What makes people loyal to their corner store? Jamie Mash | Amanda McKown | Dania Peterson | Angela Robertson
what is a corner store? When we set out to learn about corner stores, an essential first step was to establish a working definition for corner store. As we learned from our survey, different people have different definitions of what a corner store is. (See appendix, p. 43) For the purposes of this study, we’ve defined corner stores as a small, independently-owned and operated convenience store in an urban environment.
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OUR MISSION: To direct our approach to the data we created a client scenario that established a direction for our team. In this analysis we aim to help a collective of independent corner store owners increase revenue by aligning with customer needs and increasing loyalty among shoppers. Our process includes: defining user types identifying opportunities in the convenience shopping experience understanding types of loyalty proposing ways to build customer loyalty
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whAT MOTIVATES PEOPLE TO GO TO THEIR CORNER STORE? In order to understand shopper motivations, we surveyed 100 convenience store shoppers to get a read on what drives them to their local store. (See appendix, p. 41-44)
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motivations for store visit
From the survey, we extracted 23 key motivations for visiting the corner store and mapped them against each other on a symmetrical matrix. Comparing these motivations allowed us to create high level clusters, suggesting higherlever motivation-types.
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Clusters were named according to the connection, between the clustered motivations. Quality: The quality cluster pertains to customer perceptions regarding the general store condition and product offerings. Specialty items: The specialty items cluster connects motivations about specificity of offering and staff expertise. Urgent need: The urgent need motivations revolve around getting exactly what you need when you need it. Local flavor: These motivations refer to relationships that customers form with store owners and the neighborhood.
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HOW CAN WE SEGMENT THE CORNER STORE USER? The insight matrix suggested clusters of motivations that pointed to a range of customer needs. In order to understand how these motivations translated to loyalty, we plotted the motivations on a position map comparing loyalty and characteristics of store offerings.
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Loyal customer
they make special orders for what i need
i’m familiar with the owner love the character of the store
i can always rely on them for certain products
it’s close to where i live
Motivations from the insight matrix were plotted on the position map, comparing these motivations in terms of loyalty and product offering.
love the selection they have a wide variety of unique products
i like to support local business Generic customer need
Specific customer need fills my late night cravings
it’s on my way to where i’m going
easy to grab a snack great for last minute needs
great when i’ve run out of toilet paper
it’s close, easy and they always have the basics
Disloyal customer
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Loyal customer
they make special orders for what i need
i’m familiar with the owner love the character of the store
Each quadrant suggested a distinct user type.
i can always rely on them for certain products
Neighborhoodie it’s close to where i live
love the Specialty seeker selection they have a wide variety of unique products
i like to support local business Generic customer need
Specific customer need fills my late night cravings
it’s on my way to where i’m going
Happenstance easy to grab a snack
great for last minute needs
great when i’ve run out of toilet paper
Desperate shopper it’s close, easy and they always have the basics
Disloyal customer
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“ On my way to places I usually pass one and Neighborhoodie go in to quickly grab what I need.�
Specialty seeker
Happenstance The happenstance shopper may frequently use corner stores, but does not have a preferred store. They choose to buy what they need, when they need it, at what ever store happens to be closest or most convenient. The quality and experience of the store are relatively unimportant.
Desperate shopper
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Neighborhoodie
“ Our corner store is extremely convenient, but I only shop there in emergencies, when I’m in Specialty seeker the midst of making cookies and have run out of eggs.�
Desperate shopper
Happenstance
The desperate shopper has an urgent need. They choose to visit corner stores as these needs arise. For the most part, they are not concerned with price, since they are desperate for a particular item.
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Neighborhoodie The neighborhoodie really likes their corner store and its owner and staff. They feel that the store is part of their neighborhood and want to support it. Their relationship to the store is more important than it’s offerings.
“ The nice people behind the counter at the store Happenstance across the street from my house make me feel more connected to my neighborhood and encourage me to buy more from them.�
Specialty seeker
Desperate shopper
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Specialty seeker The specialty seeker loves their corner store for it’s unique offerings and quality products.
Neighborhoodie
Happenstance
“ It’s a beautiful little store, with well-stocked, beautiful and unusual brands and items. It’s a treat to shop there.”
Desperate shopper
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Loyal customer
Loyal
Neighborhoodie
Specialty seeker
Generic customer need
Disloyal
Depending on the situation, all individuals are motivated by each of these factors at some point or another. In terms of building clientele, the neighborhoodie and the specialty seeker provide the most loyal and predictable business for corner stores.
Specific customer need
Happenstance
Desperate shopper
Disloyal customer
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what differentiates LOYAL CUSTOMERS FROM Disloyal CUSTOMERS? The position w map helped us see the general difference between the loyal and disloyal shoppers. In order to get a better idea of what differentiates these two types of loyalty, we did a semantic differential to see what attributes were responsible for those differences and what kinds of priorities each of them had.
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Disloyal shoppers:
Loyal shoppers: neighborhoodie
specialty seeker
happenstance
desperate shopper
price
price
proximity
proximity
important
not important
important
not important
consistency
consistency
character
character
offering
offering
important
important
not important
not important
important
not important
quality
quality
experience
experience
important
not important
important
not important
added services
added services
important
not important
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Disloyal shoppers:
Loyal shoppers: neighborhoodie
price
important
proximity important
specialty seeker
happenstance
Loyal customers care about the unique character of the store. The store can be fancy, quirky or homey, anything but ordinary.
desperate shopper
price
not important
proximity
not important
consistency
consistency
character
character
offering
offering
important
important
not important
not important
important
not important
quality
quality
experience
experience
important
not important
important
not important
added services
added services
important
not important
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Disloyal shoppers:
Loyal shoppers: neighborhoodie
specialty seeker
happenstance
desperate shopper
price
price
proximity
proximity
important
not important
important
not important
consistency
consistency
important
character
important
offering important
quality
important
experience
not important
The shopping experience is also important to the loyal customers. They care about pleasant interactions with store keepers and the store ambience.
character
not important
offering
not important
quality
not important
experience
important
not important
added services
added services
important
not important
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Disloyal shoppers:
Loyal shoppers: neighborhoodie
specialty seeker
happenstance
desperate shopper
price
price
proximity
proximity
important
not important
important
not important
consistency
consistency
character
character
offering
offering
important
not important
not important
important
important
quality
important
experience
Loyal customers value additional services provided by their stores including package reception, changemaking, and special orders.
not important
quality
not important
experience
important
not important
added services
added services
important
not important
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Disloyal shoppers:
Loyal shoppers: neighborhoodie
specialty seeker
happenstance
desperate shopper
price
price
proximity
proximity
important
important
consistency
important
character
important
offering
not important
Not all loyal customers are created equal. The specialty seeker is more concerned with the specificity and quality of corner store offerings than the neighborhoodie.
not important
consistency not important
character
not important
offering
important
not important
quality
quality
experience
experience
important
not important
important
not important
added services
added services
important
not important
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HOW CAN WE BETTER UNDERSTAND THE LOYAL SHOPPER? At this point, we understood the differences between loyal and disloyal shoppers, but what are the differences between the loyalty types? After trying to differentiate using AEIOU and another position map, (see appendix p. 55-56), we realized that another insight matrix would help us the most at this stage.
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characteristics of loyalty
On this matrix, we compared characteristics of loyalty. These characteristics were pulled from the survey results.
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Clusters were named according to the connection between the clustered characteristics. Character: These characteristics of loyalty are based on neighborly character and local charm. Foundation of loyalty: These characteristics are what forms the foundation for a loyal shopper. Specialty offering: These characteristics of loyalty are focused on the uniqueness of the offering and the special feeling of the experience as a whole.
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WITHIN THESE LOYALTIES, WHAT TRAITS ARE MOST Prominent? Taking a closer look at the insight matrix, the most interesting insight was the overlapping characteristics between the two loyalties. We took a look at these characteristics with a Venn diagram to understand more clearly where the overlap took place.
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The Venn diagram was derived from the insight matrix.
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foundation for loyalty reliability trust consistency of offering
Reliability, trust and consistency of offering are the foundation of a loyal relationship between a corner store and its customers.
neighborly services
specialty offering
friendship
product expertise
proximity
offering-specific services
support local business
uniqueness/quality of offering
obligation
treating yourself
reciprocity
character
character
ambience
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HOW DO THE OFFERING + EXPERIENCE DEFINE A CORNER STORE? At this point, we understood the user and what characteristics form strong bonds of loyalty. However, what are corner stores doing to meet these needs? How are they using offering and experience to define their store? We positioned them on a 2x2 to survey the current landscape.
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Differentiating experience
This position map compares the types of corner stores based on the experience and the offering that they provide.
Integrated Experience
Local Vibe
Generic offering
Specific offering
Specialty Product
Convenience
Generic experience
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“ I do not have any strong feelings about the corner store�
Integrated Experience
Convenience stores The most common corner store follows the convenience model, nondescript stores providing desperate and happenstance shoppers with their essential needs. Proximity and convenience are the main drivers for customers.
Specialty Product
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Local Vibe stores These stores are locally owned and family run. Their character is defined by their owner and proximity usually sparks the first visit, but the relationship is what keeps people coming back. This store breeds local loyalty.
“ I really enjoy saying good morning to the workers there and they notice when I don’t come in, so it has become somewhat of a ritual.”
Integrated Experience
Specialty Product
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Local Vibe
“ They also sell gorgeous cut flowers, wonderful magazines, wine, beer and imported chocolate.�
Specialty Product stores Convenience
This store offers specialty merchandise, and they cater to the specialty seeker. Proximity is not a factor, since customers are willing to travel farther and pay more for the special items and vast selection. This store also carried some general items for added convenience.
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Integrated Experience stores Local Vibe
Convenience
This store brings offerings and expertise together to provide an integrated shopping experience. They offer unusual selections, and they have the staff knowledge to educate and consult the customers. They cater to all users.
“ They have a HUGE selection of craft-brew beer and wine, and the owner is super nice and knowledgeable, and I love supporting locally-owned businesses.�
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HOW CAN CORNER STORES INCREASE THEIR LOYALTY? It is clear that the integrated experience model is the most effective way to capture customer loyalty. So, how do you get there? This position map migration helped us understand what corner stores needed to do to improve their experience and head in the right direction for success.
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Differentiating experience
Add expertise, and you’re fully integrated.
If convenience is Generic offering your main driver:
Specific offering
... but you can change what you offer.
It’s hard to change who you are ...
Generic experience
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Differentiating experience
... add expertise, and you’re fully integrated.
Generic offering
Specific offering
If specialty is your main driver:
If your offering is unique...
Generic experience
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Differentiating experience
If you have a relationship with customers ...
... adding quality products will boost loyalty
If local vibe is your main driver:
Generic offering
Specific offering
Generic experience
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HOW CAN WE LOOK MORE BROADLY AT OPPORTUNITY SPACES FOR CORNER STORES? The ten types of innovation was a good tool to see where corner stores are currently playing, and what possibilities could exists for their future.
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Corner stores are currently only addressing the needs within offering
finance business model
process networking
enabling process
offering core process
product performance
delivery product system
service
channel
brand
customer experience
Product Performance: Some corner stores try to keep their products fresh Product System: Some corner stores have tried to create a environment that supports their products Services: Some corner stores offer additional services to their customers
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Opportunities exist in many areas for corner stores to innovate. Identifying key areas that make the most sense for corner stores to improve upon will be the first steps in creating stronger businesses
finance business model
process networking
enabling process
Business Model: Corner stores have the opportunity to think beyond their current dominant business model, which is ‘people come to buy when need something’. They might consider distribution or an alternative service model. Networking: Corner stores could explore networking opportunities with other corner stores or with local organizations.
offering core process
product performance
delivery product system
service
channel
brand
customer experience
Channel: Corner stores have the opportunity to think about distribution channels outside of the store. Brand: Currently, corner stores are often so generic that the customers perceive them as nothing special. A strong brand and value proposition would help them deliver a consistent message and promise to their customers. Customer Experience: The customer experience of corner store shopping should be expanded to serve each stage of the customer journey and to extend the experience far beyond the initial visit.
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IN CONCLUSION: Your offering is your biggest driver for loyalty–find what you like and build your store experience around it. To further your success, expand your reach beyond the in-store experience.
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Team 2: Appendix
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Corner Stores: line charts frequency of use
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Corner Stores: line charts common purchases
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Corner Stores: pie charts store categorization
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Corner Stores: pie charts store loyalty
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Corner Stores: position map common corner store purchases/uses
specialty
gourmet selections cheese ethnic foods sandwich coffee beans
no loyalty
loyalty get quarters
bread social
ice cream newspaper
medication
hot coffee
cereal
juice snacks lotto ticket cigarettes liquor/beer/wine late night snacks condiments milk softdrinks water candy sugar butter ice gum
paper household goods supplies processed food
ATM
standard
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Corner Stores: position map shopping motivations predictable (product selection) need ingredient for recipe late night craving
out of toilet paper
looking for specialty item
routine shopping
pick up beer/wine to bring to a party
infrequent
frequent
(store use)
buy a soft drink
(store use)
buy a snack
support local business
change for laundry or parking meter
get cash from ATM
like staff
pick up newspaper
unpredictable (product selection)
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Corner Stores: position map store representation often
a relationship
reliability
store
piece of community
nothing unnoticed
a landmark
occasionally
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specialty-driven customer journey map
Goal: get what you want and enjoy it!
trigger desire for specialty
travel
interact
awareness of specialty stores
traveling to store
welcome impression
• word of mouth • seeing it
• walk • public transit
• charm • character
buy explore store • layout • cleanliness • freshness • variety/selection
choosing purchases • taste testing • consulting • learning more
transaction • price • rewarded
exit specialty enhancement
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specialty-driven customer journey map
trigger desire for specialty
travel
interact
awareness of specialty stores
traveling to store
welcome impression
• word of mouth • seeing it
• walk • public transit
• charm • character
buy explore store • layout • cleanliness • freshness • variety/selection
choosing purchases • taste testing • consulting • learning more
transaction • price • rewarded
exit specialty enhancement
Build relationship with staff
insights: • Extended specialty experience offers more possibilities for relationship building. • The better the relationship, the more value to them and the more connection to the store. • Specialty store allows you to be a resource for your customers.
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emergency-driven customer journey map
Goal: get what you need as fast as possible!
trigger out of toilet paper
travel go to nearest corner store
interact bee-line to toilet paper
buy pay
exit leave
• walk/run
insights: • Emergency need does not warrant a relationship.
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understanding loyalty position map
Here we tried the axis of planned to unplanned visits as a way to understand loyalty.
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understanding store offerings position map
Here we explored ways that corner stores could compete for customers. The two routes that emerged were: offering the best of a certain product or being best suited for a particular audience.
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comparing types of shoppers list comparison
We listed the attributes of each shopper type to further refine our definitions as well as to help us see the similarities and differences.
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comparing neighborhood + specialty shops AEIOU
We compared the neighborhoodie to the specialty shopper across a common set of attributes to further understand how they were similar and different.
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comparing types of shopper positioning map
Here we used the axis of infrequent visitor to frequent shopper and loyal to disloyal to try to determine which shopper type was the most predictable in frequency of shopping.
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