Why All Customers Are Not The Same

It is a fact: Not all customers are the same. So why engage with them as though they are?

Our research has revealed that there are two main categories of customers, contrary to the idea that there’s simply one. The first category includes the shoppers, those who are in the store or online actually making the purchasing decision, but who are not necessarily consuming the product. An example could be a mother purchasing baby food for her child; the mother is the shopper, while the child is the consumer. The second category is the consumer, which, at times, could simultaneously be the shopper and the end consumer (e.g. a woman buying cosmetics for herself).

While it’s wise for companies to get to know these two categories of customers well, many have opted to skip shopper research. The two most common reasons companies offer for forgoing shopper-specific research have been:

• Limited resources (time, people, and money) and

  Habitual rationale (thinking all customers are alike).

  Today’s challenge is that far too many businesses fail to understand this differentiation and continue to engage with their shoppers (or desired shoppers) as a single group. If this is your company, you might be missing opportunities for strategic shopper insights.

  Unnecessary Risks You Run

  Within these two categories, there are multifaceted differences that are well worth exploring in order to better understand and market to retailer-specific shoppers. A failure to do so runs four major risks.

  1. Lack of Retailer Support

  It is a known fact — in order to have your product on a retailer shelf, you need their support. Retailers want to know that there is demand for your product prior to placing it on their shelves. Without sharing any research about their shoppers’ interest, you may never receive the coveted purchase order you are working so hard to earn. On the contrary, if you were to share retailer-specific shopper insights, it becomes difficult (or downright unwise) for retailers to ignore their own shoppers’ preferences.

  2. Loss of Sales

  Although a shopper may enjoy the same flavor of a product, where he shops will vary based upon which retailer he feels most comfortable with. As an example, a person who shops primarily at Target is different than a Wal-Mart shopper. Retailers understand this, and influential suppliers are capitalizing on the opportunity to become experts on their clients’ respective shoppers.

  A classic example is Procter & Gamble. Many would argue that P&G wrote the book when it comes to shopper research. They are category leaders for a reason: They understand and approach each shopper with intentionality and precision. For decades, P&G’s research teams have been students of shopper behavior, extensively researching what differentiates individuals as they shop at various retailers.

  3. Lack of Defense

  Thorough research goes beyond selling your product. Granted, classic consumer research does shine light on the benefits of your product and how it may connect with the consumer. However, it does not allow you to point out your strengths versus your competition across multiple retailers. The more pertinent information you have about what your shopper wants, the easier it is to show your buyer how you distinguish yourself from the competition.

  4. Lack of Thought Leadership

  Retailers will often partner with suppliers who work to understand their shoppers, rather than those who use a cookie-cutter approach. A true partnership entails working with your retailer to “grow the entire category pie.” Focusing on their shoppers allows you to influence how you grow your “piece of the pie” within the framework of a successful category expansion.

  Doing the Research

  The way shoppers use technology today has opened the door for an array of more affordable methods of conducting shopper research. Directing resources toward mobile to conduct research while shoppers are already shopping in the stores — and interacting with products and displays — is a great place to start. There are three key ways in which mobile research is changing the way information is being gathered today; companies like Field Agent have developed a model to pull these pieces together.

  1. B.Y.O.D. (Bring Your Own Device)

  In retail stores across the globe, shoppers are carrying smartphones that have more computing power than the retailer-provided handheld devices of store employees. These smartphones allow researchers to gain access to shoppers while they are in the act of shopping.

  2. Multitasking

  Shoppers have adapted to multitasking while shopping. They use apps to check their shopping lists, compare prices, and check nutritional information — all while tweeting about their day and checking up on friends via Facebook. This ubiquitous device immersion means that many consumers are willing to provide companies with information about their shopping habits.

  3. Crowdsourcing

  The inefficient method of sending recruited shoppers into a store for a shopping exercise with a facilitator has been common practice for years; with respect to those who practice this method, it is simply too expensive and creates an unnatural environment for the shopper. With crowdsourcing, however, you ask a shopper who is already in the store to complete a shopping exercise. This not only eliminates the expenses of recruitment and facilitation, but it also allows the shopper to interact in a more natural environment.

  If you want to make a difference with your clients, you need to understand as much as possible about their shoppers. Even if your resources are limited, it is worth the effort to conduct research targeted toward shoppers. In the long run, you will be able to gain quality insights in more locations, faster and less expensively than ever before.

• Limited resources (time, people, and money) and

  Habitual rationale (thinking all customers are alike).

  Today’s challenge is that far too many businesses fail to understand this differentiation and continue to engage with their shoppers (or desired shoppers) as a single group. If this is your company, you might be missing opportunities for strategic shopper insights.

  Unnecessary Risks You Run

  Within these two categories, there are multifaceted differences that are well worth exploring in order to better understand and market to retailer-specific shoppers. A failure to do so runs four major risks.

  1. Lack of Retailer Support

  It is a known fact — in order to have your product on a retailer shelf, you need their support. Retailers want to know that there is demand for your product prior to placing it on their shelves. Without sharing any research about their shoppers’ interest, you may never receive the coveted purchase order you are working so hard to earn. On the contrary, if you were to share retailer-specific shopper insights, it becomes difficult (or downright unwise) for retailers to ignore their own shoppers’ preferences.

  2. Loss of Sales

  Although a shopper may enjoy the same flavor of a product, where he shops will vary based upon which retailer he feels most comfortable with. As an example, a person who shops primarily at Target is different than a Wal-Mart shopper. Retailers understand this, and influential suppliers are capitalizing on the opportunity to become experts on their clients’ respective shoppers.

  A classic example is Procter & Gamble. Many would argue that P&G wrote the book when it comes to shopper research. They are category leaders for a reason: They understand and approach each shopper with intentionality and precision. For decades, P&G’s research teams have been students of shopper behavior, extensively researching what differentiates individuals as they shop at various retailers.

  3. Lack of Defense

  Thorough research goes beyond selling your product. Granted, classic consumer research does shine light on the benefits of your product and how it may connect with the consumer. However, it does not allow you to point out your strengths versus your competition across multiple retailers. The more pertinent information you have about what your shopper wants, the easier it is to show your buyer how you distinguish yourself from the competition.

  4. Lack of Thought Leadership

  Retailers will often partner with suppliers who work to understand their shoppers, rather than those who use a cookie-cutter approach. A true partnership entails working with your retailer to “grow the entire category pie.” Focusing on their shoppers allows you to influence how you grow your “piece of the pie” within the framework of a successful category expansion.

  Doing the Research

  The way shoppers use technology today has opened the door for an array of more affordable methods of conducting shopper research. Directing resources toward mobile to conduct research while shoppers are already shopping in the stores — and interacting with products and displays — is a great place to start. There are three key ways in which mobile research is changing the way information is being gathered today; companies like Field Agent have developed a model to pull these pieces together.

  1. B.Y.O.D. (Bring Your Own Device)

  In retail stores across the globe, shoppers are carrying smartphones that have more computing power than the retailer-provided handheld devices of store employees. These smartphones allow researchers to gain access to shoppers while they are in the act of shopping.

  2. Multitasking

  Shoppers have adapted to multitasking while shopping. They use apps to check their shopping lists, compare prices, and check nutritional information — all while tweeting about their day and checking up on friends via Facebook. This ubiquitous device immersion means that many consumers are willing to provide companies with information about their shopping habits.

  3. Crowdsourcing

  The inefficient method of sending recruited shoppers into a store for a shopping exercise with a facilitator has been common practice for years; with respect to those who practice this method, it is simply too expensive and creates an unnatural environment for the shopper. With crowdsourcing, however, you ask a shopper who is already in the store to complete a shopping exercise. This not only eliminates the expenses of recruitment and facilitation, but it also allows the shopper to interact in a more natural environment.

  If you want to make a difference with your clients, you need to understand as much as possible about their shoppers. Even if your resources are limited, it is worth the effort to conduct research targeted toward shoppers. In the long run, you will be able to gain quality insights in more locations, faster and less expensively than ever before.