LEVERAGING THE “SEQUENCE OF COGNITION”

IN AN OMNI-CHANNEL WORLD

HOW THE MIND RETAINS VISUAL INFORMATION WHILE SHOPPING IN AN OMNI-CHANNEL WORLD

Today’s omni-channel environment is unlike any we have seen in history. A complex array of SKUs, POP materials, banner ads and the like bombard the shopper like never before, creating an almost impossible task for products to stand out on-shelf and online. If you are responsible for the stewardship of your brand’s identity, it’s time to work on package design for the shelf and for the web. Studies suggest that you should build your design with an own-able and memorable sequence of colors, shapes, symbols and words. It is key to understand the fundamental role these core identifiers play in both in-store and online shopping environ-ments.

Despite marketers’ intuitive belief that the words on the package are what’s most important to drive shopper purchase intent, studies in neuroscience reveal that in fact, they are the least important both online and in-store. “The sequence of cognition” tells us that visual images (colors, shapes, symbols) can be remembered and recognized directly, while words must be decoded into meaning as you only have 5 seconds in low- to mid-involve-ment categories for your brand to be seen at retail. Words are more important online than they are in store as 50% of consumers under the age of 50 routinely check online reviews before buying a product.1 But this is only after

the first, visceral impression is made using colors and shapes in the initial thumbnail view. In today’s omni-channel marketplace, having a brand identity and package design that is just as visually stimulating online as it is on-shelf is imperative.

“It’s time to work on package design for shelf and for web.”

1 Pew Research Center, 2016

The reality of today’s retail environment is daunting to marketers and the success of their brands because it is changing almost daily. Mobile shopping was the fastest growing seg-ment in e-commerce in 2017, and is worth $3.2 trillion. Even when shopping at retail, shoppers are looking on their smart phones for consumer reviews, product information and comparisons before making their final selection. Although impulse purchasing in brick-and-mortar stores is declining dramatically, up to 20% of the average household’s grocery bill still comes from items purchased on impulse alone. 70% of all grocery purchases are still made in-store, and more purchases are still made in-store in the home improvement, household appliance, and furniture categories.

4 of the 5 senses are rendered useless in an in-store or online environment. Shoppers cannot always discover what a product has to offer via sound, smell, taste, or touch. They have only their sight to rely on, and perhaps a sixth sense: their associative emotional radar.

The in-store retail environment presents any number of variables that can undermine the success of a brand. More than 35,000 SKUs present in the typical retail grocery outlet, coupled with 450 units of point-of-purchase, signage and in-store media,2 bombard shopper senses and create an almost impossible task of navigating the store aisles and shelves (not to mention out of stock, competitive pricing, and plan-o-gram changes). Research shows that shoppers can visually miss as much as 1/3 of products across a category,3 affecting even those products with high brand equity. New products typically have a failure rate of over 75%, due in part because they are often merchandised on top or bottom shelves where visibility has been shown to be as much as 30% less than eye-level shelves.4 It is now more important than ever before to under-stand and apply the consumer’s sequence of cognition at retail.

2 POPAI Shopper Buying Habits

3 PRS In Vivo

4 Schneider & Hall, Harvard Business Review

“Colors, shapes, symbols, and then words, in that sequence, are what drive purchase intent.”

SHELF SIGHT SEQUENCE™

SHOPPING AT RETAIL

1Shoppers typically “ground themselves” within a 3-6 foot sub-section of the aisle in which their product’s category is shelved. Once “grounded,” studies show that on average a shopper takes only five seconds to locate and pick-up a product! The physiological response driver that creates the impulse to pick-up is color.According to Angela Wright, color psychologist, “color is noticed by the brain before shapes or wording”. Color is one of the brain’s three visual pathways and since people cannot process every object within view at one time, color becomes the mechanism to emphasize and/or de-emphasize areas of the shelf. Figure 1 demonstrates the shelf visibility of the Allegra® brand relative to its competitive set. Other well-known uses of color include the Blue in Claritin® against the Green of Zyrtec®.

In addition to shelf visibility, color can increase brand recognition by 80%5 and serve as an important brand identifier, a physical charac-teristic that becomes inextricably linked to the “Brand”. Think UPS® use of brown and its clas-sic advertising campaign, “what can brown do for you?” Or the “purple pill” that is Nexium®. In fact, color has become such as an important brand asset to companies like Cadbury, Heinz, and Allegra that they have managed to trade-mark them!

COLOR

5 University of Loyola

Figure 1

“Color is noticed by the brain before shapes or wording.”

While color can activate on a visceral level, it is not the only element on the path to cognitive awareness and product consideration. Rudolph Arnheim of the University of California Press suggests that while color engages an innate response that triggers affective reactions in the brain, the stimuli of shape (as in the physical structure of a package or a designed iconic shape) may begin a cognitive process of product discrimination, evaluation and preference upon a shopper’s initial encoun-ter. Shape also determines shoppers’ first impressions of a product and can communicate product advantage.6 So too will the design generate shopper inferences regarding product attributes.7 Consumers shop on autopilot, looking for familiar colors and shapes to quickly navigate through aisles.

It is also worth noting the importance of not divorcing shape from the influence of color, for it must be consistently matched or product perceptions may be negatively impacted. Color and shape combinations are considered extrinsic attributes used as signals of qual-ity and when applied consistently, enhance perception.8 Symmetrical shapes pair well with

passive colors whereas triangular and diamond shapes pair well with active colors. Combina-tions can also communicate personality. So like color, the use of shape in brand identity and design goes beyond shelf visibility.

Figure 2 demonstrates the power of color and shape.

“Shape determines shoppers’ first impressions of a product and can communicate prod-uct advantage.”6 Creusen &

Schoormans, 2005

7 Berkowitz, 1987, Bloch, 1995

8 Universitat Autonoma de Barcelona

Figure 2

2SHAPE

3We define “symbol” as an arbitrary sign that has acquired conventional meaning and sig-nificance over time. Symbols can become an almost instantaneous form of communication and meaning. Examples of symbols include the Nike® swoosh, the CBS® eye, the Star-bucks siren, and the Ben & Jerry’s® cow. The proof of their ability to communicate without words is demonstrated in Figure 3. Can you name every brand in this image? Of course you can! Can you describe in some detail, the features and benefits of this brand without reading the label? Of course you can! Would this be important to a marketer knowing that a shopper will spend less than five seconds before deciding to purchase? We think so.

Furthermore, the associations derived from a symbol become imprinted in a consumer’s brain as they are repeatedly exposed to the symbol and neural connections are made in the brain’s pathways. Shoppers intuitively gravitate to these symbols and use them to navigate the shelf; they serve as recognizable beacons in a vast sea. A company’s brand name and trademark can also be designed in such a way as to take on the characteristics of a symbol.

SYMBOL

“The associations derived from a symbol become imprinted in a consumer’s brain as they are repeatedly exposed.”

Figure 3

4WORD

“So how much importance do words have in brand identity and package de-sign?”

9 PRS In Vivo

Figure 4

It’s probably fair to say that shoppers would find it difficult to read the words on a pack¬age from a 3-6 foot distance, and with-out picking up the package. So how much importance do words have in brand identity and package design on-shelf?

According to PRS in Vivo, less is more when it comes to claims and labeling (although labeling for many categories is a regulatory requirement with little to no flexibility).9 Research has shown that a package cluttered with claims fights for attention and creates shopper conflict. Best practice is to communi-cate a single competitive point of difference, and/or to distinguish across a brand’s own product line.

As previously discussed, colors, shapes and symbols create the on-shelf visibility, the visceral reaction, the discrimination and the trust inherent in purchase intent. It stands to reason then, that the more words you add to the design, the less opportunity you have to use color, shapes and symbols. Figure 4 demonstrates the use of words on package.

ONE CONSUMER...

“On average, a brand has only 5 seconds to be seen, felt, and understood while shopping.”

Shelf Sight Sequence™

It’s the first identifier shoppers notice and recall.

After color, consumers notice holding and structural shapes.

The third identifier that shoppers will see and retain.

A memorable descriptor or a unique selling proposition will resonate loud and clear in a shape.

...TWO SIGHTS.

“Online, 43% of shoppers visiting a website for the first time make their decisions on the product’s image, rather than on price.”

E-Sight Sequence™Shelf Sight Sequence™

It’s the first identifier shoppers notice and recall.

After color, consumers notice holding and structural shapes.

Processing and reasoning search for

symbols and the number of stars and

reviews.

Words take on a prominent role; prices,

ounces, size counts, and brand storyline.

In 2018, the number of online shoppers grew to 1.8 billion worldwide.10 The growth of the online market presents lucrative opportuni-ties and new challenges for brands. 90% of shoppers make their decision to purchase on the category page of a website, rather than on the individual product page. 43% of shoppers visiting a website for the first time make their decisions based on the product’s image view, rather than on price, size, etc.11 Shoppers today make more impulse decisions on groceries and other low-engagement items when shopping online than when shopping at retail. In fact, a full 48% of online shoppers have made impulse purchases. Given these current behaviors, the online interface’s endless options only add to the already-fierce competition. Online, just like in-store, visuals are key.

In the digital retail environment, major brands do not have the entire aisle to overwhelm the competition with a strong billboard – they have the same “e-shelf” space that all brands do, meaning your brand package has to work even harder.

Today’s multi-dimensional e-commerce landscape allows you to guarantee your brand has an authentic, rich storyline – what we call a brand mythos. Your brand’s strategy needs to begin with the selection of communicative colors, shapes, and symbols on your packaging, which initially are more impactful than words. It is imperative to utilize intuitive and delib-erate signals for your target’s needs, expe-riences, and associations so that your brand story can unfold. Understanding the following sequence of cognition online will help you to better leverage the digital medium in order to create solutions that are not possible in the physical world.

At retail, the mind cognitively understands information in a specific sequence: colors, shapes, symbols, and words. In the e-com-merce space, the two sides of the mind inform one another to create a simultaneous process.

10 Statista, 2018

11 PRS In Vivo

“Leverage the digital medium to create solutions that are not possible in the physical world.”

E-SIGHT SEQUENCE™

SHOPPING ONLINE

“IN THE E-COMMERCE SPACE, THE TWO SIDES OF THE MIND INFORM ONE

ANOTHER TO CREATE A SIMULTANEOUS DECISION-MAKING PROCESS.”

Figure 5

Figure 6

First and foremost, your brand’s colors and shapes must be distinctive enough to speak to the emotional/instinctual right side of the brain online. The colors drive brand recall, flavor, scent, and preference based on early childhood experiences of color (i.e. “cherry is red”). The shapes also inform us to ergonomic feasibility, usage, and storage in our home and portable world.

Color and shape lead in the online sequence of cognition, but are interpreted differently than when in-store. Instead of a linear sequence like there is at retail, our right, intuitive brain instead first identifies a product by its color and shape, simultaneously. Color informs us to things like flavor and brand recall from in-store and other online experiences, while shape informs us to usage, how it fits into our home, how we hold it, etc. For example, Figure 5 shows the positive impact of color and shape in crafting a line made up of various scents; Figure 6 also displays the importance of strong iconic shapes (both graphic and structural) in a saturated online marketplace.

The reviews, descriptions, fine details and fea-tures are important, but only after a buyer first makes a decision based on their initial, visceral emotional response.

SIGHT 1:THE INTUITIVE RIGHT BRAIN(COLORS & SHAPES)

“Color and shape lead in the online sequence of cognition, but are interpreted differently than when in-store.”

Online, the right (color & shape) side of the brain ignites the left (symbol & word) side of the brain, so within the first two seconds of sight we begin looking at analytical rationale: prices, ounces, size counts, reviews, and the brand’s storyline. As a result, words take on a more prominent role online since it’s hard to fully understand and experience a brand from a one-square inch thumbnail representation.

In the deliberate left side of the brain, we move past our instincts and into processing/reasoning, which becomes more important in e-commerce than it is in stores as we spend more time in this second stage. Online, brands have the opportunity to make seals and callouts (symbols) front and center in a product thumbnail in order to instantly communicate contents, features, and specifications. Think simple—use clear “hero” images, while still allowing the consumer to find every detail, if desired.

In a product’s thumbnail, emotional textures are often added behind the package to enhance engagement, which is something you cannot do in-store. For example, Figure 7 demonstrates how the burst of color behind Crystal deodorant online immediately conveys freshness and cleanliness.

A brand’s website is also an optimal oppor-tunity to not only sell product, but to craft a cohesive brand storyline that sets you further apart from any other contenders that consum-ers may also spend time investigating online. Figure 8 shows how Crystal Deodorant clearly draws out their brand mythos online. During research, it’s essential to uncover which details the deliberate side of the brain will want to know and determine which symbols and words will best convey them.

“Within the first two seconds of sight we begin looking at analytical rationale.”

SIGHT 2:THE DELIBERATE LEFT BRAIN(SYMBOLS & WORDS)

Figure 8

Figure 7

CLOSING THOUGHTS

ABOUT TGGThe Goldstein Group is a brand identity & design firm that incorporates strategic and analytical techniques into its de-sign process to create designs that achieve bottom line results. With strategic planning, brand design, digital strategies, naming, sustainability, e-commerce enhancement, and industrial design, TGG makes brand connections happen because the hierarchy of visual information (colors, shapes, symbols, and words) reflected in its work is recognized in the same sequence that the brain processes information both on-shelf and online.

Terri Goldstein is the Founder & Principal of The Goldstein Group, a leading global brand identity and package design firm located in NYC. Over a 25-year career, countless marketing and design executives from companies in the FMCG industry have turned to Terri and her team, including: Bayer, Merck, Panasonic, Sanofi, Carma Labs, Hyland’s, USP Zdrowie, Honeywell, Heinz, and GSK, among many others. Terri is the author of breakthrough research on consumer behavior, recall, and sensory motivation in the retail environment and e-commerce space, as detailed in her Shelf Sight Sequence™ and e-Sight Sequence™ processes. Terri and her team of Baby Boomers, Gen X-ers, and Millennials build enduring brand value and sales by evolving the brand’s core identifiers to solidify a place in the hearts and minds of con-sumers. The firm’s scope of work includes iconic heritage brands, Rx-to-OTC switch, as well as new products searching for an identity in the omni-channel marketplace today.

To see examples of our work, visit our website: tggsmart.com

Despite today’s retail realities, the art and science of brand identity and package design remain largely undervalued and misunderstood. Designing your brand in today’s omni-channel world means understanding how consumers see your brand, which is different online vs. on-shelf. The core elements of both online and in-store strategies remain the same: color, shape, symbol and words. However, online, the core identifiers no longer exist in a hierarchy: The intuitive, right brain first interprets colors and shapes, and ignites the deliberate, left brain which analyzes symbols and words in order to make a final, informed decision.

In both the in-store and digital realms, strategic and informed package design is a must-do – accomplished via a carefully engineered understanding of colors, shapes,

symbols and words. This forms our guiding principal: Consumers’ sequence of cognition at retail, Shelf Sight Sequence™, and their sequence of cognition online, e-Sight Sequence™. Today, a brand must understand how to find its way to consumers’ eyes, hearts and minds in all channels. We call it brand wayfinding. Without this vital knowledge, your brand can get lost in a sea of me-too offerings.

It’s key, now more than ever, to understand that it all begins with assigning memorable and own-able colors, shapes, symbols and words to distinguish your brand for both in-store and online shopping experiences. Here at The Goldstein Group, we ensure your colors, shapes, symbols and words are own-able, memorable, and as we say, provide consumers with something to talk about in all arenas!

If you would like to have a consultation in our NYC office with Terri and her team, we suggest you follow the principles of the Shelf Sight Sequence™ and wayfind yourself into the firm: Hail a yellow cab, look for the Empire State Building, and if you see the red star you’ve gone too far – Terri and her team can be found at 147 W 35th Street off of 7th Avenue.

Terri Goldstein is the Founder & CEO of The Goldstein Group. During her 25-year career, exec-utives in FMCG have turned to Terri for her expertise in brand identity and design. Terri has strengthened the brand identity and business health of over 400 global and domestic consumer products and services developing iconic brand identities that truly endure the test of time.

Terri has been profiled in Advertising Age (Packaging Guru Proves What’s On Outside Counts – And Sells) and was named a GDUSA Person to Watch. She is a keynote speaker at PIMS, The Marketing Institute, CHPA, and many industry conferences. She serves as a guest lecturer at Clemson University and FIT, regularly contributes to Adweek and Graphic Design USA, and is the author of breakthrough research on consumer behavior, recall, and sensory motivation in the retail environment.

Seventh AveWest 35th St

Color is First! Shape is Second! Symbols are Third! Words are Last!

To connect with Terri & learn about her upcoming speaking engagements, visit her speaking website: terrigoldstein.com.

terri@tggsmart.com (212) 842-2887TERRI GOLDSTEIN, Founder & CEO

147 West 35th Street 11th FloorNew York, NY 10001

o: 212 • 842 • 2887w: tggsmart.com