1.
The Digital
Shopper
Marketing
REVOLUTION
JIM HOLBROOK FEBRUARY 17 DALLAS RetailNet Group

2.
Are you a revolutionary?

3.
Are you a revolutionary?
Should you be?

4.
↑ Retail design
We know that all of ↑ Retail learning labs
↑ Shopper marketing
this is GOING ↑ In-store media
↑ Selling in and executing
UP ↑ Shopper insights
↑ Retailer intelligence
UP ↑ ROI/analytics
↑ Digital apps
UP ↑ Geo-locating
↑ Augmented reality

5.
CPG companies spent about $38 billion on Shopper Marketing
in 2010 (In-Store Marketing Institute)
Between 15% and 20% of CPG marketing dollars are
earmarked for Shopper Marketing
83% of CPG companies will increase shopper marketing
budgets
55% will boost spending 15% or more by 2013 (Booz & Co.)

6.
And all of this is ↑ Smart phones
↑ Tablets
GOING ↑ Apps
↑ Connectivity
UP ↑ Access to data
↑ New services
UP ↑ New media
↑ New measures
UP

7.
WE ARE IN
THE MIDST
OF A
RETAIL
REVOLUTION
7

8.
Here’s Why:
The 10 Ways
Digital Changes Everything
8

9.
1
There is no more
‘IMPULSE’…
every purchase is considered
9

10.
P&G CMO Marc Jim Lecinski of Google,
Pritchard calls for
refers to a "zero
thinking “store moment of truth"
back”, meaning when consumers
that if it does not BUT do research and
work at the make decisions
store, it’s a miss before shopping
(FMOT)
10

11.
of shoppers conduct
research before they
shop, typically for an
hour or more.
Source: GMA, Booz & Company, and SheSpeaks Shopper Marketing 3.0 Survey; n = 3,600 respondents
Source: Google ‘Path to Purchase Presentation’

12.
More Purchase Decisions Being Influenced Pre-Store
Where Purchase Decisions Are Made, % of Shoppers
100%
90%
80%
70% 60%
75%
60%
83%
50%
40%
30%
20% 40%
10% 25%
17%
0%
2007 2008 2009
In-Store Before Entering Store
Source: Longitudinal Economic Study Series, IRI Attitude Link, n = 1,000+ shoppers. CPG Purchase Decisions. IRI, 2009.
Source: Google ‘Path to Purchase Presentation’

13.
“Kraft recognized that shoppers were going
online prior to their trip to the store to find
information and that we needed to leverage
The digital space as part of a robust 360
degree marketing plan.”
- Microsites
- Online coupons
- Recipes
- Online promotions
- Shopping lists
- QR codes
As the prevalence of smartphones grows, more tools will
become available to connect with the shopper in the pre-trip,
in-store and post-purchase phases. The future opportunities
to market in the moment through digital will be
transformational.
emarketer
13

14.
2
There is no more
‘pushing’ products
at shoppers:
“I’ll get what I need
when I need it”
14

15.
2/3
of touchpoints during
active consideration
are consumer initiated
- McKinsey
15

16.
16

17.
new ways to get a second opinion

18.
3
Brand ‘image’ doesn’t count
anymore:
‘Just the Facts’
18

19.
90% 70% 84%
of consumers completely or claim that
trust somewhat trust the online customer
recommendations recommendations of evaluations influence
from people they consumer opinions their purchase
know posted online decisions
19

20.
Online Research has Changed the Game
+188%
Reviews
Source: Google ‘Path to Purchase Presentation’
20

21.
Any Category can be Reviewed
– even Cream Cheese

22.
4
Shoppers are more
LOYAL
to deals and offers
24

23.
The elasticity for existing brands
of sales to ad spend averages 0.10
100% increase in ad spend
generates
10% increase in sales - ARF
25

24.
288%
Online Deals:
COUPONS - search for deals up +288%
- over $1B via coupons.com
Source: Google ‘Path to Purchase Presentation’

25.
CPG’s Leveraging Paid Search to Drive to Key Accounts

26.
Brand-centric
marketing doesn’t
resonate anymore…
‘I don’t care about your features & benefits’
28

27.
5
Marketer-Retailer
collaboration is
HARDER
29

28.
Retailer Practices =
Problematic for Brands
 Clean store
 Proprietary programs
 Contracted end aisle
display space
 Private label
 No sharing of loyalty
card data

29.
Retailer Mobile Apps
31

30.
… so P&G goes direct
32

31.
34

32.
6
National doesn’t work:
It’s all about
LOCAL
35

33.
This UK service lets you upload and compare the cost of your weekly shopping list at four
grocery stores, ultimately delivering which retailer offers the best deals overall.

34.
Starbucks: Find Your Place

35.
Hyper Location, Hyper Location, Hyper Location

36.
7
There is no more captive audience:
Communities & Conversations

37.
42

38.
43

39.
44

40.
8
Merchandising is irrelevant:
It’s all about The Experience
45

41.
Experiences are Inspiring
46

42.
“Shared” Experiences are Compelling
47

43.
Shopping Experiences are Enabled
CATEGORIES:
Retailer specific: amazon, Best Buy
Media partners: Elle, Mens Health
Local: Vancouver, malls
Social: facebook, myshopanion
Offers: couponsherpa
Scanners: redlaser, barcode hero
Search: shopsavvy, google shopper
Geo: aisle411, fastmall
Lists: groceryIQ
Reward: shopkick
48

44.
9
Campaigns don’t work with an
Always-On Community

45.
“The Purchase Funnel has been
replace by the Decision
Ecosystem, a cloud of
information from all sources,
available anytime”
(McKinsey, “The Consumer Decision Journey,” 2009)

46.
51

47.
new ways to get a second opinion

48.
Her Mindset – over time, in many
places – shapes her shopping trip
“While most grocery shoppers shop for their
food items around once a week, consumers
decide what to eat, drink, or serve many times
a day. It’s these daily activities, and the needs
behind them, that drive their purchase
decisions.”
– Ann Hanson, NPD Group

49.
eBay sold over $2B
via smartphones in 2010,
triple 2009
54

50.
10
It’s Not About The Store Anymore
Get On The Shopping List!

51.
of U.S. households
prepare a written or
digital grocery shopping
list prior to shopping
Source: Survey of 3,600 shoppers for Shopper Marketing 3.0 study conducted Fall 2009 by Booz & Company
In collaboration with Grocery Manufacturers Association
56
Source: Google ‘Path to Purchase Presentation’

52.
57
Source: Google ‘Path to Purchase Presentation’

53.
IT’S A REVOLUTION!
It’s a whole new way
of doing things

54.
BENEFITS • Reach shoppers who don’t
consume traditional media
of the revolution: • Tailor/target offers – more
digital shopping relevance, less waste
• Real-time research and feedback
tools– • More helpful, less disruptive
• Easier to measure
• Increase engagement
• Facilitate follow-up - - real loyalty
• Influence decisions upstream
(before the store)
59

55.
REVOLUTION?
NOT
SO
FAST
60

56.
Been here… Done this
10 Reasons to Not Freak Out
61

57.
1
Remember?
62

58.
2
In the end,
it’s just more couponing
63

59.
Online Coupons
82% 25%
of consumers use of those are using
coupons (up from online coupons
63% in 2007) (over 36 million shoppers)
64

60.
evolution-insights.com
65

61.
3
We’re just
extending our media
reach/frequency
66

62.
It’s just
another
screen

63.
4
Digital shopping, digitally enabled shopping?
Way, way too complex
68

64.
huh?
70

65.
TOOLS
• SMS and MMS
• Downloadable Apps
• Mobile Websites
• Check-in Features
• Barcode Scanners
• Augmented Reality
• Digital Out of Home
• Payment Peripherals
71

66.
5
Digital or analog,
the ‘journey’ is the same
72

67.
73

68.
6
Most of this digital stuff
is just ‘novelty’
74

69.
Popular iPhone Apps
75

70.
7
Never going to get past
the significant privacy issues
76

71.
• “Harm” beyond just economic
• Compliance
• Liability
• Transparency
• Security
• Data retention limited
• Affirmative consent
• Profiling
• Disclosures
• Children protections
• ‘Do not track’
• Accuracy
77

72.
8
Most of it is direct marketing
without the postage
78

73.
90%+
of total email
volume is junk
79

74.
9
“Deep shopper insights”?
It has ALWAYS been about insights!
80

75.
“The consumer is not a
moron, she is your wife”
- David Ogilvy, 1960’s
81

76.
10
Mass still works –
hello, Super Bowl ads
82

77.
83

78.
So…
84

79.
WE ARE IN
THE MIDST
OF A
RETAIL
REVOLUTION
85

80.
The Top 10 Reasons for a Digitally-Enabled 1= strongly diasagree
5= strongly agree
Shopper Marketing Revolution
1. No more impulse: Every decision is informed
2. No more push: “I’ll get it when I need it”
3. No more image: “Just the facts”
4. No more loyalty: Heightened ‘deal’ sensitivity
5. No more collaboration: Brands and retailers chasing consumers
6. No more ‘national’: It’s all about local interests
7. No more audience : It’s all about the community/conversation
8. No more merchandising: It’s all about navigating
9. No more campaigns: I’m “always on”
10. No more in-store: Get on the shopping list 86

81.
REVOLUTION?
NOT
SO
FAST
87

82.
1= strongly diasagree
The Top 10 Reasons Why It’s Not Really a Revolution 5= strongly agree
1. Already been tried: webvan, pets.com etc etc
2. Just a better way to distribute coupons
3. Just another media channel
4. Way too complex for the casual user
5. The journey is the same: Awareness, intention, consideration etc etc
6. It’s mostly “novelty” (Angry Birds)
7. Faces HUGE privacy issues
8. Just direct marketing
9. It’s always been about “insights” and still is
10. Mass still works 88

83.
#1: Is This A Revolution?
TOTAL from the Yes/Revolution =
minus
TOTAL from the No/Not = =
Systemic Change Evolve/Adapt
(50 pts) (-50 pts)
89

84.
#2: What Is Your Position?
Store/Retailer-Dependent: Less Dependent:
- Not necessarily ‘hostage’ - More brand strength
- Merchandising does drive sales - Pull works
- Cannot go direct - Able to go direct
90

85.
#3: What Is Your Approach?
DIFFERENTIATING: OPTIMIZING:
- Investing - Spending
- Discriminating - In-store performance
- Experimenting - Measurable ROI
- Aligning - Category mgmt
- Messaging - Transactions
- Equity-building - Data arms race
- Insights/solutions - Channel mgmt
- Trade relations
91

86.
SYSTEMIC
CHANGE
DIFFERENTIATE OPTIMIZE
company
landscape
EVOLUTIONARY
92

87.
What Is Your Action Plan?
1. Disrupter: changing the game, reinventing the rules, creating the future
2. Leader: knowledgeable about all of the changes, embarking on many, a clear strategy of
experimentation, skill-building, tool-building, investing
3. Focused: fast follower, jumping on the proven tactics, tactics form the strategies, responding to
outside requests
4. Planning/preparing: getting organized, allocating budget, beginning new work
93

88.
What Is Your Action Plan?
Possible Ac5on Area Op5mize/Differen5ate?
Push/pull
Rate of Change: Transparency
Value added offers
Consumer direct
Retail(er) Dependency: Customize/localize
Community‐building
Conversa=onal
List management influence
Position:
ecommerce
1. Disrupter Deal/offer distribu=on
2. Leader Shopper‐scripted messaging
3. Focused Journey refinement
4. Planning/preparing AEen=on to privacy
Insights
Other….
94

89.
Thank You
jim.holbrook@
emak.com
slideshare.net
jimholbrook
95