Shopper marketing: The schizophrenic shopper
Michelle Whelan
Admap
February 2013
Shopper marketing: The schizophrenic shopper
Michelle Whelan
Arc
A major new shopper study identified six key behavioural types characterised by their purchase decision-making
and their response to price and promotion, which varies by category.
The growth of shopper marketing has been exponential in recent years, with marketers having an unprecedented
understanding of the shopper and the shopping experience. The segmentation of the shopper is a hot and important topic,
with brands and retailers creating, re-creating and re-cutting shopper segmentations year in year out. Which, of course, leads
us to ask how many segmentations really exist, and how do brands design activities for all of these?
We recently carried out our most comprehensive shopper study to date with 13,000 shoppers across the US and mainland
Europe, and a further 5,000 in the UK.
The PeopleShop study revealed the true complexity of today's shopper by identifying six key archetypes, all of whom have
very different paths to purchase. In addition to shopper archetypes, the study also revealed that shopper behaviour is driven
by risks and rewards associated with a particular product or category. Further still, shoppers behave differently within each of
these categories.
Yet we still see a very similar set of principles underpinning the shopper communication in-store, when really retailers need to
realise that they cannot necessarily apply the same rules to all product categories. This begs the question as to how brands
are able to effectively reach and influence their target audience when their shopping behaviour would seem to be so complex
and multi-dimensional?
PeopleShop allowed us to identify six shopper archetypes with two distinct axes. The first of these differentiators suggests that
shoppers are either 'Thinkers', 'Feelers' or 'Doers'. The second differentiator is price sensitivity – as much as we hate to talk
about it, price is an ever-increasing factor in this day and age. However, the real interest isn't so much derived from the six
archetypes, or shopper behaviours, but the fact that, as individuals, we are different archetypes and express different
shopping behaviours dependent on the category in which we shop.
Title: Shopper marketing: The schizophrenic shopper
Author(s): Michelle Whelan
Source: Admap
Issue: February 2013
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Stella Artois Cidre: with the rest of the cider sector, targets Opportunistic Adventurers
For instance, if I am shopping for a bottle of wine, I am a Quality Seeker (thinker/ non-price sensitive) and will undertake a lot
of research and use an inordinate number of touchpoints before committing to my final purchase. However, if I am shopping for
a tin of soup, I am a Habitual Sprinter (doer/ non-price sensitive) and know exactly what I want, I just want to be able to find it
quickly and get out as quickly as possible.
A category with a high number of Quality Seekers, for example baby toys or video games, has a tough task as the needs of
their shopper are varied and many. They will need to consider the most appropriate touchpoints to offer the best advice and
information, as well as the type of messaging they project. To effectively target the Quality Seeker, understanding where they
go to for information is key, whether it be manufacturer websites, retail websites or product review sites. Yet the Quality
Seeker doesn't just look for this information online, they want to continue the conversation into the retail environment, which
means that salesperson training and detailed point-of-sale material are just as critical.
Baby toys and video games also attract a high number of Strategic Savers (thinker/ price sensitive) making it important to
employ different tactics – ones which give the shopper the ability to balance the features and costs. So the question for
marketers is whether to focus on a single archetype in any given category, or risk alienating the other by trying to speak to
them both at once? By understanding the various archetypes and how they differ between categories, it is possible to identify
the most appropriate channels for each.
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Tesco: has started segmenting its wine fixture to target three different shopper types
Tesco's wine section is a good example of targeting different shopper types with different but appropriate messaging. The
retailer clearly understands there are different shopper types, with different needs, shopping in the same category. Very
simply, Tesco has segmented the wine fixture into three distinct areas, the first of these aimed squarely at the Quality Seeker.
It has used quality cues, borrowed from high-end independent retailers to highlight the fine wine section. The messaging and
information at the fixture is extensive, with detailed tasting notes and food pairing recommendations; you actually feel for a few
seconds that you have stepped into another shop. Furthermore, Tesco has targeted the fine wine drinkers by boosting its
online presence of 'Tesco wine by the case' website, as well as introducing premium Bordeaux, following the much-celebrated
2009 vintage.
As you move down the wine aisle, Tesco targets the Passionate Explorer (feeler/non-price sensitive). This section is arranged
as you would expect, by country and region, yet the key difference is the point-of-sale communication – 'great with'. Tesco
understands that a large proportion of their shoppers are looking for inspiration in an increasingly complex category, which is
why the shelves are scattered with bold, bright colours and simple messaging to highlight the perfect matches for all
occasions. The logical next step is to take this into a meal deal activation to take the messaging from inspiration to a true call
to action.
The end of the aisle is reserved for the Opportunistic Adventurers – those on the hunt for a bargain. Above the fixture is a
simple message stating clearly that this is where you come to find the special offers, backed up with supporting ads in the
national press. Crude? Maybe. Effective? Absolutely – a great example of understanding how shopper behaviour and paths to
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purchase differs within one category.
With austerity still a dominant factor affecting many households across the UK and indeed across the globe, the Penny
Pincher is, of course, an archetype that many brands want to, and need to, appeal to. This is perhaps good news for breakfast
cereals, yoghurt and beer where Penny Pinchers are commonly found.
While brand building is important and, of course, has its merits, beer, yoghurt and breakfast cereals need to consider more
activity instore if they are to appeal to the Penny Pinching shopper. Price promotions are extremely effective in these
categories as they are relatively low-engagement purchases, with the decisions made at the fixture, or more commonly these
days, at the gondola ends. Furthermore, by investing more in classic tactics such as coupons and vouchers, the brand is on
the shopping list before the shopper arrives instore, giving them one less decision to make, and often at a lower price
discount.
Of course it's not just Penny Pinchers who buy cereals, beer and yoghurt. For example, 20% of yoghurt shoppers are Habitual
Sprinters, which means yoghurt brands could make the shopping experience easier for them by top-quality category
management and fixture navigation. For example, yoghurt shoppers would be more likely to pick up a brand if it was
merchandised by occasion, and the brand promise was backed up through better use of on-pack, shelf-ready packaging or
point-of sale-materials.
Of course if budgets allow, as Tesco's does, brands should target both archetypes, or indeed, every archetype in their
particular category. So, while it's paramount that marketers understand that our shopping behaviour varies by category, it also
varies by how much shoppers engage with each category and the risk associated with making the wrong choice.
The PeopleShop study identified four separate quadrants, allowing us to develop a Risk/Reward map. Categories which have
high engagement and low brand risk – the 'Entertainment' categories such as chocolate and wine – have the lowest average
shopper journey length, with an average of six days, and are driven by their more impulsive nature. Purchases in 'Burden'
categories (low engagement/high risk) however, or 'Passion' categories (high engagement/high risk) deliver a far more lengthy
and in-depth journey, at 26 days and 56 days respectively. These categories are notoriously research-heavy, which means it
is vital to consider the role of digital and the digital touchpoints that are most appropriate. Brands need to know which sites are
proving most effective for researchers, the manufacturer or the retailer, and how shoppers are being directed there in the first
place.
Computer printers are a prime example of a 'Burden' purchase as we only seem to consider buying a new one out of necessity
-if one breaks or if we buy a new incompatible computer. Moreover, the category has one of the highest levels of Strategic
Savers (54%) as shoppers find the category genuinely confusing and frustrating. They know it is a purchase that will have
longevity but they want to ensure they are getting the maximum bang for their buck. In this category, 74% of shoppers use
touchpoints in the early stages of their shopping journey (engagement and research), and these are predominantly online tools
such as retailer websites (74%), search engines (55%) and product review sites (35%).
With a high proportion of printer shoppers, therefore, doing their due diligence online, and 40% stating that they use in-store
display to clarify what they have already learnt online, printer brands need to ensure the message is carried through into the
retail environment if they are to seal the deal. Given what we know about printer shoppers, it would also seem shrewd for
printer brands to align their ranges to usage, e.g. simple home tasks, student or professional; and match the relevant functions
to the different needs. This simple, yet consistent, targeting could then be applied throughout the relevant touchpoints, which
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would then create a stress-free path to purchase for the shopper.
For 'Routine' categories, the requirements are different but just as important. Many of the categories lying in the low-
engagement/ low-risk quadrant are everyday FMCG goods. The shopper behaviour is very task-orientated, with a mixture of
shoppers just wanting to get in and out as quickly as possible, without really caring whether they save a penny or two. It
seems vital, then, that retailers and brands need to make the category easier to shop for, by employing back-to-basics
merchandising principles and supporting them with inspiring ideas and solutions on your point of sale.
PeopleShop also studied various alcohol categories, all of which fell into different quadrants, attracting different shopping
styles. Spirits for example are a 'Burden' category, requiring advice and information, driven by the relatively high purchase
price. Therefore, marketers need to be treating these shoppers with more care and attention to help them through their
shopping process. Perhaps they can learn from Tesco's approach to wine and employ the use of tasting notes or serving
suggestions closer to the point of purchase.
Lager and beer fell under 'Routine' categories, with in-store display the most powerful touchpoint. However, we found cider
and flavoured alcohol fall under the 'Entertainment' category, with shoppers looking for inspiration and ideas. With a high
number of Opportunistic Adventurers, cider brands need to be enticing them into making impulsive decisions and purchases.
Much of this difference has been driven by recent category innovations, such as Stella Artois Cidre. AB InBev has, quite
brilliantly, taken its quirky advertising into the store environment through value-added promotions, including the free chalice,
and linked it beautifully back to its consumer engagement programme.
Conclusion
So, it would seem we are rather schizophrenic in how we shop, yet there is a pattern that marketers can learn from. We don't
shop by age, gender or social class. Our decision tree is driven by our engagement with the category, the fear we have of
making the wrong choice, the amount of time we have and the context of the shopping mission we are on. The type of shopper
we are drives the length of our shopping journey and the touchpoints that influence us.
Brands need to know if their shoppers are 'Thinkers', 'Feelers' or 'Doers' and whether price is important in their decision-
making process. Usage/consumption occasions need to be at the centre of communication strategies if they are to drive
relevance on the shopping journey. The message needs to be engaging, informative and advisory upfront, getting more
functional and rational as you reach the point of purchase. And finally, brands need to understand the role of digital within their
category and, most importantly, keep the message consistent and relevant to the stage on the shopping journey.
About the Author
Michelle Whelan joined Arc in 2010 and was promoted to managing partner in 2012. She leads Arc's shopper marketing
offering.
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