toolkit: leveraging the at-purchase moment

Toolkit | May 2014 | Leveraging the At-Purchase Moment | � 1

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Leveraging the at-purchase moment "Understanding how to leverage the customers path to purchase as part of the ThinkBlink™ process

TeamClient Design ToolKit


Shikatani Lacroix is a leading branding and design firm located in

Toronto, Canada. The company commissions assignments from

all around the world, across CPG, retail and service industries,

helping clients achieve success within their operating markets. It

does this by enabling its clients’ brands to better connect with

their consumers through a variety of core services including

corporate identity and communication, brand experience design,

packaging, naming and product design. A key tenant of their

services is the ThinkBlink(TM) process which ensures compelling

at-purchase moments are designed that connect in the blink of

an eye as part of the consumer brand journey. ""About the Author

Adam Mintz, Strategic Planner at Shikatani Lacroix

Adam is an experienced brand strategist specializing in market

positioning and consumer engagement. His career spans multiple

industries and numerous segments within the product cycle, from

manufacturing to retailing.

He began his work in the world of fashion as a brand manager for

Diesel Clothing Canada, after which he spent time working in

mass merchandising for some of the world’s largest CPG

companies and big box retailers across Canada. Adam recently

spent a year as a brand strategist with FutureBrand Australia

before returning to Canada where he has since held a senior

planning position at Shikatani Lacroix.

Adam holds a BA in Communications from Concordia University

and a Masters in Global Marketing Communications from

Emerson College.

""Copyright @ 2014 by Jean-Pierre Lacroix. All rights reserved.

ThinkBlink, Blink Factor and Trust Ladder are registered

trademarks of Shikatani Lacroix Design Inc. """


Introduction "It can take merely seconds for a consumer to initiate a purchase

decision, no matter how large or small they may be. Whether

buying a house, a car, or a stick of gum at the grocery store,

engaging the customer quickly and effectively can make the

difference of whether or not they will buy a product. A realtor’s

website with stunning photos of a condominium unit entices a

potential buyer to call and make an appointment; the Attract,

Pre-Purchase Moment. A consumer notices a large and colourful

shelf display for a new soft drink and decides to grab it and put it

in their shopping cart; the Transact, At-Purchase-Moment. Finally,

a consumer brings their purchase home with them, anticipates

using it every day, and receives a promotional notice from the

retailer in the mail as well as a notification via their social media

fan site about a rewards program; the Retain, Post-Purchase

Moment. Attract, Transact and Retain; a process that guides the

consumer along the path-to-purchase journey during which, at

the key moments of truth, one brand or retailer is chosen over

another. These core principles have driven Shikatani Lacroix in

creating strategic design solutions for their clients, differentiating

them from their competitors and successfully targeting their

customers at these key moments. The following is a detailed

account of these principles; a means to help brands win at the

moments of purchase. "Phase #1: Attract, Pre-Purchase Moments "The moments defined: The pre-purchase moments are the

instances when a consumer is considering the products or

services they want or need. For example, a consumer views an

advertisement on TV or YouTube, overhears a friend talking

about a product or service, or notices a Facebook post from an

acquaintance. These are the moments where brands have an

opportunity to attract the attention of a target consumer. "Situation Analysis: It is no longer a secret to brands and

marketers that consumers are using multiple devices to assist in

their purchase decisions. They frequently do their initial research

using their smartphones, laptops or tablets. Then, they may visit

retail stores in person in an effort to learn more about the


product or service face-to-face with an expert. Finally, they will

often reach for their smartphone once again to conduct

additional research, read reviews and compare prices. A 2012

Google study revealed that 46% of consumers research an item

on their smartphones, followed by an in-store purchase. While

seemingly good news for brick-and-mortar retailers, the study

also revealed that 41% of consumers who researched an item on

their smartphones made their purchases using their smartphones

as well, while 37% of consumers researched on their smartphone

in-store and subsequently purchased their item online on their

computer. What this means in terms of the pre-purchase moment

is that it no longer exists at one single consumer touch-point, but

rather at multiple touch-points at the same time, be it

advertising, online research or even at the retail outlet itself.

Learning about a product or service is no longer exclusive to out-

of-store media due the new experiential retail model that aims to

create pre-purchase moments when consumers are simply

browsing. "Direction for right moment: Through the advent of online,

mobile, social media tools and experiential retail stores, the pre-

purchase moment no longer has a linear path, but one that

moves in multiple directions. In turn, this has caused brands to

adopt the ‘be everywhere for everyone’ strategy rather than

understanding how to properly target their consumers during

this key phase. "In order to determine where a brand needs to be and how they

should target potential consumers during the Attract stage, a

brand must ask itself the following questions: "• What is the correct target market and what are its most

vital unmet need states? • What is the target market’s shopping bahaviours during

and between purchases? • What is the target market’s product or service

preferences and what are their key decision drivers that

compel them to make their purchases? • Who are the key competitors and what are the main

factors in ensuring the given product or service is part of

a consideration set of the target segment(s)?

The pre-purchase moment...no longer exists at one single consumer touch-point, but rather at multiple touch-points at the same time. "


"Asking these questions can help a brand determine how to best

reach their market in the most effective way. These questions

gives brands a better sense of how their consumers buy, where

they buy and why they buy. They will also lay the foundation for

how and where a brand will want to communicate with its

consumers, and ultimately help move the consumer from the

Attract to the Transact phase. ""Phase #2. Transact, At-Purchase Moments "The moments defined: The at-purchase moments are the critical

instants when a consumer makes a financial commitment to a

given brand. For example, taking an article of clothing from a

well-merchandised rack and, after trying it on, deciding they will

purchase it; deciding on or placing a grocery item into a food

cart, or; deciding on then adding an item to a virtual cart,

inserting their information and confirming a credit card payment.

There are numerous external factors affecting these moments.

For instance, was the size a consumer was looking for in stock?

Was the salesperson friendly and quick to help or were they slow

and inattentive. Did the POP match with the materials presented

in the pre-purchase moments? Online, factors such as the user

experience at checkout, can affect a consumer’s buying

behaviour. Was the experience seamless and fast or was it

disjointed and slow? These are all factors that attribute to the at-

purchase moments; the moments when consumers make

decisions on whether or not to buy a product or service. "Situation Analysis: Beyond the grocery store, most consumers

do not shop with a final selection or shopping list in hand. They

often visit a retailer or online store with a short list and a general

idea of what they might want or need. This means that brands

and marketers have an opportunity to switch the purchase

decision in favour of their brand. It is at this juncture where a

brand and its products must pay close attention to the visibility,

graphic consistency and clarity of messaging, not only at retail

but online as well. "

A brand and its products must pay close attention to the visibility, graphic consistency and clarity of messaging. "


The 2011 Shikatani Lacroix study Packaging in an Online World

revealed that, while shopping online, “respondents were looking

for the quickest and most expedient way to grasp the

information they require with more than 50% selecting that they

preferred the simpler approach to see the packaging on screen,

namely the packaging photo of the main view with the

appropriate price, and the ability to view close-up images of

product features depicting all views”. It was also noted that

consumers preferred online shopping experiences that “mirrored

a similar shopping structure to offline experience”. What this

study demonstrated is the need for companies to put greater

emphasis on how their brand is shopped and its visibility to

consumers in specific shopping situations. Ultimately, putting

greater emphasis on these factors will help a brand to better

understand their critical at-purchase moments. "Direction for the right moment: Prior to the creation of that eye-

catching merchandising display, visually stunning package design

or seamless online experience, it is important for brands and

marketers to ask the following questions: "• Where are the key target groups shopping and what is

their decision process while shopping (this refers to

shopping habits and patterns)? • What are the compelling brand and product messages

(this refers to in-store display, packaging or online

messages)? • Where will the optimum locations and placement of a

product or service be (this refers to how a product is

merchandised or how a website is formatted)? • How are customers making their initial transaction

decision? • What is the best experience and sales choreography (how

to actively engage the consumer)? "These questions enable brands and marketers to effectively

communicate with consumers during those moments when they

are making concrete purchasing decisions. The ultimate goal is to

transition the consumer from an initial interest phase to the final

transaction phase. "


Phase #3. Retain, Post-Purchase Moment "The moments defined: The post-purchase moments are part the

final phase along the path-to-purchase. These are the moments

that validate the user expectations of a product or service they

have purchased and they dictate whether or not the brand will

increase or decrease their retention rates. This can refer to how

well the product performs and it is the consumer’s experience

with the product or service on a daily basis. It also refers to how

the brand interacts with the consumer after the purchase is

made. Was there a promotional email sent? Is there a community

of users that discuss the product or service through social

media? Is the customer service agent helpful and attentive?

These are the moments when a consumer decides if they will

remain loyal to a particular product, become an active user or

even become a brand ambassador. Alternatively, will they

become a detriment to the brand through negative reviews?

These post-purchase moments determine if the path-to-purchase

ends or if it continues towards a new life cycle, either through

repeat purchase or in the form of customer recruitment via word

of mouth. "Situation Analysis: On the journey through the path-to-purchase,

it may seem that the Attract and Transact phases contain the

largest sum of moments where brands must vie for the attention

of the consumer and where competition is most rampant.

However, with the sheer volume of email promotions, surveys,

membership and loyalty program opportunities and social media

groups, the post-purchase moments contain as many

opportunities to connect with the consumer as the previous

phases. "These moments, while vast in number, can also be the most

crucial to a brand’s bottom line, since this phase focuses on

retaining existing customers who continue to return to the brand.

According to Marketing Metrics, “the probability of selling to an

existing customer is 60-70% while the probability of selling to a

new prospect is 5-20%. It also costs 6-7 times more to acquire a

new customer than retain an existing one. A positive experience

with a product or a service has the potential for stronger gains,

while conversely a poor experience with a brand, in particular

A strong focus on key post-purchase moments will enable brands to create a lasting positive relationship with their customers and increase the likelihood of a repeat purchase.

"


customer service, can have the adverse effect. A customer is

actually 4 times more likely to defect to a competitor if the

problem is service-related than price or product-related” (Bain

and Company). It is no wonder then that 59% of marketers are

spending 6 hours or more per week on social media connecting

with customers in real time and why “83% of them indicate that

social media is important to their business” (Hubspot). An

investment in consumer engagement such as social media is an

investment in additional business retention. ""Direction for the right moment: In this crucial phase, brands and

marketers must understand how their products or services will be

used and discussed after they’ve been purchased. In order to

effectively target consumers during the Retain phase, the

following questions must be asked: "• What will ensure the value perception of the product or

service is met (this refers to product experience and level

of customer service received)? • Where do consumers prefer to reconnect with the brand

after usage (this refers to the a compelling recognition

program, such as loyalty cards, social media engagement

or promotional offers)? "A strong focus on key post-purchase moments will enable brands

to create a lasting positive relationship with their customers and

increase the likelihood of a repeat purchase. ""Conclusion "While many shoppers follow a similar path-to-purchase, not all

will follow the journey in the same manner, and some will even

drop off along the “different phases of the path” (Euromonitor).

Additionally, the path-to-purchase does not always follow a linear

direction, and not every product’s or service’s pre-purchase, at-

purchase and post-purchase phases occur at separate times or in

separate locations. Finally, not every customer conducts

extensive research or engages in a brand’s online community for

every product or service they choose to purchase. Sometimes,


each phase of the path-to-purchase occurs at the same time and

in the same place. This is why it is critical for brands and

marketers to ask themselves the key questions stated in this

white paper. These questions will enable them to better

comprehend the target consumer’s behaviours and motivations

at the key moments of truth, subsequently helping the brand to

better align its messaging and marketing tactics to suit those

behaviours, and in turn influence their purchasing patterns over

their life span. " """"""""""""""""""""""""""

toolkit: leveraging the at-purchase moment

Retail

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