In the previous chapter we defined digital shopper marketing, presented a framework to classify digital shopper marketing tools, and briefly explained some of its benefits.
In this chapter, shoppernewsblog provides a framework for how to best execute digital shopper marketing and explores some of the metrics which can be used to evaluate a campaign’s effectiveness.
The strategic framework for executing digital shopper marketing is the same as for any other shopper marketing initiative.
First, a company must identify its shoppers, segment them according to their demographics and shopping behavior, and ultimately define their potential value.
Second, based on their relative value and on the likelihood to satisfy their specific needs (expectation gap), the company selects the shopper segment to satisfy (i.e. moms in a certain age and socioeconomic level).
Next, based on what type of shoppers a company wants to target, partners for the digital shopper marketing campaign are selected. In order to choose the correct partner(s), retailers and manufacturer should consider the following:
- Who targets these shoppers?
- Who has insights into this specific shopper segment?
- Who would benefit from collaboration (strategic fit)?
- Who provides digital shopper marketing capabilities?
Partners may include retailers, manufacturers, digital advertising agencies, KOLs, and social media providers.
Once a company has chosen its partners, it becomes important to conjointly agree on the goals of the digital shopper marketing initiative. Determining the goals starts by defining the shopper insight to satisfy which in turn should be aligned with the corporate strategy of each partner. As for any shopper marketing initiative, the campaign must be relevant to shoppers, unique to differentiate from competitors, customizable to the participating retailers, and consistent with the partners’ overall strategy (strategic fit).
Fifth, the partners have to define execution along the path to purchase to ensure the success of the campaign. This includes agreeing on marketing tactics, merchandising / category management tactics, and operational tactics. Along these three dimensions, partners might rely exclusively on digital tools or mix digital with traditional vehicles (i.e. paperless coupons and FSI in newspapers).
Sixth, the digital shopper marketing campaign is implemented according to the predefined plan.
Once the campaign is completed, it is evaluated against the pre-established goals and targets.
For a sample digital shopper marketing program plan, please click on the picture on the right. It introduces a sample plan for a retailer aiming to satisfy moms shopping for fresh produce products. The campaign’s goal is to “drive both penetration and frequency with perishables with core and mid-loyal shoppers”¹.
Measuring a digital shopper marketing campaign’s effectiveness is very similar to measuring any other shopper marketing initiative. As Shopper Marketing magazine proposes in its April issue, our framework includes four metrics namely, transaction data, shopper behavior, attitudes and beliefs, and non-shopper returns.
According to a campaign’s scope, different metrics are included. For smaller initiatives, the investment might only justify transactional data whereas larger campaigns should be evaluated along all four metrics.
The metrics in turn contain measures for both retailers (upper row) and manufacturers (lower row). However, FMCG who directly sale to shoppers via a website or an app are advised to apply retailers´ measures.
In addition to the common metrics for traditional shopper marketing, digital shopper marketing initiatives should quantify measures frequently applied to digital tools such as number of unique visitors, click-through-rate, or social media feedback for example.
To enlarge the measurement framework, please click on the picture above.
In Chapter VIII we present Best Practices for Digital Shopper Marketing along the path to purchase.
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¹The sample is an adaptation of a shopper marketing program introduced in the Shopper Marketing Best Practices: A Collaborative Model for Retailers and Manufacturers report published by the Retail Commission on Shopper Marketing: http://www.thepartneringgroup.com/pdf/Shopper%20Marketing%20Best%20Practices%20Report%204-2010.pdf
Stahlberg, M. (2012). Shopper Marketing – How to Increase Purchase Decisions at the Point of Sale, Second Edition. London, England: Kogan Page Limited.