Suppose you have been successful in developing a customer insights strategy and discovered an actionable insight or two. What do you do with those actionable insights? More importantly, how do you know that they are actionable insights? Will they provide a growth in your business value?
Why do you need an actionable insight? Primarily to know where to start and what to focus on when drawing up a plan of action. Before going into that, we need to step back to the very first elements of the strategy. Customer insight (CI) strategy is all about understanding your customers. Regardless of who you thought your target market is or should be, your customers are those that your aim is actually hitting. Priority must be given to interpreting the data you already have, but unless you are able to interpret it properly, your effort is useless.
Simply stated, the basic element is not so much about hitting your target market, as it is about understanding who your target ma…
What are consumer insights and how do they impact on marketing effectiveness? It would be great if there were an easy answer to this question.
Hang on. There is an easy answer and having that answer can transform your marketing strategies. I know this because I am Phillip Adcock, a leading expert in shopping and shoppers. My team and I have developed ways to uncover what really goes on inside the mind of a consumer. Our business is consumer insight and our consumer insight techniques go far beyond using a focus group.
Chances are that what you think motivates consumers is not what actually does motivate them to make their purchasing decisions. How could you know why they buy what they buy? They don’t know either what prompts them to choose the products they choose.
When you advertise to the public, you are building brand awareness, and you may believe you are building a future for your brand and your company. Your advertising is useless if it does not reac…
Is the grocery store industry really changing all that much?
At the beginning of 2016, the industry buzz was about shifting industry trends toward online grocery shopping and increasing competition from discounters. The whole industry was responding to a massive and elemental change in how people shopped for their food. The prediction was that online shopping would increase from 5% to 9% by 2021. Research into the data indicates that these are still huge factors in the grocery industry’s performance.
As for the competitive price wars at discount stores, Aldi and Lidl had been growing quickly in 2015 and the anticipation at the beginning of 2016 was that the grocery market would settle down and the Big 4 would continue to perform very well.
That was then. What about now?
In February 2017, Euromonitor International reported that the discounters were still the “standout channel in grocery retailers” throughout 2016 with a growth of 11% over th…
Category development is an art as much as a science. Before explaining this, let me talk about the Category Development Index (CDI). This is the measurement of how well a category measures against its competition. There is a formula for this. It is quite simple. It is the category at retailer divided by the category in market multiplied by 100.
If the CDI is less than 100, the brand is considered underdeveloped and if it is over 100, it is overdeveloped. There is the attendant pressure to achieve a CDI of 100 and focus on developing the underdeveloped category and stepping back on the overdeveloped category.
Before you decide that hitting the perfect 100 score on a CDI should be your goal, bear in mind that there are other factors that come into play. You are looking at one category. Chances are good that you have more than one category in your retail market. If you shift your focus to ‘normalising’ the CDI in one specific category, what about the other categories in …
It’s not uncommon to hear Baby Boomers tell their Millennial offspring that they should be saving for a home and car as soon as they start working. However, Millennials don’t seem to be concentrating their focus on either anymore.
For example, tech-savvy young adults especially in urban areas have the luxury of relying on shared economy ventures such as Uber or Lyft instead of purchasing a car. Due to the rising house prices, Millennials also see renting as the most practical option over becoming homeowners.
This sudden change in Millennial spending habits is forcing retailers to shift their marketing strategies.
Blueboard is one of the first firms who have started selling “experiential” packages to traditional retailers. One of Blueboard’s missions is to integrate new services to businesses that target Millennials. Some of their international customers include Astex Pharmaceuticals and GoPro.
“(Millennials) aren’t spe…
Analysing the chocolate industry is not as straightforward as it might seem on the surface. You really need to look at chocolate from two perspectives. Understanding the industry calls for understanding two different categories: cocoa production and the chocolate segment of the confectionery industry.
The International Cocoa Organization has plans to relocate its headquarters to Côte d’Ivoire, Abidjan in 2017. 60% of the Ivory Coast’s export revenue comes from cocoa. In 2011, it was reported that 70% of the world’s cocoa came from West Africa.
Two years later, in 2013, the global supply of cocoa began to falter and lag behind the demand for it. Part of the reason for this was due to poor yields in the main producers – West Africa. Poor yields were due to disease, not enough rain to meet the cocoa trees’ needs, and older trees that are not as productive as younger trees.
To further complicate matters, the volume of cocoa farmers is diminishing because they are wo…
What is SBXL? It’s a consumer insight agency.
Fine. Great. But what is a consumer insight agency?
It’s a team of professionals with a passion for understanding consumers. These professionals have a burning desire to know what lies beneath the surface of the dynamic tango of shoppers and shopping.
At SBXL, we build strategic consumer insight through creative market research and develop methods of getting closer to consumers so that we can study their behaviour and learn the subconscious motivations behind their purchasing decisions.
At SBXL, we define shopper insights as “any new understanding of shopping behaviour or shopper motivation that can be leveraged for competitive advantage.”
Fine. Great. What does that mean to brands or the retailer?
It means everything. With an understanding of how brand attitudes are fostered in the brains of buyers and how these attitudes affect the shopper’s behaviour, you, the shopkeeper, are able to succeed in-store. With…
At the “Cosmetic Executive Women’s 2016 Trends: New Consumerism Rules” event, it was reported that the traditional demographics — age, income and gender — are no longer effective when it comes to targeting consumers. The new markers are individual needs and values.
As well as the changing demographics, other factors impacting the cosmetics industry were acceleration in lifestyle trends, quest for knowledge, safety and convenience, and the digital upgrading path to purchase.
The CEW event also noted that independent brands are taking share from the major beauty players. This is due to a secular shift in buying patterns and influencers along with a dash of the anti-establishment mindset.
These changes don’t mean that the cosmetics industry is on the wane. According to Allied Market Research, the global cosmetics market is expected to reach $429.8 billion by 2022. This growth is a result of an increase in disposable income, growth in global economies, and changing lifes…
The whole way that people shop has changed dramatically in the 21st century. Lower prices and special offers were, once upon a time, the popular way to attract buyers and cause products to leap off the shelves.
According to industry studies, shoppers are not as apt to rely on one large grocery-shopping trip as in the past. They are rediscovering convenience stores. The micro convenience store is emerging as a new shopping experience. The micro convenience store is —micro. With a space of about 1,000 sq ft, the focus is on convenience. The consumer can pop in and pick up the essentials for a fast meal. Some clever micro convenience stores are hybrids, the offspring of a bricks and mortar store and an online store. They are pick-up points for online deliveries.
I’m Phillip Adcock and I study shopping and shoppers and I’ve just told you why convenience stores need to pay more attention to their layout. The micro convenience store appeals to one segment where its kiosk-like ser…
John Pemberton came up with the Coca Cola recipe in 1886. An entrepreneurial American pharmacist, John Pemberton was abysmal at marketing and if the marketing had relied on Pemberton, Coca Cola may have disappeared without a trace. How could this product rise to the top and stay there for well over a century?
I’m Phillip Adcock and a huge insight I have gleaned from my research is that psychological appeal is the most potent element in any marketing strategy. The decision to purchase is processed by the customers’ subconscious minds. Price and taste are peripheral when it comes to this beverage. It’s more about the constant creative efforts in the marketing strategy of Coca Cola.
In the 21st century, the soft drink industry faces challenges from many sides. Health concerns caused a clamp down on sugar and one of the first targets was the consumption of sugar laden beverages. The school vending machine soon became considered a health hazard. The environmental concern about the…