Shopper Culture

Watch Out, “American Dream,” There’s A New Dream In Town… And New Shopper Needs To Go With It

The American Dream used to be about getting bigger and better things as life progressed. Get married, get a promotion, get the big house in the suburbs, buy a minivan/SUV, and have 2.5 children to fill it all up. Although many people still aspire to this traditional American Dream (and there’s nothing wrong with that), a new dream is popping up across multiple generations – the Urban Dream.

 Photo Source: Getty Images; Ghislain & Marie David de Lossy

The Urban Dream is about the freedom and experiences that an urban existence can bring you. Millennials are opting to hold off on marriage, children, and big, “grown-up” purchases like a car or home, and staying in urban areas.  At the same time, Boomers are downsizing their possessions and homes, hence reducing many of their grown-up responsibilities, and moving back into cities. This creates two groups that have fewer responsibilities (home/car ownership, parenthood, etc.) and more freedom to do what they please. And city living gives them exactly what they want: more access to new unique cultural experiences and a more social way of life.

People living the Urban Dream have a new unique set of shopper needs. Instead of stocking up the car full of home goods, groceries, and Home Depot goods for DIY projects, urban shoppers rely on smaller, more focused shopping trips and online shopping. Luckily, retailers are taking notice.

New Urbanist Hot Off The Presses

The February issue of The Urbanist is ready to read.

Click here to read more about the latest in urban shopper trends inlcuding Bitcoin, iBeacon, and the latest fashion apps. There's much more to read in past issues as well—click here to explore.

The Changing Nature of Impulse Buying

ECRM's Front-End & Checklane EPPS event is starting today in Las Vegas, Nevada. Craig Elston, will be speaking Tuesday, February 4th on the topic of the changing nature of impulse buying. If you're planning to attend the event, be a little impulsive and swing by to say hi to Craig.  

Amazon's One Step Ahead of You

Brick and mortar stores often have an edge on eRetailers when it comes to offering shoppers instant gratification; but maybe not anymore.

Amazon recently filed a patent for a new delivery system called anticipatory shipping," that essentially pre-ships things it thinks you will buy based on your shopper history—the result, you get something you bought online in a matter of hours vs. days. 

Digital instant gratification could be on it's way—will it make people click the buy button more often?

Photo Source: United States Patent and Trademark Office

Everyone's Getting In On The Action

The Super Bowl is not only one of the biggest sporting events of the year, but also one of the biggest retail events of the year. According to BIG Research, shoppers expect to spend, on average, $79 this year for Super Bowl related items. That is a $15 increase in spending compared to just 2 years ago. Perhaps there's just a rising price to watch or maybe it's due to greater game day marketing.

It's not just for soda, beer and food brands anymore. Brands of all kinds look for ways to draft off of the excitement and spending that surrounds the big day and digital platforms like Facebook and Instagram offer easy, quick ways to get in on the action. Just today I saw a sponsored Clorox post in my Facebook feed encouraging me to buy toilet bowl cleaner for the big game. I have also seen Uber get in on the action through a game day promotion that includes bar reservations and an Uber ride.

Using the big game in marketing materials definitely grabs shopper's attention, but do you think it's enough to change shopper habits or increase spending? Which brands are true fans and which are bandwagon fans?

Photo Source: Integer ShopPic^TM Library

Super Bowl Pinspiration

Since nearly 80% of fans don't start planning or shopping for The Big Game until the last week (according to a recent Marketing Arm study), there's still plenty of time to for brands and retailers to connect with party hosts and guests and influence their shopping.

While Boomers are still very much into watching the Big Game, Gen Xers and Millennials increasingly see it as an excuse for a good party and a backdrop to socializing. (As we reported in our Super Bowl issue of the Checkout.)

Let's Connect At The Direct Marketing Symposium

The Kansas City Direct Marketing Association is hosting the 2014 Direct Marketing Symposium Thursday, January 23rd in Kansas City, MO. The event is all about data-driven marketing – from targeting, segmenting and customer insights to metrics and analytics. Integer's own Rocky Longworth, VP of Insight & Strategy, will be speaking; so stop by and say hello!

Unique Commerce: Traffic Jam Transactions

Traffic is never really thought of as a good thing, unless you are a 'entreprenuer' in Managua, Nicaragua. On a recent trip there I noticed just how many locals were meandering between cars selling window-washing services, fruit and nuts to those stalled in traffic jams. And after a long plane ride I was pleased to buy some reasonably priced, freshly roasted cashews.

Managua is not the only traffic ridden city where local are capitalizing these unique commerce opportunities. NPR reported on Jakarta's 'gridlock economy' highlighting some interesting services for sale including personal traffic 'cops' and carpool 'aides' that basically means a woman and her infant hop in the car with you so you can ride in the carpool lane.

These locals prove that sometimes the best way to connect with shoppers (and make sales) is to go to them and deliver goods and services that are most relevant in that context. They are truly thinking shopper first.

What does Low Price Look Like?

People instinctively and universally believe that high-quality products are higher priced. But the first signal of quality is the quality of the packaging itself.

Walmart's no-frills packaging for its Great Value brand clearly says "low price". 

But they've recently started using packaging that mirrors the conventions of category leaders.

The Urbanist: Jan 2014 Issue

Check out the latest urban shopping innovations that are making a scene for the New Year in the latest issue of The Urbanist, courtesy of the Integer New York office.

This month's issue talks about dressing room checkout options, 3D tailoring, and new ways of engaging shoppers in the big city.

Stay up to date with the latest urban retail trends by following The Urbanist on Twitter @_The_Urbanist. And don't forget to visit The Urbanist shopper culture page to view past issues.

Target Tries To Make Amends For Security Breach

What’s worse: shoppers becoming mad over your mistake or shoppers becoming mad over your mistake and then subsequently becoming enraged over your ignorance toward the matter? Target understands the latter choice and is subsequently offering free credit monitoring and identity theft protection to any and all of its shoppers who have gotten their information stolen in the recent security breach, as many as 70 million people now.

It’s a reminder that there does lay an opportunity to win over your shoppers in the wake of a mistake. Tylenol always comes to mind as a prime case study of “mistake mitigation” when the company took proactive measures during a crisis in 1982, to rebound as an even stronger and better brand.

Lesson to learn: every mistake is an opportunity. Fix your mistakes, even if they are not your fault, and people may forgive you. They may even love you more.

How can Australian retailers jump on board the e-Commerce train and stave off encroaching international competition?

Retail in the U.K. and the U.S. is often leaps and bounds ahead of Australia, whether it’s innovative marketing techniques, in-store technology, or, in this case, e-Commerce. It’s hard to believe that just three years ago, there were no major Australian retailers with an online presence. While Aussies have made a lot of progress, they’re still lagging behind.

A recent report by NetSuite and the Australian Retailers Association shows that only 15 percent of Australia’s approximately 77,000 businesses currently transact online. Since Australian retailers don’t provide their consumers an opportunity to purchase online domestically, it’s no surprise that an estimated 40 percent of online retail purchases go outside Australia.  

There is great potential for Australian retailers to take advantage of domestic sales, with 50 percent of Australians described as “digital buyers” who prefer to buy online when possible; however, retailers’ snail-like pace in adopting e-Commerce is seeing them lose out.

So how can Australian retailers jump on board the e-Commerce train and stave off encroaching international competition?

From Fear of Missing Out to Joy of Missing Out

In an ever connected world where some feel compelled to check into a location or check out of a retailer and even stay engaged in work and personal conversations 24 hours a day, there was bound to be some backlash to the tether that ties us to our phones and computers.  

For several years, marketers have spoken of the "Fear of Missing Out"—a feeling that sometimes drives people to squeeze too many activities and obligations into their day. This year, a new term will populate the lips of marketers and leading edge consumers alike, JOMO, or the "Joy of Missing Out." 

JOMO is a response to the intangible obligation that many of us feel towards our phones, tablets, and computers. It's an interesting build on some of the ideas we saw last year around 'Nosocializing" (not socializing with the people you're with because you are on your phone), but takes it one step further.  

JOMO not only diagnoses the problem our myopic tech focus, but it implies a reward to us for breaking free from our tech addiction and encourages eye contact and some personal time to breath, think, and enjoy life. More info on JOMO can be found here. 

But will this de-connecting change the way people shop?  

InSightings 2014

The future of shopper marketing is in the past. Much of the personal service that drove sales before is still driving sales today. Now delivered with help from technology.

Truly one-to-one connection comes to life thanks to that powerful shopping tool in everyone’s hands—the mobile phone or tablet. 90% of shoppers have said they’re never more than 3 feet away from it at any given time, on any given day.¹ Think of the direct connection this offers...the ability to personally serve your shoppers’ needs, wants and desires 24/7/365 based on data-trackable behavior from this unique device that’s overtaking desktop.²

What are three key trends we believe will give you the best opportunities to connect and affect your shopper moving forward and move your brand beyond the six mission-based mindsets (KEEP UP, STOCK UP, RESPOND, HUNT, GRATIFY, ENJOY) that have been identified by iconoculture as becoming part of everyone’s routine? Wearable Tech, Shopimization and Brandscaping.

Click here to read more about InSightings 2014 in the January Issue of Integer Pulse. Or click here to read past issues.

1   The New Digital Age: Reshaping The Future of People, Nations And Business: Eric Schmidt, Jared Cohen (Mobile Phone Usage)
2   Mary Meeker Report on the Mobile Overtaking Desktop NOW

Commerce Trends To Watch–and Shape–in 2014

2014 will not so much be a year of new promises as a year where existing promises of mobile, social and big data will come true. These are some things we expect to see more of in 2014:

1. Channel merging

The digital and physical worlds continue to converge. Driven by web, mobile and social platforms, shoppers can now discover, research and purchase anytime, anywhere – at home, at work or on the move. In a world where commerce is everywhere, shoppers expect a seamless experience across channels – whether they're in Showrooming or Webrooming mode. Hointer is a great example of the blurring of lines between physical and online retailers. 2014 may mark the beginning of the end of pure-play online retail. Physical retailers are increasingly acting like online retailers, by adopting online principles such as personalized recommendations, individual pricing and offers specific to location and time. And online retailers are increasingly acting like physical retailers, by adopting principles such as instant gratification with the advent of on-demand delivery services.

2. Earning data

Is “Me-Tail” The Most Valuable Concept For Brands And Retailers To Embrace In The New Year?

For any marketer, the themes of personalization, direct-to-consumer engagement, and an “always-on” approach to communications are not new ideas, but, in 2014, I predict that the concept of “Me-Tail” will be the driving force at the center of all retail and shopper-marketing decisions.  Briefly, Me-Tail is a term that labels the movement of retailing from being seller-centric to shopper-centric. As the stats continue to show, generations other than just the Millennials are increasingly connected and empowered through technology to demand higher customization of products as well as more personal experiences with brands and retailers.

But retailers and brands should not feel out of control by this shift in shopper and consumer desire, and should instead embrace the opportunities that mobile tools and the tremendous amount of consumer-shared data can offer, such as promotional geo-targeting and direct engagement or feedback through social channels. Given all that, would you agree that a “Me-Tail world” can be equally beneficial for brands and retailers as it is for shoppers and consumers?

Image Source: Techcrunch.com

"After Christmas" the new Black Friday?

With the holiday shopping season finishing a little disappointing for retailers, they turned to more extreme measures, including staying open all day and offering steep discounts, to attract shoppers. Some major clothing retailers, such as Gap, offered up to 60% off in attempt to win last-minute shoppers. Shoppers were able to hold out for better discounts to force a spike in retailer's promotions. As NBC News put it, "With just two days to go before Christmas, it's becoming clear that shoppers won the annual game of chicken."

But it didn't stop at deals leading up to the big holiday—retailers began touting offers before Christmas for "after Christmas." While traditionally the week before Christmas has been a hit or miss time for retailers, can the days following the holiday help make up ground? Look to see consumer behavior shift to postpone buying larger purchases to after-Christmas. 

shopper culture: A Year In Review

In case you missed it, now's the time to go back and explore what popped up on shopper culture in 2013. Here are some highlights by the numbers:

• ONE HUNDRED AND TWENTY posts from Integer offices across the globe including Australia and Singapore
• TEN presentations from conferences ranging the P2P Institute Shopper Marketing Summitt to the NCA Snack and Sweets Expo addressing various shopper insights  
• EIGHT Checkouts covering topic including Hispanic shoppers, Mobile, and the Super Bowl
• EIGHT Integer Pulse issues including holidays insights and an addition to The Complex Shopper
• FOUR issues of The Urbanist, an urban shopper digital magazine, which launched in Sept 2013
• THREE White Papers on topics including mobile shopper strategy, shopping lists and Big Data
• TWO studies on social web strategy from the Integer/CCRRC series Untangling the Social Web

Hope you enjoyed this past year as much as we did—stay in touch in 2014 by following us on Twitter (@ShopperCulture), Facebook, LinkedIn, and Pinterest (shopperculture). And don't forget to subscribe to shopper culture to get emails about new publications! (see subscription button on the right hand side of the blog page)

The Hunt: Turning an Image into an eCommerce Opportunity

Have you ever seen a picture on the Web of an outfit, room décor, or a recipe and thought, “I want that!”? With the new website and app The Hunt, users can discover the brands and products behind these pictures with the help of others in this fashion-savvy community. People start a “hunt” by uploading a photo to the site and asking other users to help them identify the merchandise in the photo by providing links to sites where they can purchase similar items.

The website illustrates the next step in social media-enabled commerce. It moves beyond sharing and liking friends’ pictures to actually helping them purchase items. Like many things in the social space, it democratizes fashion and design advice to make information widely available to all who want it.   

Brands and retailers can benefit from the site by exposing users to new products and answering questions to customers’ fashion queries. As a result, they are able to engage with consumers deeper into the purchase funnel with meaningful two-way conversations. Though this is an excellent opportunity for brands and retailers to expand their social footprint, they must be wary and enter the space as a helpful peer and not a pushy salesperson. This site has great potential to aid customers in their shopper journeys by helping them identify and purchase items that they are truly passionate about. What are additional ways that brands and retailers can leverage sites like this to increase loyalty, engagement, and purchase?  

Photo Source: thehunt.com

How the Grinch Stole Target’s Christmas

Target made headlines this week when it was revealed that more than 40 million credit and debit card numbers might have been stolen from the retailer’s credit card-swiping machines across the United States. The breach of security occurred during the peak holiday-shopping season, lasting from Black Friday through mid-December. Shoppers take for granted the security of using plastic to make purchase in store, and they have become more dependent on using credit and debit cards. A recent report from Visa found that 40% of Americans carry an average amount of $20 or less in their wallet.

However, will the news of large-scale identify theft make shoppers rethink what payment form they reach for at the checkout? Target is already racing to help shoppers by posting a guide to dealing with identify theft, but the news might still hurt the Target image during this all-important holiday-shopping season.

Photo Source: Integer ShopPic™ Library