All retail sectors are currently feeling the competitive heat. FMCG retailers, in particular, are under pressure from a sharp rise in food inflation and aggressive bids for sector domination from newer entrants. Economic and political uncertainty are only making the need to build market share and attract customers more urgent.
Digital marketers have a huge role to play in driving the innovation needed to help their businesses thrive as well as survive. This begins with finding new and interesting ways to speak to audiences.
we have used our TGI survey data to identify seven mindsets exhibited by shoppers in the FCMG sector. Together, these typologies account for half of the UK’s population and point to four key insights into how marketers can achieve more meaningful consumer engagement, whichever area of the retail market they operate in.
It’s not about the price tag… except when it’s all about price tag
Our data shows that, for five of the seven mindsets we found, price was not the most compelling factor in a purchase decision, meaning marketers must be wary about how aggressively they push price-focussed messages. In fact, narrowing in too much on price can be off-putting for those shoppers whose primary concerns revolve around quality or ethical credentials.
However, for 13% of the population, low costs are a big win. Not that this justifies a one-size-fits-all approach. We identified two shopper groups within this segment: ‘Promiscuous Purchasers’ and ‘Strategic Savers,’ and while both are in pursuit of a bargain, there are vital differences in their motivations.
‘Promiscuous purchasers’ are unconcerned by brand loyalty and will snap up a good offer that comes their way as and when they see it, opening the door to opportunistic and overt marketing campaigns. ‘Strategic savers,’ on the other hand, have a more deliberate attitude to their thriftiness; they will actively track down the lowest prices, vouchers and respond well to loyalty rewards, offering an opportunity to build a more meaningful brand relationship.
Harness the habitual
When we analysed shopper attitudes, we found that 1.5 million more shoppers made their purchase decisions based on force of habit than on cost savings. This equates to a huge 8.5 million adults, or 17% of the UK population. A huge potential prize for retailers.
Again, this broad group of shoppers is more complex than appearances suggest. ‘Convenience Kings’ crave absolute ease of purchase, meaning marketers should work with customer experience departments to foster the most intuitive, straightforward purchase process possible. It’s also likely that these shoppers will respond better to light touch marketing, and won’t want their shopping experience to be detracted from by intrusive advertising.
‘Accustomed acquirers,’ on the other hand, are motivated by strong brand loyalty, which makes them an incredibly lucrative audience. Pinpointing these shoppers and targeting them with offers that reward their fidelity, demonstrating an understanding of their wants and needs, and introducing them to products and services beyond those that they typically purchase are all ways to boost engagement and encourage increased spend.
Quality is key
Many shoppers are undistracted, even alienated, by discounts or other price offers. In fact, for a significant group of consumers, specific products won’t swing their purchase decision at all. Instead, they are committed to ideas of honesty and integrity.
In fact, 16% of adults in the UK fall into the category of being either an ‘Ethical empathiser’ or a ‘Quality crusader.’ Marketers stand to win big if they can engage these groups, because they’re likely to be affluent and willing to pay a premium for goods from organisations they have faith in. As a result, brand building is an important pillar of communicating with shoppers with these mindsets. Short term strategies and ‘buy now’ messages are unlikely to find fertile ground; instead, marketers should focus on long-term brand building and transparency around animal welfare and environmental standards.
Inspire by interest
Last, but not least, marketers shouldn’t overlook shoppers who buy based on passions that are unrelated to a specific brand.
In an FMCG context, ‘Conscious connoisseurs’ are passionate about cooking, believe the kitchen to be the centre of the home, and are likely to be interested in celebrity food figures, such as Mary Berry. They may only equate to 3% - or 1.8 million - of the population, but the potential is huge to cross-sell products or even experiences. Working with influencers may have particular value in persuading these consumers to shop with you, by demonstrating that you ‘get’ them and are attuned to their interests.
Know your audience
We’re entering into a potentially tumultuous time for the UK’s businesses. As competition becomes fiercer, understanding and responding to diversity of shopper types could be the difference in increasing sales, building loyalty and out-performing competitors.
By Richard Keogh, managing director of consumer at Kantar Media UK
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