Archive for April, 2012

What’s in store for the future of retail staff?

27/04/2012 15:53 by Matt Fisher and Rachel White

In an age when consumers research their purchases thoroughly online, talk to their friends for recommendations, and test out their potential purchases in store, exactly what role do store staff have to play beyond facilitating the experience? Recent research by GfK shows that the suitable mix of in-store recommendations and demonstrations, achieved by store staff training, can be highly effective at increasing sales.

A new GfK research programme has provided some unique insights into the ROI of store initiatives by combining mystery shopping results with individual store-level sales data. The programme reveals how the in-store experience translates into sales and shows the average uplift in sales resulting from different types of in-store activity. This is highly useful for brands that want to understand how to prioritise in-store marketing budgets, benchmark against competitors, negotiate better rates for display space, and calculate the ROI on in-store marketing spend.

So what are some of the key findings of this programme that are useful for marketers?

Disruption, and what consumer research can learn from Henry Ford

25/04/2012 09:34 by Olly Robinson

I’m a relative newcomer to the ideas behind disruptive innovation (when Clayton Christensen first published The Innovator’s Dilemma, which provides an evidence-based framework for how new entrants to a market can displace the incumbents by introducing products and services that compete asymmetrically, I was still at school).

When I did, eventually, come across Christensen’s work, I could probably have skipped over the majority of the evidence part; as a market researcher in the tech sector, I only had to look around at the changes taking place in the computing and telecoms markets.

“If I’d asked my customers what they wanted, they’d have said a faster horse” Henry Ford

Bricks & Clicks: the start of a budding relationship?

24/04/2012 17:16 by Colin Strong and Friedrich Fleischmann

The pressure on offline retail is growing with online retail’s move onto mobile platforms creating instant price transparency. The GfK finding that customer journey patterns are mixing online and offline in the purchase process means that retailers now need to invest in a truly omnichannel approach where both online and offline retail complement each other. By taking this creative route, bricks and mortar will continue to have a successful role in the market for tech products.

TechTalk Magazine: The Retail Edition

20/04/2012 16:20 by Aoife McArdle

The first 2012 edition of our magazine, TechTalk, is now out, exploring current trends, issues and market developments affecting technology organisations today. In this edition we take a closer look at the customer purchase journey for technology products, with a particular focus on retail (read it here).

Retail, both online and offline, represents the part of the customer journey where value is ultimately generated and money changes hands. Given the current tough trading environment technology brands are facing across markets worldwide, it is hardly surprising that there is so much interest in how retail is evolving. Retailers are feeling the effects of disruption as technology itself changes the way consumers shop for technology products. It is this which sets the topic for the lead article where we explore the nature of these changes and set out a vision for traditional ‘bricks and mortar’ stores through an omnichannel approach.

How good are consumers at predicting what they will like?

19/04/2012 14:13 by Colin Strong

I am pretty convinced that the shiny new tablet PC I’ve been playing with in the shop around the corner from work will bring me a lot of satisfaction – just think of all the new things that I will be able to do…..and that new on-demand film service I signed up for at the weekend will make a family film night in easier and more enjoyable.  In fact, a lot of the purchase decisions that I make are because I think they will make me happier.   Our quest for future happiness seems to figure strongly in many technology purchases where consumers often make pricey investments in the belief that a new device or service will bring them happiness in the future.

This is typically relevant to discretionary purchases but the choices made within even non-discretionary purchases can be for this reason (e.g. by choosing this broadband supplier I will have greater peace of mind = happiness).

The Changing Face of Online Fashion Shopping

12/04/2012 11:35 by Holly Handyside

There is little doubt that online now forms an integral part of the retail experience for many consumers, particularly in Western markets.  In 2011, UK online trade accounted for 12% of all retail, the highest in Europe[i], and this trend only looks to increase with the inexorable rise of mobile commerce that recently achieved the milestone of over 5% during Q4 of last year[ii].

Using the internet for retail has become so commonplace that for many, the added benefits of convenience, easy research ability, and price comparison tools outweigh the effort required to physically visit the traditional bricks-and-mortar store.

But is online delivering everything consumers need from a shopping experience?  As we move further into the digital age, consumers expect a personalised, tailored and social shopping experience regardless of the medium through which it is conducted.

Experience or memory: which influences the way we think about brands?

05/04/2012 10:17 by Colin Strong

Think of your last holiday….did you put aside the camera in order to savour those special moments?  Or did you take numerous photographs to capture the memories?  When you returned home, how did those photos shape your memory of that holiday?

The reason I ask is because Behavioural Economics has recognised consistent differences between the way we report our experiences in the moment (such as whilst on holiday) and the way in which we subsequently recall our experiences (once we return from holiday). Daniel Khaneman, leading psychologist, calls these ‘two selves’ the ‘experiencing self’ and the ‘remembering self’ respectively. The distinction between the two selves has huge implications for consumer experience in areas such as service design and marketing.