Changes in consumers and the retail landscape have completely transformed the shopping experience. Technology, social commerce, and especially mobile, are at the center of this change, directly impacting how consumers interact with brands both online and offline. Les comportements changeants des consommateurs et du commerce de détail ont complètement transformé l’expérience d’achat. La technologie, les réseaux sociaux et plus particulièrement les téléphones mobiles sont au cœur de ce changement car ils influencent grandement la façon dont les gens interagissent avec la marque et ce, tant en personne qu’en ligne.

1. Shopper Insights 
New Ways of Captivating Shoppers
Jim Lucas,
Dir. Global Retail Insight and Strategy, Draftfcb
Montreal
March 8-9, 2012
3/15/2012 1

2. Introduction & Trends
• Shoppers more planful– Pre-tail and In-store
• Expanding number of shopping occasions
• Changing role of store from Point-of distribution
Destination status
• Role of Shopper Marketing:
– Demonstrate fit with lifestyle (relevance)
– Make it easier to find right product for me (shop-ability)
• Thinning of Attention
– Visual literacy
– Me-Here-Now
• Why Zone Communications Approach makes sense
2

3. What’s a Shopper Insight?
• Shopper insight goes beyond identifying
“who” the shopper is, providing more depth
about “why” the shopper behaves a certain
way within a category, during a season or
within or across specific retailers.

4. Several Muses can Help Drive
Shopper Insights
Shopper
Store Brand
5/11/2011 4

5. Great !nsightsdo 3 Things:
• Inspire the team to look at the problem in a new
way
• Are the first, most important step in the creative
process.
• Help change behavior
• Remove subjectivity from the process.
• Based on observation of shoppers in the shopping
context, and why they behave that way.

6. New Role for the Store
• With the many changes in the retail market
place, there is a renewed interest of
understanding the role of the store within the
shopping eco-system.
• Two main goals of the eco-system from the
perspective of the shopper:
1. Establish relevance to consumer’s lifestyles
2. Make it easier to shop
3/15/2012 6

7. Shopping
Visit aisle/section
Interact with
Choose store product
Close
purchase
Get on the list Next purchase
Consume
3/15/2012 7

8. Importance of Visual Salience
• “Thinning attention spans” require more
respectful, sensitive approach to
communication.
• Two key learnings:
– Print model  Visual salience model
– 2-3 messages or elements can be communicated
– Establish a message heirarchy
8

9. Visually Prioritize
Easy to Navigate Difficult to Navigate

10. Gutenberg Diagram
 No longer dominated by Gutenberg Diagram
 Visual strategy & objectives
 Visual salience creates areas that attract
attention

11. Hobnob Wines:
Shelf Blades
 Though the 2 shelf
blades are laid out
slightly
differently, bottle +
imagery draws most
visual attention.
 QR code area also
draws pretty well—
about 50% view on first
glance.

12. Zone Merchandising Evolution
 Know who the customer is, but also want to know
when and where to deliver messages.
 Understanding where patrons are in their visit
allows us to tailor the conversation to speak to
them at the right time.
 Zones help us stage our story in a way that is
relevant to consumer’s visit.
 Within each zone (aperture), patrons behave
differently and seek to accomplish different things.

13. The Science of Shopping
 Shopper insight goes beyond identifying “who” the shopper
is, providing more depth about “why” the shopper behaves a certain
way within a category, during a season or within or across specific
retailers.
 Understanding how consumers interact with in-store messaging is
challenging given human memory and the short time frames and
spatial compression. One of the most useful techniques for garnering
insights is…
₋ Mobile eye-tracking—shoppers are fitted with glasses that
record their behavior;
₋ This is often augmented by interviews where shoppers view and
discuss their behavior (retrospective think alouds)—the why.
₋ “Over-the-Shoulder” utilizes iPhone to get insights directly from
shoppers in the retail environment.
 Insights about broader behavior are developed from
observational research and/or video- or sensor-recorded
behavior.

14. Message Mapping:
In-Store
In-store
Zone Role Vehicles/Area Aperture
Get in her consideration set; Open to new ideas, inspiration,
Pre-tail Advertising, Edgar.com,
on her list. solutions.
Transition to store expereince; the
'hello' of the conversation; present an
Transition Seed simple idea; remind Windows, Stancjions, etc. idea that catches their attention--
new, check out…, introducing, great
value.
Catch their eye; piques their interest;
'That looks great', make the purchase
Vignettes, merchandising ,
Impulse Disrrupt routine irresitable; inspiring visuals, engaging
displays
copy; draw them emotionally; create
the urge to buy!
Where the patron makes purchase;
Destination Make it easy to choose Price tags, rack/shelf signage. create a clear path to purchase; clear
communication of benefit, price.
What's next; complete the Vignettes, merchandising , Plant an idea for the next visit;
Bounceback/Cross-sell
look. displays; sales associate. accessorize; if you like…try this…
Reinforce, reassure purchase;
Reassurance At the cashwrap; at home, etc. Reassure patrons that they have made
reduce buyer's remorse.
a great purchase; RTB; social proof.

15. Pre-tail
• Role: Get in her
consideration set; on her
list.
• Apertures: Open to new
ideas, inspiration or
solutions.

16. Transition
 Role:Seed simple idea; remind.
 Aperture:Transition into Edgars
experience; the 'hello' of the
conversation; present an idea
that catches their attention--
new, introducing, remember how
good…, value, great for occasion.

17. Impulse
 Role:Disrupt routine/habit.
 Aperture:Catch their eye;
pique their interest; 'That Clusters of Mannequins serves as a
looks good', ‘Like that look!'; gateway to departments-Nordstroms
Naples, Fla. Below, visual merchandising
make the purchase tells the story.
irresistible; visuals, engaging
copy; draw them emotionally;
create the urge to buy!

18. Destination
• Role: Make it easier for
the shopper to find the
right product for her. How to shop
HeatTech winter
clothing (Uniqlo).
• Aperture:
Educate, aid, clear JC Penney’s new
fair and square
communication of pricing in-store.
price/value.
IKEA’s how to buy a pillow.

19. Bounceback/Cross-sell
 Role:What's next?
 Aperture:Plant an idea
for the next visit. All Saints iPads
used in store to aid
Complete the look. accessorization, fea
ture catalog.
Try this…
Red and black striped blazer paired with
basic black dress and gold star accessories
complete fashion forward evening look
(Edgars).

20. Reassurance
 Role:Reinforce, reass
ure purchase.
Macy’s denim reassures, provides
 Aperture:Reassure confidence by showing different fits
Best Buy’s ‘Walk out working”, aids and
patrons that they reassures shoppers.
have made a great
purchase; RTB; social
proof.

21. Role of the Store
• Make it worthwhile for the shopper to visit
the store
• Shoppers are more pragmatic, knowledgeable
and discerning
• Shoppers are demanding a more seamless
retail experience and rise of digital (shopping
ecosystem)
• The demand for a more human retail
experience
3/15/2012 21

22. Destination Status
5/11/2011 22

23. Backstory: Re-tale, Store-y
• Backstory makes it easier to understand and
remember
3/15/2012 23

24. The ElttobTep Store in Tokyo:
Issey Miyake New Retail Concept
3/15/2012 24

25. Upside down Gap Store
3/15/2012 25

26. Canadian Tire Launches
New Auto Retail Concept
• The new automotive concept store
focuses on elevating the customer
experience by providing a solutions-
oriented approach to automotive
needs, and providing customers with the
information they need to make informed
purchase decisions.
http://strategyonline.ca/2011/11/14/canadian-tire-rolls-out-new-auto-retail-concept/
5/11/2011 26

27. The Beer Store’s New Beer Boutique
http://www.canadianbeernews.com/2011/04/20/the-beer-store-to-launch-new-retail-concept-the-beer-
boutique/ 27

28. Tate + Yoko by Naked And Famous
9069 St-Laurent
Montreal, Quebec
Canada H2N 1M9
• Over the holidays Naked & Famous Denim
opened a new retail concept boutique
called Tate + Yoko (Tate + Yoko translates to
“Warp + Weft” in Japanese) in their hometown
of Montreal.
• The store features 40s and 50s aesthetics that
inspire many of the labels, as well as the
playful and tongue in cheek attitude Naked
and Famous are known for: vintage comic book
pages line the walls of the dressing rooms and
there is ice cold Ramune soda in the old Pepsi
cooler.
• The shop itself is fitted almost entirely with
vintage industrial fixtures as well as custom
metal piping, hangers and racks.
http://blog.stylesight.com/denim/new-store-tate-yoko-by-naked-and-
famous 28

29. Ben Sherman arrives in Toronto
• Reflecting the brand's
authority, the centerpiece of
the store is 'The Shirt Bar,' a
counter dedicated to shirting
designed to make a task of
finding the perfect shirt both
easy and enjoyable.
• Staffed by Ben Sherman's
comprehensively trained
experts in shirts, the
shirtelier, it is here that
customer's questions will be
answered and shirting
solutions delivered with a
premium retail experience.
http://www.newswire.ca/en/story/862433/ben-sherman-announces-
its-arrival-in-toronto-presenting-a-new-retail-concept 29

30. Wendy's Tests New Restaurant
Concept in Canada
• Wendy's customers in Etobicoke, ON will
have the opportunity to try new menu
items in an ultra modern setting as the
company opens one of four new concept
stores to be tested in North America. It is
the first Canadian concept store for the
company.
– Redhead Roasters proprietary blend coffee
and fresh baked goods including oatmeal
bars, cookies, muffins and brownies will be
tested.
– A new customer ordering process, digital
menu boards, new service staff uniforms and
redesigned product packaging.
http://www.newswire.ca/en/story/865719/wendy-s-to-test-new-
30
restaurant-concept-in-canada

31. Extending the Store
31

32. JCPenneyStrengthens New Ad
Campaign via M-commerce
• The company is running audio and full page
ads within Pandora’s iPhone application.
JCPenney unveiled its new fair and square
pricing last month.
• Additionally, the initiative also includes one
return policy, which lets consumers return
any item, anytime and anywhere.
• The mobile and audio ads running in
Pandora explain the fair and square
program and encourage consumers to take
advantage.
• When users tap on the mobile ads, they are
redirected to the company’s mobile site
where they can shop the latest
men’s, women’s, home and bed and bath
products.
32

33. Heal’s: Mobile Shopping
• Furniture, lighting and home
accessories store Heal’s has introduced
a mobile commerce-enabled site that
lets consumers search, browse and buy
from its inventory.
• Heal’slaunched its mobile commerce
site to give consumers more options to
shop its products no matter where they
are.
• Strategy is to provide valuable
customers with access to Heal’s’
products anytime, anywhere from the
convenience of their smartphones.
33

34. Glamour Unveils Apothecary Wall
• Most recently, Glamour unveiled its
Apothecary Wall that features
products from Unilever and Juicy
Couture.
• The Apothecary Wall has
SpyderLynkSnaptags next to each
product. Users are encouraged to
download Glamour’s Friends & Fans
iPhone app to scan the mobile bar
code and buy the featured product
right then and there.
• Thousands made purchases through
app over the holidays.
http://www.mobilecommercedaily.com/2012/02/23/are-
mobile-bar-codes-changing-the-way-consumers-shop 34

35. Toys R Us Virtual Store for Holidays
• Toys R Us has rolled out a virtual
store that lets consumers scan QR
codes featured on billboards and
shop the company’s 2011 Hot Toy
List.
• On-the-go commuters and
travelers in the New York metro
area can take part in the initiative.
Billboards located in John F.
Kennedy International
Airport, LaGuardia Airport and
nearly 40 NJ Transit Stations
feature the showcased items.
• The virtual stores were in place
through Dec. 31.
http://www.mobilecommercedaily.com/2011/12/05/toys-r-us-
encourages-holiday-mobile-shopping-via-interactive-virtual-store 35

36. Ocado Technology
• Brings Whole New Meaning to ‘Window Shopping'.
Ocado is launching a 'virtual' high street shop with pictures of
groceries.

37. P&G and Mall.cz introduced First Virtual
Drugstore in Czech Republic
http://news.pg.com/blog/innovation/pg-and-
mallcz-introduced-first-virtual-drugstore-czech-
republic

38. Budnikowsky

39. Target-Jason Wu Host One-Day-Only
Pop-Up Store in Toronto
39

40. Ace Hardware drives In-store Traffic via
Geo-targeted Mobile Campaign
• Ace Hardware is running geo-targeted ads
(w/in Pandora’s iPhone application) that
lets consumers save money on products
sold at locations closest to them.
• Deal of the day The Ace Hardware mobile
ad reads “20% off. Almost
Anything, Saturday, Feb. 25.”
Additionally, the mobile banner ads
feature the nearest Ace location.
http://www.mobilecommercedaily.com/2012/02/28/ace-hardware-
40
drives-in-store-traffic-via-geotargeted-mobile-campaign

41. AuchanChronoVillage
© Linéaires - www.lineaires.com
3/15/2012 41

42. Engage, Educate, Inspire &
Expedite
42

43. Mango
• Mango connects with a global shopper base
via its by blog and engaging “What should I
wear Mango” video mini-series.
43

44. “To elevate the world from mediocrity to greatness.”
44

45. • Uniqlo has devoted effort
to product
innovation, based
customer
feedback, rather than
fashion trends.
45

46. Choice editor, Tastemakers,
Curators &Content Creators
• In the connected world, access to fashion has
been democratized and store choice is
boundless.
• Creating a voice that breaks through the
clutter and connects with the shopper is
critical.
• Retailers and suppliers must find ways to tell a
compelling brand story as shoppers become
more selective. Chico’s editor and style
expert, Sher Canada, speaks to its
• The store as choice editor, deployment of target
tastemakers, curators, and content creators is
important for connecting with shoppers and
establish a new level of trust is elevated.
46

47. Experience
47

48. “I’ve always loved the way fruit and
vegetables are displayed in a grocery store.”
-Mark Constantine, LUSH’s Managing Director
• Fresh
• Handmade
• Naked
• Minimal
preservatives
48

49. Mark’s Walk-in Weather Lab
• Walk-in Freezer Lab converted a walk-in freezer
into a “weather lab,” encouraging consumers to
test out the retailer’s sub-zero outerwear, in
temperatures dropping to minus 40 degrees
C, and simulating wind chill.
• Inside the fixture, a bar with a handle allows
customers to grip and test the efficacy of gloves, a
metal pan encourages testing of boots on an icy
surface.
49

50. Icebreaker TouchLab, New York
• This New Zealand
adventure apparel
brand has New Yorkers
saying, “I can’t believe
this is wool”
50
Source: VMSD, accessed April 4, 2011.

51. 4010 Telekom Shop, Cologne
3/15/2012 51

52. Fairy Dish Liquid with Olay:
Removes Grease,
Helps Preserve your Hands Beauty
Shelf topper
Floor graphic
Shelf blade

53. Pampers Value Equations
1 Pamper = 1 Night of Sleep

54. Nivea Invisible Deo: It is Black & White

55. Clinique Dark Spot Corrector

56. Laundry Concentrates
Value Reassurance

57. IKEA:
Finding the Right Pillow

58. Seattle’s Best:
As Easy as 1,2,3,4,5
Mild Bold

59. Store Shelf

60. Robitussin Relief Finder

61. Technology: Shopper Advocate
• Increasingly complex technology
• How can Best Buy demonstrate its leadership role
as “shopper advocate”
– 28% store visits ended with an average of $132
unspent from abandoned purchases driven by
, limited store associate assistance, deal-habituated
behavior, out-of-stocks and long check-out lines*
• Shoppers doing more online research
– 39% say smartphone affects purchase*
• Product  Purpose
* Source: Motorola Shopper Survey, January 2011. 61

62. Technology: Shopper Advocate
62

63. Technology: Shopper Advocate
63

64. Technology: Shopper Advocate
Product specifications
Customer reviews
64
Store availability

65. Takeaways
• Shoppers are more planful
• Experience provides better attachment to
brand…
• Product features  Purpose
• Possessions  Experiences
• Augers a new role for the store
65

66. New Role for the Store
• How can POS marketing help us be successful
in evolving the store’s new role?
• Focus on the 2 main goals of the eco-system
form the perspective of the shopper:
1. Establish relevance to consumer’s lifestyles
2. Make it easier to shop
66

67. Visual Merchandising:
Marketing Lever & Sales Driver
• Appealing look & feel is primarily intended to
attract shoppers to the store or department;
entice shoppers who came to the store for
another reason.
• Display Organization and Decision-support
Signage makes it easier for shopper to find the
products they want.
• Cross-merchandising is a way to increase average
basket size by driving unplanned purchases.
67

68. Look & Feel
• Reputational:
– Basis—actual or perceived basis for retailer or
category (All American, Classic, Traditional)
– Reputation—retailer or department’s image
(Market leader, Recommended by Specialists)
– Personality—key personality or character traits
associated with retailer or department (Affordable
fashion, Fashion Forward)
68

69. Look & Feel
• Rational:
– Shopping process benefits —how the shopping
experience is perceived (well-organized, easy-to-
make choices)
– Relationship benefits —consistency of positive
experience (choice editor, always fresh)
69

70. Look & Feel
• Emotional:
– Personal associations —how the store or category
fits my lifestyle (for trendy people like me,
– Internal emotions – how the store or department
makes me feel (cool, comfortable)
– Perceived value – perceived value of the
proposition of store or category
(premium, affordable)
70

71. Close
• Exciting time of challenge to make the store a desired
destination for shoppers
• Understand and leverage the entire shopping eco-
system
• Many advantages flow from store as desired
destination
– Traffic
– Conversion
– Basket size
• Better experience creates better brand
connection, which helps strengthen the relationship
with shoppers over time.
71

72. Twitter: @retailecologist
Email: jim.lucas@draftfcb.com
72