More List-Making Stats

FRESH FACTS:  Oh my heavens I have been so very easily distracted this afternoon.  While searching for client needs, I stumbled upon this nuggety chart that complements my last blog post about shopping-list-making habits.  This chart shares what drives consumers to put items on a shopping list.  (Note that it’s consumers who have access to the internet — that’s how the were segmented and participated in this survey, granted, so not every last lovin’ consumer.)  What I found most interesting:

Brands still win — Loyalty, peeps, loyalty.

Followed by coupons — A good deal will consumers’ attention.

And then look at #5, WOM — Jump back a few blog posts and we noted how word of mouth is still the most trusted form of communication among consumers.  But personal experience, a good offer, a deal at-store, and the need for an item in a recipe will trump WOM.  Huh!

Boo hoo for TV spots coming in dead last with small percentages noted.  Oh well.  This chart gives nice splits of gender and demos, too.  Hope you find it helpful.  And hope you have a wonderful weekend!  TASTY TREND: Shopper Marketing; Retailers Rule

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

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

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

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