What are the best ways to develop online shopper marketing? Our guide outlines the approaches you need to consider to keep up with the online retail growth.
E-commerce sales around the world are increasing continuously – and the trend is upwards. Consumer electronics, books and fashion in particular are experiencing an enormous upswing online. However, this hype does not seem to have fully reached the fast-moving consumer goods (FMCG). All the more potential there is in this market. For stationary retail it is now important to react with targeted shopper marketing measures in order not to miss the jump.
Factors to develop online shopper marketing
Even if the industry is (even) less affected by the growing online trade at the moment, it still has a lot of potential. In the beauty and body care sector, for example, the pure player Amazon is putting increasing pressure on pharmacies, who previously dominated the beauty and cosmetics market. With initiatives such as Amazon Fresh, Amazon Prime or Amazon Pantry, the online provider offers a serious sales channel for FMCG. Not to forget that Amazon would like to sell beauty and cosmetic products under its own brand soon. Even if only around one percent of shoppers currently only buy cosmetics online, the probability of channel hopping is increasing.
Easy access to the Internet and the ability to purchase products online have changed the behavior of many shoppers. 43 experts on behalf of KPMG came to similar results, defining factors that could have an important influence on the future development of the beauty and cosmetics market. You also said that the interaction between online and offline channels played a major role. It is all the more important for branded goods manufacturers and retailers not only to understand the decision journey of their shoppers, but also to optimize their stationary business in order to withstand the growing e-commerce trend.
The development of a new marketing approach
In the 1970s, the classic marketing model was adapted and for the first time the focus in marketing was on the shoppers. The ECR (Efficient Customer Response) model established itself. Since then, the shopper marketing model has been continuously developed. It aims at a deep understanding of the consumer and tries to find out which experiences influence purchase decisions at the POS. For the first time, dealers and manufacturers worked together to pursue a holistic marketing approach.
Branded goods manufacturers provide the strategy and the execution is up to the retailer. Although both parties pursue contrary goals in everyday business, they can equally benefit from this approach. Because a holistic marketing approach not only increases the value of a brand, but also makes a significant contribution to consumer loyalty.
Insights as the basis of successful shopper marketing
Looking at shopper insights is a very proven way to understand the motives behind shoppers’ purchasing decisions. They can be generated in two ways: On the one hand, through market research in the form of short surveys that are answered directly by the shoppers themselves. On the other hand, through loyalty card programs, with the help of which information about the person and shopping behavior is collected. Before deciding on a method, it must be clear which data is important for the further procedure in marketing. Is it more personal motives or actual buying behavior? While special shopper surveys can query the motives and drivers of purchase decisions, customer cards track purchasing behavior in reality, but without understanding the why behind it.
Use of shopper marketing tools
In order to be successful in the long run, it is important to understand the expectations of shoppers regarding online and offline channels along all points of contact. Ideally, shopper marketing tools are used along the entire customer journey and are represented in all important channels. At home this can be done via TV advertising, e-mails or coupons, while on-the-go mobile applications and outdoor advertising become interesting. The concept is then rounded off by suitable displays and shelves in the store.
Once the main drivers of buying decisions are understood, marketing requires a systematic process. Marketing measures can be directed specifically to shopper segments. This in turn leads to a more efficient use of the resources of manufacturers and retailers, because promotions can be adapted directly to shopper needs.