Will the ‘real’ shopper please stand up?

(An article on the importance of trends in deriving true insight into shopper behaviour)

In an earlier blog on Zen and the art of Shopper Insight, we spoke about the art and science of gaining shopper insight. We discussed that interviewing shoppers and observing them are two major techniques, but both these methods have their limitations - we cannot really fully believe what shoppers tell us during interviews and observations can only tell us that much.

Deep insight however probably comes from going beyond these aspects to really understanding the mind of the shopper! So how do we try to understand better what shoppers THINK?

One option might be to await the day when we can have shoppers pass through an MRI before entering the store,

Alternately, and according to us, the answer lies in looking at Trends and how they impact shopper behaviour. But before we look at how this helps, let’s look at what trends are or are supposed to mean.

Human needs and thoughts are constantly changing with time. Some core needs remain constant throughout whereas others evolve in alignment with external (socio cultural) and internal (demographic) variables. Trends are a manifestation of new enablers unlocking existing human needs.

Seen another way, some trends remain, only modifying themselves along the way whereas others disappear making way for newer manifestations. Global events give rise to global trends. Local cultures are impacted by local events that shape local trends.

But any which way one looks at it, trends are fluid in terms of their dynamics and most certainly impact all humans.

“I never predict. I just look out of the window and see what is visible – but not yet
seen.” - Peter Drucker

This is certainly a great thought on “predicting” the future. But we don’t really
have to predict things. Knowing the future is not really possible. It is not exactly given to us. The point is to better see and understand today’s landscape in order to be successful in the future.

To that extent, researching trends and their implications on shoppers and shopper segments gives great insight into what shoppers THINK. The point can be best explained by using an interesting example from our recent work.

In a recent case during the recession, we were confronted with a very common situation.

The client was averse to spending on advertising (or anything else for that matter). The shopper was averse to spending (purchasing). So the onus fell on us as the consultants to break this impasse. We started with shopper interviews and we then went on to shopper observations. It certainly told us a lot. But the solution finally came from trend research. At the risk of stating the obvious, the most powerful trend during a recession is a reduction of spending. Our shopper and trend studies in this tough time however, showed us that consumers and shoppers were greatly missing their earlier experiences in all the gloom. So we decided on a model that would allow our client to offer ‘free trial’ of their product (the fact that the client was in an appropriate sector unlike CPG helped!). We decided to ‘TRYVERTISE’ our client’s product. Potential customers were offered an opportunity to try the product for a specific time period. If they liked it, they could buy. Otherwise there were no obligations. While drastically reducing the client’s spend, if nothing, it would help build the brand for better times, we reasoned.

The result was a pleasantly significant improvement in sales and tremendous impact on brand equity!

Does trend analysis guarantee shopper marketing success? Absolutely not. Remember you can’t believe what the shopper says. You only know a bit of what they do (because you are still waiting for them to install MRIs in stores) and you can only scan the environment for what they think.

In that case, is the investment in researching and gleaning insight really worthwhile? Absolutely.

Given the increasing complexity of retail environments, the choices available and the trajectory this science of shopper insight has followed, we believe that both the methods as well as the pool of data from which insights can be extracted will grow tremendously.

In all this, marketers who make the effort to truly understand shopper dynamics are likely to be well rewarded.

In our own work at Insight Instore, we use a combination of methods and approaches driven by the simple belief that there is no single approach to convert shoppers into buyers and if it is there, it has not been found yet. At a fundamental level, our strong belief in in-depth research drives us to look at shopper demographics, socio-cultural aspects, psychographic factors and trends. We do this both independently and in relation to the brand, the category, the retail format and the market in question. We believe that seen in totality, all these contribute to the shopper’s path to purchase. We review a number of factors inside the store and form a perspective of the balance of nature and nature.

Finally, to convert all this into usable knowledge is of course another thing all together. And in getting there comes the unique ability of the expert who would leverage diverse skills, draw upon vast experience and push the envelope of thinking to deliver true insight.

Gopi Krishnaswamy

Gopi Krishnaswamy is the CEO of Insight Instore