather than a product

    level: they scan many products with very rapid eye

    movements looking for visual cues to help them

    makes sense of the shelf and narrow their search

    options. In order to do this efficiently, they need a

    clear structure where the shelf hierarchy is based

    on product features and reflects the order of the

    shoppers search. Research has a vital role to play in

    helping to identify the product features that decided

    shoppers prioritise in their search, so we can make

    them easier to find. By organising the core structure

    in this way, decided shoppers are able to rule out

    large numbers of products quickly and move rapidly

    from search to selection, increasing the likelihood of

    them considering alternative, or additional, purchases.

    When P&G took the bold step of re-organising the

    skincare category shelves to make them easier for

    shoppers, the impact on both behaviour and spend

    was dramatic. Over the next six months, shoppers

    spent noticeably less time standing in front of the

    shelf scanning products; instead they identified the

    products they were interested in from a distance and

    went straight to that point in the shelf. Significantly

    though, the amount of time they spent in the

    ??

    ?

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    category didnt reduce at all. Instead, the extra

    time saved in not searching for products was spent

    considering purchases and considering more of

    them than before. During the six month period,

    category sales increased by a staggering 31 percent.

    Catering to decided and open shoppers

    Of course, merchandising cannot afford to put barriers

    in front of shoppers who havent made a decision

    and this means that it needs to cater for open

    shoppers selection needs as well. On the face of itthis seems a dilemma, since weve already established

    that increasing sales depends on building the shelf

    hierarchy around decided shoppers. We only have

    one shelf to work with, so how can we cater for open

    shoppers at the same time?

    The open shoppers selection isnt completely open; it

    is based on selection needs that have been established

    at some point before entering the store. His or her

    selection process will come down to understandingdifferent product propositions for meeting these

    needs, comparing them and eventually choosing the

    one that balances their requirements most effectively.

    Grouping products that meet similar selection needs,

    and enabling shoppers to compare propositions easily,

    doesnt undermine a core shelf hierarchy built around

    product features; in fact, it supports and strengthens it.

    Lets take the example of a mother shopping for

    breakfast cereal. Her two school-age sons simply want

    cereal that tastes good. She wants something they will

    happily eat, but would ideally like a product that offerssome nutrition as well. She hasnt made her mind up

    about which childrens cereal she wants, but she has

    a good idea of the particular consumption needs she

    is looking to satisfy. If she is able to identify a group

    of nutritious kids cereals and start comparing flavours

    to find something that her sons may like, then she will

    be well on the way to making a decision efficiently.

    And provided the group of kids cereals fits within a

    clear shelf structure, this arrangement wont delay her

    finding her own favourite cereal that she buys everytime she visits.

    Stop interrupting shoppers

    ??

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    The role of packaging communication

    Similar principles and a similar hierarchy of priorities

    apply to manufacturers looking to increase share of

    spend within a category. Once again, it is essential

    to prioritise rapid visual communication with the

    vast majority of shoppers who are decided as to the

    product features they want and are engaged in

    rapid, sub-conscious searching. Key product features

    that are relevant to such a search must be prioritised in

    the package design and communicated where possible

    through colour and visual cues, since the productonly has a split second to establish its relevance. More

    specific product benefits that may persuade an open

    shopper to pick that product over another can be

    communicated through text, since they have a longer

    window of opportunity to engage with these shoppers

    during their consideration process. The pink colour of

    a packet of prawn cocktail flavoured crisps is a great

    example of the first form of communication; clear copy

    stressing reduced fat or increased flavour is a great

    example of the second.

    Principles for category planning

    Applying consistent principles based around actual

    shopper behaviour isnt the same as suggesting

    a one-size-fits-all solution for category planning.

    Merchandising will always remain a complex art, in

    which many different elements are brought together

    to meet a range of conscious and sub-conscious

    shopper needs. An understanding of the precise

    priorities of decided and open shoppers in each

    category is essential for planning shelf hierarchies and

    product groupings effectively. However, that planningprocess can be rendered far more effective at driving

    growth when it has a clear objective of its own and

    the evidence of actual shopper behaviour makes it

    clear what this objective should be. If manufacturers

    and retailers want to increase consideration and spend

    they must organise categories to reduce search time

    and ensure that decided shoppers find what they are

    looking for as quickly as possible. In doing so, they will

    be putting shoppers in control of the time they spend

    in store inviting them to spend less of that time

    searching and more of that time shopping. Its a leap

    of faith, but one that is long overdue.

    Stop interrupting shoppers

    Precise priorities of decided and open shoppersin each category is essential for planning shelfhierarchies and product groupings.

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    About the authorPat McCann is Global Director for TNS Retail &Shopper, responsible for developing best practiceshopper solutions and enhancing shopper insightdelivery.

    She started her career at Nielsen and then workedclientside at Avon and Allied Lyons before joiningTNS.

    With over 20 years experience as a buyer andsupplier of shopper and consumer research, Pat wasinstrumental in establishing this global practice areaand in acquiring shopper specialists, Sorensen and IDMagasin.

    About Opinion Leaders

    Opinion Leaders is part of a regular series of articles from TNS consultants, based on their expertise gathered

    through working on client assignments in over 80 markets globally, with additional insights gained through

    TNS proprietary studies such as Digital Life, Mobile Life and the Commitment Economy.

    About TNS

    TNS advises clients on specific growth strategies around new market entry, innovation, brand switching and

    stakeholder management, based on long-established expertise and market-leading solutions. With a presence

    in over 80 countries, TNS has more conversations with the worlds consumers than anyone else and understands

    individual human behaviours and attitudes across every cultural, economic and political region of the world.

    TNS is part of Kantar, one of the worlds largest insight, information and consultancy groups.

    Please visit www.tnsglobal.comfor more information.

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    [email protected] via Twitter @tns_global

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