Shopper Culture

Catering to the Growing Underbanked

Do you still have a bank account? For a growing number of Americans, the answer to this simple question is no. According to The Washington Post, 821,000 households completely opted out of the banking system between 2009 and 2011, growing the unbanked population to 8.2 percent of U.S. households. Equally shocking is that 17 million adults are without a checking or savings account and another 51 million use a bank in combination with payday lenders or rent-to-own services. This second group, known as the underbanked, has grown to 20.1 percent of U.S. households.

To understand these growing segments, The Integer Group^® recently conducted research among the underbanked across the U.S. to see their perspective as shoppers of financial services. We discovered that the underbanked have a love/hate relationship with banking. They love howbanks treat them like respected customers; while alternative financial services companies, like check cashing stores and payday lenders, often treat them as inferior. For example, with prepaid cards, banks often strive to put the customer’s full name on the card. The same prepaid card from an alternative financial institution might print only the default “valued customer” title on the card. It’s hard to feel valued when your name isn’t even used. On the other hand, underbanked customers often felt there was a lack of transparency from banks. They understood the bank’s need for fees and minimums with various services; however, they can’t stand a fee they did not expectand account for in their budget. They demand transparency up front from the bank. Respect and transparency are two key elements the underbanked are shopping for when dealing with banks.

Simple steps can be taken to capitalize on the large opportunity that has arisen with the underbanked. By understanding how the underbanked are shopping for financial services, we are better able to comprehend their approach to the category both functionally and emotionally.

Photo Source: Flickr

Celebrating the "Little Things" in Dad's Life

With Father’s Day right around the corner, the question is “What do I get Dad for his special day?” Most families plan to update Dad’s wardrobe, according to offers.com, with 39 percent of shoppers planning to purchase clothing. Gift cards (30 percent) are the second most popular gift followed by tools (28 percent) and electronics (13 percent). The majority of dads, however, prefer spending time with their families over gifts. Almost half (46 percent) desire going out for nice dinner and 21 percent hope to watch sports with the family.

The Saks Fifth Avenue Father’s Day Fundraiser for St. Jude Children’s Research Hospital celebrates the day through both gifts and time spent together. The Miami-based store hosts a charity event each year to celebrate the “little things” that make a big difference in Dad’s life –his kids. 

The event provides entertainment through carnival games and treats such as cotton candy to make the event family-friendly and fun. Saks promises to donate five percent of Men’s department purchases to St. Jude Children’s Research Hospital, a donation that helps define what fatherhood is all about to these special dads. To treat Dad to a little something as well, Saks emphasizes the little things such as lapel accents, watches, socks, and bowties.

What have you seen other retailers doing to celebrate Dad?

Photo Source: Soul of Miami

Welcome To The Quiet Store At Selfridges

Have you ever gone to a store and after 5 minutes escaped from it because of the noisy atmosphere? I am sure it has happened to you at least once. I remember the first time I visited the Abercrombie and Fitch flagship store in Paris. The music was so loud that my survival instinct pushed me immediately out of the store. In a world where we are constantly over stimulated by images and sounds, we all have felt at some point a feeling of saturation and overdose. Quiet… Silence!

In January 2013, Selfridges launched the No Noise initiative that includes a silent room, a tranquil lounge space inside which visitors are asked not to bring their shoes or mobile devices, and also a quiet shop with a very minimalistic atmosphere without branded signage and promotional material where shoppers can purchase de-branded luxury goods. Sometimes to touch shoppers’ hearts and wallets, brands and retailers do not have to shout and over stimulate shoppers. They sometimes just need to whisper.

Article and photos source:  Selfridges

Converse Gets Dirty with a New Pop-Up Store in Paris

Starting at the end of March, the famous brand settled in Paris with a unique pop-up space dedicated to Rock-n-Roll culture. To drive shoppers to its new temporary retail space, Converse deployed a compelling activation plan including a website, a Facebook fan page, and an outdoor campaign.

Following a similar approach to the recent Diesel® campaign “Be Stupid,” which accused smart people of being boring and risk-averse, the outdoor Converse campaign used an impactful slogan in bold letters that clearly referred to the brand’s most symbolic, but maybe surprising, enemy: shoes. The main statement “Shoes are boring, wear sneakers” enables Converse to be associated with the very clothing item and thus points out the brand’s unique know-how as a shoemaker. To bring its message to reality, Converse opened “Converse 19YT” (initials stand for the street where it is located), which aimed to embody the genuine relationship it has built with customers over 104 years.

When Robots Smile...

Recently, the planners at Integer got together for lunch and ended up at a restaurant that just implemented a tablet system, which displays your menu options, takes your orders, and even your payment. It essentially cuts out the wait staff. Well the story goes that even us planners had a hard time figuring it out, so much so that we asked for the print menus and help. Adoption takes time.

But that is not my point. As we were waited on by actual humans, I noticed the emotion that the staff brought in. A smile. A joke. An endearing sigh at the failed technology before us. I was truly relieved by this injection of the human soul, something technology can’t provide. For now at least…

There is an apparent limit to replacing humans with technology beyond adoption: an engaging experience. Though it may not necessarily be a limit in all situations. A convenience store that serves breakfast burritos during morning rush hour may benefit from the speedy automation that a tablet will bring. However, when asking for a bottle of wine at dinner, I will prefer the experience of having a human smile at me…

So let’s not be too hasty to adopt every hot technology trend without determining whether it would build on or detract from how we experience a brand. For this restaurant, I urge them to get their money back.

Real-Time Retail

As a gamer and a shopper marketer, I loved opening my Amazon yesterday and seeing this.  What do you do if you're a web-only retailer... deliver a great web experience that couldn't be created in cardboard, plastic or metal and put in brick 'n' mortar stores. Bring real-time news to gamers from the E3 floor and sell the games that are making news or drive pre-order of the better stuff to come later in the year. Thank you Amazon.

Making Digital More Physical and Physical More Digital

The digital and physical worlds continue to collide in new ways. By taking over empty storefronts in New York with shoppable windows, eBay has created the ultimate mobile, digital, and physical mash-up. Each shoppable window focuses on a single brand and allows shoppers to make purchases that will be delivered within the hour via courier. The first Kate Spade eBay window opens this weekend, with more set to open throughout the summer.

The new shoppable windows are similar to eBay’s 2011 storefront takeovers, pictured above; however, the new shoppable windows will do away with QR codes and physical objects in the windows in favor of large, interactive touchscreens.

Convergence is creating brave new worlds for both retailers and shoppers to explore. Will shoppers flock to new mobile, digital, and physical experiences like this, or are they simply a novelty like catalog counters of years past? Is same-day delivery the key to this convergence? 

Article Source: Reuters 

Photo Source: PSFK

Hispanic Retail 360 Is Coming Up!

The Annual Hispanic Retail 360 Conference is happening this coming August 14-16 in Las Vegas. Integer Senior Planner, Martin Ferro, will be presenting What Makes Hispanic Shoppers Different From Other Shoppers. Register today and make sure to say hi to Martin in August.

In the meantime, read the following article "Hispanics Get Smart When Shopping" from Hispanic Retail 360 on Integer's Hispanic Edition of The Checkout study. Click here to download the full Hispanic Edition of The Checkout.

The Checkout: Beauty Edition

The Checkout: Beauty Edition explores how female shoppers interact with the beauty category and dives into the nuances of specific product types. The report analyzes which products women deem essential, their brand loyalty versus exploratory behaviors, and how they research the category. For instance, women claim to go straight to the store when they need to make a purchase, but they do in fact research the category online (i.e., beauty blogs)—just in a more ongoing and recreational mind-set. As marketers, how can we make it easier for them to jump from consumer to shopper mode while they engage with the beauty category in the Pre-Tail^® phase?

To read more about how women shop the beauty category, click here for the latest edition of The Checkout. Or here to explore pasts issues of The Checkout.

DIY Gift Packs Balance Convenience and Personalization

Gift packs come in many shapes and sizes. The come in variations for him, for her and for nearly any occasion. And though gift packs are convenient for shoppers they often lack a level of personalization that I personally like about gift giving, until now.

While checking out the latest packaging trends in store I came across an interesting Butter London gift pack that asked shoppers to add their own touch—inviting them to select the fourth and final product to complete the set (see picture at right). This fun, DIY gift pack balances convenience and personalization, which I think is important when it comes to gift packs because creating one from scratch can be very intimidating or difficult for many shoppers.

Making easy to select and/or assemble gift packs is particularly helpful this time of year when kids are shopping for Mother's Day and Father's Day gifts. What other shoppers do you think value the ease and convenience of gift packs?

Memorial Day Kicks Off Summer of Healthier Grilling

More than two-thirds (68%) of consumers celebrate Memorial Day by lighting up the grill, according to the 24th annual Weber GrillWatch survey. As shoppers prepare for the holiday, retailers offer solutions such as featuring BBQ necessities for a day of grilling with a group. Offering endcaps for shoppers convenience encourages stock up in preparation for summer holidays.

Looking forward, the Fourth of July (86%) and Labor Day (75%) are the two holidays that rank above Memorial Day for grilling. Marketers should note changes in grilling behavior; the GrillWatch survey states that 61 percent of grillers reported changing their grilling style in the past year. The number one change is more consumers are focusing on healthier grilling habits, such as grilling vegetables or opting for leaner meats and poultry. As marketers, how can we incorporate trend information to make our shopper solutions more sophisticated? 

Contributed by Jillian Kyle and Molly Paskal

Photo Source: Men's Fitness

Brand Experiences Come to Life at the Sweets and Snacks Expo

Walking into the 2013 Sweets and Snacks Expo was eye-popping fun. The Expo was full of color, design, giant characters, and treats to taste. But, while the Expo was not lacking in variety, popular trends could be detected at the show. Innovation and health and wellness were brought to life through a sense of discovery, which allowed attendees to truly experience differences across brands.

Innovation Alley was home to unique treats including peppermint-chocolate flavored popcorn from 479° Popcorn or the reverse popcorn flavored chocolate from Chuao Chocolatier®. The combination of different flavors and sampling showcased how manufacturers are using temptation and taste to encourage exploration and discovery.

The shift to a more health-conscious culture was also popular at the Expo. The sweets and snacks category is helping shoppers tap in to healthier options—despite that it’s a category not typically described as healthy—by labeling products with key words such as non-GMO, gluten-free, and allergen-free and always allowing the option for miniature sized bars and bags so consumers can indulge with less guilt.

Through innovation, taste, texture, and brand presentation, the Sweets and Snacks Expo attendees were able to experience brands first hand. It will be interesting to see how these manufacturers continue to bring their brands to life in store to maintain the stopping power at shelf that they had at the Expo. Have you been tempted by a new flavor in store lately?

New Preso Available on Driving Shopper Engagement Through Cross Merchandising

Integer's Craig Elston presented yesterday at The National Confectioner's Association's Sweets and Snacks Expo (#SSE13). During his Learning Lab presentation, Craig discussed the conventions and buying habits of today's shoppers and how to use context to activate shoppers and drive engagement (and purchase).

Click HERE to download the presentation.

Myth or Truth? Don’t Grocery Shop on an Empty Stomach

With the proliferate amount of weight loss advice circulating in the media today it can be confusing for shoppers to know what to believe. “Don’t skip meals!”, “Hunger may actually be thirst!”, “Don’t grocery shop on an empty stomach!” — we often hear these age-old pieces of advice, but are any of them actually true?

Two researchers at Cornell University decided to put the old adage “don’t grocery shop on an empty stomach” to the test. They wanted to know, is it actually detrimental to those looking to cut calories and loose weight?

They conducted a study with two different shopper groups, one group had not eaten for five hours and the other group ate a snack right before grocery shopping. They found that both groups bought a comparable quantity of groceries, however those who shopped while hungry did indeed pick more high-calorie foods. This helps explain the compulsion we often have around the checkout section of the store. At the end of our shopping trip we are at our weakest (tired and hungry) and have one more chance to reach for a calorie dense, pick-me-up snack such as candy or soda. Even if you have a shopping list to help keep your trip on task, chances are you will deviate from it to satisfy your rumbling stomach. 

Article Source: New York Times 

Photo Source: ABC News 

 

Sweet Insights at #SSE13

The National Confectioner's Association's Sweets and Snacks Expo starts up May 21st in Chicago. Integer's Craig Elston will be presenting insight on Driving Shopper Engagement Through Cross Merchandising at the expo's Learning Lab—a new mini-theater on the show floor. He hits the stage Wednesday, May 22 at 1pm.

Stop by the Learning Lab, say hi and tweet your favorite insights from the expo (#SSE13). Click here to view the Learning Lab's entire schedule of presenters.

Listening Is Not Only Polite, It's Strategic

The tremendous impact the social web can have on a brand or retailer these days is amazing. The social web can make something an overnight sensation or negatively affect someone or something's reputation in a matter of minutes. Therefore, it is important to listen.

Social listening is a critical step when it comes to building a social strategy. There are many options when it comes to social listening. But, when you break it down, there are narrow and broad listening tools. Broad listening tools help you harness long term insight while narrow tools help you keep a pulse on every tweet and post so you can respond and engage in the moment.

How to use social listening to not only determine but implement a social strategy is outlined in Part 6 of the Integer/CCRRC white paper, Untangling the Social Web. Click here to download Part 6 or visit the Other Studies tab to explore other sections of the 7 part series. 

Mother's Day: Celebrating All the Mothers in Your Life

Mother’s Day has traditionally been thought of as a day to celebrate your mom. But increasingly, consumers are seeing the day as a chance to show their appreciation for all the special women in their lives who are mothers. Mothercare, a UK-based retailer, created a Facebook video showcasing the average mom’s point of view of the special day:

“It is a day set aside to dedicate and honor the women that give us so much love.”

This expansion of celebration is evident in shopper behavior and spending. According to Forbes, 23.5 percent of Mother’s Day spending will be on wives, 10.5 percent on daughters, 8.5 percent on grandmothers, and 8.2 percent on sisters. 

Retail is responding to this shift. For instance, while Ann Taylor Loft touts its Mother’s Day Must-Haves, they also remind shoppers of all the special women in their lives. As greeting cards are a common gift, retailers are expanding their collection to offer options for different recipients (e.g., aunt, sister, goddaughter). As marketers, we have to consider for whom shoppers are buying when we message around Mother’s Day.

 

Contributed by Jillian Kyle and Molly Paskal

Turning Up The Lights May Turn Up Sales

I recently came across an interesting study released on the Social Science Research Network by an academic team led by Kyle B. Murray of the University of Alberta in Canada. The study reports that the weather affects shoppers' moods and ultimately their spending habits. For instance, shoppers that were questioned while being exposed to a sun lamp were willing to pay more (21% to 56% more for some items, in fact) compared to shoppers that were questioned in settings without a sun lamp.

Now, this got me thinking. How does this play out in the retail setting? We cannot control the weather but we can control the retail environment. Perhaps retailers can boost sales by bringing "good weather" inside. The research team susggests that installing bright lighting may help brighten shoppers' temperament (and spending). Or to push that thinking even further, perhaps retailers could install large windows or fake good weather inside with natural elements. We see nods to nature in retail settings today from soft curves to organic materials and bright colors. In fact, the Retail Design Institute noted that biomimicry was a major trend in retail design this past year during their presentation at GlobalShop. Another trend; monochromatic. We see a lot of all white spaces. It really helps brighten the room and make the product pop.

So, in a world of retail renovation and innovation, consider what you could do to bring the "good weather" indoors. It may boost your sales.

Photo Source: Retail Design Institute

Bourjois Opens Its First Flagship Store In Paris

After a first attempt to install a pop-up store at the Galeries Lafayette last year, Bourjois will open its first flagship store in Paris. The store will introduce a critical turning point for the brand’s brick and mortar strategy, for it will be the very first shop owned by the makeup and beauty brand since 1923. Bourjois is thus moving from a strictly B2B2C model to a direct-to-consumer model, which will enable the retailer to showcase its whole range of products and services and freely highlight its brand equities.

Built in an all pink and bright boudoir-chic atmosphere, the shop’s layout will leverage the Parisian brand personality and offer new services such as the Bourjois Jolie Room, dedicated to eye makeup and manicures, and the nail bar, which offers cheap and colorful samples of nail polish. The store is a smart way to celebrate 150 years of expertise in the world of beauty. 

Contributed by Integer Paris

Collecting Shopper Data for the Shopper

73% of smartphone owners are concerned about personal data collection. 55% are wary of sharing information about their location. (NielsenWire.com)

That’s a lot of people who, in good faith, are limiting the data they choose to share, therefore limiting the potential of having better shopping experiences. In the world of big data and data collection, it’s critical that brands and retailers continue to push forward and use the information they collect to not only drive sales, but to improve and maintain positive relationships with shoppers.