This week, Saint Valentine’s Day insights, interesting TV data, and more. Here’s your summary of the most relevant consumer insight research in Latin American markets. If you’re trying to keep up with the latest happenings, this is your one-stop shop. Check out the previous Latam Consumer Insights Roundup here.
Saint Valentine’s Day Insights
Four out of ten Mexican consumers said they intended to make a purchase online for Saint Valentine’s Day. Almost two thirds (60%) planned to make purchases both on and offline, and only 14% intended to get something at a physical store. The research, by the Mexican Association of Online Retail (AMVO), also found that 40% of consumers expressed they’d spend $351-$500 MXN on gifts for Saint Valentine’s Day. A smaller portion of the population (15%) planned to spend up to $2000 MXN.
Procolombia, an organization that promotes exportation of Colombian goods, has also provided Saint Valentine’s Day Insights. According to their data, the most popular products in Colombia around February 14are (in that order): flowers, chocolate, perfume, lingerie, jewelry, stationery, balloons, and plush animals.
Mexican TV Viewers and Online Shoppers
A recent survey by Mexico’s Federal Institute of Communications (IFT) has found that 72% of Mexicans watch open broadcast TV. According to the study, TV consumption grew by 8% since last year. In fact, 93% of respondents own a TV. The top viewing times for consumers are weeknights and weekend afternoons. Consumer’s preferred categories are news (44%) and movies (40%).
In November 2019, householdconsumption in Mexico grew by 1.1% compared to the previous year. This is according to Mexico’s National Insitute of Geography and Statistics (Inegi.)The most relevant category for consumers was that of imported goods.
According to a recent study about online behavior by InternetMX, ecommerce in Mexico is now worth $299,660 million MXN. This represents a 22% growth compared to the previous year. Additionally, 80% of 83 million Mexican internet users have made a purchase online in the last 12 months.
Disney VS Netflix, consumers’ thoughts about Amazon, and retail marketing insights. A summary of the most relevant consumer insight research. If you’re trying to keep up with the latest happenings, this is your one-stop-shop. Check out the previous consumer insights roundup here.
There doesn’t seem to be a clear winner in the Disney VS Netflix fight yet. According to a new survey by Piplsay, half of Americans surveyed saidDisney Plus is “as good as” Netflix. On the other hand, 28% said it’s not as good, while 23% said they think it is better. In addition, 37% of respondents said Disney Plus is better than Amazon Prime Video and Hulu. Also, about 42% said Disney Plus is as good as Hulu. Finally, 40% said Disney Plus is as good as Prime Video.
A survey by Convey of 2,000 U.S. consumers indicates a good amount of people don’t really like Amazon but shop there any way to get free shipping. The survey found that 24% of those surveyed had negative views of Amazon’s impact on the retail industry. In a similar way, 27% felt “very or somewhat” negative about the company’s effect on the environment. However, 21% of those respondents who worried about Amazon’s impact on the industry still bought half of their goods on its site. About 24% who thought Amazon’s practices are damaging to the environment also bought half their stuff there.
According to the “State of Consumer Behavior Report 2020” from Raydiant, 69% of respondents said a good in-store experience is either important or very important to them. Almost two-thirds (62%) find store associates helpful. More than half (57%) of respondents said they would go to physical locations for exclusive discounts, but 23% said they would care for unique experiences. More than 68% of respondents searched for a better price online after finding a product at a physical store.
A survey of more than 2,200 U.S. adults from Morning Consult and PRWeek found 41% of Millennials like when brands show their commitment to social causes. However, 39% think companies are trying too hard to make it look like they care. About half (46%) of Baby Boomers and Gen X feel (42%) feel that companies “try too hard”. Finally, 35% of Boomers and 33% of Gen X like brands that “show off their commitment.”
A new report from agency Boston Digital titled ‘How Brands’ Social Media Impacts Consumers’ that surveyed 554 respondents found brands need to be entertaining online. Two thirds (65%) of consumers say they are more likely to purchase from a company they’ve followed for a month. More than half (54%) are ‘very’ or ‘extremely’ likely to look at a company’s social presence while researching a product. However, more than half (51%) said content needs to be relevant to them.
With nearly 95% of shoppers reading online reviews before making a purchase, reviews have transformed the way consumers make purchase decisions. According to a study by the Bazaarvoice network, one product review can result in a 10% increase in sales and 200 reviews can result in as much as a 44% increase in sales. We talked to two brand marketers whose businesses are mostly e-commerce driven about the way they use and leverage online consumer reviews in their marketing efforts.
Review Marketing Basics
Review marketing is a process certain brands use to manage their reputation online. For direct-to-consumer brands, this includes monitoring, encouraging, and responding to consumer reviews across multiple platforms.”We rely on consumer reviews because customers say it better than we can,” says Aireen de Peralta, Chief E-commerce Officer at WaterField Designs, a company that sells custom-fit bags and cases online.
We rely on consumer reviews because customers say it better than we can.
Michael Montanez, Director of Marketing at luxury clothing label August McGregor, notes that “We use yotpo to power reviews for August McGregor as we’re adding to our tech stack to improve KPIs. Reviews are expected these days for RTW (ready to wear clothing). It’s all part of the process. Attribution – we haven’t gotten there yet to determine the impact of reviews.”
Trusting Customers, not Apps that Go After Reviews
Waterfield does not provide incentives for customers to write reviews. “We feel it’s more authentic if a customer decided on their own to write a review,” explains de Peralta. “We e-mail customers after a few weeks of shipping their purchase and request for them to write a review. That way, they will have had time to use the product in their daily routine.”
Today, there are many apps and vendors that will aggressively go after reviews, offering discounts, points, or loyalty awards. However, de Peralta notes that she doesn’t employ these tactics. “Reviews apps are also complex enough to ask users to rate their experience based on certain criteria. We use just the simple open-ended format because we think this is a better way to capture what our user thinks is the primary reason to give feedback about. Each user has a different experience with a different emotional outcome, and we are more interested in capturing the emotions and understanding what it is important to them, rather than what we think is important to get feedback on.”
We use just the simple open-ended format because we think this is a better way to capture what our user thinks is the primary reason to give feedback about.
Review marketing is very powerful in driving customers to sales. According to a study of customer restaurant reviews by the Harvard Business Review, “a one-star increase in Yelp rating leads to a 5-9 % increase in revenue.” On the other hand, according to research, if there is an excess of three negative articles within search results, businesses can expect to lose 59.2% of their potential customers.
“We can’t track if a certain review caused a sale, but we do get feedback from customers that reviews have helped them make a decision. This is anecdotal evidence, but it’s enough for us to know that reviews do help sales. We also view reviews as an outlet for our community to express themselves and for product feedback,” de Peralta notes.
Boosting SEO and Social and Customer Service
Reviews can also substantially boost SEO rankings since the reviews contain keywords. They are also “proof for social”. In addition, they can also inform customer service as “some reviews answer questions that people have”, de Peralta notes.
Shopping habits on and offline, brand loyalty, and mobile technology on fire this 2020! A summary of the most relevant consumer insight research. If you’re trying to keep up with the latest happenings, this is your one-stop-shop. Check out the previous consumer insights roundup here.
According to a new consumer survey from TD Bank, millennials made nearly four major purchases in the past year on average. In comparison, Gen Xers and Baby Boomers averaged 2.8 major purchases combined. Millennials not only spend more, but they are also more thoughtful about their purchases. According to the survey results, they spend more time, on average, researching major purchases than any other group. Compared to baby boomers and Gen Xers, millennials are also more likely to research products through a retailer’s website, social media, and third-party websites. Also, they’re more likely (39%) to research financing options than their elders (22%).
The 2020 Deloitte Global Automotive Survey, which questioned more than 35,000 consumers in 20 countries, found U.S. consumers are not very enthusiastic about paying for automotive technology. For instance, 60% of U.S. consumers are unwilling to pay more than $500 for advanced safety technology. In a similar way, 66% of surveyed Americans said they wouldn’t pay for advanced connectivity, 75% for infotainment, 58% for autonomy, and 54% for alternative engine solutions.
Valassis has released the findings from a study conducted with Kantar, which surveyed 1,000 U.S. consumers about their shopping habits. The study, The Future of How People Shop, found that 68% of consumers believe they have become better equipped to make informed purchase decisions compared with five years ago. Thus, 60% of consumers often research products online before making a purchase, and 62% said they closely read product labels. Many of them also rely on advertising, as 43% of consumers said targeted advertising should be able to guide them through the store to locate products.
Research by Soti, published by Mobile Marketer, has found that mobile technology is important for better retail experiences. More than three fourths (78%) of U.S. consumers said retailers that implement mobile technology for both shoppers and store employees enable a faster shopping experience. Almost half (45%) of shoppers said they prefer sales associates to use mobile devices for checkout on the sales floor rather than heading to the traditional cash register. In addition, Soti’s data shows 53% of consumers use credit and debit cards, while 23% prefer cash and only 11% use mobile payment apps.
According to a Criteo study which surveyed over 1,000 U.S. consumers, 73% of shoppers are willing to try new brands they have heard positive things about. Discounts and offers often drive consumers who decide to check out a new brand, agree 93% of respondents. Criteo found 57% of U.S. shoppers rely on apps to look at products and get ideas, 55% use them to check out ratings and reviews, and 58% to make purchases. Overall, Criteo found 52% of shoppers look forward to shopping in stores when they have time. On the other hand, 41% enjoy shopping in stores to understand what’s in style or new, and 37% prefer to do as much online shopping as possible.
In March 2019 the D2C site AugustMcGregor was launched as a partnership between Irish UFC champion Conor McGregor and custom clothier David August. The men’s wear label offers modern suits designed to appeal to Millennials who want to follow the fighter’s confident sartorial style. Conor Mc Gregor’s Celebrity Marketing appeal and huge social media following in the MMA area gives the e-commerce site the opportunity to become an online fashion retail juggernaut. We talked to Michael Montanez, director of marketing at August McGregor, about what moves the sales needle at the site.
Make luxury fashion more accessible to a broader audience.
A Product suited for Celebrity Branding
August McGregor (AM) is a 100% DNVB (digitally native vertical brand). “A small offering of premium fight related wear has worked very well with core consumer base who are Connor followers”, says Montanez, who oversees all marketing and operations for the site. Later AM introduced casual shirts, dress shirts, sweatshirts, joggers and suits.
An ideal Target for Celebrity Marketers
Male Milennial that are making well under US $100,000. McGregor’s audience is price sensitive. “For August McGregor, it’s a genuine affinity for all things Conor McGregor, “Montanez notes.
The site is built on BigCommerce. Most of the theme is intact, except for some enhancements/modifications for checkout, UX matters. The site offers alternate checkout methods through PayPal, Apple Pay and Amazon Pay to better accommodate the mobile-first customer base, and the use of global shipping solution EasyShip enables the brand to reach its international demand with ease. On average, the site experiences close to 100k uv/mo. Revenue is growing at a compound monthly growth rate of 24%.
Connor McGregor has more than 35 million social followers on social media. Just on Instagram, with more than 33 million followers, McGregor has almost double the number of Instagram fans as the next MMA fighter Khabib Nurmagomodov and nearly eight times the number of third-place Jon Jones. At the end of 2019, the August McGregor site itself (@AugustMcGregor) had the below social follower numbers. (Facebook; 11,000 , Twitter: 12,000, Instagram 411,000).
Celebrity Marketing, Not Influencer Marketing
Montanez does not really see McGregor as a typical social media influencer because, for him, Influencer Marketing is more about a wide reach of social influencers activating the brand through various partners. “At AM everything is spearheaded through McGregor and his efforts, there is no intermediary component in the sense of traditional influencer marketing as Conor is the principal player. McGregor is used to drive traffic. Its a tactical deployment of a personality driven brand.”
What Moves the Sales Needle?
“We are constantly looking at how to increase our key performance Indicators. Conversions are improving month over month,” Montanez notes. Through ongoing tests they saw that increased volume sets up a lower price point. “We look at bounce, where exactly the consumer is jumping, how much are they consuming, how much are they converting. We’ve run a number of tests and have a good idea of what drives volume and what’s compelling to the consumer. There’s so much more to explore with CX/UX, but development is costly and in our infancy, we’re having to be responsible with spend and priorities. We notice a slight lag in decision making, but typically the conversion occurs within a week,” McGregor concludes.
“At the moment, we track leads and bundle influencer reach with attributed sales from social. We keep tabs on this through Google Analytics and the backend of the ecommerce platforms,” Montanez notes. “As a fashion brand, Instagram is the primary social channel that drives engagement and conversion. It’s no surprise that it contributes 53% of social revenue and has the lowest bounce rate compared to the other platforms”. Montanez is eager to up weight Facebook and Youtube in the new year to capitalize on in-channel shopping and video branding respectively.”
. As a fashion brand, Instagram is the primary social channel that drives engagement and conversion. It’s no surprise that it contributes 53% of social revenue and has the lowest bounce rate.
Celebrity Marketing Anchored Mix
“It’s a very modest spend to build the case for increased spending. Right now, it’s more of an organic, slow build. Our digital mix is mostly made up of retargeting, paid, display and email. We’re about to launch new channels like affiliate and Google shopping in Q1.Other than that, we heavily rely on Conor to drive the traffic of his engaged audience and through that effort, we have multiple referral sites that help promote. Montanez adds that PR will be a big driver for acquisition in 2020. In 2020, AM “will be increasing its efforts working with younger, rookies in sports – not just MMA, but major sports, i.e. NFL, NBA.” AM will not be paying for influencer marketing as the cost of merchandise for seeding is expensive, “so we’re working with individuals who genuinely have an interest with the brand and affinity with Conor and his passion.”
We looked at Comscore E-commerce data about the top 15 online retail sites visited by shoppers in the U.S. in September of 2019 and how they scored in numbers of visitors.
Coming after last January’s stellar results, where Amazon’s fourth-quarter net sales jumped 20% over the previous year’s, the online retailer has seen its earnings drop in Q3 of the year by 26%, which might be correlated to the decrease in its first-place position to 20.9% of all visits in September compared to 21.9% in January.
Number of visitors to the Top 15 e-commerce sites in the U.S., September 2019
Total Audience, Home and Work, PC/Laptop (000)
Total Unique Visitors/Viewers (000)*
Apple.com Worldwide Sites
The Home Depot, Inc.
Best Buy Sites
Source: Comscore *Numbers reported as shown
On the heels of a stellar year in 2018, Amazon got off to a strong start in 2019 as it expanded its share of online visits to its retail site to 21.9% of all visits to the top 15 retail internet sites in the US ranked by Comscore for the month. Since then, Amazon has decreased its share of site visits in the U.S. with 20.9% in September, 2019. Amazon’s leadership in online site visits is still undisputed in spite of the 26% drop in earnings in Q3.
Walmart and eBay have kept the second and third spots within the top 15 retail sites in the U.S. ranked by Comscore, with 11.9% and 10.6%of the total amount of visits respectively.
Apple.com continues to hold steady at 4th place in the top 15 retail sites ranked by Comscore.
Target, Samsung, Wish and Etsy keep fighting for spots 5 to 8, with numbers that have slightly changed since the January report.
DOORDASH.COM has entered Comscore’s ranking with 3.1% of all visits, pushing out LOEWES.COM, which held the last spot of the ranking in January.
Retailer Kohl’s continued to suffer a downward trend in its ranking in the top 15 retail sites in the U.S., going from 3.8% of all visits in January to 2.8% in September.
A summary of the most relevant consumer insight research in the U.S. and U.S. Hispanic markets. If you’re trying to keep up with the latest happenings, this is your one-stop shop. This week, we looked at a few holiday season shopping insights and a couple more interesting research highlights.
Deloitte’s 34th annual holiday retail survey, which polled 4,410 respondents across the United States, found that the average household is planning to spend nearly $1,500 this holiday season. E-commerce sales are expected to grow by 14-18%, and 70% of smartphone users said they will use their device to make a purchase.
RedPoint Global has announced the results of a survey that examines the opinions of over 1,000 U.S. consumers about holiday season shopping. According to the survey, nearly a third of respondents indicate that receiving irrelevant offers from brands is their primary frustration during the holidays. Brands should really pay attention to this, as 60% of survey participants said they are more likely to purchase from retailers who send them personalized content and offers.
According to Periscope By McKinsey’s “2019 Holiday Season Shopping Report”, 51% of consumers use smartphones to compare prices with competitors while in the physical store. In addition, 33% use smartphones to search for in-store discounts or coupons, and 30% leverage them to look up further product information.
According to the latest survey from Bankrate Credit Cards, six in 10 U.S. credit or debit cardholders (64%) say they have saved their card number online or in mobile apps despite safety concerns. The survey finds that more than half (56%) of U.S. adults save their credit or debit card information on a retailer or service’s website (like Amazon, Walmart or Netflix) while 32% save their credit or debit card information in a mobile payments app (like Apple Pay or Google Pay).
Research by BritePool and the USC Annenberg Center for Public Relations show that, among 1,004 U.S. adults, 87% would select a “Do Not Sell My Personal Information” option on any given website. The people most receptive to sharing were those in the 18-34 age category, only 49% of whom said they would choose “Do Not Sell.”
According to a survey by online coupon platform Shopper.com, 95% of U.S. respondents have used an online coupon at least once. One in three U.S. respondents search for a discount code almost every time they make an online purchase. Across all respondents (U.S. and U.K. consumers), 42% of women and 32% of men have helped a friend or family member find an online discount code, and 86% of all respondents feel frustrated at themselves when they miss the opportunity to make a saving on an online purchase, but one in three feel annoyed at the retailer for not making them aware of potential savings.
Check out the last report including other holiday shopping insights here.
A summary of the most relevant consumer insight research in the U.S. and U.S. Hispanic markets. If you’re trying to keep up with the latest happenings, this is your one-stop shop.
Accenture’s13th Annual Holiday Shopping Survey of 1,500 U.S. consumers has found that Americans expect to spend $637 on holiday shopping this year, on average, with approximately six in seven respondents planning to spend either the same (57%) or more (28%) than they did last year. Consumers are expected to do half their purchases in physical stores, with lower prices cited as the top (82%) factor that would tempt them to make an in-store purchase.
For the first time, consumers in the U.S. might do more of their holiday shopping online than in physical stores, according to a new survey. In its annual Holiday Outlook, PricewaterhouseCoopers LLP found that 54% of respondents will opt for the convenience of their smartphones, laptops, and PCs, and even in-home voice assistants, compared to 50% last year.
CGS has announced findings from its 2019 CGS Customer Service Chatbots & Channels Survey. CGS surveyed more than 1,000 Americans and found that 86% of consumers prefer to interact with a human agent. Moreover, 71% of respondents said they would be less likely to use a brand if it didn’t have human customer service representatives available. Only 30% believe that chatbots and virtual assistants make it easier to address customer service issues. However, for respondents under 35, confidence in AI-based solutions reached 43%.
Recent research by Deloitte shows that consumers’ tolerance to advertising varies according to the type of shows they like. A new survey which polled 2,000 U.S. found respondents whose most-watched type of show was talk shows had the highest tolerance for advertising (11.6 minutes per hour), and the ones who prefer scripted comedies or dramas have the lowest (7.2 minutes).
According to the National Retail Federation’s annual survey of 7,400 U.S. consumers, 68% of Americans said they plan to celebrate Halloween. Sixty-nine percent declared they will hand out candy, while 49% will decorate their homes and 47% will dress in costume. In total, they are expected to spend US $2.6 billion on Halloween candy, about $25 dollars per person.
A recent CodeBroker survey of over 1,100 U.S. consumers on coupon and offer personalization found that sending custom offers to past consumers is a good opportunity for brands. The results show that 73% of respondents answered with a definite yes to the question, “Do you prefer to shop at stores that send you custom discount offers based on your purchase history?”.
What: For years, large chains have targeted Hispanics by adding a special aisle with select items from their home countries. These days, this approach can be a bit outdated. Here are some Hispanic grocery shopping insights, as diversity and globalization demand a more integrated approach. Why it matters: Marketers are well aware that Hispanics are a huge consuming force that will only grow in time. It’s important to come up with ways to really cater to the community’s needs.
The Hispanic Cooking Rites
Us Latinos love our food. We love preparing it, we love planning it, we love buying fresh ingredients. Cooking and sharing is the ultimate family-bonding experience. Homemade meals are the first thing we miss when we’re away. We make them anywhere to feel at home. All these cultural traits not only make us great cooks, but also great produce and grocery shoppers. According to The State of the Plate, a 2015 Study on America’s Consumption of Fruits & Vegetables published by the Produce for Better Health Foundation, Hispanic grocery shoppers rank highest in produce consumption amongst 3 other ethnic groups (White/Non-Hispanics, Asians, and Black/Non-Hispanics).
There’s something all food marketers in the U.S. need to understand in order to cater to their Hispanic customers: From the moment the menu for a Hispanic table is conceived, every step of its preparation matters. Supermarkets appealing to the target can assert everything they must do to satisfy an ever-growing consumer base by being aware of the particularly ritualistic nature of Hispanic kitchens. Latinos love hand picking their food, buying enough ingredients to last for several meals, and trying out new ingredients on a permanent effort to enrich and expand their gastronomic experiences. But there’s one problem. Even though marketers are well aware that Hispanics are a consuming force, some have chosen to label and separate Hispanic (and generally ethnic) foods and products. This segregation rings counterintuitive and obsolete.
Finding the Balance Between Diversity and Globalization
Hispanics are widely diverse as a group. Every single Hispanic country has different ancestral dishes that require specific ingredients for their preparation. In addition, Millennials have been exposed to the culinary options of a globalized economy. This surely has an affect on traditional menus, even if Latino families have a specific and deep-rooted meal preparation routine.
Nearly six in ten Hispanics are Millennials or younger, according to Pew Research Center’s 2014 report, The Nation’s Latino Population is Defined by its Youth. 40% of American Millennials are multicultural, and more than half of this group are Latinos. As a global society would have it, we want to be able to make corn flour tortillas, but we want them filled with swiss cheese. According to The Why? Behind the Buy, a study conducted by Acosta Marketing and Univision in 2015, 57% of Hispanic Millennial Shoppers ages 25-34 say they often try new flavors/products.
For years, the larger chains have catered to the Hispanic consumer (primarily) by adding an ‘Hispanic’ or ‘International’ aisle and placing select merchandise from Latin America. […] It is unclear if this format is successful.
Nothing more American than… Pizza?
As we have said before in other articles, foods that used to be foreign at some point, like pizza, sushi, and tacos, are such a big part of a global food culture that no one hardly ever questions their place in American households. These days, being able to find a wide variety of products from around the world is expected. In some cases it’s a given, because we live in a connected world in which boundaries are more blurry each day. As Rishad Tobaccowala, Chief Growth Officer at Publicis Groupe, said to Portada in a recent interview, “An idea that is not aligned with the unstoppable trends of diversity and globalization is doomed from the start.”
How to Include a Niche
For a minority seeking inclusion, all manifestations of inclusion are welcome. Supermarkets could start by dropping the label “Hispanic groceries” to call them just groceries. Yet, many supermarkets have tried to cater to the Hispanic audience by adding “exclusive” sections with the products Latino audiences may find at home. “For years, the larger chains have catered to the Hispanic consumer (primarily) by adding an ‘Hispanic’ or ‘International’ aisle and placing select merchandise from Latin America […] Some of the largest, such as HEB in Texas, developed their Mi Tienda (My Store) format which is located in a high dense Hispanic neighborhood. A larger store than a neighborhood store. It is unclear if this format is successful” says Randy Stockdale, director of Solex Marketing Solutions.
Problem is, inclusive as this effort may appear at first glance, Latinos already comprise 17% of the total American population. Inserting a Hispanic section surrounded by aisles of “non-Hispanic” products might end up falling short for this ever-growing segment. “I don’t subscribe to a Hispanic aisle”, says Stockdale. “I would rather see the stores, particularly the larger chains, place like-items together and provide a greater convenience. Have you ever found Goya Olives in the general Olives section? Likely not.” Think of it this way: limiting their space is also limiting their consumption to one tiny section of an entire store.
In July 2017, a tweet got viral because one man saw the mockery potential of a supermarket freezer labeled “Frozen Hispanic.” He decided to pose as just that… a frozen Hispanic. The tweet got 152,278 retweets of people that didn’t see the need to separate frozen tamales from frozen chicken wings. Supermarkets would greatly profit from including Hispanic products without differentiation. It’s been proven that Hispanic consumers are generally willing to try new, different things.
Brands like Jarritos spark the joy of feeling represented and identified while being abroad. Many people immediately purchase products that make them feel homesick when they’re abroad. This speaks of the great importance of having a supermarket experience that appeals not only to your needs, but to your emotions, comfort zone, and memories of home.
And just like it would at home the store needs to feel just like any other supermarket with staple sections. In Canadian supermarkets, for example, diversity is tangible all around. A variety of multicultural shoppers experience all kinds of international foods available to everyone. Anyone can add tzatziki, udon noodles, and jasmine-infused rice pudding to their shopping basket.
Just as the world’s boundaries are thinner, the gaps between demographic segments are narrower. We want to connect to our heritage, but we don’t want to feel isolated by it. We all want to feel human. So, if including a separate Hispanic grocery section on the supermarket is no longer a viable option, what is? How to attract Hispanics and make them feel welcome and included while strongly driving purchase intention? The answer lies in the power of emotions.
What Should Supermarkets Do, Then?
In short? “Enhance their joy of shopping”, conclude Acosta and Univision on The Why? Behind the Buy. Perhaps general retailers could learn a thing or two from Hispanic grocery concept supermarkets like Northgate González Markets. The chain not only features an in-store tortillería, carnicería, and cocina, but that also offers children cooking classes and a gift certificate upon completing six lessons.
Or Fiesta Mart in Texas, offering a variety of fresh, organic, locally sourced produce with a side of social community programs to educate children and help feed the hungry. “I would not say [larger chains] are not doing a good job,” says Randy Stockdale. “They are trying at least. But, I would state that the larger chains should provide a friendlier-Hispanic atmosphere and improved merchandise. I am a strong proponent of bilingual in-store signage where the store is high-Hispanic density”. Therefore, the wisest move is to be inclusive and open-minded in both directions.
Both Fiesta Mart and Northgate Gonzalez are on the other side of the spectrum. Just as there are Hispanic aisles, there are entire stores that focus on the Hispanic community. But this doesn’t mean the general market should not come. There’s no reason to separate minorities, communities are not separate anymore. Everyone is welcome because everyone is from everywhere. No man is an aisle.
.What: We talked about Retail Marketing to JC Penney’s Ana Lucía Soto, MillerCoors’ Turiya Luzadder, Wilson’s Ángel Carmona, and Oath’s Maya Abinakad & Denise Brien. Why it matters: The term ‘Retail Marketing’ has been around for some time. However, the attention is still focused on consumers, not on retail shoppers. This seems like a missed growth opportunity.
Retail marketing tries to inspire shoppers to make last-minute sales when they are already prepared to buy something. Especially when compared to other media, the main characteristic of in-situ marketing is immediate impact. This concept isn’t new. Procter & Gamble was considered one of the pioneers in retail marketing in the U.S. around 2001. Several definitions of the concept have floated around since. A widely accepted version, provided by POPAI’s Retail Marketing Industry Council in 2011, defines retail marketing as “the application of shopper insights along the path to purchase, to affect purchase behavior in order to increase sales for both retailers and manufacturers.”
For marketing consultant Mike Anthony, the problem with this definition is that the word “insight” is elusive. He sees retail marketing as a process of understanding rather than an application of insights. For Anthony, the key to this kind of marketing is “using that understanding to develop a marketing mix which influences shopper behavior” in a way that improves consumption of a certain brand.
There are many ways to do this. Nevertheless, there are common techniquesto persuade shoppers depending on who designs the campaign. Manufacturers consider price, packaging, and arrangement of products, while retailers emphasize the location, the store layout, and lighting, for example. We talked to marketing experts about the key facts of retail marketing in the future. A future which is actually already here.
1. Customer Experience is Key, Both Online and Offline
It’s all about experience, not online or offline but both. In the words of Turiya Luzadder, Director, Shopper & Local Insights at MillerCoors, “Retailers and brands looking to win with consumers must provide a positive in-store/online experience that quickly instills confidence that the product will meet the needs (functional and emotional) of the consumption occasion.”
As she explains, everything is changing at a quick pace, but there’s a big opportunity to learn about online and offline solutions, as each one offers something different. “People will shop both online and offline as each exploits its own strengths. Online will lead with its promise of convenience. Offline will seek to provide an experience as it retains the advantage of a tactile environment with social interaction.”
Either online or offline, what really matters for retail marketing is making sure the experience is so great consumers come looking for your brand. According to a study conducted by Maya Abinakad, Global Marketing Director, and Denise Brien, Senior Director of Consumer Insights at Oath, 9% of consumers’ brand love comes from outstanding experiences. “Brands [who] transform ordinary into extraordinary deliver experiences that are consistent, engaging and memorable,” they explain.
Even though there is now a shift towards a completely digital landscape, brands need not lose sight of what really matters: ensuring shoppers have a good experience. “The key is to offer the best experience possible to our consumers,” asserts Ángel Carmona, Business Manager, Latin America at Wilson. “We need to engage our brand with our consumers by a shopping process which needs to be friendly, clear, and fulfilling. Our client’s satisfaction is crucial for references and future purchases.”
2. It’s the Era of Technology: Better Know How to Use It
Every day new technologies become more relevant. As Oath’s Abinakad and Brien state, “Marketing is one of the main strategies that evolve in every technology trend. The relationship between customers and technology is a trigger that changes everything around it. If a brand hopes to stay relevant, it must capitalize this relationship. “Today’s industry is much more data-driven, with increased access tools that can provide real-time information on shopper behavior,” comments Ana L. Soto, National Media Manager at JCPenney. “Data insights will allow companies to better understand a consumer’s behavior and path to purchase, which will allow them to target their retail marketing efforts more effectively.”
Programatic Marketing as a Strategy
“We could say that programmatic marketing will have a significative growth this year,” point out Abinakad and Brien. “This strategy allows marketers to channel their ads to the correct audience and tailor the message to each product or services’ target. In this sense, location-based marketing plays a key role in insights of where consumers are and how to offer them the best option according to their location in real time.” This and other trends, like the accelerated change from desktop to mobile, will have an important impact on the way marketers address shoppers; technology is a real opportunity to reach targets effectively.
3. You Need to Look Inside as Well as Outside Your Doors
As Wilson’s Ángel Carmona explains, implementing a campaign is not enough. It is also necessary to integrate and evangelize your staff. “[Your staff] is the most important ambassador at the point of purchase and should be the best way to engage with the consumers.” In other words, everyone in your organization needs to be on the same channel. There’s no use in having a great product if only you know it. There’s a great chance shoppers will engage more if the whole team has a deep knowledge of why they should engage.
Making mistakes is easy, but it’s also easy to avoid them if you get your priorities right.
Therefore, Ana L. Soto recommends “to have alignment, consistency, and collaboration within your organization —from internal teams all the way to agency partners— in order to use the correct channels to target the consumer effectively and ultimately drive actionable results that engage them in a meaningful way to them.”
4. Here’s What You Should Do, and What You Shouldn’t Do
When Portada asked our interviewees about the most common mistakes related to retail marketing, they took us back to the basics: communication, human needs, and positive change. For Turiya Luzadder, “Making mistakes is easy, but it’s also easy to avoid them if you get your priorities right”. In her words, there are three key priorities to bear in mind in order to avoid mistakes:
1) To bring the organizational focus back to the human and retailer needs. “We spend so much time focused on our own goals that we risk losing sight of our dependence on consumer and retailer engagement”. 2) To constantly tear down the silos. “Strong communication amongst teams (brand, consumer, channel, shopper, chain, analytics…) is critical. It’s easy to go too far down a path before seeking feedback. 3) Being willing to take risks to create change. “There are times when you have to take a chance on an idea that is different and makes people uncomfortable. Finding the right retail partner and marketing advocates becomes critical.”
No matter how good your product is, if a consumer is not satisfied with the experience they won’t come back.
The easiest mistake to make in retail marketing
For Ana L. Soto, the easiest mistake to make in retail marketing is not having a true understanding of the customer. “Marketers need to have a clear understanding of their target audience coupled with data-driven insights into their behavior,” she comments. “This is crucial in determining and executing a successful strategy that will lead to high levels of engagement.” It is easy to get lost in technology and new trends and forget what truly matters. Ultimately, says Ángel Carmona, the main objective should be providing the best shopping experience possible. “No matter how good your product is, if a consumer is not satisfied with the experience they won’t come back. We live in a global market and we compete with more brands than ever, so we are only as good as our service.”
And sometimes that implies going a step further. In the midst of the fiercest competition, the brands that go the extra mile get the best results. According to Abinakad and Brien, 30% of brand love is determined by its ability to exceed consumer needs. “Brands that give consumers what they want —often before consumers even ask— offer something that competitors can’t. The secret is overdelivering on quality, durability, design, and performance in your product, your marketing and everywhere you meet your consumer.”