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Presented by: THE NEW PATH TO PURCHASE Mary Brett Whitfield Senior Vice President Anne Zybowski Vice President March 2013 Big Idea
© Copyright 2013 Kantar Retail Copyright © 2013 Kantar Retail. All Rights Reserved. 501 Boylston Street, Suite 6101, Boston, MA (617) No part of this material may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photography, recording, or any information storage and retrieval system now known or to be invented, without the express written permission of Kantar Retail. The printing of any copies for back up is also strictly prohibited. Disclaimers The analyses and conclusions presented in this document represent the opinions of Kantar Retail. The views expressed do not necessarily reflect the views of the management of the retailer(s) under discussion. This document is not endorsed or otherwise supported by the management of any of the companies covered within the following slides.
© Copyright 2013 Kantar Retail The Path to Purchase … Was always a simplified model for a complex process 3 BEFORE AFTER DURING NAVIGATE STORE MAKE SELECTION CHOOSE OUTLET INFLUENCE SHOPPER BEHAVIOR Create Demand Choose OutletNavigate StoreSelect & Buy User Satisfaction Consumer Shopper Consumer TRUSTED MEDIA RE-PURCHASE Source: Kantar Retail analysis
© Copyright 2013 Kantar Retail The Digital Shopper Equipped EngagedActive Shopper Has Gone Digital Digital Shopper = Empowered Shopper Source: Kantar Retail analysis, Kantar Retail ShopperScape®,: January 2012, December 2012, January Have a Smartphone Have a Tablet Among Primary Household Shoppers … Have Made an Online Purchase in Past Six Months Significant year-to- year increase in participation rates in 13 digital activities … shopping well entrenched in the mix!
© Copyright 2013 Kantar Retail 5 Engaged … A Lot of Activity Outside the Four Walls of Stores Note: Shading indicates significantly greater percentage than all shoppers (95% confidence level). Source: Kantar Retail ShopperScape® January 2013 Gen Y/X digital social butterflies; Gen X most purposeful Digital Engagement (past six-month participation rates among all primary household shoppers)
© Copyright 2013 Kantar Retail Shopping The Shopper Is Omni-Channel... 6 … which creates new (and evolving) expectations of retailers and shopping experiences Source: Kantar Retail analysis Media Social Information
© Copyright 2013 Kantar Retail New (& Evolving) Expectations of Retailers Personalization Convenience 24/7 Access Conversation Price Transparency Exclusive Promotions 7 Source: Company Websites, Kantar Retail analysis
© Copyright 2013 Kantar Retail The New Path to Purchase Source: Kantar Retail analysis 8 Create Demand Choose Trusted Source Navigate Store/Site Select & Buy Choose Channel User Satisfaction Advocate Community Information and social media alter research and advocacy
© Copyright 2013 Kantar Retail Information Is Critical to Buying Process 9 Trusted Source for information is a new, key area of focus Source: Kantar Retail analysis, Kantar Retail ShopperScape® January 2013 Choose Trusted Source 3 rd Party/Social Google/ Search Blogs Communities Facebook Twitter Pinterest Other Social Manufacturer Vendor.com Brand sites Retailer Retailer.com Amazon.com 49% of shoppers researched a product online before making a purchase at a store 41% of shoppers read reviews before making their last online purchase
© Copyright 2013 Kantar Retail In World of Social and Consumer-Generated Media, Advocacy Is the New PR Moves well beyond satisfied customers Engagement Conversation Listen 10 Advocate Community Choose Trusted Source Source: Kantar Retail analysis, Company Websites, Facebook
© Copyright 2013 Kantar Retail Meeting Shopper Needs along a New Path in an Omni-Channel World Source: Kantar Retail analysis 11 What Has ChangedWhat It MeansWhat To Do Shoppers add choose trusted source to shopping routines. Shopper marketing needs to start significantly before shoppers are in front of a shelf or ready to click add to cart. Be present wherever and whenever shoppers are Ensure visibility at every potential point of influence Through social media and social networking, shoppers have the ability to share and shape opinions through advocacy. The retailer and brand mindset must shift from an environment where retailers and brands wield control to one where they are but one of myriad influencers. Adopt a test and learn culture Be willing to fail quickly
© Copyright 2013 Kantar Retail 501 Boylston Street Suite 6101 Boston, MA F Two Easton Oval Suite 500 Columbus, Ohio F Anne Zybowski Vice President Mary Brett Whitfield Senior Vice President T
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