The Place Where Money Is Made

The Point of Purchase is the only place where money is made – so why is it so hard for companies to focus on it and truly maximise shopper conversion???

Covid changed the way we shop and our expectations around the shopping experience for good.??

The habitual use of digital has made shoppers savvy and more demanding - with high expectations of a consistent, seamless and frictionless experience, whether shopping on- or off-line.?

Purchase journeys are more complex with multiple touchpoints across multiple channels.???

Delivering omnichannel is acknowledged as imperative, yet companies still grapple with focusing on consumers as shoppers and delivering optimal experiences.??

Why??

1. Lack of understanding?

• Functionally Shopper sits within either Sales or Marketing, both with their own remits and goals.? As a result, focus on the shopper and their needs can often get pushed down the agenda.??
• Within Marketing, KPIs may be solely brand focused. This can lead to a tendency to be one step removed from understanding the commercial realities crucial for building effective execution strategies.??
• Within Sales, the organisation tends to understand Shopper as focused on the short term (retailer initiatives and promotions); it is positioned as a tactical, as opposed to a strategic capability.???
• Because Shopper is not well understood and generally contributes to a broader team delivery, it’s harder to measure its contribution.? Shopper ‘programs’ or ‘initiatives’ are difficult to distil from the overall mix, making the true value of Shopper challenging to demonstrate.?

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1. Lack of investment??

If Shopper is not well understood and its value is difficult to define, it can result in lack of senior support and investment. This often means lean budgets and resourcing, with talent difficult to attract.??

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Stuck in a vicious cycle?

Organisational structures are generally inconsistent with Shopper optimization.

How can we expect to create optimal customer journeys across all relevant touchpoints and ensure we gain the sale, when the knowledge and resource we need to collaborate, work, and think holistically is walled off in different functional silos??

Without people who can lead holistic thinking and break down the silos, the chances of really understanding consumers as shoppers and how to meet their needs are slim.? The insight and execution strategies required to be effective across the customer journey and at the point of purchase will not be as effective as they could be.?

Furthermore, without Shopper leadership looking to the future – industry developments, how to leverage new technology and agency models - money and time is wasted.???

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So – how can we create a Shopper virtuous circle??

Thinking differently about the value Shopper can bring, bringing in strategic Shopper leadership and creating and utilising shopper metrics effectively can break the cycle.?

Although Marketing tends to put a lot of focus on pipeline and new product development, core/base business is what makes the wheels turn. Shopper can truly make a difference by helping to maximise this core.?

When understanding relevant shopper needs and improving experience is prioritised, you have a powerful lever to drive conversion and retention.?

Just as marketers do with communication budgets, understanding what works for shoppers through test and control trials enables the effective and efficient use of execution budgets.??

Utilising shopper conversion metrics brings into sharp focus what money is being left on the table.??

Building long term strategic retailer relationships always requires the articulation of strong actionable insights which come from Shopper capability. Whilst difficult to evaluate, these relationships deliver long term value and Shopper should sit at the table in these meetings.?

Ultimately delivering the best shopper experience through the journey and driving conversion comes from having the right people with the right mindset.?

We need Shopper evangelists to remind us that if we don’t understand our consumers as shoppers, we don’t fully understand our consumers.?

Finding talent with the right experience can break down the internal functional walls, ensure the right questions are being asked and bring the right people together to work collaboratively to deliver strategic, truly integrated plans.??

About the Author

Aside from being an expert in Shopper insights, Kate Gibbon has over 25 years’ experience working across sales and strategy at a market, regional and global level.? She has worked within several Fortune 500 companies: GlaxoSmithKline, British American Tobacco and her most recent corporate experiences have

been leading the shopper insight and shopper marketing functions for Mondelez International and Fonterra Brands. Kate has lived in the UK, Australia, and Dubai. She has worked with and led teams across multiple markets & has deep experience in Asia-Pacific. Kate currently resides in Singapore.?

About NEON Leaders??

Founded in 2019, NEON Leaders is a global community of leading marketing experts, working independently; committed to the potential of collective support.? Together we unleash our best potential to unlock greater value for ourselves and the businesses with which we work, whilst having fun along the way.? We welcome the best senior independent marketing talent to our community whilst building a diverse collective of skills and expertise.????

Find out more at www.neonleaders.com

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