Shopper Culture

Popularity is Popping Up Everywhere

Hotels.com now features an interesting ephemeral pop-up when you view a hotel listing.

Not only do they show you the rating of the hotel and its overall popularity: they are now featuring the popularity of the hotel in the last day. 

Similarly, companies like MediaCart are building cart-mounted tablet systems that can put these kinds of messages at shoppers' fingertips. As you walk the aisles, the tablet could say, "The top-selling aspirin this week is Bayer Low Dose Baby Aspirin 200 ct."  

We are herd creatures, as Mark Earls has said for years. And one of the easiest ways to outsource our cognitive load—our decisions—is to simply do what others do (because if so many people do it, it must be good enough).

Research has found that this kind of 'social proof' is extremely persuasive. (Robert Cialdini is a leader in this work.) And the more similar the reference group is to you, the more persuasive the message is.

Amazon and Netflix are the kings of the recommendation engines. It's surprising that it's taking so long for brick & mortar retailers to catch on.

The Complex Shopper: Meet Patricia, The Experience Lover

The Complex Shopper is an annual research and analysis project conducted by The Integer Group and Decision Analyst. It is designed to reveal the motivations that drive the considered purchase process – those infrequent, big-ticket items ranging in price from $100s to $1000s.

One outcome from the study was identifying four distinct shopper types – Fretting Frugals, Experience Lovers, Passive Purchasers and Social Adventurers. In our last post we defined Gary, the Fretting Frugal. Today, we’ll identify Patricia, the Experience Lover. 

A confident shopper who embraces the process

Patricia was born to shop! She absolutely loves the shopping process. She knows what she wants and can visualize how great that new bedroom set or couch will look in her home. Patricia describes herself as organized (58 percent of Experience Lovers identified themselves as this), imaginative (53 percent) and assertive (45 percent). As a result, she rarely passes the responsibility of the final purchase decision to anyone else because she is confident in her abilities.

When it comes to research, Patricia is in her element – shopping is her therapy, her buzz and it makes her feel good. The strength of her positive shopping emotions exceeds all other shopper types:

• Satisfied – 85 percent
• Excited – 61 percent
• Happy – 75 percent
• Smart – 63 percent 

She enthusiastically searches a variety of websites, looks at reviews and visits  the store. Of all the shopper types, Patricia visits the store the least at two and one-half times per purchase and on average will go online eight times.

Some women shop for shoes, Patricia loves to shop for furniture – in fact, she leads all shopper types in category spend for furniture at 42 percent, which is almost double the next closest shopper type. She’s not as worried about what that furniture sits on though – spending the least of all shopper types in the flooring category with only 17 percent of the total category spend.

Engaging Patricia

To motivate this shopper, increase both in-store and online interaction to give her ways to share the experience in person or via social shopping. Keeping in mind the number of times she goes online to research, the digital experience needs to be easy and engaging. Appeal to her imagination, her confident sense of self and entertain her love of the process and she’s likely to make a recommendation about your product or brand post-purchase. Approximately one in five Experience Lovers will accept and receive emails from a brand, so plan to communicate with Patricia after the sale. 

Our fourth and final shopper type – the Passive Purchaser – will be up next in our review of The Complex Shopper. 

Didn't Go To The Gym: That'll Be $5

Ever heard of putting a quarter in the jar for saying a swear word? Now apply that to failing to follow through on your New Year’s resolution. 

With the new year rolling in, many people resolve to lead a healthier life, whether it’s eating better to losing weight. And just like all other years, most Americans’ enthusiasm and commitment will begin to decline as the year moves on. According to PRWeb.com, recent University of Illinois research shows this is due to a cognitive disconnect called “self-efficacy,” a confidence needed to succeed.

But this year, one particular tool to help people commit stood out. Instead of a brand promising success, why not make the shopper commit to themselves? The mobile app, Gym-Pact, actually fines individuals for failing to exercise. When a user signs up, they have to determine two things: 1) How many days a week they will commit to visiting the gym, and 2) How much money per missed visit they’ll chalk up. Then with the use of smartphone technology, users simply check-in every time they make a trip. 

 “Behavioral economics show that if you tie cash incentives to things that are concrete and easy to achieve like getting to the gym, it’s very effective,” said co-founder Yifan Zhang in an interview with the New York Times. “People don’t like losing money and it’s one of the strongest motivators, much more than winning money.”

And if that wasn’t enough, users are rewarded with cash for following through with their commitments. Of course, paid out by those who failed. While Gym-Pact is certainly not for everybody, it’s interesting twist on psychology around New Year’s resolution is intriguing. Instead of prompting the user with a less actionable "New Year, New You,” it gives them something to lose. 

 For more information on New Year’s Resolutions around health and wellness, download a copy of The Checkout - Issue 7, 2011.

Shopping Carts Can Change Your Behavior

One of the world's largest shopping cart manufacturers has found that "if the cart is double the size of our regular one, we buy an astounding 40 percent more than we usually do."

Similar results are found with popcorn buckets at the movie theater: people finish the whole bucket, regardless of how huge the bucket might be. And when asked, they claim that the size of the bucket has no influence on how much they eat. Of course not! We eat when we're hungry and stop when we're full. Right?

So many things influence shoppers subconsciously. And they're incredibly hard to study in a survey: no one would say that the cart size influences how much they buy. Of course not! We shop when we need things and stop when we have them.

This is why controlled experiments and direct observations are so important.

The Checkout: Digitail

The DIGITAIL^® Checkout study investigates shopper's use of technology to interact with brands online and the level of that engagement. This issue looks at the growing eCommerce marketplace and the purchase-frequency variations across different categories compared to last year.

In focus this month:

• What's truly driving the increase in eCommerce sales?
• Older Americans show the largest gain in online shopping versus a year ago.
• Consumer Packaged Goods (CPGs) lag in online sales across all age groups.

For more DIGITAIL^® Shopper data, you can click here to download the latest edition of The Checkout - Issue 1, 2012.

 

Do We Shop For Experiences and Relationships?

Over the holiday break, I found myself immersed in a discussion pertaining to the definition of shopping. "What is shopping?" a fellow friend in shopper marketing asked. Obviously, we both agreed that picking up milk at the store or buying a pair of jeans at the mall was shopping. We agreed shopping also consisted of buying goods on Amazon and other online retailers. We even agreed that choosing a mechanic or hair stylist and other such services constituted shopping.  

But we differed in opinion related to experiential choices.  Do individuals and families "shop" for vacations? Do parents and high schoolers "shop" for a college? It was a good debate. Well, this past week I came across two interesting articles that add to the question -- Do we "shop" for experiences? And do we "shop" for relationships? 

First, Good Magazine, using data from YourMorals.Org, argues that persons who buy experiences are more satisfied, less anxious, less depressed and in better mental and physical health than persons who buy material things. 

And second I read about Andrew Hyde who only owns 15 things. That's right. 15 things total. On the topic, he stated, "This whole experience has taught me something very simple: debt kills dreams. Debt is cash, things and fear ... I don’t have much right now. 3 shirts, a pair of pants and shorts. Some odds and ends. I do some pretty interesting and amazing things everyday, and not once in the last month did I really want anything more … It has turned by life from stuff centric to relationship centric." 

Do we "shop" for experiences? Do we "shop" for relationships? For friends? Love? I don't know if there is a clear answer. Perhaps a good debate worthy of research. In that debate though, the learning from these two brief articles must be taken into account. Buying experiences versus buying material goods leads to more happiness. And, in the case of Andrew Hyde, developing better relationships versus owning materials goods leads to more happiness. So, if we do "shop" for experiences and relationships, it must be a different shopping approach, shopping mindset and shopping process because it leads to a different result. 

I present this because, as marketers, we often sell our products, services or retail stores as experiences or relationships. When we do are we applying the same shopping framework that we would for a consumable? Our consumers may not be. 

 

The Checkout: New Year's Resolution 2011

Year after year, as shoppers begin to prepare for the new year, brands and retailers flood the scene with resolution-themed marketing and promotions. But how do resolutions affect shopping behavior? This issue of The Checkout explores who will make resolutions, what type of resolutions they will make, and how they shop in pursuit of their goals. 

• A majority of shoppers will make a New Year’s resolution as they see the new year as a time to concentrate on their health and wellness goals.
• Top trends for resolutions are similar among men and women, but do they result in similar behaviors?
• With resolutions primarily focused on leading a healthier lifestyle, do shoppers develop new habits during resolution season?

Please click here to download The Checkout - 2011 New Year's Resolution issue.

The Complex Shopper: Meet Gary, The Fretting Frugal

The Complex Shopper is an annual research and analysis project conducted by The Integer Group and Decision Analyst. It is designed to reveal the motivations that drive the considered purchase process – those infrequent, big-ticket items ranging in price from $100s to $1000s.

One of the outcomes of the study was the identification of four distinct shopper types – Fretting Frugals, Experience Lovers, Passive Purchasers and Social Adventurers. In our last post we defined Allison, the Social Adventurer. Today, we’ll meet Gary, the Fretting Frugal. 

Big researcher, little confidence

For Gary, shopping is simply not fun – he compares it to going to the dentist. Representing the largest segment (31 percent) of Complex Shopper profiles, Gary spends significant time researching his purchase, but is least likely to engage with or repurchase from a brand. 

Gary’s determining factor for making the purchase decision has little to do with other’s opinion of his purchase (18 percent) and everything to do with price (92 percent) and how long he will use the item. In other words, Gary wants value.

That doesn’t mean he won’t spend money. The Fretting Frugal has the highest share of spend in several categories of the study including windows and doors (37 percent), major appliances (34 percent) and automobiles (40 percent). Interestingly, Fretting Frugals are the most excited by and get the most enjoyment from shopping for vacation travel. (Maybe because they are so stressed out from making major purchases?)

How to connect with Gary

He may not enjoy the shopping process, but Gary provides ample opportunity to connect with him. Similar to the Social Adventurer, he will visit a store or location 3.4 times per purchase and research online more than 10 times per purchase. Reassure him and help build his confidence about your brand. See our infographic below for more ideas to engage Gary.

The passionate and brand-loyal Experience Lover will be our next Complex Shopper profile. 

 

Shopper Loyalty Programs Made Easy

Many loyalty programs pose a difficult hurdle for both retailers and consumers. For shoppers, carrying loyalty cards for every store you frequent is a tremendous hassle. For small- and medium-sized businesses, a loyalty program can be time consuming and/or costly to enact. 

Just a sampling of cards from my wallet. 

Smartphones: Our Greatest Shopper Tool

It's no surprise then that as conversation turns more and more to the mobile wallet and the use of Near-Field Communication for payment systems, companies are looking to innovate around other items in our wallet. Starbucks took their payment card system mobile and saw over 26 million transaction this year. This drives not only easy payment but also loyalty; even better, it produces a wealth of consumer data for Starbucks to work with. DATA! IS! FUN!

Making It Easy

It's all well and good for Google and Starbucks to explore mobile payment and loyalty, but what about businesses who don't have the time and money on-hand? Enter Belly, a digital loyalty system on an iPad. 

Belly from Bellycard.com on Vimeo.

What's great about this? For a retailer, it allows them to get a loyalty program up and running in no time. For shoppers, It works if you do or do not have a smartphone, and it only requires one card or one app, regardless of where you are using it. VOILA!

What's In Your Wallet?

What do you have in your wallet that you wish you could take digital? Have you experienced any other great innovations in loyalty programs or digital wallets? Is there something you wish you could offer your customers? Tell us.

 

 

Santa: A Shopper Attraction, No Matter Your Age

For many marketers, Santa is the star this time of year. He is a powerful icon that can evoke memories, generate emotion, attract crowds, and even inspire shoppers to spend more. And, for that reason, we see him everywhere. On TV, in ads, at the mall, and even at the airport, yes the airport.

While en route to my gate for a business trip, I came across the big man himself. Even as an adult, seeing Santa Claus in the flesh is exciting, and I was immediately intrigued.  As I approached, I realized he was helping to promote Microsoft Windows, who had partnered with Southwest Airlines to offer free pictures with Santa as part of their Picture Perfect Holidays campaign. Though hesitant to invest time in the promotion, I jumped at the chance to meet Old Saint Nick and get my picture taken. 

Overall, it was a fun and nonintrusive way to engage with the brand. Santa’s “helpers” were fast and efficient (which was essential; I had to board in 10 minutes). They showed me the value of Windows' photo software by demonstrating its capabilities using my very own photos with Santa. I was then politely asked to checkin on Facebook and emailed my photos (an email they assured me would not lead to SPAM). Though the experience was not aggressively branded or pushy, the subsequent email provided me with some fun ways to play with my pictures, create greeting cards, and get more hands on with the Microsoft Windows software.

I enjoyed this experience very much, but would it have caught my eye if it had not been for Santa? If it had been in the mall? Or if there had been a line? Maybe not. But, the promotion was fun and effective because it leveraged Santa in an unexpected place, acknowledged the limitations of the environment and used them to their advantage by providing a quick holiday fix for those in a place often known to be stressful during the holidays. For me, it was one of the more memorable airport and holiday experiences I have had in years.

 

The Checkout: Holiday Shopping 2011

Not long ago, Thanksgiving-weekend department store sales were a key barometer of U.S. retail health. Does that model still work?

Probably not. According to our 2011 Holiday Shopper survey, fielded shortly before this year's holiday shopping season, holiday shoppers are overwhelmingly swapping store experience for savings, as indicated in the 2011 Holiday Value Equation shown here. This is bad news for department stores, traditionally the one-stop-shop for holiday shoppers, who in the past placed a value on elaborate window dioramas and jolly Santa visits to lure parents with children.

Today's shoppers are savvier than ever and happy to make trips to multiple retail channels, including eCommerce, if that nets them the greatest savings on the goods they want. While Department Stores are acknowledged to have the widest selection overall, 13 percent few shoppers plan to do most of their shopping in this channel. 

When Department Stores lose, who wins? Primarily Mass and Discount stores, which showed an increase from 16 percent in 2010 to 25 percent of shoppers this year planning to do most of their holiday shopping in more cost-effective channels.

Online retailers are also poised to win big this holiday season, as more shoppers plan to shop online over Thanksgiving Weekend and on Cyber Monday, balancing brick-and-mortar shopping with the saving and convenience that online retailers have to offer, including reviews, price comparisons and free shipping.

Please click here to download The Checkout - 2011 Holiday Shopping issue.

 

 

The Complex Shopper: Getting To Know The Four Shopper Types

Last week we launched The Complex Shopper, an annual research and analysis project designed to reveal the motivations that drive the considered purchase process – those infrequent, big-ticket items ranging in price from $100s to $1000s.

One of the outcomes of the study was the identification of four distinct shopper types – Fretting Frugals, Experience Lovers, Passive Purchasers and Social Adventurers. Over the next few weeks, we’ll dive a little deeper into each type revealing more about their behaviors, concerns and actions.

This week, meet Allison, the Social Adventurer – the shopper who wants your attention

Our first deep dive takes a look at Allison, representing the Social Adventurer. Overall, this is the smallest segment of the four at 15 percent, but is the most active when it comes to the amount of research, the level of engagement with the brand during and after the purchase and the level of activity in social media.

Allison is an emotional shopper. She admits to a greater fear of making a mistake and is most concerned about what others will think about her purchase. Allison describes herself as organized, imaginative and detail oriented with a need for thorough research in a variety of mediums. In fact, she will go online an average of 10.7 times per purchase when it comes to a considered purchase.

How to connect with Allison

If you want to sell to Allison, be aware that she is more than willing to have a relationship with your brand before, during and after the purchase. Compared to the other shopper types, the Social Adventurer will:

• Recommend your product to friends or family (46 percent)
• Almost one out of five will write an online review, post on a social media channel or rate your product online
• One out of four will accept and read emails and buy more products from a brand with which they are satisfied

Next, we’ll look at the Fretting Frugal, that nervous shopper who often gets so overwhelmed that they hand the purchase responsibility off to someone else. 

 

Step inside the mind of The Complex Shopper … and discover why shoppers buy. To review the initial results, click here for the download. 

 

Holiday Shopping: Online vs. Brick and Mortar.

Recent data from our Checkout survey unveiled interesting data pertaining to shopping intentions during the 2011 holiday season. In September soon-to-be holiday shoppers were asked where they planned to make most of their upcoming purchases. 30% reported they planned to make most of their purchases online. That was up from 28% in 2010. And for the first time, consumers reported they plan to shop online for most purchases (30%) rather than department stores (28%). 
With a couple significant shopping days under our belt, we asked ourselves how does online shopping compare with brick and mortar this holiday season? Where are consumers doing most of their holiday shopping?  

According to ComScore, online spending during the week ending on December 2nd set a new single-week record ($6 billion in sales). Online shopping on Thanksgiving day grew 18% to $479 million, Black Friday sales grew 26% to $816 million, and Cyber Monday sales grew 22% to $1.25 billion. According to the National Retail Federation, online sales should grow 15% this holiday season to 37.6 billion. Incidentally, total online sales in 2010 grew 15% from 2009. Online is experiencing double digit sales growth. 

How does this compare to brick and mortar sales? NRF reported that consumers spent 11.4 billion on Black Friday, of which $816 million was online. Therefore, roughly 8% of Black Friday sales were online purchases. This year, according to NRF, total brick-and-mortar sales may rise 2.8% to $465.6 billion. Therefore, brick and mortar made up 93% of sales in 2010 (versus 7% online) and 92% of sales in 2011 (versus 8% online). 

It appears that both projected online holiday shopping and actual online sales demonstrate that its getting stronger and stronger. However, holiday shopping is still dominated by the brick and mortar retailers. Question is how with 15% online sales growth versus only 2.8% for brick and mortar, how long will that domination last? 

On-line Checkout - In Real Life

What if ... checking out in a real shop was like an on-line shop?

 

Understanding The Complex Shopper

The Complex Shopper™ Study is an annual research and analysis project undertaken by The Integer Group to reveal the motivations that drive the considered purchase process – those infrequent, big-ticket items ranging in price from $100s to $1000s.

This week, we are launching the results of the initial study conducted in partnership with Decision Analyst. It reveals the complex motivations that drive shoppers during a considered purchase decision, such as shopping for furniture and automobiles. Not only does it uncover the reasons why shoppers buy, it also identifies how they think about – and interact with – the chosen company after the purchase. 

In addition, it unveils four profiles of shopper behaviors, from the nervous “Fretting Frugal” to the daring and sharing “Social Adventurer,” among others. During the next year, we’ll unveil new looks at the study in The Complex Shopper section of shopperculture.com and we invite you to visit frequently to take a look at what’s new.

Step inside the mind of The Complex Shopper … and discover why shoppers buy. To review the initial results, click here for the download. 

 

Did You Shop This Thanksgiving Weekend?

This year, a number of big retailers opened their doors on Thanksgiving (Walmart, Toys R Us, and Kmart) while others opened at midnight (Macy’s, Target, Best Buy, and Kohls). Per Marshal Cohen, chief industry analyst at the NPD Group, "Retailers recognize the importance of being convenient, and one of those conveniences is opening earlier so people don't have to wait in line at 4 in the morning in the cold." (abcnews.go.com) Are retailers really thoughtful and considerate of the shoppers’ comforts and needs, or are they feeling the pressure to perform?  

Most retailers generate 20% to 40% of their annual sales between Thanksgiving and Christmas. Since 2003, Black Friday has been the busiest shopping day of the year, and in 2010, sales were flat. This sales performance reflected the country’s economic condition. With stronger economic conditions, retailers want to capitalize on the opportunity to increase sales. You might have noticed that some retailers set up Christmas displays in October, advertise holiday-season price guarantees, and opened their stores on Thanksgiving (Black Thursday). 

How do you feel about Black Thursday? Do you view Black Thursday as another tactic trying to dictate shopping behavior and or devalue the holiday and family time?  Or do you view it as an additional opportunity to save money?  If shoppers had any negative sentiments toward Black Thursday, it was overshadowed by sales. Per the National Retail Federation, 226 million shoppers visited stores and websites during the Thanksgiving weekend this year, which is a 7% increase over last year.  In addition, nearly one quarter (24.4%) of the Black Friday shoppers were at or visiting already open stores by midnight versus 9.5% in 2010 and Black Friday retail sales grew 7% (NRF.com).  Are the retailer strategies paying off and resonating with shoppers? Will Thanksgiving become one of the busiest shopping days of the year? 

Shopping behaviors are developed over time, and retailers have influenced the Black Friday shopping behavior by opening their stores early and offering door incentives. Once again, retailers are trying to change the shopping cycle and shopper behaviors. Retailers would like to expand the holiday shopping period and not have shoppers chasing the lowest prices and waiting until the end of the season to make purchases (projected top three shopping days: Friday, November 26; Saturday, December 17; and Friday, December 23) (ShopperTrak Holidays). Therefore, retailers are setting up displays in October, advertising price guarantees, and opening their stores on Thanksgiving.  

Some retailers state that they are opening early to provide comfort and convenience to shoppers, yet their employees are inconvenienced and have to leave their families and the comfort of their homes on Thanksgiving to work. The motive behind the retailer’s behavior is reaching sales goals and winning with the shoppers. Now the million-dollar question is: will the rest of the season experience growth versus year ago and will we see a shift in 2012 shopping behavior? 

Contributed by Kimberly Chatman 

What is the role of the retailer in charitable giving?

Many retailers get involved in supporting charitable causes, especially during the holidays. We asked ourselves the question, what should be the role of the retailer in giving? More and more people today are disconnected from charitable organizations, but have found that brands and retailers are a key gateway to giving. As experts in shopping culture, we specifically looked into the role of the retailer for the shopper with giving on their mind.

With this topic on my mind, while meandering an outdoor mall, I witnessed a key ingredient of giving. Many shoppers, on a break from the rigors of holiday shopping, were enjoying the music of a man playing the guitar. Suddenly, a sweet little girl darted out and handed the guitarist a dollar. Stunned by her courage and cuteness he stopped playing mid-song, accepted the dollar and responded with a wink, a smile and asked, "what is your favorite christmas song?" 

The situation demonstrated an age-old principle of giving -- reciprocity. What does the giver receive in return for the gift? In this case, and most of the time, its a warm, heartfelt 'thanks.' It's the Salvation Army representative at the storefront ringing the bell and saying 'Thank You'. Therefore, what does this tell us about the role of the retailer in giving? As the facilitators at the point of giving, are retailers the means of reciprocity? GAP and other retailers, in order to bring more awareness and raise money to eliminate AIDS Fund, sold t-shirts with the Product Red Campaign. Functionally, the reciprocity was a fashionable t-shirt on the back of the giver, but moreso the t-shirt provided the giver a way to signal and show the cause to which they gave. A new offering called CherryCard.org provides participating retailers $.25 cent cards to distribute at the point of sale. Patrons then go online and give the donation to the charity of their choice. In this way, the retailers facilitate the reciprocity through enabling customers to choose where their money goes. 

On the other hand, as researchers of shopping culture, we've heard that 'transactional giving', giving that occurs at the checkout counter, isn't resonating with shoppers. Radio Shack experienced some online backlash earlier in the year from their donation request via the card-swiping checkout machine. Unlike the Salvation Army representative, who smiles and thanks the giver for their dollar, the card-swiping machine or other forms of transactional giving aren't providing a key ingredient in the system of giving -- reciprocity. 

Much more exploration needs to be done to understand retailers' role in cause-based giving. But it appears that when retailers go beyond simply accepting the gift to facilitating reciprocity they better connect with shoppers.  

 

Buy Yourself a Christmas Gift AND Be Surprised

It's the holidays again, and let's be honest -- although its a season of giving, we all give a little to ourselves. In fact, the National Retail Federation recently reported that of the $704 dollars each shopper will spend on average this holiday, $130 of it will be on themselves. The dilemma with self-gifting, however, is missing out on the surprise. No anticipation. No acute listening while shaking and rattling. No guessing. And no tearing open the unknown. When I was younger, my sister used to buy herself a gift, actually wrap it, place it under the tree and open it on Christmas morning. Guess what big Sis; now you can get yourself a gift AND be surprised. The change has come about in the last couple months and just in time for the holidays. 

Many retail entrepreneurs have capitalized on that self-gifting mindset by enabling shoppers to put their trust in e-retailers to curate and assemble packages of products that surprise shoppers upon arrival. Since opening in the summer, London based Not Another Bill has individually tailored packages of jewelry, contemporary artwork (in the form of tote bags, posters, and buttons) and flea market amusements based on a member's profile. Shoppers sign up and answer a series of interest related questions. Not Another Bill then sources products from a variety of places, packages them up and sends the mto your door. You don't know what you're getting until you open the box. Similarly, in October, Ohhdeedoh.com began offering cheerful thematic boxes of age-appropriate baby gifts for parents or as gifts to loved ones. Again, the recipients didn't know what they'd receive until the parcel arrived. The Loose Button and Eco-Emi started surprising shoppers by delivering environmentally friendly snacks and household cleaners a few months back. Another e-retailer, His Black Box has already captured 500+ subscribers to its men's monthly grooming bundle that includes travel-sized samples. And just in time for the holidays, Panty by Post started a monthly lingerie delivery service. Many of the e-retailers' websites state they will wrap the December deliveries and guarantee them to your door before Santa's big day. 

So for my sister, and all you self-gifters who still want the surprise, these mystery product parcels may be just the treat you want under your tree this holiday season. 

 

The Checkout: Make Promotions Easy to Participate in for Consumers

When asked their preference of entry mechanisms, most consumers prefer a method that is quick and easy. The top two preferred entry mechamisms were entering a code online and in-pack instant wins (Figure 4). When looking at these results in conjunction with the barriers to entry also uncovered (low likelihood or winning and too much information required) its apparent consumers clearly desire promotions that are easy to enter, offer realistic odds, and come without any strings attached.

Read more in the the latest issue of The Checkout, where we looks at shoppers' involvement in Sponsorships and Promotions, how these programs influence purchase, and drivers to increasing participation.

You can click here to download the latest edition of The Checkout - Issue 5, 2011

Home Delivery - The Mumbai Way

We are all accustomed to and love the convenience of pizza delivery, Chinese takeout, and sometimes even grocery delivery (mostly ordered online at your grocer’s site). But in Mumbai, home delivery takes on a whole new meaning regarding what you can get, how you get it, and how loyalty is built.

In Mumbai, consumers can get a variety of items delivered to their homes including everyday CPG categories; meats; vegetables; seasonal, locally grown fruits; prescription and OTC drugs; DVDs; home-repair goods; décor products; pressed laundry; alcohol (even a pint of beer); and the list goes on. One man even mentioned how he manages to get something as small as one single cigarette delivered to his apartment. Essentially, if it’s sold at a store, ninety percent of the time, you can be confident it can be delivered to you for free.

Mumbai locals I know rave about this service; some even say "can’t imagine my life without it”. For them, it is more than just convenience that makes these services so valued.  Consumers can build a relationship; have "the guy” who you always call when you need that one thing and you know you can rely on him.

If loyalty had another avatar, this is what it would be. No loyalty cards, no emails exchange, no database maintenance, just human interaction. Perhaps this is why U.S. shoppers have ~18 loyalty memberships but only use ~8 (Source: 2011 Colloquy Loyalty Census).  Loyalty programs continue to boom in the U.S., but perhaps some should offer more than just a piece of plastic if they aim to retain and grow loyalty among shoppers.

-Contributed by Priyanka Sah, Integer India