Tag Archives: retail

How Millennials Are Changing Their Relationship to Retail

This post was originally
published on Kelton
Global’s blog
.

Consumers of Generation X age and older grew up as
relatively passive shoppers, able to do little more than recommend a product to
a handful of friends, vent to a salesperson or write a letter to corporate
headquarters. But Millennials have a very different relationship with brands
and companies.

As mass-consumption natives, they see themselves as collaborators
and co-marketers instead of ‘the audience’ or ‘the target.’ They’re ready to
champion their favorite brands online ‘ and equally willing to criticize those
with subpar products or ethics. Digitally savvy and highly entrepreneurial, the
Millennial generation departs from the larger consumer base in a few key ways:
They want you to reflect their values.
According to a recent Pew Research study, fifty-five percent of
Millennials’ believe churches and other religious organizations have a positive
impact in the U.S. (Seventy-three percent thought so in 2010). Indeed, more
than one third of Millennials are
not affiliated with any faith
. So they look to brands instead to represent
their values, with around 81 percent of them expecting brands to be
responsible global citizens.  A 2016 Deloitte Millennial Survey revealed that 87
percent of this demographic don’t consider a company successful on financial
merit alone, but want evidence of corporate social responsibility as well.
Millennials are loyal
supporters 
of companies with strong reputations for CSR. Toms, which
sells shoes, sunglasses and apparel, has been a hit because of its
wide-reaching commitment to charitable causes via the One to One CampaignCuyana, which sells
high quality women’s basics and promotes a simpler lifestyle, is also popular
with Millennials. Through its ‘Lean Closet’ initiative, Cuyana offers consumers
the chance to donate clothes to women in need. Customers are offered a $10
credit towards their next purchase for every donation they make.
They crave simplicity.
According to Accenture, spending by Millennials will grow to $1.4
trillion annually by 2020. But their spending mentality is selective; they have
access to a vast range of goods but are highly conscious of the impact of their
consumption. The mindset has shifted from ‘one of everything’ to ‘only the
essentials’ ‘ and they want to know where those essentials were made, by whom
and with what materials.
They have higher expectations for customized, seamless
service.
Just as there has been a shift from material to experiential spending across
generations, the experiential part of the shopping experience has become
increasingly important for Millennials. Mens clothing retailer Bonobos, which
offers a personalized shopping experience in a showroom setting, has struck a
chord with a younger crowd turned off by the generic, impersonal process of
shopping at traditional brick and mortar retailers like the Gap.
They expect you to listen. And activate, quickly.
Millennials love to challenge brands’ and they know how to
do it well. They’ll keep up the pressure on a company until it amends a problem
in a tangible and authentic way. And if they’re frustrated by the slow pace of
change, they won’t hesitate to disrupt the status quo and start their own
company. Having grown up in the era of Shark Tank & Facebook millionaires,
they are natural entrepreneurs with the information, tools and confidence to do
so.
The attitude of the hip new health insurance company Oscar,
which aims to be transparent and unbureaucratic, sums up Millennial attitudes
perfectly. Its website states: ‘We wanted a better healthcare company. So we
built one.’
Brands take note: Millennials don’t want a story dictated to
them ‘ they want to be part of an evolving, authentic narrative that goes
beyond simple marketing and branding.

7 Ways Technology is Changing the Way Consumers Behave In-Store

By: Phillip Adcock
The retail landscape is constantly changing and the only way that
stores can keep up is by constantly evolving. But how?
Modern day consumers use technology in a way that is
completely different to consumers earlier in the decade. These changes have
altered the way shoppers navigate stores and shop. So how should shops be
following these changes ‘ or even anticipating them?
 1) Shoppers Are Using
Their Phones to Research and Buy Products In-Store
You might think that a customer browsing in your store is
giving your products their full attention ‘ 
but you may be wrong. Many shoppers are combining trips to the store with trips online,
comparing and contrasting price and quality. While you can’t always compete
with online stores, it’s worth seeing which products are competing with yours.
2) Amazon Dash Has
Given Consumers the Ability to Buy with the Push of a Button. How Are You
Competing?
Amazon is trying to corner the market in next-day
consumables with its new Dash button. A Dash button
automatically orders a set product for next-day delivery when pressed, with
products ranging from toilet paper to lemonade.
Amazon knows that one of the key things retailers need to do
to compete in the current market is to make shopping as quick and easy as
possible ‘ and make the process so simple, a child could do it (which is
potentially why one of the Dash buttons available orders a round of Play-Doh).
3) Overseas Importers
Offer Prices That Are Nearly Impossible to Beat. So What Other Advantages Can
You Offer?
One of the main types of retailers you’ll find online in
stores such as eBay and Amazon are importers. Importing products from China
allows them to source vast quantities of a product extremely cheaply, allowing
them to sell at a very low price, with many items at 99p. How can you be
expected to compete with those prices?
Answer: you can’t. Rather than cutting your profit margins
to try and match importers, make sure your business outshines theirs in ways
they can’t hope to compete. Instead, provide services that they cannot, such as
fast delivery and great customer service.
4) Modern Shoppers
Want to Speak Directly to You as a Company. Are You Easy to Reach?
One of the ways you can offer the level of customer service
that modern customers expect is to communicate with them directly on the
platforms they use. Consumers now expect to be able to do everything online, so
to provide strong customer service, you need to make yourself available to
them. Facebook and Twitter make it easy to interact with your customers, but
beware: companies can easily fall into traps on social media.
5) Every Store Needs
to Have a Mobile and App Equivalent. How Functional Is Yours?
As customers have evolved to be fully phone-reliant, the
market for mobile apps and mobile sites has increased. These days, having a
website without a mobile equivalent is a foolish move and may lose you sales. A
mobile site should be as functional as your regular site and an app should
function on a similar level.
6) Virtual Reality Is
Growing in Popularity. Are You Ready to Make It Work for You?
IKEA recently launched a new Virtual
Reality feature
, allowing users of the HTC Vive to explore a kitchen
(and throw meatballs into open spaces). Although this particular application is
fairly low-function, virtual reality has revived and is well on its way to
being the big sales tool of 2017 and beyond. Do you have the ability to allow
your customers to use VR to interact with your store in a meaningful way?
Whether it’s navigating a virtual store or trying out new furniture in an
existing space, virtual reality is set to become a staple.
7) Free Delivery: A
New Standard
One thing that stores forget is that yesterday’s exception
becomes today’s norm and tomorrow’s rule. As consumers become more and more
used to convenience, what would have seemed exceptional when online shopping
began ‘ for example, free next-day shipping ‘ becomes expected. Shoppers will
now potentially abandon a sale because of a lack of next-day shipping and will
frequently choose a deal containing free shipping, even if it works out to be
more expensive.
It’s worth remembering that consumers love the word ‘free’.
Whether it’s ‘free shipping’ or ‘buy one get one free’, shoppers will always
gravitate towards those deals.
It’s hard sometimes to keep up with new retail developments.
If you’re concerned about being left behind, remember: what consumers want, and
have always wanted, are high-quality products for prices that are good value.
Although it is beneficial to follow the latest technological trends, providing
value for money is, and always will be, the best way to appeal to your
customers.
About the Author: Phillip
Adcock is the founder and Managing Director of the shopper research agency
Shopping Behaviour Xplained Ltd ‘ an organisation using consumer insight to
explain and predict
retail shopper
behaviour
. SBXL operates
in seventeen countries for hundreds of clients including Mars, Tesco and
B&Q.

Key Insights from Omnishopper International 2016

By: Derya
Lawrence, Senior Analyst ‘ Services and Payments at Euromonitor International

Omnishopper
International took place in London in late November 2016, and addressed the
issues impacting the rapidly evolving retailing landscape from the perspectives
of consumers, manufacturers and retailers. This three day event brought
together some of the largest manufacturers in packaged food, electronics and
personal care, alongside grocery and non-grocery retailers and market research
providers, discussing primarily the ways in which commerce is evolving, and
providing practical examples of new methods of information collection that is
made possible through technological developments required to stay ahead of the curve.
Here are four key insights from Omnishopper
International 2016:

Strategising
for the omnishoppers
Commerce is no longer restricted to a
physical outlet. There are now a plethora of commerce facilitators, from
computers to smartphones to consumer appliances to connected cars, all enabling
new ways of shopping and paying. It is important to continuously track and
monitor shopping patterns across the online/offline split to understand how,
holistically, both channels are two sides of the same coin: Shoppers routinely
search online and buy in-store. If they see a better offer at a competitor, or
find a unique proposition at a different banner, they will take their money
there. Because of this dynamic interaction, one of the largest problems for
retailers today is the increase in consumers’ switching between channels and
banners. Thus, in order to acquire new clients, the omnichannel strategy has to
be built around fostering loyalty, through providing a new and better shopping
experience both in store and online.
Embracing
technology
In this mobile-first world, the
possibilities in terms of connecting with the consumer before, during and after
a purchase are endless, though few retailers and manufacturers do it in a
seamless manner. Merchants of all types express a desire to better connect
those dots in order to further other initiatives, such as providing more
meaningful consumer engagement. One highlight in this respect is the arrival of
Virtual Reality technology. VR can not only drive marketing strategies, but can
be used as a tool for consumer engagement for market research purposes.
Traditional research techniques, such as
consumer panels and surveys, have allowed for the collection of strong insight
on the impact of advertising or strategy on growth in specific product groups. Yet,
knowledge on where the market will be growing – and therefore where the
manufacturer should invest its time and money – can be better understood
through embracing new digital means and putting the consumers themselves in the
driving seat. On this note, one of the leading global chocolate manufacturers
shared their insights on how Online Surveys and Communities are helping them
enhance outcomes of marketing campaigns and impulse purchases by allowing
consumers to inform the manufacturers on what products work for them, when they
are more likely to consume certain goods or how likely they are to make a
purchase based on where the product is exhibited on the shelves.
Understanding
consumer behaviour
New digital
technologies allow for the advent of an increasing number of ways to create
more convenient shopping experiences for consumers. Connected appliances,
proliferation of mobile payment methods and a rapid move towards the internet of
things are all altering consumer’s in-store experiences and expectations. Omnishopper
International posed questions and answers on how this evolution impacts
shopping behaviour. If shoppers’ desire for the most time efficient and
convenient experience takes them both to online and offline channels for
different reasons, it is vital to track this behavioural rationale and gather
data for both online and offline to meet changing client expectations.
Once we have an
understanding of the purchasing habits of consumers between online and offline,
an important question is how retailers can intervene in consumer decision making
in order to align consumer behaviour with retailing strategies. For this step,
we are told that the field of Behavioural Economics – led by the likes of
Daniel Kahnemann ‘ that looks at non-rational forces and implicit biases that
condition human choices, is starting to make inroads on marketing and consumer
research. Through this key insight on how and why shoppers interact in the way
they do in a multi-channel environment, understanding the hidden drivers of
purchasing behaviours, retailers can locate the Pivotal Moments where they can make a significant and meaningful
impact on consumers’ purchasing choices.
Future of retail
Due to the
impact of technology, 21st century consumers are increasingly knowledgeable
about what they want and what is on offer. The blurring of sales channels has
contributed greatly to this as shoppers are able to navigate across the
online/offline divide to find the best product for them along the price/quality
spectrum. Now more than ever, from quality of products to pricing, smart
shoppers are more aware and are therefore increasingly purchasing with higher
expectations from retailers and manufacturers. With the availability of more information,
consumers are also increasingly less loyal. In this context, the saying, ‘the
successful retailer is the one that understands what the client wants next’ is
truer than ever.

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Although Black Friday and Cyber Monday are over, Cyber Week
continues with $100 off our 2017 insights events and 40% off TMRE Digital.
For a limited time only, the Knect365 Cyber Week Specials
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April 3 – 5 2017
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We hope to see you at our 2017 insights events!
Cheers,

The Knect365 Team

Tech-Fueled Retail: In-Store and Online

Over the
past few weeks, the Stylus Life team has been tracking the latest
innovations in retail tech ‘ the online tools making shopping seamless, and the
in-store tech that will encourage customers to head back to the high street.
Retailers
are always seeking new ways to entice customers and encourage loyalty, particularly
looking to create convenient purchase journeys that fit around shopping habits.
This strategy is seen through Mr Porter’s recent partnership with Apple TV. A first for luxury content-commerce
mergers, the collaboration sees the e-tailer monetise its editorial video
content, letting shoppers buy directly through their TV.
Similarly, Instagram recently announced it would soon start
testing retail tools that enable users to buy items found in their image feed ‘
a move that will help both brands and tastemakers to drive revenue through the
platform. The new feature, kicking off in the US with twenty retailers, ties in
with recent stats showing that consumers increasingly shop via their mobile
devices.
The consumer
desire for convenience and curation is also highlighted in recent research that discovered 43% of US consumers are
likely to do their holiday shopping via online marketplaces such as eBay or
Amazon, compared to just 15% purchasing via an individual retailer’s website. This
dramatic difference is due to marketplaces’ ability to offer shoppers a simpler
experience, with a wider variety of products at the best prices ‘ all in one
place.
So if
shopping online is easier, what will send customers back to the store? Well, a recent survey has found that 63% of UK shoppers still
prefer the high street, but are more likely to be enticed by tech-fuelled
retail spaces. The convenience of contactless and mobile payments was described
by some as ‘life-changing’. Meanwhile, shoppers are more likely to visit stores
with technology such as virtual reality (57%) or smart fitting rooms (57%), which
provide experiences that can’t be replicated at home or online.
Tesco is
capitalising on this consumer desire for technology, trialling digital receipts that offer shoppers personalised offers,
while also taking another step towards paperless transactions. The trial,
running through November, aims to give customers more choice. Beauty brand Charlotte Tilbury has placed digital interaction at the centre
of its new store, using virtual mirrors to help shoppers select their perfect
look, and in-store screens to showcase social media inspiration.
Brought to you by Stylus Life, creativity and innovation news from around the web.

It Takes a Village to Help Brands Through their Omnichannel Journey

By: Owen
McCabe, Group Solutions Director, Kantar Retail
There’s a well-known African saying that it
takes a village to raise a child ‘ i.e., that a child has the best chance to
grow and become a healthy productive adult if the parents allow their extended
family, neighbours and broader community to contribute to its rearing. I always
liked this saying.  Growing up in small
town Ireland, with lots of relatives living nearby, and local sports clubs
playing such a big part in the community, it rang true to my own experience.
It’s also a saying that rings true when I
reflect on Kantar Retail’s experience over the past 4 years of helping brand
owners take the next step on their Omnichannel/ecommerce journey. Put simply,
the winners tend to be those who have understood that in order to grow and
integrate their infant ecommerce channels, they need to not only upgrade their
parenting skills but also actively allow others to help.  The corollary is also true, all too often, we
find the go-it-alone companies among the strung-out ‘parents’ at the back, overwhelmed
with responsibility for a whole new set of competencies that their companies do
not understand or appreciate (Digital Asset Management, On-Site Media, Search
Optimisation, etc).

In next week’s Omnishopper International
Conference, I will go into more detail on this as well as share some examples.
However, in the meantime here are some of our key observations.
Firstly, the brand owners who are doing the
best job of upgrading their in-house parenting skills are the companies that
aren’t afraid to totally reinvent their marketing and channel management models
to do a better job of engaging with the next generation of connected shoppers.  The common feature across these new models is
the centricity of their focus on the connected shopper journey.
Secondly, the brand owners who are making
the largest omnishopper impact are those who are purposefully forming their own
Virtual Village to raise their eCommerce Child. 
These companies are augmenting or replacing their singular
supplier-buyer relationships with cooperative ecosystems of specialist partners
to better influence conversion across the connected shopper journey.  These specialist partners include the
retailers’ own media groups but also include 3rd parties covering disciplines
such as Content Management and Distribution, Data Analytics, Search Marketing,
Programmatic Advertising, and Digital Shelf intelligence.  At the same time, we see that those who stick
with the status quo are starting to realise that the deck is stacked against
them ‘ that trade relationships without reciprocity are not really
relationships at all. 
In the future, it probably won’t take a
village to raise a child – either in society at large (we already see parents
using iPads as a surrogate babysitter) – or in Omnichannel terms.  We already see companies investing in becoming
more centred and self-sufficient in their focus on the connected shopper
journey.  However,  in
the short term, life on the Omnishopper savannah is a race for Brand Owners to
form their own purpose-built eVillage with the right partners to allow them
survive and thrive in the post-digital world without becoming someone else’s
meal.

See you next week!

Enter to Win 2 Free Passes OmniShopper International in London

Are you a retailer? Do you like free things? Well, submit
your information to win 2 passes to OmniShopper International taking place
15-17 November at the London Marriott West India Quay in London: http://bit.ly/2faOoLA

You will join a roster of leading retailers, FMCG manufacturers and industry
experts from all throughout the European market including:

‘ John Lewis
‘ Samsung
‘ LEGO
‘ Tesco
‘ Harrods
‘ Mothercare
‘ Dreams UK
‘ Shell Retail
‘ Coca Cola
‘ Kimberly-Clark
‘ Barilla France
‘ Beiersdorf
‘ Ferrero
‘ Fjordland
‘ Johnson & Johnson
‘ Mondelez
‘ Nestle
‘ Ontex
‘ PepsiCo
‘ Perfetti van Melle
‘ Strauss Group
‘ Swedish Match
‘ Unilever
‘ Heineken
‘ Philips
‘ And many more!

Visit the website for more information about the full program: http://bit.ly/2aWHmCx

Enter to win here: http://bit.ly/2faOoLA for a chance for you and a
colleague to join 250 like-minded retailers and FMCG manufacturers and
suppliers. Good luck!

We hope to see you in London!

Cheers,
The OmniShopper Team
@OmniShopper
#OmniShopperEvent
Themarketresearcheventblog.iirusa.com

Successful Retailers Drive Emotional Connections with Consumers

We recently sat down with Bridget Brennan, Author, Why She Buys and CEO, Female Factor. In
our conversation, she shed some light on how omnichannel is impacting retail,
how shoppers are shaping the future of retail, where retail is going in the
next five years, and more.
Here’s what Brennan had to say:
What can retailers do
better to embrace the omnichannel customer journey and experience?
Brennan: Staying
centered on the very human reasons of why people buy (and why they don’t) is
the best compass for anyone. No matter what channel or technology is being
used, retailers that drive an emotional connection with consumers do it through
elements like great service, inspiring experiences, excellent products, good
value and a brand that people want to be a part of. The opportunity is to
play to the strengths of each channel to deliver these elements. One of the
most effective ways to stay in tune with the modern consumer journey is to
conduct qualitative consumer research on a regular basis.
How are shoppers
shaping the future of retail?
Brennan: One of
the big shifts we see across age groups is the desire for services and
experiences. For brick-and-mortar locations, there is an enormous opportunity
to deliver the kind of experiences that people can’t get through a screen. My
local Nordstrom now has a beautiful bar on the second floor, right in the
middle of the men’s section. Every time I go, it’s full of people who are
clearly enjoying themselves. I predict we’re going to see more and more
retailers add both experiential elements and helpful services to their
brick-and-mortar locations.
How is digital
reinventing retail?
Brennan: In too
many ways to count.  Here’s just one: e-commerce has changed the very
definition of ease and convenience.  Which means it won’t be long before
brick-and-mortar retailers change the very definition of what it means to be a
store.
What are some key
points attendees can expect to take away from your session at the event?

Brennan: People
will walk away understanding the most important trends driving women consumers,
and how they can leverage these as a blueprint for meeting women’s wants and
needs.  Women drive 70-80% of consumer spending with their combined buying
power and influence. My goal is to provide actionable insights that help
retailers stay relevant with the world’s most powerful consumers in 2016 and
beyond.

Top 5 Reasons Why OmniShopper is Your Key to Retail Success

With the summer holidays now behind us, are you ready to
book your OmniShopper International ticket?
If you haven’t really thought about it yet, that’s ok.
There’s still time for you commit for 2016. In fact, we’ve come up with a short
list of why OmniShopper is YOUR can’t miss destination for retail success:
1.       Uncover
the Latest Shopper Research Methodologies

Emmanuel Malard, Consumer & Market Insight Manager, Samsung Electronics
details how Samsung validated the use of 360?? virtual reality immersion became
part of the research toolkit for their insights team, and what’s coming on the
horizon.
2.       Integrate
Omnichannel Retail Strategies to Connect

Kantar Retail’s Owen McCabe will provide you with an overview of the
omnichannel ecosystem, and how smart brand owners are effectively connecting
with their consumers by leveraging omnichannel for competitive advantage.
3.       Become
a Great Marketing Leader

With the guidance of Patrick Barwise, Emeritus Professor of Management &
Marketing, London Business School, you’ll learn how to maximize your business
impact and long-term career success by complementing your technical marketing
skills with a range of leadership skills. Plus, get an inside look at the soon
to be released book, The 12 Powers of a Marketing Leader.
4.       Prepare
Your Organization for the Next Data Revolution

Big Data will soon be a thing of the past, at least according to Martin
Lindstrom. What’s next, the seemingly insignificant consumer observations that
will completely transform the way businesses are built and run, soon to be
known as SMALL DATA.
5.       Embrace
Disruptive Trends & Innovations

Henry Mason will show you can get ahead of your customers’ rapidly accelerating
expectations by generating actionable foresight, and relying on the latest
trends and innovations across the retail and media landscapes.
Download the brochure for the full programme: http://bit.ly/2csCgQH
Book your ticket by
Friday, 23 of September and save ??200. Plus, Use code OMNIINTL16BL for ??100 off
the current rate ‘ Secure your spot today! Buy tickets:
http://bit.ly/2csCgQH
We hope to see you in London!

Cheers,
The OmniShopper Team

@OmniShopper

#OmniShopperEvent

Insights as a Vehicle for Influence: Embracing the Omnichannel Customer Journey

By: Amanda Ciccatelli,
Content Marketing & Social Media Strategist, Informa
Insights have become a vehicle for influencing marketing and
ultimately, the world. That’s why next in our Insights as a Vehicle for
Influence series, we sat down with Claire Quinn, principal at Capre Group to discuss
the ever-changing retail space and how to embrace the omnichannel customer
experience.
Here’s what Claire had to say:
How is digital
reinventing retail?
Quinn: For
Millennial ‘digital natives’ and those GenX and Boomers who are early adopters,
digital has reshaped the traditional ‘role sort’ of consumers and
shoppers. Instead, people are shifting between ‘consuming’ modes and
‘shopping’ modes seamlessly, regardless of their physical location. 
Imagine this scenario to demonstrate these shifting
modes:  a young woman views a TV ad showing how a new lipstick will last
all day (consuming mode)’she researches user reviews online with her phone (consuming
mode)’then uses her phone app to check whether her local drug store carries the
brand (shopping mode)’ultimately ordering it for pick-up at her neighborhood
store (shopping mode). She has moved along the full path to purchase -
shifting between consuming and shopping modes – all from the convenience of her
own living room. 
It will be critical to understand the different decisions
people are making at each point along this new path, as well as the right
marketing touchpoints and content to share to drive conversion and reinforce
each purchase decision. 
What can retailers do
better to embrace the omnichannel customer journey and experience?
Quinn: The new
omnichannel world presents a great opportunity for retailers to partner with
manufacturers to successfully meet and exceed consumer/shopper
expectations. Manufacturers are experts in their categories, and can
provide deeper category leadership insights and perspectives than most retailers
can create on their own. And retailers know their shoppers extremely well,
having built incredible capabilities to target and engage their shoppers.
Together, manufacturers and retailers are able to
collaborate in new ways, such as to engage shoppers pre-store, getting brands
on the list of relevant household segments or to reinvent the aisle or
check-out experience, to provide added value to shoppers while driving
incremental impulse purchases. Working together to exceed shopper expectations
provides a triple win for everyone ‘ shoppers, retailers and
manufacturers. 
What are some shopper
insights lifecycle best practices you can share?
Quinn: One of the
most important things insights professionals need to keep in mind when planning
research is to ‘begin with the end in mind.’ Specifically, what is the
business problem you are trying to solve and how will the insights drive action
once the results are in?  
At Capr?? Group, we work with clients to delve into root
cause analysis and create hypothesis-driven assertions to guide research design
as well as post-research analysis and application. This approach helps to
ensure one is thinking through the full insights lifecycle before the Knowledge
Brief is even drafted. 

Want more on this
topic? Attend OmniShopper International this November in London, England. Learn
more here: http://bit.ly/2aSfoLS