Do you know why your consumers comes into
your store? You should ask yourself what
else can I sell them? However, if you
don’t know why they are there in the first place you won’t know what else you could
sell them according to Steven Johnson
Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.
How can you best discover what is a relevant
product to suggest or upsell along the appropriate parts of customers' in-store
journey is one way to generate incremental sales from shoppers on specific trip
missions. All in order to drive top-line sales and bottom-line profits.
So, in order to unlock impulse opportunities
requires an understanding of shoppers' behaviors on specific trip missions,
according to new case studies from VideoMining.
Let’s see what we can learn from VideoMining:
Rajeev Sharma, founder and CEO of
VideoMining, stated, "The mission-oriented shoppers are motivated to find
and grab the set of products that meet their specific trip mission. However,
they are also open to considering other products that they deem 'relevant,'
especially on quick trips which is becoming more prevalent in almost all retail
formats."
Here are a series of case study summaries,
VideoMining illustrates how
behavioral data helped developed targeted strategies for reaching shopping on
specific trip missions in three different retail channels, including
convenience stores, grocery stores and drug stores.
Convenience Stores — Beverage Trips
A consumer-packaged goods (CPG)
manufacturer sought to optimize a secondary display playbook for salty snacks
in the c-store channel. The goal was to develop a priority rank order of ideal
locations for displays with supporting fact-based insights to sell in the
display concepts to retailers.
VideoMining
conducted a Display Deep Dive to characterize the parameters that optimize the
performance of salty snacks displays, utilizing behavioral data from a sample
of more than 10,000 past displays from the firm's C-store Shopper Insights
Tracker program.
One specific goal of the study was to
analyze at the behavioral patterns of key c-store trip missions to fine-tune
the salty snacks display strategy. This included beverage or refreshment trips
because they are the leading trip drivers for the channel, comprising about 40
percent of all convenience trips.
VideoMining's behavior research found:
·
Shoppers "beeline" to the
beverage coolers to satisfy their primary trip mission. Any display on their
path to the cooler does not do well.
·
Once the shopper grabs the cold beverage,
turning away from the cooler, they are a lot more open to considering other
products.
·
With salty snacks having high affinity
with cold beverages, VideoMining identified the right locations on the
"return" path and quantified their value compared to all
secondary display locations around the store.
Grocery Stores — Grilling Trips
A CPG manufacturer aimed to increase the
share of canned beans bought in grocery stores for grilling occasions. Although
grilling trips make up only 2.4 percent of total grocery store trips, they
create a potentially attractive opportunity for expanding the usage of canned
beans through effective promotions, according to VideoMining.
The market research firm analyzed the
full-store paths of shoppers on grilling trips from a nationwide sample of 1.2
billion grocery store trips from its Grocery Shopper Insights Tracker
program. Grilling trips were identified as ones containing primary grilling
categories like hamburgers, hot dogs, buns, condiments or charcoal.
Utilizing sequence analysis of the subset
of shoppers who bought canned beans in their grilling trips along with in-store
patterns of all shoppers on grilling trips, VideoMining identified the best
locations for secondary displays, and evolving the right messaging to engage
shoppers on grilling trips. The overall impact was a successful promotional
campaign that increased the usage of canned beans for the grilling occasion.
Drug Stores — Pharmacy Trips
A large drug store chain wanted to
understand the behaviors of shoppers on pharmacy trips in comparison with
nonpharmacy trips to help develop merchandising strategies for maximizing
impulse purchases.
To meet the retailer's need, VideoMining
implemented its full-store behavior analytics platform in a selected set of
stores with representative store layouts. One of the key goals of the study was
to develop an understanding of the behaviors of pharmacy customers before and
after their pharmacy visit.
A key finding was that a majority of the
pharmacy customers shop other categories only after their pharmacy visit. This
was in line with other findings about behaviors of shoppers on specialized
trips. Ultimately, a detailed analysis of behaviors pharmacy customers helped
in evaluating their affinity to specific categories, interaction with secondary
displays and waiting patterns. Some of these foundational learnings were
incorporated in a new store design concept.
"Segmenting and targeting very
specialized trip missions can be a very effective strategy for a brand or
category. When combined into an ongoing practice by a retailer, it creates a
destination that caters to shopper needs and occasions, beyond the obvious
promotions that everyone does. It helps retailers differentiate their stores from
competitors, enhances the in-store experience and shopper
loyalty — something that is even more valuable than the incremental
sales," said Sharma.
"However, with shifting consumer
preferences and rapidly evolving store formats, it is more important than ever
to incorporate behavioral insights to unlock the true potential of such
targeted strategies. With total store traffics declining, insights-driven
targeted promotions provide an attractive competitive advantage. Understanding
storewide behaviors of the shopper trip segments help in a range of efforts to
adapt to the changing shopper/retail landscape," he concluded.
Are
you looking for a new partnership to drive sales? Are you ready for some fresh
ideations? Do your food marketing tactics look more like yesterday that
tomorrow? Visit GrocerantGuru.com for more information
or contact: Steve@FoodserviceSolutions.us Remember success
does leave clues and we just may have the clue you need to propel your
continued success.
