What are the biggest changes that have happened in data?
- Increased data granularity (transactional data, item level panel data).
- New data sources (social media, e-commerce, crowd-sourced data).
- Opportunities for automation (quick access & insights, new understanding of Shopper’s path to purchase).
Why do Shoppers Buy?
Shopper insights and Shopper marketing need to be incorporated into category management, and more specifically, into the category assessment. Add the “why they buy” through Shopper insights for more effective Shopper solutions.
What are “Shopper Insights”?
Refers to marketing research in-store and near-store behavior and experiences of consumers. Shopper insights are the fact or theory that explain shopper behavior before, during and after the shopper trip.
Shopper Insights answer “why” things are happening in the category.
How can we incorporate Shopper Insights Into our Category Assessment?
- Complete an assessment of market & category to understand how the overall business is performing – vs targets and vs competition.
- Understand how shopper behavior is driving results (e.g. share of wallet, $/household,leakage and conversion, and secondarily on demographics).
- Complete a a tactical analysis to determine how changes to the tactics may have driven results – including pricing, promotion, shelving and assortment.
Some of the issues or opportunities that you uncover may be explainable based on:
- tactics that were employed,
- completing the shopper and tactical assessment, and/or
- knowing that competitive activity had an effect on the business.
For example, if incremental sales are down 10% and I ran 3 ads last year and 2 this year, or my pricing is 10% higher than the market on promoted items, then there’s less of a need to drill further into Shopper insights.
If a key issue or opportunity is not explainable, then you can tie in Shopper Insights to understand “why” it happened.