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11 January 2012

The trouble with trained shoppers

   



By Pete Davis

One of the trickiest parts of any sales promotion campaign has always been predicting how your target audience will react to any given type of promotional activity. A lot of the science of this is based on how people have reacted to previous similar campaigns, but this does not help with targeting a specific audience, on top of this it can also leave you vulnerable to statistical errors and so-called “black swan” events, where unpredicted events hit redemption figures.

The more brands understand about who their actual consumer is and how they “collect” then they stand a far greater chance of creating a campaign or promotional activity that connects with their chosen market and creates a bond with the brand. In today’s highly competitive marketplace and with promotional campaigns in danger of devaluing brands’ price points because of their misuse and over proliferation, understanding the differences in how people react and behave towards promotions is vital.

Many shoppers have become trained to expect promotions and have little or no loyalty to the brands they purchase, these campaigns can give brands a short-term shot in the arm but do little else if not planned properly. Brands need to work to ensure sales promotion ideas add value for both the consumer and the brand if they are to deliver real return on investment.

Sales

During a four-month study led by the Future Foundation, and sponsored by SMP and eight other organisations (Arla Foods, A&N Media, Boots UK, CPP, Dixons, Headcount Field Marketing, ITV and Filmology), PromoFutures interviewed and observed thousands of British shoppers to really help brands get to the bottom of this conundrum.

The study concludes, unsurprisingly given the current economic climate, that looking for promotions is now an engrained part of the shopping process; even those who are less interested in promotions still expect them to some extent and this has led to a change in accepted shopping behaviour. The survey noted a number of new shopping trends, including delays in purchase or hunting for stores with offers, and shoppers using offers as a key aid to navigating around the store promotions. Indeed, promotions are now seen by many as part of the entertainment and something that adds excitement to the shopping experience.

Importantly for marketers, the survey identifies eight different clusters of promotional behaviour. These range from those with little or no loyalty to brands, to the shoppers who take part in promotions but do not actively seek them out. The study also found a group who are happy to patiently collect relevant rewards from brands they trust, as well as groups who are driven by eco-ethical factors.

•Expert promotion users - Expert promotion users tend not to be loyal to brands and shop around from promotion to promotion.

•Extreme mobile users - This segment tends to be younger and more upmarket. They are active on social networks and confident with new technology. They like to pass on news of promotions and receive news of promotions from their friends, especially on their mobiles.

•Digital voucher lovers - As the name suggests this segment loves digital vouchers and coupons. They tend to be more upmarket and a broad spread of ages.

Eco-ethical advocates - These people are ready to pay full price for ethically produced/environmentally friendly products. However, they are also keen on reliability, quality, experience of the brand and customer service.

•Patient collectors - This group is prepared to collect and redeem multiple coupons/tokens over time, especially for money off or a gift. They do tend to be older, lower social grades and have a lower online usage, and consequently less use of social networks.

•Reactive social networkers - Although active in social networks, this group tends to be lazy when it comes to seeking out promotions. They tend to be younger, predominantly male and downmarket.

•Passive promotion users - The passive promotion users are less ready to redeem promotions but are more likely to sample products in-store. They also tend to be older.

•Minimal promotion users - Very different to the other groups in their attitude to promotions! They do tend to be older.

Armed with these insights marketers are better able to match the right promotional mechanic and media channel to maximise promotional effectiveness better than ever before.  Read the full research here.  

Pete Davis Is managing director of advertising and marketing ideas hub Getmemedia.com

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