Event Content
Exclusive Breakfast Presentation: The Connected Consumer
Bob Tomei – President, IRI
Larry Levin – EVP, Consumer & Shopper Insights, IRI
76% of all shopping trips, whether to a brick and mortar store or to an e-commerce store, all start online. People are spending an average of 6 hours a day online. Digital is no longer a “nice to have” but an imperative. This presentation provides an overview of the changing consumer and shopping landscape, and how brands and retailers can place the connected consumer at the heartbeat of all that they do.
- Shoppers are more diverse than ever. More than half of the changing population in this decade is Hispanic. Although Asian Americans account for only 4% of the U.S. population, they drive 16% of growth. The multicultural palate is really changing how we go to market and changing the landscape of shopping. As demographics of the people coming to your store are different, your assortments have to be tailored to the local shopper.
- Smartphones are the catalyst to success. 48% say that they’re unable to function without their smartphone. It’s about the apps and the personalization. Mobile pay (e.g. Venmo) is important in engaging with millennials and Gen Z. Starbucks’ mobile pay has been so successful, if it was a bank, it would be about the fifth largest bank in the country because of the amount of money that’s held in the app. The overall gold standard in retailer apps is still Amazon.
- Opportunities to win with consumers is around social media. YouTube is the new “how to” or encyclopedia of this generation. In a minute, there are 2.78 million video views. It is so critical for go to market strategies – as you think about ways to win in your market, you need to think about YouTube videos. Partner with blogging experts, influencers that can help win the day with the shopper. Since consumers do not spend that much time actually shopping, retailers need to get the hook into making sure their brands get on the shopping list.
- Couponing is till important. About half of all shoppers still use newspapers, store circulars, and magazines to plan. Millennials are as likely as the general population to clip coupons. 46.9% of all consumers go online to seek coupons and sales. It’s important to understand the hierarchy of the search path: e-couponing sites à retailer sites à manufacturer’s sites. Think about where my couponing efforts can be fostered.
- Click-and-collect has become an important part of shopping. Shoppers use click-and-collect to save on delivery fees and personal time. Once they try, they are hooked. IRI expects that click-and-collect will account for $6.6B in 2022, up from $400MM in 2016.
- By 2022, ecommerce sales in the CPG space will grow 8X. This year, digital will influence 77% of all retail sales. 71% of all product searches begin on retail sites (55% on Amazon). Consumer expectations for e-commerce platforms: Ease, Price Incentives, and Fun & Inspiring experience. Create opportunities to connect: upgrade the site experience, be an information destination, optimize the click & collect experience, create an omni-channel experience. E-commerce presents an opportunity to interact across a whole new path to purchase, to reinforce your brand equity, or store image.
In this changing consumer and shopping landscape, it’s not just about the transaction. It’s about the relationship you have to interact with your consumers and shoppers, and the whole personalization of that interaction.
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Welcome & Opening Remarks
Rich Hansen – VP, Global Consumer Insights & Analytics, Walmart
Chris Bacon – EVP, Global Research Quality & Innovation, The ARF
Rich, as an ambassador of the town, welcomed the attendees and presenters. He noted that it’s a remarkable time for retailers. Technology and digital transformations are really changing how consumers shop, and we feel like we are trying to catch up to consumers and meet their demands. Any one of us has some pieces of the puzzle but not all. Rick encouraged the industry to share their puzzle pieces and join in the journey together to figure this out.
Chris explained that our shoppers are everywhere now, from brick and mortar, to desktops, mobile, and AI (voice e.g. Alexa, Google Home). Making decisions 24/7. In ten years, e-commerce grew from 3.5% to 8.5% of total U.S retail sales. M-commerce now makes ups 22% of total digital sales. In the FMCG space, sales are flat, only online FMCG sales is growing. We have to keep up with where our shoppers are.
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Diverse Shoppers in a Digital World
Louise Keely – EVP, Global Retail Practice Leader, Nielsen
Digital technology is rapidly changing the way people shop and how they engage with brands. Today’s shopper journey is no longer linear. It has become much more complex, presenting both a challenge and opportunity. This presentation discusses Nielsen’s perspective on digital shoppers, how shopping behavior is changing, and what it means to the industry as a whole.
- Nielsen segmented digital shoppers into seven different groups. 12% are technology averse, but most consumers have some type of important digital interaction in the path to purchase.
- 15% of shoppers are digital advocates – a growing group. Tech savvy, value seekers are also growing. Information benefit of shopping online is growing in importance.
- Consumer path to purchase is in a period of disruption and increased complexity – for individual consumer and across consumers.
- Measurement (way we merchandise and market to consumers), therefore, is transforming; moving to a person-level, integrated view of shoppers.
- Expanding opportunities for engagement with consumers all along the path to purchase: the lines between marketing, advertising, media, shopping are blurring.
- We are moving to an open ecosystem. Many collaborators, big and small, with different roles to play in our connected system to measure and engage shoppers.
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Successful E-Commerce Limited to On-Line Only Shopping Sites
Tony Long – Global Head of e-Commerce, Kimberly-Clark
Aran Hamilton – Founder/CEO, Vantage Analytics
How can we use data to reshape our strategy in real-time? It’s time for the retailer and the brand to forge a new partnership. Cooperation means embracing new ways of doing the old business of retail, working together helps everyone. Aran illustrated the win-win results of such retailer-brand cooperation through an eShopper Marketing Case Study: Kimberly-Clark, Walmart.ca, and Vantage.
Vantage aggregated information between Kimberly-Clark and Walmart.ca to create very successful prospecting and retargeting ad campaigns on Facebook that drove customers to convert at the retailer store site. Vantage tracked abandoned transactions, products, and carts. Multiple versions of ad executions were tested to optimize and maximize Return on Ad Spend. Results:
- For every dollar Kimberly-Clark Spent on ads, $8.40 worth of lift at Walmart.ca
- 3X return on prospecting, 15X return on retargeting
- For every $1 Kimberly-Clark spent, $2 return from brand new customers at Walmart.ca
- Impact on brand/Traffic: page views +7.6% vs. benchmark
- Unique people making purchase: +16% vs. benchmark
- Across the board, demonstrable lift for the promoted products, impacting the average order size, cart size, and the revenue from carts.
Presentation not available.
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Igniting Loyalty: And the Experience that Spark It
Andy Mantis – EVP, Checkout Tracking, The NPD Group
NPD developed a tool to help understand and capture the shopper buying experience, no matter where they are shopping. This presentation provides an overview of insights about offline and online shopping behavior discovered through NPD Checkout Tracking:
- Brick & Mortar Spend: Buyers are spending most in foodservice, apparel, and home improvement. Basically everyone shopped at a Walmart in the past 12 months. But buyers are spending less in-store and more online.
- Clear shift in buying, dollars are shifting into ecommerce. E-commerce growth over time is 9 – 15 %; brick & mortar, negative 5% to flat (June 2016 to May 2017). Certain categories are maturing in the penetration of e-commerce sales: Major Appliances – refrigerators are 30% of the online home appliance category sales and increased 40% over the prior year. Amazon dominates with 37% of e-commerce spend.
- Canary in the coal mine – Heavy Online Shoppers: This segment shows where the market is going. They tend to skew millennial and Gen X, higher in income, close to the general population. They are good omni-channel buyers. Their Total Spend per Receipt (both online and offline) is 15%+ over gen pop; 9% + Total purchase frequency, 25%+ total spend per buyer. They spend a greater portion of the total wallet in tech, beauty, and baby. Nordstrom and Best Buy are well-positioned for the ongoing market evolution. They are top retailers over-indexing with Heavy Online Buyers.
- Loyalty is key to determining success. In Tech, Best Buy has 39% Share of Wallet. Customer experience drives loyalty (e.g. Geek Squad, revamping the stores, half of the online buys from Best Buy are picked up from the store, or shipped to the store).
- Embracing new pathways to purchase is essential to continue growing. 27% increase in overall online spend 6 months after an Amazon Echo family purchase. Over 50% of them buy another Amazon Echo or Dot, expanding into multiple rooms and adopted by the family. Domino’s Pizza saw a 4% increase in sales among Amazon Echo owners 6 months after an Echo family purchase. Amazon Prime Now sales grew over 140% 6 months after Echo purchase.
Lean into seismic consumer behavior change with real time knowledge, predict the evolution, don’t react. Partner, test, learn, adapt, and win. It’s not about perfection – you will be left in the sidelines.
Presentation not available.
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Shopping Redefined Activating Omni Dynamics
Brian Hoffstedder – Director, Shopper & Retail Insights, The Clorox Company
Amy Stevens – Associate Directory, Insights, The Clorox Company
If you are studying the future of retail, you need to think about the future of purchase. Brian and Amy discuss key disruptors in the space as well as a case study of how Clorox was able to get ahead of disruptions by listening to signals.
- Future of purchase will be very passive, embedded in every day behavior. Technological developments in smart homes and smart cars will allow purchases to be invisible and automatic as possible. It will also allow gathering of behavioral data that can be sold back to the manufacturer.
- Virtual Reality will bridge the in-store and online experience. Examples: Sephora’s VR lets you try on makeup, IKEA’s virtual living room, Loews’s 3D rendering.
- Retailing in a shoppers’ world: trust, access, simplification, and relevance. Align purchases with brands and retailers that they believe in. Small brands are building trust through micro-influencers, omni channel and seamless, one shopping experience. Take all of the data and give very simple solutions to the consumer. Human authority is becoming more prevalent. It’s about talking to individuals and not the masses.
Kingsford Case Study:
Business was suffering from significant household penetration loss due to increasing empty nesting households. The brand needed to engage with younger households. They set out to observe what was going on in the market with this target group. They discovered a surprising signal: where young charcoal shoppers were shopping, camouflaged items kept showing up. Social listening also uncovered this pattern of camouflage. They saw enough from disparate sources that this was a trend that Kingsford could capitalize on and went to market. This motif signified the importance of the military, outdoor activities, esp. enacted as father-son activities, the popularity of the show, “Duck Dynasty,” to this target group. Leveraging this human insight, they placed the product around sporting goods and launched around Father’s Day and deer-tag season. They also tied it to paying respect to military service on multiple platforms. By identifying the need state that fits into the shopper’s life, they were able to increase incremental consumption by the target that they were going after.
Clorox’s recommendations for getting ahead of disruptions: pay attention to signals; listen -> observe -> learn; tap into the human elements in their data. Be truly omni-channel: make the product available everywhere the consumer seeks out the category. Data can get in the way of good decision making. In this world that moves so fast, if we rely on the data to be the decision point, we end up leaving ideas on the table.
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Measuring the Impact of IoT: Looking Ahead to the Voice Era
Alison Robart – Director, Client Insights, comScore
The average U.S. connected home has 8.5 Internet-Connected Devices. Smart speakers are the most prevalent IoT device category. Based on data from comScore’s Total Home panel, this presentation provides an overview of the current voice era.
Key takeaways:
- Massive growth in smartphone usage is paving the way for the voice era. Smartphone usage has doubled in the past three years. Smartphone usage heavily skews towards apps, specifically for the media & entertainment variety. Users are engaged in more sophisticated behaviors, like mobile commerce.
- Using voice technology on smartphones is predictive of adopting smart speakers. 1 in 2 smartphone users now use voice technology every week; 1 in 3 use it every day. Half of all users expect to use voice tech more in the coming month vs. just 2% who say less. Users of voice tech are 3X more likely to intend to purchase a smart speaker for their home.
- Smart speakers are already the #1 IoT category in the home, with more growth coming. Smart speakers are currently in 8% of U.S. connected homes. People use it for a variety of daily tasks, not heavily for buying yet. Amazon Echo devices make up the vast majority of devices today. But Google Home is a strong product and Apple Homepod is on the way. Alibaba is also introducing their own smart speaker.
Less than 1% of U.S. households purchased a product via a smart speaker; however, this technology will play a growing role in our lives and purchase behavior will follow.
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Getting OOH on your RADAR to Drive Growth
Dan Levi – CMO, Clean Channel Outdoor
As people move throughout their day, their phones can tell us where they go and the routes they take to get there. CCO RADAR uses mobile data to understand consumer mobility and behavior. This presentation discusses how digital mobile data can enhance OOH through the following retail case studies:
- 24 Hour Fitness: 264% increase in gym visits among those exposed to the campaign. +50% of the 24 Hour Fitness club visits were within 0-2 days of OOH impression. 5-51 mins: average duration of gym visit.
- Fashion Brand: Campaign objective was to increase visits to major fashion retailer during Black Friday period. This lead to a 3-day OOH campaign in 6 DMAs targeting via CCO RADAR and proximity to retail locations. Results: 36% lift in store visits (equivalent to ~45K additional visits); 47% of visits took place within one day of exposure.
- QSR: Campaign objective was to drive traffic to QSR retail locations; understand OOH’s impact on consumer behavior. Campaign: Printed + Digital Bulletins, Posters, Premiere Panels, Transit Shelters, Walls; 334 MM total impressions. Results: +115% average lift in visit rate; +110% lift across every market in campaign; 54% higher visitation rate among those exposed 5+ times, versus only 1-4 times.
Mobile data unlocks the power of OOH by: identifying audiences exposed to OOH ads; understanding where to most efficiently target them; measuring the impact of location targeted advertising in driving retail visits and consumer response.
Video not available.
Big Data to Big Voice: How Data Helped this Small Grocer Compete with the Heavy Hitters
Krista Wendt – Director of Marketing, Martin’s Supermarkets
Beth Curran – Director, CPG Retail Strategy, Oracle Data Cloud
Martin’s Super Markets is an Indiana based, family owned and operated retail chain. This presentation discusses how this small grocer partnered with Oracle Data Cloud to use big data to drive big change.
- Aging consumer base and continued competition fueled the need to find the balance between traditional and digital forms of media. Combining Martin’s 1st party data along with 3rd party data, allowed them to target specific customers on the largest social media platforms (e.g. Facebook, Instagram) and activate with targeted messaging.
- A customer centric Facebook strategy resulted in: 4.9 million impressions, 119,247 page engagements in Q3. Top audiences by engagement rate were Hispanic and Prospects.
- Optimized strategy based on performance insights lead to the right audience, the right channel on open web. For example, to increase brand awareness among Martin’s Super Market Millennials, open web bi-weekly communication delivered relevant content. This lead to incremental sales, digital coupon conversions, app conversions, natural & organic conversions, and closed the gap in market conversion.
- Launched online grocery shopping service, Groceries-To-Go. GTG customers spends 2X more than a non GTG customer. Income, HH makeup, and distinguishing characteristics are much different for a GTG customer than a non-GTG customer.
- Segmentation deep dives drove growth strategy. There was a strategic initiative to increase their top two customer segments. They utilized data to identify a group of Small Basket Weekly customers who look like their top two customer segments. Targeted mailers were executed to drive baskets and trips with the identified group. Results: $100 additional store net $ per HH, $6 additional store net $ per trip, 2 additional store units per trip, 2 additional store trips per HH.
Video not available.
Envisioning & Enabling … the Future Consumer Engagement Horizon
Joyce Turner – Solution Visionary, Senior Team Leader, Acxiom
90% of world’s data was created within the last 24 months. The most successful companies are the world’s most effective users of data. The challenge is to gain consumer trust. Drivers for data sharing from consumers are: transparency, value exchange, simplicity, “Know Me.”
Actions to take today:
- Seek the cues all around you à Next Big Opportunity
- Make consumer trust and value a core tenant of your programs à Opted-in exchanges
- Orient toward ongoing dialogue à Q&A Based
- Seek partnerships and capabilities that enable connectivity and actionability à Rapid Decisioning.
Video not available.
Where is the Future Headed? Panel Discussion
Kathryn Koegel – Director of Content, Criteo
Alex Lopez Negrete – CEO/President, Lopez-Negrete Communications
Mike Menkes – SVP, Analytic Partners
Krista Wendt, Director of Marketing, Martin’s Supermarkets
Moderated by Chris Bacon – EVP, Global Research Quality & Innovation, The ARF
The day closed with a lively panel discussion on where the future is headed for both shoppers and marketers.
- Let’s not forget about culture. Alex notes that now that it’s one-to-me marketing, we can’t forget about the cultural underpinnings that will help technology work better. Latinos have overtaken the use of smartphones and social media vs. general population. The number one feature request for Alexa is Spanish capability. Latinos over-index in the use of store brand websites, social networking, smartphone planning apps, mobile websites to plan or grocery shop journeys.
- Need for data integration through partnerships. Mike observes that there are mounds and mounds of data accumulating, along with a lot of silos. Building stronger partnerships to integrate the data and extracting the value is a win-win for everyone. Pulling data from cross sources so that no single source has all of the information could help address privacy regulations and concerns.
- Blurring lines between online and offline. It’s no longer about the brick-and-mortar or ecommerce, it’s about how consumers shop. Offline world is also becoming more online with IoT. This development could lead to greater tracking of offline conversations – 2/3 of business impact is offline word of mouth.
- Don’t forget the human element in all of the data. Krista cautions against being bogged down in all the data. Instead, you cannot lose the human element and need to be insightful with the decisions you make. Alex also advises using the data wisely, finding the human element and connections. There are little signals out there that if you listen and be creative about it, you can achieve something.
Presentation not available.
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