Shopping List Truths

FRESH FACTS:  Do you make a list before you go grocery (or drug store, or mass merch, or club) shopping?  I do…and I certainly stray from it (try new things, buy things I know I need anyway, regularly, etc.).  My Husband (when he had his own household to maintain) did not stray from his list, not at all.  So…which behavior is more common?  Mine, apparently.

According to a study just shared by the Integer Group and M/A/R/C Research, 9 out of 10 consumers make impulse purchases, straying from their lists.  Why?  Sale and deal driven: 66% of them said were motivated by a sale or promotion, and 30% said they found a coupon.  And interestingly, as a treat: 23% wanted to “pamper themselves.”  Now, as brand and marketing types, this can be good news, because it means that in-store promotions, offers, and deals are important; and there is still time to convince a consumer in-store that your brand or product is what needs to go into baskets and get purchased.  Particularly if it has “treat” value.  But alas, out of store consideration and brand loyalty still plays a role with 61% of consumers saying that their impulse purchases were primarily influenced by a brand they currently use.  So how many impulse items are we talking about?  Not many apparently: 61% of consumers who shop off-list purchase an additional one to three items.  By the way, this study was noted in both Progressive Grocer and Drug Store News today, in case you need.

So do you make a list and then go astray?  Do you have regular purchases and do they make the list?  My brain can’t hold that much, I have to have a list for some guidance.  You?  TASTY TREND:  Retailers Rule; Shopper Marketing

Mobile Only

CRUNCHY NUGGETS:  Over the weekend, I read a NY Times article about mobile only deals for this year’s black friday.  So you have your basic get up early and save at the store for black friday.  Your go online and save for black friday.  And now, trying to grab those folks who are waiting in lines to make their purchases (real and virtual lines) and wish to shop around a little bit more, online retailers are offering exclusive savings to smart phone users through their apps and mobile sites.  Gilt Groupe, Amazon, HSN, and Walgreens are among the retailers with mobile-only offers and coupons that will be available throughout the day this Friday.  Macy’s and Nordstrom are also facilitating shoppers carrying devices as they’ll offer free wifi in their stores, and free shipping for purchases made on their mobile sites.  It struck me as an interesting space to “play and protect,” if you will, given that 43% of Americans who have cell phones, own smart phones.  Here is the article if you wish to give it a read: http://www.nytimes.com/2011/11/20/business/mobile-deals-aimed-at-black-friday-shoppers-stuck-in-line.html?_r=1&src=me&ref=business

How ’bout you?  Shopping early and often this Friday?  TASTY TREND:  Here and Now; Go Mobile

QR Code Inspiration

FRESH IDEA:  Well hello there!  While I was on vacation last week I saved an email I received from one of my favorite trend sources, PSFK.  It shared a really cool usage of a QR code that JCPenney is executing for the holiday season.  They call it a “Santa Tag.”  Here’s how it works:

Basically, you pick up a tag at JCPenney.

Scan the code using your smart phone (any QR code reader will work).  And then leave a voice message for a gift recipient.

You then take the tag and sticker it onto the gift recipient’s package.  He or she gets the gift, scans the code, and then hears your message.  Nice!

I’ll include the link to the PSFK article which shares a video of it and how it works — it makes it very crystal clear.  What I love so very much about this execution is how it’s taking a QR code and: continuing to “train” consumers in how and why to scan;  moves the content of a QR code beyond a discount or a link to like a brand’s Facebook page, and into a truly meaningful, very personalized experience.  And good for JCPenney…it’s a unique differentiation point for a retailer. Love it!  I could see this application for other brands and services, can’t you?!  Here’s the URL: http://www.psfk.com/2011/11/jc-penneys-qr-code-gift-tags-carry-personal-voice-recorded-messages.html

So did you start your holiday shopping yet?  Maybe this will inspire you not just with a good idea, but to make a list and check it twice!  TASTY TREND:  Here and Now; Go Mobile

Holiday Predictions

CRUNCHY NUGGETS:  Yesterday I received a package from Ann Taylor Loft and thought: “what did I order?!” I opened it to find a bracelet (“I didn’t order this..”) and a note (see image).  It thanked me for being a good customer and offered 50% off a full-priced item, in-store, during November.  Wow!  That’s quite a way to win over my loyalty in time for holiday shopping!

Flashback to yesterday afternoon, before getting this lil’ shopping gifty, when I read a really good, crunchy nugget-filled article.  It was the National Retail Federation’s (NRF) “Top Ten Holiday Trends for 2011″ blog post from November 1st.  And it gave a snapshot of how today’s consumers are shopping relative to how they’ll approach holiday shopping this year.  Along with how retailers will be reacting –trying to attract their share of wallet.  Indeed…Loft’s “we love you…so come love us” gift is on-trend for extending “value” to customers this holiday season.  What else should we expect?  I won’t reiterate the whole article, I’ll let you read it — but here are a few brain nibbles:

• Consumer confidence is down.  So spending will be down for the holidays. “Moderate spending” is this year’s best case scenario.
• 36% of shopping will be done online, up from 33%.  But this 36% isn’t all about actually making purchases, it’s also about researching and shopping around.  More than one-third of the time, “online shopping” is consumers getting gift ideas, and doing price comparisons.
• Holiday shoppers this year will be going to more stores, not less, in an effort to find the best prices, the best offers.  And best offers also means seeking extra services like layaway, extended hours, shorter lines, and charitable overlays with purchase.
• Spending on non-gifts, for yourself or just waiting for the best deals of the year to spend on something that won’t get wrapped and gifted will be up this season.  This kind of purchase is predicted to hit $130 per person versus $112 last year.
• Practical gifts are out…but “everyday usage” gifts will be taking their place.
• Black Friday will continue to start earlier this year, with retailers opening on Thanksgiving Day, or kicking off Black Friday with doors open right at midnight.
• Free shipping will be big again this year for online offers.
• And mobile technologies such as smart phones and tablets will play a role in this year’s shopping experiences.  Not huge, but definitely growing.

Now, if you were to stop now and not read the actual article, you’ve pretty much soaked up a lot of the crunchy goodness.  But do read the article as it’s sprinkled with lots of good stats and color commentary.  Here it is: http://blog.nrf.com/2011/11/01/top-ten-holiday-trends-for-2011/

Surprisingly, I didn’t see socially driven offers, socially driven efforts, nor location based offers noted among the trends. Hmm..?  Oh well.  Hey, I’m going to be out of the office all next week.  Hope you have a good one and I’ll see you again, right here, during the week of November 14th.  Thanks.  TASTY TREND:  Traditional Experiential; Retailers Rule; Recession Obsession Continued

Reward Realities

FRESH FACTS:  I just read interesting stats this week about loyalty programs and the power that best customers have in terms of driving sales.  That said, my most loyal readers, I’ll get right to the nuggets.  Did you know that…

15% of a retailer’s most loyal customers can account for as much as 50% of its sales (according to Keith Jelinek, director in the retail division of consulting firm AlixPartners).

And that it takes between 12 and 20 new customers to replace a lost loyal customer, yikes! (according to Keith Colbourn, vice president, global loyalty practice leader at Dunnhumby; who, by the way, didn’t say the “yikes” part, that was me).

So what does that mean for marketers?  Well…obviously do things that keep your best peeps happy and coming back for more.  I’ve heard so frequently: “but we’re just rewarding our most loyal users.”  Um…and why is that bad?! Sure, you need to attract new users, but hello.  Don’t walk away from the bread butterer (that’s a phrase, right?!)  And why having relationships with your most loyals outside of the store is also very important.  Think Facebook activity, think Fan of the Week, think emails to customers, etc.

The article from which these nuggets were extracted is from the Wall Street Journal and goes far more in depth about different rewards programs and strategies if you’d care to check it out:  http://online.wsj.com/article/SB10001424052748703834804576301221367302288.html?KEYWORDS=rewards

Hey go enjoy your weekend and be sure to honor your favorite Mom for Mother’s Day this Sunday.  I will enjoying my own rewards from my most loyal peeps that day, for sure!  TASTY TREND:  Shopper Marketing

New Coupons

CRUNCHY NUGGET:  It feels rather unglamorous to talk about coupons.  But I must, and here’s why…Kroger just announced a relationship with SavingStar.  Essentially, SavingStar is an e-coupon solution with a mobile delivery.  Download an app to your smart phone, choose among different manufacturer coupons, go to a Kroger location and shop.  At check-out, make sure you redeem your savings from your phone using your Kroger frequent shopper account.  Now here’s where it gets fancy and nuggety:  unlike traditional coupons, you don’t see the savings come off of your bill.  Nope.  Rather, you have choices: have the money deposited into your bank account, or have it credited to your PayPal account, or get an Amazon gift card, or give it as a donation to the charity American Forests to help plant trees.  So that simple dollar off has lots of places it can go — your choice!  And no clipping needed.  Now, for those of you still unimpressed, do realize that Kroger is the largest grocery in the US, and is second to Walmart in terms of general merchandise.  That means this initiative will reach a lot of peeps with a new way of thinking about coupons.

OK, so if that didn’t convince you, here’s hoping that something over your weekend provides you with the glam and sizzle you so desire.  Enjoy! TASTY TREND:  Experiential Traditional; Coupon Crazy

Reel Crunchy

CRUNCHY NUGGETS:  A retailer supporting a cause = not new.  A retailer supporting a cause through film = new and crunchy!  Whole Foods is sponsoring a month long film festival called “Do Something Reel.”  Six films will be shown in seventy different cities.  From bees to school lunches to inner city issues and more — the film subjects are “green,” meant to inspire viewers to think about their passions, and how they can make small choices to make a larger difference.  Viewers are also privy to film maker discussions via Skype or in person.  And all of the proceeds go to fund a grant that will continue fueling “green” subject film making.

Whole Foods wanted to make this more accessible to a wider viewing audience through a tour — as opposed to limited, destination film fests.  The film tour kicks-off on April 1st, coinciding with Earth Month.  And as any smart retailer would have done, costs are being offset by brands/manufacturers that sell at Whole Foods.

Again, not new for a retailer to strongly back a cause.  But very new to do it through a touring film fest – nice!  Just as an aside, it would have been an interesting overlay to have the films available for digital download online — make a contribution and get access.  This would have facilitated a wider reach — but that’s just my “back seat driving two cents.”  Certainly can’t nay say a big company trying to something good.  TASTY TREND:  Traditional Experiential

Grocery Growth

CRUNCHY NUGGETS:  So we’ve read about the growth of grocery offerings at less traditional retail channels like Drug Stores and Mass Merchants.  Target, Walmart, Walgreens, etc. have expanded their fresh fare over recent years in an effort to attract more frequent shopper trips, fill a local need, and increase basket rings.  Well…there is another retail channel looking to expand through grocery.  I’ll give you a hint: think food court, escalators, chain stores, etc.  Indeed, it’s malls.

According to Bloomberg News, right now grocery represents less than 1% of square footage at malls.  But by 2020, category consultants see this number at 5%. Interestingly, the talk around mall food is more upscale, more unique than what you’d expect at a typical grocer.  Think heirloom coffee, artisanal meat and wine, and small batches of unique vinegars; also think cooking classes and schools.  But don’t completely walk away from traditional as malls are currently forming partnerships with Trader Joe’s, Costco, and Albertson’s to add on these particular grocery-offering retailers to traditional mall layouts.

Interestingly, grocery stores were anchors in malls fifty years ago, but had to leave as rents increased.  So it seems the shopping cart has come full circle!  Here’s the Bloomberg URL, if you need it:  http://www.bloomberg.com/news/2011-03-08/heirloom-tomatoes-coffee-help-attract-foodies-to-u-s-malls.html

Seems like it would be kind of weird to pick-up milk and basics while you’re holding your Gap bag.  But I guess it could provide convenience to those who frequent the mall –even as a destination.  When I was home with my child when he was first born, looking for a place to go for the day, the mall was a natural.  I’m sure moms will be happy to have that extra option for quick pick-up of grocery.  TASTY TREND:  One-Stop-Shop

By the Glass

FRESH IDEA:  I just read about a really smart addition to a grocery store fresh offering.  The Wegmans in Allentown, PA is offering its customers a wine-by-the-glass vending machine.  How it works is by pre-paying for your glass –choosing a full 5 ounces for $6-$10 per glass or a lil’ sample 2.5 ounce for $1-$2.  (The pre-paid part is for pre-screening, legal purposes, obviously.) Take your prepaid card to the machine and pick-up a glass.  Choose one of eight different wines, using your prepaid card to start the pour.  And then cheers!

So what makes this so very crunchy is that 1. It’s a means of enhancing and differentiating their dine-in experience.  Sit, relax, enjoy! The test store is even making pairing suggestions with POP; and 2.  Sampling sampling sampling!  If you liked it by the glass, you can go ahead and buy the whole bottle right there before you leave!  And the pairing, too.  So smart!

Here is the article URL is you want to read more: http://www.mcall.com/news/breaking/mc-allentown-retail-watch-0206-20110205,0,5806193.column?page=1

This is just another interesting translation of the vending machine.  But this would be an awesome addition to a mobile tour for a snack company or a brand wanting to convey “peace of mind,” relaxation, or create a “lounge” right?!  Pair this up with an upscale food truck?!  The ideas are endless!

Believe me, there are some days where I wish such a machine existed close-at-hand.  TASTY TREND:  Vending Machine Mania; Here and Now

Shopper Insights

FRESH FACTS:  Well, hello there!  I’ve been rather busy, but I’ve been keeping a crunchy article just waiting in my email in box.  And so I thought today would be a good day to share.  It’s about consumer purchase habits and how they fit within key retail channels. Trust me, it’s really interesting — even for the non-marketing types.

According to a Nielsen study, shopping trips fall into one of four categories:

Immediate: low-value, quickie, immediate need driven shopping trips with an average basket ring of $15 per trip.
Fill-In: the in-between, more considered “cousin” of Immediate, with a slightly higher basket ring averaging $51 per trip.
Routine: your weekly, planned, high-value shopping trips averaging $98 per trip
And Stock-up: less frequent, larger purchase trips averaging $242 per trip

OK, so we can all relate to these different occasions.  But did you know (according to Nielsen) that 82% of shopping trips are Immediate (61%) or Fill-In (plus 21%)?  Routine represents just 12% of all trips and Stock-up just 6%.  What I also thought was interesting, was where these trips are happening by channel (i.e., type of store):

• Grocery – Immediate trips fell by almost one percent as Grocery experienced minor gains in Fill-In, Routine and Stock-up trips.  So sure, Grocery is about more planned purchases.
• Supercenters – Interestingly, Immediate and Fill-In trips have gained in importance over the past two years, while Routine and Stock-up trips have declined.  Seems counter intuitive as Supercenters offer more than just quickie merchandise, right?
• Mass Merchandisers (not including their Supercenter versions) – Fill-In trips have had slight gains, while all other trip types have posted minor declines.  Just a side note that Mass Merch companies like Target and Walmart are trying to continue growth by offering more fresh/grocery selections in more locations (creating more Supercenters); and they’re also trying to enter into urban areas to fill in retail voids and capture growing urban populations.
• Drug – Fill-In and Routine trips were up, while Immediate trips have declined.
• Warehouse Club – Again, surprisingly, there has been an increase in Immediate trips, as the expected for club stores — Routine and Stock-up trips — have actually declined.  Huh!  Who would have thought of Costco as a quickie stop?!
• Convenience/Gas – Immediate trips – again, what you’d expect from this channel – have declined by more than two percent.  Nielsen attributes this to rising gas prices.
• And lastly, Dollar – Basket sizes have increased, with Immediate trips being the most frequent.  No surprise as Dollar has just grown tremendously over the past few years.

Again, I think this all very interesting as it’s so very easy to think your own life and habits are everyone elses.  What do you think?  Find anything surprising?  Hey, if you need more of this very crunchy article, you can find it here from Nielsen:  http://blog.nielsen.com/nielsenwire/consumer/the-just-in-time-consumer-how-shopping-trips-align-with-economic-woes/  The article also mentions household income, as well as categories that fall into these trips, e.g., Milk, Bakery Goods, Pet Care, and Cheese are in the top ten categories appearing in Immediate trips.  Milk, I get — but Cheese, really?!?!  That strikes me as funny: “I gotta have my cheese!!!!”  On that cheesy note, hope you feel in touch with retail.  TASTY TREND:  Shopper Marketing Madness