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    • 06/27/17
    • Retail
    • Consumer Goods
    • Global
    • English

    3 main challenges for converting browsers into buyers

    Imagine a potential customer is browsing in your store or on your website. They linger a little over one of your products and it’s clear that they’re interested. So how do you convert this browser into a buyer? There’s competition coming from every angle and consumer spending isn’t growing, especially in mature markets. As a retailer, you need to work harder than ever to convert browsers into buyers.

    Challenge one: Keep visitors on your website

    Regardless of whether you’re selling fashion or other non-food products online, if you have a website, you are a retailer. Your primary goal is to keep shoppers on your site, which provides the basis for a seamless customer journey. No matter if they are visiting your website to buy, research prices or check stock availability in the nearest store, the longer you keep shoppers’ eyeballs fixed on your website without them moving to your competitors’, the better your prospects of converting browsers into buyers.

    Your primary goal is to keep shoppers on your site, which provides the basis for a seamless customer journey. Making sure your site is rich in content and is fully optimized for search is essential – for more tips, see our blogs on user experience and product content.

    Challenge two: Convert browsers in-store to buyers

    It’s the same challenge in the physical shopping environment too. With competition for consumers’ discretionary spending so fierce, you won’t want to let people leave your store without them buying from you. If you don’t have the right size, color or style, you must help them to order it from your website. Provide tablets in-store to help customers order online. Offer Click & Collect and free delivery to facilitate that all important sale.

    If you don’t have exactly what shoppers are looking for, you must help them to order it from your website.

    Challenge three: Understand the shopper journey

    Today’s Connected Consumer shops in a hugely varied and complex way. If you can understand shopping behavior and journeys, you can maximize the path to purchase. Crucially, you can ensure your brand is present in “the moment of truth” when a purchase is made. The key to success here is your omnichannel strategy. It’s not enough to be on all channels, you must understand the types of consumer behavior that they evoke and flex the strengths of each to support your particular conversion patterns for all relevant shopper types.

    Cracking shopper conversion

    Using behavioral data from the passive measurement of different channels can help retailers understand purchase journeys in order to maximize the omnichannel environment. Each brand journey is different, however, if you can understand why someone didn’t buy a jumper online, or why that person walked out of one store and straight into another to buy a similar item, you have the intelligence to crack shopper conversion.

    Marco Wolters is Global Industry Lead Fashion, Home & Lifestyle on the enter department/area team at GfK. He can be reached at Marco.Wolters@gfk.com.

     

     

     

     

     

     

     

     

     

     

     

     

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    • 06/23/17
    • Retail
    • Consumer Goods
    • Global
    • English

    Optimize your retail environment: How to fill up shopping baskets and maximize sales

    To truly conquer the connected shopper, you need to encourage your customers to buy as much as possible in one shopping journey. In today’s retail environment, shoppers are presented with overwhelming choice. Here’s how you can influence their decision-making to ensure they buy as much as possible from your product suite and brand.

    Combating shopping on “autopilot”

    Shoppers have always made hundreds of decisions in-store, and now connectivity has created an explosion of further options. To help cope with the confusion of too much choice, consumers tend to shop on “autopilot”, navigating real and virtual stores by the products and brands they know and have bought before. If you’re to encourage shoppers to buy more from you in a single visit, you need to understand this behavior to interrupt and change it. You also need to make the experience of shopping as easy and convenient as possible.

    One way to do this is to sell to consumers’ “need states”. Whether it’s a last-minute child’s birthday party invite to an impromptu barbeque, organizing products by “need states” rather than category in a highly effective way to fill shoppers’ baskets both in-store and online. For example, displaying cards and wrap next to the toys is an effective way to ensure that you maximize sales from the birthday party shopper. It also discourages them from making a second shopping trip to a stationer to buy gift wrap materials. The same technique can be used online – for example, by suggesting other barbeque related products the moment a shopper adds burgers to their trolley.

    Follow the shopper in the real and virtual store

    We help you “follow” the customer journey by combining numerous behavioral data sources with observations and interviews to create a 360° profile of today’s connected shopper. Virtual stores enable you to decipher decision-making at the point of purchase – both in-store and at the shelf. For example, it can help you identify optimum product assortment and understand which promotions are most effective in-store. You can also use it to assess the impact of packaging on consumers, perfect your pricing strategies and evaluate the customer experience. Virtual stores are also key in allowing you to understand shoppers’ need states and then to organize your offering to sell to them.

    Optimizing your retail environment

    Knowledge is power when it comes to conquering the connected shopper. By measuring the retail environment with the many data sources available, you will be empowered to optimize it. By evaluating in-store activities, you can maximize your investment in marketing, and generate sales across channels, store formats, categories, segments and variants. Let data be your guide.

    Marco Wolters is Global Industry Lead Fashion, Home & Lifestyle at GfK. He can be reached at Marco.Wolters@gfk.com.

     

     

     

     

     

     

     

     

     

     

     

     

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  • Carte GfK - France : Pouvoir d'achat "produits High Tech, photo, Telecoms" (2016)
    • 06/22/17
    • Industrial Goods
    • Retail
    • Technology
    • Consumer Goods
    • Geomarketing
    • RegioGraph
    • Geodata
    • Picture of the month
    • France
    • English

    Carte GfK - France : Pouvoir d'achat "produits High Tech, photo, Telecoms" (2016)

    Une vision originale du pouvoir d'achat des Français, par région, sur les catégories Biens Techniques!

  • How can we help you? Meet our expanded ASEAN team
    • 06/20/17
    • -INDUSTRIES
    • Ad Hoc
    • -SOLUTIONS
    • -SPECIAL TAG
    • Retail
    • Technology
    • Automotive
    • Consumer Goods
    • Connected Consumer
    • Singapore
    • English

    How can we help you? Meet our expanded ASEAN team

    Our clients and partners are at the heart of all that we do. Our experts combine passion and creativity with world-class industry and product knowledge to deliver relevant insights that matter for your business. Learn more about our newly expanded ASEAN team of regional experts!

    • 06/20/17
    • Fashion and Lifestyle
    • Financial Services
    • Retail
    • Technology
    • Consumer Goods
    • FMCG
    • Home and Living
    • United Kingdom
    • English

    How to take concept validation to the next level - Just listen to your customers

    So you are nearly at the last stages of your product development. Your team has invest a lot in developing new ideas - not just time and money. But, say you only have resources to bring one to market now. What is the best way to decide which one?

    • 06/19/17
    • Retail
    • Technology
    • User Experience (UX)
    • Connected Consumer
    • Global
    • English

    Improving customer loyalty and retail experience through mobile payments

    Eight years ago, Starbucks developed its own app for mobile payments. Today, it’s still held up as the gold standard in the United States.

    In Asia’s rapidly developing market, where mobile payment is eight to nine years ahead of the West, things are quite different.

    In China, you can mobile pay for everything from a cab to a mojito or utility bill. In 2015, WeChat registered more financial transactions in one day than PayPal did during the entire 12 months.

    But it’s not just China that’s adopting the trend. Mobile payment is also making massive inroads in Southeast Asia as shopping apps are gaining popularity. In Singapore alone, there are 30,000 retail points accepting contactless payment methods such as Apple Pay, Android and Samsung Pay.

    In Indonesia, the most populous country in the region with 250 million people, most of the big traditional retailers are unveiling e-commerce plans of their own. In a recent GfK study: The Connected Asian Consumer, consumers in Singapore and Indonesia also reported fairly high usage incidence of shopping apps (37 and 35 percent respectively). This growth is fuelled by affordable smartphones, a massive young and tech-savvy population and efforts by governments and telco operators to expand and improve high-speed wireless networks.

    The future has never been clearer. It’s only a matter of time before mobile payment goes mainstream.

    The Connected Consumer

    Unfortunately for traditional retailers, the age of e-commerce has also produced a new consumer – we like to call them the ‘Connected Consumer’ – and their behaviors are shaping the future of retail.

    In the GfK 2016 FutureBuy survey of 20,000 consumers in 20 markets, it was found that shoppers are becoming less loyal to any one retailer. Almost half (46%) of all consumers (14-65 year olds) stated they were less loyal when shopping. This figure rises among the youngest consumers to 53% of Gen Y (18-29 years), and six in ten (58%) of Gen Z (14-17 years).

    For retailers who understand the Connected Consumer, there are opportunities to stay ahead of the competition – and mobile payments are a huge part of it.

    Customer loyalty

    Despite becoming less loyal, many Connected Consumers expect an omnichannel shopping experience when they interact with a brand. Connected Consumers in APAC seek the best of both worlds.

    For example, shoppers in China are the most likely to embrace omnichannel shopping – seven in 10 (71%) shop both online and in-store while Australian shoppers are the most likely to shun online: almost two thirds (62%) shop exclusively in-store. In contrast, Indians lead the way in online shopping with almost one quarter (23%) shopping the category exclusively online.

    Therefore it is important for retailers to understand the new reality of the omnichannel consumer, and know that the ‘whatever, whenever’ culture demands that user experience is seamless across all devices. If retailers don’t understand this, customers will simply delete their app and move on.

    We predict that mobile payment could halt the current trend for a decline in shopper loyalty. It makes sense, really. There are numerous benefits for shoppers: avoiding queues, centralizing loyalty rewards, checking stock, ordering ahead, enjoying customized offers and easy price comparison.

    At the same time, using customer and data analytics, retailers can receive customer data to offer more personalized services. In turn, this presents an opportunity to generate long-term relationships.

    However, it is important to note that not all Connected Consumers are the same. For example, older consumers aren’t as comfortable with sharing personal information as younger consumers.

    Understanding the shopper’s purchase journey is easier these days with research intelligence offering detailed information on the route shoppers take when making a purchase, and ways in which online and offline touchpoints influence their decisions. We believe that brands that understand, respect and protect consumers’ individual boundaries will deserve the loyalty they earn by doing so.

    As mobile payments continue to grow in APAC, businesses in various sectors such as financial services, cybersecurity and telco stand to gain and can evolve to support the changing landscape.

    For example, for telco operators, engaging with retail merchants and partners can help strengthen the overall service ecosystem to provide better end user experiences for consumers. Additionally, the design and development of payment services can also be integrated with other emerging technologies and competencies to offer differentiation to target audiences.

    Customer experiences

    Loyalty is great, but to really retain customers in today’s omnichannel space, shopping experience is equally important.

    To Connected Consumers, simplicity and convenience is paramount. Not only do they expect everything quickly, they also lose their patience faster.

    What does that mean for retailers?

    For large retailers, mobile payment offers the opportunity to segment and target consumers much more effectively with highly personalized offers and incentives. Discounts and offers can be integrated into mobile payment, replacing the need for physical coupons and entering information into a terminal. Connected Consumers will wave goodbye to the traditional checkout queue and benefit from a wealth of customized rewards.

    Mobile payment also offers a chance for small retailers to move into a new era of retailing. Freed from high transaction fees and with new ways to connect with consumers, small retailers can now embark on the kind of personalization and targeting that is usually the privilege of larger players.

    With e-commerce here to stay, there is plenty of potential for retail businesses to leverage research intelligence to adequately design and develop strategies to target this group of consumers. Essentially, the key to success is to fully understand shopper behavior and be led by what consumers ultimately want, without being blinded by what the technology can do.

    Karthik Venkatakrishnan is Regional Director at GfK. To share your thoughts, please email karthik.venkatakrishnan@gfk.com or leave a comment below.

  • Why the smartest thing about your brand is your consumer
    • 06/19/17
    • Fashion and Lifestyle
    • Retail
    • Technology
    • Consumer Goods
    • FMCG
    • Brand and Customer Experience
    • Market Opportunities and Innovation
    • United Kingdom
    • English

    Why the smartest thing about your brand is your consumer

    One of the challenges when identifying opportunities for innovation is that consumers don't always recognise what they need. Steve Jobs famously said that the IPod would have not been developed if Apple had simply asked what people wanted. The innovations that succeed are those which disrupt consumer behaviour by providing a product or service that improves what is currently done today.

  • Empowering a global retailer to grow its online product assortment
    • 06/19/17
    • Retail
    • Product Catalogs
    • Global
    • English

    Empowering a global retailer to grow its online product assortment

    We help one of the world’s largest retailers improve its online shopping experience, increase sales and compete more effectively with digital rivals.

  • Targeting - Who Are We Innovating For?
    • 06/18/17
    • Fashion and Lifestyle
    • Retail
    • Technology
    • Consumer Goods
    • FMCG
    • Home and Living
    • Brand and Customer Experience
    • Market Opportunities and Innovation
    • United Kingdom
    • English

    Targeting - Who Are We Innovating For?

    Why do three out of four new product launches fail to achieve their potential? One area that is of paramount importance is to truly understand the target customer. Who is this product for? What are their unmet needs? And what will make them hand over their hard-earned cash? Read on to discover more.

    • 06/16/17
    • Retail
    • Consumer Goods
    • Online Pricing Intelligence
    • Global
    • English

    Fine-tune and optimize your cross-channel pricing for better brand positioning

    Today’s Connected Consumers are increasingly price sensitive. According to our FutureBuy 2016 study, 58% of shoppers compare prices in different stores and more than a third (39%) use price comparison and discount websites. Consequently, promotional activity is intensifying as retailers and manufacturers battle to attract consumers with better deals. It is therefore vital that your pricing strategy is perfectly pitched.

    Perfecting pricing

    Defining and optimizing your pricing requires ongoing investment to ensure you are a) attracting buyers and b) securing your profit margins and brand positioning. You therefore need to continually monitor pricing dynamics and promotions across all channels: in-store, online and in print (ads, circulars, all relevant retailers and publications).

    Reviewing pricing strategies doesn’t necessarily mean price drops. It might be that, within the context of the market, your products are undervalued. You could not only be missing out on valuable margin, but also negatively impacting your brand positioning in the eyes of your target customer. A small increase in your price could have a significant impact, so this analysis can be hugely rewarding. In a recent project, we helped our client recognize that the strength of its brand justified higher price points. As a result, it claimed back valuable margin from its competitors. However, pricing that is too high could cause deal-seeking consumers to look elsewhere, so it’s important to find the sweet spot that is just right for consumers.

    Managing price erosion

    Price erosion is a sometimes unavoidable part of the product lifecycle, but manufacturers and retailers that have the ability to track both their online and offline pricing are better equipped to slow down unwanted price drops and ultimately maximize their margins.  Spotting price erosion early, before the price becomes set at that level, allows brands to be able to react to the correct market activity so they can bring back the highest ROI from their promotions.

    A competitive advantage

    With an overview of pricing, you can answer questions such as what is my product’s daily market price (advertised/promoted)? Is my pricing policy being followed? Is my pricing right for my audience – not too high, or low? What’s the ideal price gap between my product and that of my competitors?

    Crucially, we can help you track your pricing right down to an SKU level across the entire length of the customer journey. You can also combine this intelligence with Point of Sales Tracking data to determine the real return on investment of your pricing strategy.

    With these tools and techniques, you can fine-tune your pricing across all channels to optimize your brand positioning, and maximize your sales and profit. It’s a key tactic in your strategy to conquer the connected shopper.

    James Rudd is a Business Developer at GfK. He can be reached at James.Rudd@gfk.com.

     

     

     

     

     

     

     

     

     

     

     

     

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    • 06/15/17
    • Retail
    • Connected Consumer
    • Global
    • English

    3 easy ways to increase ecommerce sales through online product content

    U.S. ecommerce sales grew almost 15% in Q1 2017 compared to one year ago as reported by Internet Retailer.  With the growth of these sales comes increasing expectations from purchasers.  A recent GfK FutureBuy study shows that 54% of consumers are now less loyal to any one brand and need to shop around more to find the best value and 45% of retailers, advertisers, and brands have less influence on purchase decisions than ever before.  Yikes!

    So how will you influence your current and prospective customers to keep up with these trends? With accurate and quality product content that provides purchasers with the information they require to have confidence in a purchase decision and to increase your cart conversions.  Here are three ways in which you can stand out from your competitors:

    1 – Add rich content elements.  Rich content includes multiple high resolution images, product manuals, brochures, videos, virtual tours, feature benefit bullets, etc.  Adding rich product content better engages and informs your customers, increasing the likelihood of a purchase conversion and making it less likely for them to return your product.  For example, according to Panomatics, websites with virtual tours / videos typically keep visitors on the product page 3 times longer!

     

    2 – Create enhanced content.  If you’re not familiar with this term, it has been made most popular with Amazon by being referred to as A+ content.  However, it is now being accepted and encouraged to be displayed among top e-retailers like Walmart and Newegg and distributors such as D&H Distributing and SP Richards.  Enhanced content, aka A+ content, allows you to get creative with your product content design and information, helping you to convert and better inform those customers seeking product information beyond basic marketing content and product specifications.  82% of consumers go online to do product research before buying (Deloitte) so it is crucial that you grab your customer’s attention and keep it.

     

    3- Optimize your product content for search.  If you are a brand, you’ll want to create an account for Google Manufacturer Center.  Google now offers a tool for brands to have major influence over the product data being displayed in Google Search and Shopping results.  Content was once controlled by retailers but brands are now empowered to ensure their product titles, descriptions and images are accurate and of high-quality.  And when Google recognizes better, more relevant content they bump up your search rankings, so that you can be found first, leading to quicker sales.

     

    Today’s Connected Consumers love to find value by shopping around online.  The best way to stand out in the market is to have accurate, relevant and helpful content around your products.  Whether you’re looking for rich content elements, enhanced content or need to better manage your product data, product content can help you to influence purchase decisions and ultimately increase sales.

    • 06/14/17
    • Retail
    • User Experience (UX)
    • Global
    • English

    How retailers can build customer loyalty – one good experience at a time

    This post was co-authored by Heather Rakauskas.

    When asked to name their number-one challenge today, most retailers respond “improving customer loyalty”. At a time when online resources and ecommerce sites have placed shoppers firmly in control – able to find the best price, with SAP delivery, in seconds – having a long-term connection to consumers becomes invaluable. One of the few forces that can offset “lowest price wins” buying is consumer trust in and comfort with a brand.  

    The importance of customer loyalty programs

    This makes retailer loyalty programs even more important. They come in many shapes and sizes – personalized coupons, fuel rewards, VIP offers, surprises at checkout, free shipping, and points tiers, to name a few; but they all serve to remind customers why they should return to the brands they already know. Loyalty programs can also provide essential customer data that gives additional insights into promotion use, product trial and repeat, the identities of best customers, and more.

    And smart retailers assess the effectiveness of loyalty programs in a variety of ways – ongoing use of the offers, yearly value delivered by participants, and more. When launching a new loyalty effort, some retailers may even conduct a concept test, because this is a big investment with high expectations to meet. This due diligence often overlooks a key element of consumer satisfaction, though: the user experience.

    Applying UX research to loyalty programs

    Companies commonly apply “UX” principles and research to their websites and apps, closely observing and questioning users to find out what challenges and frustrations they might have experienced. By addressing the UX before launch, companies can head off major issues that could cripple acceptance and even create image problems for the brand.

    Loyalty programs deserve the same careful scrutiny – especially since they become an important part of the omni-channel experience, affecting communication and access both online and in-store. Loyalty use is experiential, not just transactional, and we should be viewing our programs through that lens.

    When assessing the user experience of a loyalty program, it is essential to look at both the offer and the interfaces (website, app and store), studying issues such as:

       

    • communication effectiveness for both process (how it works) and benefits
    • areas of confusion, irritation, inconveniences, and disconnection
    • delivery against expectations
    • drivers of and barriers to use — for both initial and return visits
    • consistency and usability across all program touchpoints
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    One important tip for the work – include your front-line associates in this evaluation, if they are tasked with communicating or executing your program.

    Enhancing the overall customer experience

    When doing this work, you are determining how to optimize the program experience to encourage more sign-ups and, importantly, more active users. You are hoping this program experience not only drives purchases but enhances the overall customer experience, providing a halo effect on the overall brand and strengthening the relationships you have with your customers. With goals as lofty as these, it makes sense to employ UX research to make sure you are connecting with and satisfying users to the highest degree, with nothing left to chance.

    To share your thoughts, leave a comment below or email wendy.wallner@gfk.com or heather.rakauskas@gfk.com.

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