Tuesday, May 22, 2012

More Decisions Being Made In-Store


Facing a prolonged recession, high unemployment, and the ever-changing economy, the majority of U.S grocery shoppers are looking to save money wherever they can. But, according to Point of Purchase Advertising International (POPAI), the global association for the marketing at retail industry, when it comes to making decisions on what to buy more decisions than ever before, 76% to be exact, is being made in-store. 

POPAI's study pin-pointed five key findings that marketers should note when developing and implementing a shopper program:

Shoppers are making more decisions in-store
Although today's shoppers are empowered than ever to make educated buying decisions, it turns out that more shoppers are utilizing in-store marketing and branding cues to make an overwhelming portion of purchase decisions - 76% (an all-time high).

Brands on display are more likely to end up in the cart
The study found that nearly 1 in 6 brand purchases are made when a display with that brand is present in store. Displays are best targeted to a core group of loyal, female stock-up shoppers.

Retailers are missing out on opportunities to enhance in-store experience
Shoppers are spending less time but more dollars during their shopping trip. Whether it's using product displays in secondary locations or working with brand marketers to build customized in-store displays to reflect the retail environments, there are plenty of opportunities for retailers to turn their in-store marketing up a notch. 

The number of displays in secondary locations has increased 13% since 1995 - 47% in 1995 to 60% in 2012. Retailers are embracing the idea of cross promoting products and placing displays away from the home aisle. 

Creative sets apart in-store marketing and turns the subconscious shopper into conscious buys
When asked if they'd recalled seeing any in-store displays, 56% of shoppers said they did recalled seeing in-store displays with endcap and free-standing displays being cited the most. When presented with compelling and visual displays, shoppers become more engaged and conscious to the value proposition being offered. 

Another interesting find was that 13% had eye fixations on in-store displays and 66% of all that observed resulted in a purchase, which shows the importance of grabbing the shoppers' attention and getting them engaged with a product. 

Shoppers using plastic more like to impulse buy and more decisions in-store.
Those using a debit/credit card, or another non-cash payment, tend to spend more than they plan - and do. 


With more and more people turning to the internet for purchases like clothing, electronics, etc, the grocery store remains the one place where consumers must get up and go to the store. Of course you see local grocery advertising specials on TV, radio, and print, but as this report states the in-store marketing remains a powerful tool of persuasion for marketers. 

I look at this report and see a major opportunity for retail marketers and digital displays. The report states that when shoppers are presented with visual displays they become more engaged and conscious to the value proposition of an item. Digital signage is proven to have a higher recall rate than print materials. If retailers were to use digital screens built into free-standing, endcap displays, or even coupon dispensers they would have a better chance of capturing the buyers attention and engaging them with the item. 

Another opportunity to engage shoppers would be to add touch screen displays or kiosks through the store. The kiosk can be used to draw the shoppers' attention but also engage the user by allowing them to browse certain recipes for the product, check out other users suggested use of the product, etc. If printed materials can change a shopper’s conscious of the valued offer, just imagine what an interactive kiosk that helps to improve a shopper's fettuccine alfredo would do for perceived value.

Digital displays would also help retail marketers to better target certain audiences. Having the ability to change content on the fly allows retail marketers to target group A from 10am to 12pm, group B from 3pm - 9pm, and so on. Unlike print materials, digital gives marketers the ability to target who they want, when they want, and at the exact location. 































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