LEFT MARGIN RIGHT MARGIN 11.90 Connected Shopper’s

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TNS Shopper with Kantar Retail

©Kantar 2015

Connected Shopper’s

The digital Path to Purchase The digital Path to Purchase

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For many years, influencing the shopper translated into understanding in-store behaviour

2

Because the best place to influence the shopper was in-store

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The truth is, most decisions are made before the store

3

Even in FMCG, 2/3 of shoppers are decided when they reach the shelf

81

81

78

76

76

73

70

69

69

67

66

66

66

65

60

Mayonnaise

Sauce

Personal wash

Spreads

Beer

Deodorants

Culinary

Paper Products

Cheese

Hair care

Salty snacks

Yoghurt

Confectionery

Skin care

Ice cream

SOURCE : TNS Decision Tree data 2011-2014

Decided on a brand pre-store and bought it %

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Today more than ever, to influence people effectively we need to understand their entire journey

4

Where can I influence? How can I influence?

Digital has a role at each step

4

Past category usage

Journey Mindset

Pre-store In store Purchase

?

Post purchase experience

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Developing Brand and Shopper strategies becomes a more confusing exercise because the lines are blurred

5

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Connected means digital and non-digital

6

We no longer know when we are consumers or shoppers

Let’s look at digital connectedness around the globe

7

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Mobile is everywhere, but means different things in different places

8

72

7

15

0

10

20

30

40

50

60

70

80

90

100

Sin

gapore

UAE

Saudi Ara

bia

Sw

eden

Hong K

ong

Spain

Chin

a

Denm

ark

Norw

ay

UK

Taiw

an

Austr

alia

Neth

erl

ands

Isra

el

Sw

itzerland

New

Zeala

nd

Canada

Fin

land

USA

Austr

ia

Italy

Mala

ysia

Nig

eri

a

Germ

any

Slo

vakia

Fra

nce

South

Afr

ica

Japan

Russia

Port

ugal

Czech R

epublic

Gre

ece

Philip

pin

es

Pola

nd

Belg

ium

Mexic

o

Thailand

Turk

ey

Hungary

Vie

tnam

Arg

entina

Bra

zil

Indonesia

Kenya

Egypt

India

Smartphone Advanced Feature phone 'Dumb phone'

Mobile phone type penetration by country

Source: Smartphone penetration: Google Consumer Barometer, fieldwork by TNS Germany Total phone ownership: Connected Life 2014

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22

45

59

78

Kenya

Ghana

India

Egypt

Nig

eria

Indonesia

Turk

ey

Thailand

Arg

entina

Vie

tnam

Bra

zil

South

Afr

ica

Colo

mbia

Port

ugal

Hungary

Gre

ece

Philip

pin

es

Mexic

o

Mala

ysia

Hong K

ong

Chin

a

Canada

Fra

nce

Taiw

an

USA

UAE

Saudi Ara

bia

Spain

Italy

Japan

New

Zeala

nd

Belg

ium

Sw

eden

Sin

gapore

Russia

Austr

ia

Czech R

epublic

Fin

land

Denm

ark

Slo

vakia

Isra

el

Germ

any

Austr

alia

Pola

nd

South

Kore

a

UK

Sw

itzerl

and

Neth

erl

ands

Norw

ay

eCommerce is everywhere, but penetration is dependent on access

Total category (net) incidence of eCommerce (%)

E4. Purchase made on/offline Base: Global (54,701)

Access Lack infrastructure or payment mechanisms

Trust Security concerns, lack of trust

Experience Prefer offline to guarantee quality

Price / choice Developed, buy on or offline based on price

N.B. The development funnel has factored in internet penetration and is cross-referenced to eCommerce barriers.

9

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Across markets, shoppers access multiple touchpoints when they need information

Average number of touchpoints used – by those researching

5.6 5.7 6.4

7.8

Functional

Connecto

rs

Observ

ers

LeadersFunctional

markets Connector markets

Observer markets

Leader markets

G1. Steps taken pre-purchase | G2. Touchpoints Base: Functional markets (6,170) | Connector markets (4,438) | Observer markets (16,997) | Leader markets (4,856)

10

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Digital touchpoints grow in importance as markets develop digitally

Average number of touchpoints used – by those researching

1.1 1.3 2.4 2.5

4.5 4.4 4.0

5.3

5.6 5.7 6.4

7.8

Functional

Connecto

rs

Observ

ers

Leaders

Number of online touchpoints Total touchpoints

Functional markets

Connector markets

Observer markets

Leader markets

Proportion of touchpoints accessed online

19% 23%

37% 32%

G1. Steps taken pre-purchase | G2. Touchpoints Base: Functional markets (6,170) | Connector markets (4,438) | Observer markets (16,997) | Leader markets (4,856)

11

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What connects these two? (Hint: it’s digital)

12

Answer: screen-stacking

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Screen-stacking is now a normal part of people’s lives and presents marketing opportunities

13

Brands must thrive on this complexity and activate touchpoints throughout the journey to drive consumers towards purchase

14

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Leveraging screen stacking is not just for non-FMCG

15

Coca-Cola - Romania

http://socialnewsdaily.com/16537/romanian-coca-cola-ad-integrates-live-tweets-during-broadcasting/



















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Pespsico/Walkers – ‘Do us a Flavour’

16

Integrated Marketing – engages people and makes them care

http://www.bing.com/videos/search?q=walkers%20flavour%20vote&qs=n&form=QBVR&pq=walkers%20flavour%20vot&sc=0-17&sp=-1&sk=#view=detail&mid=FD015F90B0B1CA9696EAFD015F90B0B1CA9696EA

http://www.bing.com/videos/search?q=walkers flavour vote&qs=n&form=QBVR&pq=walkers flavour vot&sc=0-17&sp=-1&sk=#view=detail&mid=FD015F90B0B1CA9696EAFD015F90B0B1CA9696EA









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With positive results on Shopper numbers as well

17

4

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In store: Near-field communication is opening new frontiers

18

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But Technology without insight remains a novelty

19

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Hershey’s and Bertolli are testing near field communication

20

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Online services

21

Graze

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Blue Apron

22

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Nivea Sun linked printed media and mobile app to connect with Mums

23

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Lifebuoy Soap uses Mobile Game to reach Moms

24

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Lifebuoy now #2 FMCG in Consumer Reach

25

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Image recognition 2.0 Comb, Cortexia, Asap54

26

Pasted from <http://www.ft.com/intl/cms/s/0/7efecb0e-f3e2-11e4-99de-00144feab7de.html#axzz3ZYQdIhZm>

http://www.ft.com/intl/cms/s/0/7efecb0e-f3e2-11e4-99de-00144feab7de.html#axzz3ZYQdIhZm









Back to the Connected Path to Purchase … by category

27

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PRESSURED

Needs for Today

Meal for tonight

Urgent

Immediate

EXPERIENTIAL

Explore

First Purchase

New Category

Changed Needs

Confused

Undecided

When trying to understand the Path to Purchase, we find that shopping mindsets give us the most insight on how touchpoints are used

ROUTINE

Repeat

Trust

Habitual

29

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The shoppers’ mindset makes the journey more or less complex

Milestone Online touchpoint Offline touchpoint

Spoke to store staff

Found special offer and made final decision

Picked up and compared packs

Used a search engine to get compare brands

Visit a store to make a faster decision

Post-purchase Discovering Planning Where Deciding

25-34 year old female wants to buy cosmetics

Explore Total no. of touchpoints used: 10

Buy online

Went online to find more information

Found info. in a magazine advert

Went to price comparison website to find the best deal

Went to a brand website get ideas and inspiration

$

Spoke to friends and family

Found info in a brochure about brands and checked product features

Go to store

Buy offline

Routine Total no. of touchpoints used: 2

25-34 year old female wants to buy cosmetics

Search for information in store to make a faster decision

Spoke to friends / family to make final decision $

30

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Different categories generate different research needs: high involvement categories see more complex journeys and more touchpoints used

Personal Hygiene

Personal Care

Banking Technology Baby Care Automotive Travel

User reviews online 15% 18% 20% 19% 22% 23% 25%

Retailer website 13% 15% 17% 18% 20% 23% 28%

Price comparison website 16% 17% 19% 21% 20% 24% 29%

Brand website 17% 20% 26% 24% 21% 25% 29%*

Search engine 16% 19% 26% 22% 23% 26% 34%

Spoke to friends/family 43% 45% 48% 51% 54% 59% 46%

In-store (net) 71% 71% 60% 71% 79% 61% 48%

G1. Steps taken pre-purchase | G2. Touchpoints | G3. Needs met by touchpoints Base: Pre-purchase researchers - Personal Hygiene (5,650) | Personal Care (7,837) | Banking (7,285) | Technology (13,041) | Baby Care (3,268) | Automotive (4,441) | Travel (8,405) *Note: Data shown for Airline/hotel websites

Major Touchpoints used – all researching

%

31

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ON LINE PURCHASING IN DIFFERENT CATEGORIES In food, online research and purchasing is more common in emerging than in developed markets

32

5.2%

8.3%

4.8%

7.1%

Developed Emerging

Online Purchase– Past Month

Food - Purchase Online

Confectionery, snacks, treats - Purchase Online

7.1%

10.0%

5.8%

8.5%

Developed Emerging

Online Research – Past Month

Food - Research Online only

Confectionery, snacks, treats - Research Online only

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Much alarm that eCommerce is ‘leaking’ shoppers … but perhaps it’s functioning as a touchpoint?

+

Music category: 77 out of 100

Hair care category: 39 out of 100

For every 100 shoppers

researching online, only 46 result

in an online purchase

E3. Purchase made on/offline | E4. Pre-purchase research conducted on/offline Base: Global (54,701) | those who research online- Global (32, 461) | those who researched Music online (2,911) | Hair care online (2,559)

33

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Why do shoppers use Omni-channel?

34

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Connected shoppers make conscious decisions on how to spend their currencies

35

One mistake we make is to think that shoppers indiscriminately waste their time online

Time, Money and Angst remain

the key currencies shoppers value and spend as needed

?

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Understanding channel choice drivers is more important than ever

37

Prices Assortment One-stop shop

Close to home Quick Personal relationship

24-hours Assortment Easy to pay

(Different) One-stop Quick Personal relationship

Happy medium? Close to home Fairly quick

24-hours Assortment Easy to pay

38

Getting Insights on the Connected Shopper Journey

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You invest a lot in your brands

Brand Teams

Creative

Media

Image

Pack

39

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Without brand building, shopper marketing is very difficult indeed

The stronger a brand’s equity, the more shoppers it should convert

0

25

50

75

100

0 10 20 30 40 50 60 70 80 90 100

Strength of equity

Con

versio

n r

ate

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Are you converting your brand equity into purchase?

41

•This has always been important and there have always been obstacles, but today they are multiplying and coming from all directions.

•You need to know how and where to invest your media spend (digital or otherwise)

•You need to understand the reach and impact of touchpoints, but also which you can use as levers and how

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Sarah’s journey to buy Day / Night cream

A few days ago, Sarah, a 25-year old graphic designer, was on Amazon, browsing for things to buy. She had heard about collagen and how good it was for the skin but didn’t know what brand to look for. She felt lost on the site when she searched for skin care

Later, she’s chatting with friends on Twitter, and receives a pop-up with a free sample of Estée Lauder. She likes the brand and points it out to her friend Virginia, who sends her a selfie showing her acne due to this brand. Alessia decides to ignore Estée Lauder’s free sample

A few days later she notices a promo for a Collagen boost cream on Twitter which gives skin care advice. It is for L’Orèal Collagen boost day/night cream.

The pack is blue in color and looks very advanced…like a robot! It warns about acne and suggests testing on the arm before using on the face. This makes Sarah think L’Orèal is an expert and transparent brand

Sarah now shares this product with Federica who also tries the skin diagnosis

She now sees that L’Orèal Collagen Moisture Filler fits her skin type perfectly so she buys it next time she goes to the supermarket

There is a personalized skin diagnosis tool that gives skincare advice if she answers the questions by simply talking into the phone the way she does with her Twitter friends

She finds out that she can get a free sample simply by following L’Orèal on Twitter. She scans the QR code and sees a whole page of skincare advice from L’Orèal on the Twitter page.

1 2 3 4

8 7 6 5

42

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Sarah’s journey to buy Day / Night cream

1 2 3 4

8 7 6 5

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How it works

We start with Sarah’s mindset and the equity brands have with her on this purchase

44

1 2 3 4

8 7 6 5

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We trace where Lucy starts on her journey and where it ends


45

Then we map Sarah’s path to purchase on this mission

1 2 3 4

8 7 6 5

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Certain touch points can be used to change the end of Lucy’s journey


46

Then map Lucy’s path to purchase on this mission including the touch points she encounters

Next: measure the touchpoints impacting brand equity/ consideration for Lucy along the path

Identify touchpoints we can use as levers to target Lucy on key missions

1 2 3 4

8 7 6 5

1 2 3 4

8 7 6 5

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Certain touch points can be used to change the end of Lucy’s journey


47

Then map Lucy’s path to purchase on this mission including the touch points she encounters

Next: measure the touchpoints impacting brand equity/ consideration for Lucy along the path

Identify touchpoints we can use as levers to target Lucy on key missions

1 2 3 4

8 7 6 5

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PRESSURED

I had an urgent requirement and needed to buy something from that category

EXPLORE

I wanted to explore products available which would best meet my needs

We are able to understand shoppers in different mindsets, in different channels, and which touchpoints they use

ROUTINE

I was buying category products as usual/ regular shop of this category

1 2 3 4

8 7 6 5

1 2 1 2 3

48

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What really matters is to understand how to influence shoppers

49

Connected shoppers might be digital; they might not.

Their journey might be linear; it might not be.

Today’s shopper is still a person with needs, priorities and curiosities, to whom you need to Connect.

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The New Path to Purchase

Shopping has moved outside store

• Need to understand pre-store as well as in-store influences

The path to purchase is rarely purely ‘digital’

• The connected shopper uses digital and non-digital touchpoints with ease and on her terms; stores can be touchpoints and/or the point of purchase showrooming vs webrooming

Shopper touchpoints -- digital and non digital -- are increasing in number

• Online touch points increase as markets become more digitally sophisticated

• Category involvement also increases the number of touchpoints

There is no magic app touchpoint (yet)

• Good shopper marketing (digital or no) is based on deep understanding of shopper behaviour and needs

While the tools and media may change, human and shopper behaviours are universal

• Time, Money, Angst remain key fundamental motivators

For each category, we need to understand WHY shoppers shop and buy ‘omni-channel’

• channel choice drivers take on a new meaning, but ….Time Money and Experience/Angst remain the main drivers

50

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Summarizing

51

Shopper sophistication demands a response, as there are now multiple opportunities to activate throughout the journey

Expect further growth in eCommerce in all markets and categories These innovations will have impact, and drive a more digital path to purchase overall

Insights First. Technology enables you to better act on consumer and shopper needs; without insights it’s just a novelty

Re-evaluate the relationship between on and offline within each category eCommerce (and any channel) is a touchpoint as well as a POP. Consumers use channels interchangeably for the best product, best price, ease and information. Providing benefits in any of these areas will grow sales

Don’t ‘wait until you’ve figured it all out’ Technology and digitalization is moving too fast for perfection. Go.

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Connected Shopper Journey

52

For further information on the Connected Shopper Journey research tool, please contact:

Lee Smith, Global Director

TNS Shopper

[email protected]

Sam Curtis, Global Director

TNS Shopper

[email protected]

mailto:[email protected]

mailto:[email protected]

Documents

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