According to this Friday’s infographic, in just 5 years, roughly 50% of the population of the United States will be over the age of 50. Does that sound like a group of shoppers you should be overlooking? Didn’t think so. Not to mention, we already know that more mature shoppers are more likely to shop in-store. Baby Boomers to the rescue for brick-and-mortar!

See the full infographic from Marketing Zeus, below, for more information on this amazingly powerful shopper demographic, and why you should focus your marketing (in-store, online, wherever the wind blows you) efforts on them, as well as on their younger  cohorts. Happy Infographic Friday!

 

 

The study took a deeper look at shoppers’ interaction with their mobile devices, and was done by Michael R. Sciandra and J. Jeffrey Inman. In the study, shoppers in-store phone us was divided into four categories:

• No Use (85% of respondents): Shoppers didn’t use their mobile phone while shopping.
• Related Use (7%): Shoppers used their smartphones to compare prices, retailers, pull up a shopping list, scan a QR code, or call someone for help with a shopping-related decision.
• Unrelated Use (7%): Shoppers used their phones for private conversations, personal texts, checking email, listening to music, surfing the web, or playing games.
• Both (1%): Shopper used their devices to perform both shopping-related and unrelated activities.

Based on the above criteria, the study was able to discern that shoppers who used their mobile phones for unrelated activities while shopping made more unplanned purchases when compared to shoppers who didn’t use their phones at all.

If the dependent variable remains the minutes the shopper spends inside the store, than the unrelated phone use some shopper exhibit stands to lengthen the amount of time they spend in-store, which in turn increases the likelihood of them purchasing unplanned items. Personally, I have this happen to me all the time–I’ll meander around the grocery store on the phone with my mom, and absentmindedly grab impulse buys in addition to sticking to my list. For brands and retailers afraid of the impact of mobile, this could be valuable information about shopper behavior in-stores.

Conversely, according to the study, phone use can also lead to more planned but not purchased products; in other words, shoppers’ related use of their smartphone/mobile device also leads to not buying items they had on their list. Shoppers in the Related Use category missed more items than participants in the No Use category, as well as the shoppers in the Unrelated Use category.

In conclusion, mobile isn’t the big bad wolf for retail. In fact, encouraging the use of mobile tech in-store, particularly unrelated to shopping, can be beneficial, as it leads to increased unplanned purchases, more time spent in-store, and more repeat trips. Finally, if brands and retailers become aware and remain cognizant of the impact mobile devices can have on purchases. So, when you talk about in-store, don’t think you can exclude mobile from the mix.

About the Study

Previous research acknowledges that almost 60% of all consumer purchases are completely unplanned prior to entering the store (Inman & Winer 1998). Given the prevalence of in-store decisions, additional research on in-store factors influencing consumers’ decisions is vital. Therefore, the goal of this research is to investigate the role of in-store mobile technology use (i.e., using a cell phone or smartphone while shopping) on consumers’ in-store decision making. For the full study, click here to download, or visit POPAI’s Research Library.

About the Data

The data in our study comes from the 2012 POPAI Shopper Engagement Study. The sample consists of 2400 supermarket shoppers from four US geographic census regions. Prior to shopping participants completed an entry survey detailing planned purchases, expected spending, and demographics. After shopping, an exit interview was used to collect information on products purchased, actual spending, cellphone or smartphone use, and store attitudes.

For more on POPAI’s 2012 Shopper Engagement Study, please click here.

Here at POPAI, whether we’re talking about in-store or online, we always champion the experience that is shopping, and how a good experience in turn is the key to a successful path to purchase for the shopper (and for brands, CPGs, producers and retailers).

One retailer with that whole experience thing down pat? Zappos, the online retailer that’s got an insanely good reputation when it comes to working with shoppers. According to this article from Forbes, there’s a reason Zappos CEO Tony Hsieh has written the go-to book on customer service–and it’s that Zappos delivers a “wow experience” every time. How, you might ask? And more importantly, how can we apply the same principles to our own retail practices, in-store or online? Read the full article from Forbes, here.

What Zappos Taught Us About Creating the Ultimate Client Experience
By Barry Glassman
Forbes

Over the past few weeks, maybe even a little bit longer, one more retail buzzword (because we seriously need more retail buzzwords) has been popping up all over POPAI HQ’s Twitter feed: dynamic pricing.

In addition to all those other big buzzwords we’re used to already–you know, “Big Data“, “So-Lo-Mo“, and more–it could be easy for dynamic pricing to get lost in the shuffle and scrolling. But instead, it’s making waves with shopper marketers everywhere, specifically those making a conscious effort to stay in tune with the e-commerce game (which, yes, so should you, especially if you’re primary focus is in-store).

So, what is dynamic pricing, exactly? And why is it so important? Let me break it down for you:

Dynamic pricing is a flexible pricing mechanism being used on e-commerce giants such as Amazon, and many industry professionals think that it’s part of why e-commerce has such an edge over not just traditional brick-and-mortar retailers, but also their online competition.

It works simply: by being able to pair shopper data with market fluctuations, e-tailers are able to adjust pricing according to how numerous factors that influence how willing a shopper is to buy. The data used to target these online shoppers ranges from personal information to geographic to user demographics, but it all works to accomplish the same thing: super-personalization customized so meticulously the shopper feels even more compelled to make a purchase. Mystery solved.

When all is said and done, the concept of dynamic pricing is really no different than the way shop owners all over the world adjust prices based on the shopper they see in person, or vice versa, a shopper trying to get the price adjusted based on their perception of the salesman, store, or brand. It’s called haggling. E-commerce simply has the ability to do this kind of profiling–and it is, technically, profiling–with much more stealth and, probably, success.

That doesn’t mean to say that dynamic pricing doesn’t come without its shortcomings. For example, if we’re talking about competing against a dynamic pricing strategy as a purely physical retailer, we already know nothing really beats face-to-face interaction with a shopper. And, according to this article from Retail TouchPoints, while retailers are freely trying out this pricing strategy, they’re having a hard time measuring impact. Still, there are undeniable advantages that the concept brings to the table, and that have already been implemented effectively by certain industries, such as the airline industry, the event industry, and more. And retail is next–just ask Amazon.

For more information on dynamic pricing strategies, check out this awesome article from Retail TouchPoints, who took some time with the CEO of WisePricer, Arie Shpanya, who gave these 5 tips on how any e-tailer (and even brick-and-mortar store) can anticipate the dynamic pricing trend:

#1 Adjust your price according to the competition.

“Knowing the market prices will help you know the right price.” – Arie Shpanya, CEO of WisePricer

#2 Adjust price at a specific time of day.

Just like social media marketing has a strict timeliness-is-of-the-essence policy in regards to posting content, so should pricing.

#3 Adjust price according to web traffic.

Web traffic can help you indicate why or why not someone is clicking, and therefore, potentially buying.

#4 Adjust price based on conversion rate.

Conversion rate is similar to web traffic; it’s another metric that indicates clearly whether or not your product is priced appropriately.

#5 Price according to sales velocity.

This one’s a no-brainer–if it’s moving, you’re doing something right. If it’s not, pricing may be one of your issues.

We already knew that the introduction of tablets into in-store was sprucing up and phasing out retail stores’ cash registers–now, according to this article yesterday from Bloomberg, these tablet-turned-tills are getting even more fancy with the help of a little thing called Square.

That’s right, folks–Square Inc., the payments startup co-founded by Twitter chairman Jack Dorsey, is unveiling new hardware for Square enthusiasts, aka. retail store owners, usually on the small business side: a stand. The transformation from iPad to point-of-sale system is nearly complete. There’s no doubt shoppers will embrace the sleekness of these iPad registers, but what about retailers? How will this impact the shoppers’ path to purchase? Read the article in full, here.

Square Introduces Stand to Turn iPads Into Cash Registers
By Danielle Kucera
Bloomberg

Good news for the retail industry: shopper sentiment is up! After see-sawing for months between positive and negative territory, The Consumer Report Index’s sentiment measure is up and higher than it’s been since 2008.

As of now, consumer sentiment is steady at 54.5, up from 50.1 just last month. The jump spans all income and education groups, but it’s important to note that the greatest gain was amongst lower-income consumers in households earning less than 50,000 per year. The Consumer Reports Index is an overall measure of Americans’ personal financial health.

“It has been a real positive month for a lot of Americans. The recession has had a long tail that continues to burden lower-income families disproportionately. Improving sentiment among that group indicates that they are starting to feel better about the days ahead,” said Ed Farrell, director of consumer insight at the Consumer Reports National Research Center, in the official release.

In addition to the rise in sentiment, the index also saw a decline in the level of financial woe reported by consumers. The Consumer Reports Index’s trouble tracker (bet Batman wishes he had one of those bad boys) measure dipped down to 41.7 from last month’s 42.3. The only income segment of the shopper population that saw a rise in financial difficulties was those same Americans in the household earning under 50k bracket.

While consumer sentiment going up is a good thing in the long run for retail and shopping, it has yet to influence consumers’ shopping habits. The index’s past 30-day measure for retail saw spending activity slumping to the lowest its been since October 2008. This is its fourth straight month of decline, standing at 8.7, down from 9.6 last month. The decline has been attributed to the timely slowing down of promotions for major appliances and major home electronics, two high-ticket categories.

“With the rollercoaster ride that has defined the consumer’s experience of the recovery, hesitancy to spend may be a rational outcome. It is likely to take several months of improving prospects and a strengthened job outlook before consumers fully engage,” Farrell said in the release.

Still, there’s always a bright side: like Farrell said, it just may take a while before the splurge urge sets in for some shoppers. According to the Consumer Reports Index’s stress measure, the level of stress that consumers were under has also gone down, from 56.5 last month to 53.8. Useful fact: the most stressed Americans are women (56.5); consumers in households making less than 50k (56.0); those poor Millennials–in other words, consumers aged 18-34 (55.6); and, finally, people located in the West (57.8).

For more information regarding The Consumer Reports Index, visit their website. Otherwise, stay upbeat and keep shopping.

According to an article Sunday from the Detroit Free Press, not even good customer service may be enough for some retailers–only great customer service does the job. For example, book retailers are at more risk than some other categories, such as apparel and other goods. Read the article in full, here, to see industries affected more than others, and shop owners doing their best to combat the trend.

Do You Shop In Store, But Buy Online? Retailers Fight Showrooming
By Frank Witsil
Detroit Free Press

Ready to get schooled in the reality of expensive retail? Check out the top ten, below, according to research from CBRE Global Research & Consulting.

#1 Hong Kong

That’s right, Hong Kong takes the top of the retail spots in list, and for good reason–according to CBRE Global Research & Consulting’s latest Global Retail View report, demand is soaring in Hong Kong, keeping rents sky-high. As a result, some retailers are seeking alternatives to the prime areas, as they simply can’t find the space or afford it. Makes sense, considering that it’s one of the most densely populated areas in the world. That’s a lot of shoppers.

#2 New York

New York, New York! America did make the cut this time around, and all for the Big Apple’s expensive real estate, whether it be in the coveted Time Square, the ultra-hip streets of SoHo, or the up-and-coming area of Brooklyn. They don’t call it the city that never sleeps for no reason…people can shop all hours of the night! In addition, according to CBRE, New York City also welcomed a score of new national and international retailers this past year, all thanks to their massive tourism appeal.

#3 London

Another retail hub of a city that experienced growth last year, keeping rents high and shoppers satisfied, was good ol’ foggy London town. According to CBRE, London gets the title of “Most Attractive Prime EMEA Market” for international retail, along with another (spoilers!) on the list. Similar to Hong Kong, however, had to find a landlord off of the high street due to high demand. Examples: the U.K.’s first Oscar de la Renta and Celine stores. Cheers.

#4 Paris

Along with London, the city of lights also got dubbed one of the ”Most Attractive Prime EMEA Market” for international retail. Oui oui, merci beacoup. Per usual, the city’s stunning reputation as a tourist destination (for fashion, food, art, and just about everything) catapulted it to the top ten list. Additionally, like Hong Kong, Paris is also the most populous city in France, as well as being arguably the most stylish.

#5 Sydney

Going down under for more high retail rents, we reach #5 on the list–Sydney, Australia, the most populous city in the country, famous for their swanky opera house, soaring skyline, and beautiful and varied landscape, among other things. Like retail, for example! Due to Sydney’s high cost of living and posh metropolitan vibe, it only makes sense that the retail rents skew higher.

#6 Tokyo

And here comes heft–hello, Japan. Tokyo is the metropolises of all metropolises, the city of all cities, at least in today’s world economy. As the largest metropolis area in the world, as well as the capital of Japan, Tokyo is definitely considered a one-stop-shop retail destination–and that’s without counting the crazy-cool Japan fashion! This translates into a vibrant retail market, and therefore expensive retail rents.

#7 Melbourne

Speaking of capitals, next on the list is none other than Australia’s, the lush “Garden City” of Melbourne. Considered the cultural capital of Australia, it’s no wonder that shopping there is seriously legitimate, and that retail rents went up. In fact, according to CBRE, it’s due to cities such as Melbourne (and another on this list, keep going!) that Pacific markets gained prominence this past year among the listings of prime retail markets.

#8 Zurich

As we get farther and farther down the list, I’m noticing a trend–a lot of the top dogs are also the biggest cities/hot spots in their respective regions. The same is true for #8, Zurich, the largest city in Switzerland, and well known as one of the financial capitals of the world and one of the best places to live (with the happiest people). Here’s a sort of financial equation for you: happy shoppers + wealth = retail sales, and therefore high retail rents. It’s all relative.

#9 Brisbane

The second city (no, not Chicago sadly) to bolster the Pacific market is none other than Brisbane, the third most populous city in Australia, alongside other retail-savvy cities Sydney and Melbourne. It also doesn’t hurt that just like Zurich, Brisbane has a stellar reputation as one of the most liveable cities in the world.

#10 Moscow

And, finally, we reach the last spot amongst the top of the pops–the good city of Moscow, which is also the country’s capital and continues the trend of our top 10 in being the most populous city in its respective country. According to Forbes in 2011, Moscow boasted the largest community of billionaires in the world–and though it’s probably not due to just those guys that the city has experienced tremendous retail expansion in the last year, hey, it can’t hurt.

Do svidaniya!

The power of in-store merchandising is all in the smallest details–just look at a retailer such as apparel darling Urban Outfitters. Here at POPAI, we’ve featured UO on some of our retail tours here in Chicago specifically to point out how they cultivate their brand identity all through powerful in-store merchandising and marketing programs, most notably, unique and eye-catching displays. Whether you like Urban Outfitter’s eclectic style of apparel or not, one thing’s for sure: they know how to do it when it comes to creating a brand experience and thereby targeting their perfect shopper.

In this article from Frank Mayer & Associates, which is Part 1 in what will be a three-part series, the process of evaluating in-store merchandising at its best is explored. In turn, this process lends for a better application of those in-store initiatives that are so important. Read the first part of the series, here, to focus on the first of the three qualitative areas–creativity, something Urban does quite well–where you can focus your evaluation of an in-store merchandising partner.

How to Evaluate an In-Store Merchandising Partner, Part 1
By Joe Holley
Frank Mayer & Associates

According to this colorful (pun intended!) infographic from Kissmetrics, color psychology is extremely important in understanding what drives shoppers’ purchase behavior for brand marketers, retailers and CPG’s looking for an edge in the future of shopper marketing. Check it out, below: