The Olympic Games are a global event that captures the attention of the world for two short weeks every two years. Consumer packaged goods (CPG) manufacturers spend huge amounts of money to sponsor and advertise during the Olympics. But what’s the impact on shopper decision-making in the aisle? We decided to use Locately’s next generation intercept to better understand how Olympics sponsorships influence shopper attitudes and behaviors. We triggered surveys to our panel of 25,000+ consumers across the US, interviewing respondents as they shopped Mass, Grocery, Club, Drug, and Dollar channels during the Sochi Olympics.
Viewing the opening ceremonies, and consequently being exposed to CPG sponsors and advertising, improved shopper awareness of in-store marketing activations. Shoppers who watched the ceremonies were more likely to see the flyer/circular in store and to notice coupons attached to store shelves. Conversely, shoppers who did not view the Olympics ceremonies were more likely to have no awareness of any in-store marketing activations. Viewing the opening ceremonies may prime shoppers to spot in-store activations that tie in with Olympics-themed TV campaigns.
Shoppers who viewed the opening ceremonies spent +9% more time in store, increasing the opportunity to notice in-store activations and drive additional items into the basket. With this additional time and increased sensitivity to activations, shoppers who watched the opening ceremonies recorded an average of +8% greater spend per basket.
Finally, shoppers who watched the opening ceremonies were more likely to report being “highly satisfied” with their shopping experience. We’re not sure why exactly this is, but here’s one idea: exposure to commercials during the opening ceremony may increase brand awareness and likeability, translating to more positive sentiment during shopping trips.
This past holiday season, we executed Locately’s next generation shopper intercept to understand how America shopped for holiday food occasions. We invited 2,100 shoppers to share their location data with Locately during November and December 2013 via Locately’s smartphone app. In this blog post, I’ll highlight some of our most interesting findings and offer additional perspective on the relevance to retailers and manufacturers.
Attractive holiday displays make a big impact in-store. When shoppers notice holiday displays while shopping for the ingredients needed for a holiday event, they spend more. In fact, dollars spent increased by more than 140% when shoppers noticed holiday displays by Del Monte and Heinz. Investing in display placements for the holiday season increases brand exposure, which can build both brand awareness and basket size.
Displays are more likely to catch a shopper’s eye if that shopper is a guest attending a holiday event. Guests spend more time browsing while in the store, which increases the window of opportunity for them to see and connect with a brand display. Party hosts are more likely to be shopping off of a list and spend less time in-store browsing. Creative, solution-based baking displays may be of particular interest to guests, who may be looking for new ideas about what to bring to holiday meals.
Our free report includes additional findings and context – click here to download.
The holidays are a busy time of year and retailers will do whatever it takes to enhance the holiday shopping experience and capture additional sales. But just how effective are retailers at getting shoppers to spend more money? To better understand the holiday shopping experience we asked over 700 Locately panelists across the US to describe what they noticed in-store. These shoppers agreed to continuously share their location with Locately and answer in-the-moment mobile surveys via our smartphone app while shopping from December 12-16th.
The graph above suggests that holiday window displays were least effective at growing the basket. By contrast, a free gift with purchase and holiday sale signs were the most effective; shoppers who noticed these activations spent almost 20% more than the average basket of $54. Window displays, holiday product displays and holiday music are great for creating in-store ambiance, but they don’t correlate with larger baskets.
We ended our in-the-moment mobile survey with a freeform answer option that invited shoppers to describe what grabbed their attention while in store. A shopper at Macy’s appreciated “the decorations and the bonus gifts” – she spent $75 on her visit. While in Target, another shopper commented on the eye-catching “signage and Christmas oriented products” – and her basket size was over $110.
In summary, despite mixed reports about shopper willingness to spend, our data suggests that certain in-store activations are still effective at encouraging shoppers to open their wallets.
At the ARF’s Industry Leader’s Forum, Jonathan Carson, Nielsen’s CEO of Digital, gave a talk about what mobile location technologies mean for consumer and shopper insights. He begins by discussing the enormous power of location for marketing and market research:
We think location is a very, very big deal. Probably the most interesting fundamental new aspect of the mobile space both from an advertising standpoint as well as from a research standpoint.
-Jonathan Carson, CEO, Digital at Nielsen
Jonathan then goes through some of the work Nielsen has done using Locately’s location analytics platform. He shows a demo of how to use Locately’s drive-past and store visit technologies to analyze the shopper journey of an opted-in Nielsen panelist. He explains how Locately reveals shopper motiviations and trip triggers in terms of both banner and channel choices.
As one of the pioneers of using location data for shopper insights, we share obviously Jonathan’s belief that “location is a very, very big deal”.
Locately recently announced a new offering with DemandTec, an IBM company. The new product adds Locately’s path-to-purchase and shopper word-of-mouth analytics to the DemandTec Network.
In this video, Armen Najarian, VP of Corporate Marketing at DemandTec, discusses how it allows marketers and merchandisers to make better decisions, faster. As he describes it, Locately on DemandTec is “putting chocolate with peanut butter”.