on shopping in evolution
Brace yourselves: men discover mobile shopping Stop faking it: get real with your shoppers It’s all about me now (not you): shoppers dictate the rules of engagement
Welcome to another edition of ‘Windows’ - a series of online reports from shopper research specialists Shoppercentric. In each issue we research a hot topic of relevance to retailers and manufacturers and analyse the issues involved.
For our latest Windows report we turn our attention to the changes taking place in the retail sector, with social media and mobile commerce driving whole new opportunities for the businesses involved in retail. We look at how these communication trends are impacting on shopper behaviour, and offer a perspective on how businesses should grasp the opportunities.
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ased on 1,000 interviews with UK adults who have access to the internet for personal use and use social media nowadays, together with focus groups and expert interviews, we aim to provide a new perspective on the commercial impact of the changes taking place.
This ezine is designed to give you some of the overall themes and insights from our study. If you would like further information, or to have access to the full report, please email: evolution@shoppercentric.com
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CONTENTS The Gender Divide
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Brands Finding a Voice
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It’s About More Than a Sale
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The Gender
Divide
S
If we focus on the boys first, we see that they are not only playing with their mobile devices, the earlier adopters are already using these tools to make shopping a more positive experience. Given we know that 31 percent of men find shopping a chore, who would have thought that we would associate men with positive shopping experiences!
hould we be surprised that boys will be boys and girls will be girls? Probably not, but this isn’t just about knowing there is a gender divide, it is about businesses understanding the nature of it and building the learnings into targeted marketing plans. In the context of our research the gender divide can be defined as follows: Boys are playing with the toys – 38 percent having a smartphone (compared to 29 percent of women) The girls are getting sociable – 60 percent using Facebook (compared to 52 percent of men)
The beauty of smartphones is that they allow boys to do what they do best – investigate / explore – in the context of physical stores. Those using smartphones are getting out of the house and hitting the shops. Once there they are using the connectivity of their mobile devices to give them all the advantages of the internet, but in bricks & mortar stores.
The use of social networking and mobile commerce in the business context is still in its early stages of development. Yet, as these figures are suggesting, even now businesses should take account of the gender divide within the approaches they take to these new media.
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Young men in particular are excited about the potential of mobile commerce. They see it as putting knowledge at their finger tips, and giving them immediate feedback that empowers their purchase process. They now have the ability to compare prices on the move, which short circuits their previous shopping habits. Instead of being tied to a computer at home they can get out into the shop whilst their mobile device gives them the sense of security that they will still get the best price: “I can pull their website up on my phone (when in-store) and I’ll guarantee you I will get a cheaper price online” 25-34 yr old. The ability to haggle on the spot is a critical shift in the power relationship between shoppers and retailers. “Shoppers want to seek out the best price, and this is where mobile technology will become more important.” Bernd Larsen Linde, Director of global trade marketing, Lego (Source: Marketing Week, 28/01/2011)
For women sociability is the key. We’ve always known that this is a fundamental part of shopping for women, with 22 percent of women saying they like to make shopping a social event with their friends: “going shopping with my friends is part of the fun – you know, ‘do I look good in this’”. Platforms used nowadays % By gender
72 78
Retailer websites 62 63
Price comparison websites 52
Facebook You Tube
51 37
Interest group websites Consumer review websites
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43
27
20
Other phone apps Phone apps that support shopping
60 59
14 8
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Male Female
Now this sociability is spilling over into their use of the internet – being more likely than men to use Facebook and interest group websites. Surely then social media offers an opportunity for retailers and brands to engage more deeply with female customers online. Yet, here is another interesting facet of the gender divide: whilst the mobile commerce trend seems to have made a real connection with men who talk about how the novelty and enjoyment provides genuine value; most women have yet to engage with businesses through social networking. In fact only 21 percent of women have communicated with retailers via Facebook compared to 27 percent of men.
21st Century Communication With all the tools now available to communicate with each other it is no surprise to see that a loose set of rules seems to be developing among young users in terms of which tools are appropriate for which set of people they want to ‘talk to’: 7HYLU[Z ZPISPUNZ WHY[ULYZ ¶ ^L JHSS *SVZL MYPLUKZ ¶ ^L [L_[ -YPLUKZ HJX\HPU[HUJLZ ¶ ^L -HJLIVVR *VSSLHN\LZ ¶ ^L LTHPS 0U[LYLZ[ JVTT\UP[PLZ ¶ ^L ;^LL[
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So of the two trends which we believe will have considerable impact on the retail landscape a very clear gender divide is emerging: Mobile commerce looks to be able to offer a strong opportunity for businesses to facilitate the shopping process for men by playing up on the ‘boys and their toys’ mindset to get men into the shops. Done well, marketing strategies based on mobile commerce can directly influence transactional behaviour Social media should suit the inherent sociability of women and their interest in shopping, but what’s being done commercially on social media networks has yet to make that connection
;OLZL HYLU»[ [OL VUS` ^H`Z ^L JVTT\UPJH[L with each group, but they tend to be the tool that feels most comfortable for that group, and we can become uncomfortable when people step outside these ‘rules’: 2PKZ KVU»[ YLHSS` ^HU[ [OLPY WHYLU[Z VU Facebook as a friend 7LVWSL JLY[HPUS` KVU»[ ^HU[ LTWSV`LYZ VU Facebook as a friend 7LYOHWZ I\ZPULZZLZ ZOV\SK ILHY [OLZL emerging ‘rules’ in mind when developing their communications plans, particularly with reference to the tone of voice that would be HWWYVWYPH[L I` [L_[ ]Z ZVJPHS UL[^VYRPUN
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Brands finding
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or brands the social media platform offers an opportunity to talk directly to shoppers. In fact, social media hangs the carrot of direct access in front of brands which would explain why so many brands are creating a Facebook presence. And yet there are so many ‘buts’ to the idea of brands on social networks – not least the obvious shopper response:
Interestingly there is more permission for retailers to be on Facebook than brands (27 percent have interacted with retailers via Facebook versus only 17 percent with brands). It is most likely that the physical presence of retailers on the high street means we are used to dealing directly with them.
That said social media could be a hugely powerful tool as it has the potential to allow brands to find their voice in a way that doesn’t require using a commercial medium or relying on a retailer to act as the messenger.
‹ ¸>O` ^V\SK 0 NV VU H IYHUKZ -HJLIVVR WHNL ^OLU 0 JHU NV VU [OLPY ^LIZP[L&š ‹ ¸-HJLIVVR PZ MVY MYPLUKZ UV[ JVTWHUPLZš The reason why brands want to be on social networks is the very same reason why shoppers struggle to understand why they are there: the direct connection with the target audience.
It all sounds so easy, and yet the challenges are evident: ‹ 6US` PU ZOVWWLYZ ]PZP[ IYHUK ^LIZP[LZ UV^HKH`Z JVTWHYLK [V PU ]PZP[PUN YL[HPSLY websites – we just don’t have the same impetus to talk directly to brands as we do to talk directly with retailers
Shoppers just aren’t used to talking directly to brands, and so it’s almost as if they don’t know what brands could possibly have to say to them that would be of interest or that they don’t already know.
‹ WLYJLU[ VM ZOVWWLYZ KVU[ ZLL [OL WVPU[ of brands using social media, compared to 18 percent saying the same of retailers
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The challenge for businesses used to keeping a tight rein on brand marketing is to inject fun into their Facebook activity – and to keep that fun fresh.
There seems to be a fundamental barrier in our minds as to why we should communicate directly with a brand, or why a brand would want to communicate directly with us. That doesn’t mean we won’t communicate with brands, it simply means that brands need to work hard to set up a meaningful connection. Brands need to think about what they want to share with the shopper, not just what they want to get out of the conversation. And they need to work on the basis that they have to seek out these connections rather than assuming shoppers will come to them.
So for brands to create meaningful connections in the social media space: ;OL` ULLK [V ZOV^ [OLPY [Y\L JVSV\YZ ZV that they are making relevant connections and relationships with their target universe that stand a chance of making an impact on people’s behaviours over time
Those shoppers who have decided to follow brands on social media (9 percent of our sample) were looking for tangible benefits such as: new news; exclusive prices / products / discounts; competitions. But they are also looking for fun, which shouldn’t be a surprise given this media is about having fun.
;OL` ULLK ZLLR V\[ [OLPY [HYNL[ market rather than assume the market will find them ;OL` ULLK [V JYLH[L H ZVJPHS UL[^VYR space which generates curiosity in the brand, and gives a reason for shoppers to keep coming back (UK [OL` ULLK [V THRL P[ M\U ¶ [V JYLH[L their brand space within the social context of this new media
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All about me (the shopper) One of the key themes emerging in our research was that these new tools are not about what shoppers can do for business, but about what business can do for shoppers – brand to me not me to brand. Yet much of the chatter in the commercial world has been about commercial opportunities: social media as a CRM tool; explaining an ethical positioning; selling products; or monitoring what people say about a company.
And that means a business needs to understand what the target market wants or needs from them. Whilst there is a lot of pressure to ‘just do it’, to just get involved because everyone else is, that would be a mistake. Businesses should think about: >OH[ ZOVWWLYZ ^HU[ MYVT I\ZPULZZLZ VU [OLZL platforms >OH[ YVSL [OLZL UL^ WSH[MVYTZ JHU MPSS ^P[OPU the broader marketing / communications plan
As previously discussed social networking has developed as a personal tool, a way of keeping in touch on a social level. The numbers now involved make the commercial opportunity obvious, but that opportunity will be achieved only through a real understanding of what shoppers want from businesses in this space.
(UK [OLYLMVYL ^OH[ ZOHWL V\Y HWWYVHJO [V these platforms should take Attitudes towards Businesses using Social Media % Total sample (1000)
Equally, mobile commerce is based on a personal tool – a phone. So the most engaging commercial applications are those which give something to the shopper e.g. phone apps or internet access on the move. Yet when the commercial world forces itself on the user, it can be rejected “I was at the match (Wales v Australia) and my phone just kept pinging with messages from sponsors. I wanted to watch the b****y match, not answer advertising!”
26 34
To see what customers are saying
23 29
To find out more about their customers
24
To stand out from their competitors
18
To bring the brand to life
23 20
To tell me something new
22
To help me have some fun Why shoppers THINK companies do it
9
25 25 23
To connect with people like me
To make the connection that engages shoppers a business needs to focus on giving the shopper something that will keep bringing them back.
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To sell products
32 7 12 What shoppers WANT from companies on it
It’s about
more than a sale
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ne of the reasons we decided to look at the impact of social media on shopping was because we were hearing concerns from retailers that the huge spend they were allocating to social media wasn’t delivering sales. They were starting to question their investment in social media.
Reasons for making contact with companies % Total sample (1000)
To make a purchase
63 6 59
Researching what to buy
10 51
To get news about new products
Perhaps the question isn’t about whether to invest in social media or not, but about the targets that are being set by businesses.
13 45
To find the best prices To get loyalty rewards
8 44 7
To access reviews
43
To get vouchers / offers / discounts
If we look at why shoppers contact businesses on social media, vs looking at their websites we can see why retailers are so frustrated – only six percent use social media to make a purchase.
To make a complaint To get news about the company To find out what others have bought To share thoughts / join a forum To feel part of a group Company Websites
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6 38
11 15
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14 29 12 32 Social Media
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But at the same time, the retailers’ frustration seems rather short sighted. Rather than assume social media will deliver an actual sale, they should consider all other benefits which could lead a shopper to make a sale in-store or via the website, such as news about new products or variants, loyalty rewards, vouchers/offers, and finding out what others have bought. And so we reach the conclusions of our research: 1. That businesses should see social media and mobile commerce as platforms for communication. 2. That these communication platforms should be part of the overall marketing and communication plan. 3. And that as with all marketing mechanics and communication media they should be seen as opportunities to target shoppers at different stages in the purchase journey in order that the result of these combined efforts is the sale, rather than expecting one tool to achieve that job in isolation.
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Our series of Windows reports are a small part of the research service we provide to clients. If you would like to know more about how we can help your business better understand shoppers’ attitudes, needs and behaviours please contact us.
CONTACT Alice Synge: alice.synge@shoppercentric.com mobile: + 44 (0) 7977 579 076 evolution@shoppercentric.com or visit our web site at: www.shoppercentric.com
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