• Shopping multiple stores: Thirty-five percent of food retail industry executives indicated that more shoppers today are heading in-store but shopping at multiple stores in order to find the best prices and deals. In addition, approximately 15 percent of survey respondents said that consumers are more frequently shopping at discount stores and club stores like Costco and Sam’s Club.

• Shopping closer to home: Local is becoming important to shoppers in 2012 as the survey also revealed that 30 percent of retail industry executives believe consumers are shopping closer to home.

• Using coupons/loyalty cards: According to the survey, 32 percent of respondents said that shoppers are using more print coupons and 31 percent of respondents said that shoppers are using more digital coupons. FMI attendees (20 percent) also believe that grocery shoppers are increasing their use of store loyalty cards.

• Buying more generic/private label brands: Twenty-one percent of survey respondents noted when surveyed that consumers are dealing with the changing economy by focusing purchases on buying more generic/private label brand items.

• Cut back on splurging and shopping for sales: Twenty percent of respondents shared that “splurging” on items at the grocery store has been cut back. They said consumers are just buying what is needed. Seventeen percent believe that consumers are shopping more sales days.

• Completing online research: Twenty percent of FMI attendees surveyed indicated that more shoppers are heading online to plan their trips.

• Sticking to shopping lists: Seven percent of respondents believe that consumers will stick to shopping lists created before heading in-store.

• No change at all: For the most part, it is evident to food retail executives that consumer grocery shopping habits have changed as a result of the changing economy. However, 2 percent have indicated that they have not noticed a change in shopping behavior in the past year.

Interested in finding out if what FMI attendees had to say matches what consumers say about the change in their grocery shopping habits?

On the heels of BIGinsight’s research report released yesterday titled “Reaching Today’s Cost-Conscious Consumer,” we compared what consumers had to say to industry executives. Interestingly enough, there are discrepancies between grocery executives’ insights around digital advertising and consumer behavior.  For instance, we found that only 20 percent of respondents think consumers use digital mediums to prepare for their shopping trips. However, BIGinsight’s research found that 90 percent of consumers regularly research products online before purchasing them in-store.

According to our COO, Gretchen Joyce, “The combination of our research and BIGinsight’s report provide great insights into how consumers are now making purchasing decisions and the role that digital plays in those decisions.” Click here and get your copy of the FREE research report on reaching today’s cost conscious consumer and how the changing economy has affected consumers’ grocery shopping habits.

Thank you for visiting the OnPoint blog! If you have any questions, comments or inquiries, please contact OnPoint@maxpointinteractive.com.

The Grocery Industry Pulse titled, “Reaching Today’s Cost-Conscious Consumer,” reveals that the average monthly spend on groceries has steadily increased among the general population from pre- to post-recession. While spending continues to climb, nearly three in four respondents have made changes to their grocery shopping habits within the last year, becoming more cost-conscious before and during their trips. Some of the ways cost-conscious grocery shoppers have changed their behavior include:

• Shopping closer to home and shopping at multiple grocery stores
• Leveraging coupons and sales more
• Preparing lists before shopping
• Using more resources such as digital channels to prepare for shopping trips
• Heading to recipe-specific destination sites to prepare for shopping

Other Key findings include:

• Average monthly spend on groceries has steadily increased among the general population from pre-to post-recession from $250.94 in August 2007 to $277.00 in August 2011. Among moms, it has steadily increased from $311.95 to $341.14 during the same timeframe.
• Two in five respondents indicate they are purchasing more store brand or generic items now than compared with this time last year. 53.4% are purchasing the same amount.
• Three in 10 respondents have cut back on purchasing bakery items, candy, dessert items and magazines/books/DVDs over the past year. One in four have cut back on prime cuts of meats/seafood.

As a result of the changing economy, it is clear that consumers are shifting shopping behaviors to get more for their money. According to our COO, Gretchen Joyce, “Digital is reshaping the grocery shopping experience in the post-recession economy, as consumers turn to new channels to help plan their shopping trips. By understanding what motivates today’s consumer, brands can tailor their shopper marketing strategies to ensure they are gaining mindshare and winning at the shelf-level.”

For a copy of the full research brief, please click here.

Thank you for visiting the OnPoint blog! If you have any questions, comments or inquiries, please contact OnPoint@maxpointinteractive.com.

On Tuesday, May 22nd, join us and other industry professionals in one of six select cities across the U.S. for the Advertising Age Happy Hour event of the year! Click the link below to RSVP  to the location nearest you and head over to your local mix and mingle to share a new hand or idea with fellow advertising, marketing and media industry professionals.

The six cities and venues selected for this “don’t miss” event are as follows:

• Boston, MA (Scholars)
• Chicago, IL (O’Callaghan’s)
• Detroit, MI (Grand Trunk)
• Minneapolis, MN (Bulldog)
• New York, NY (13th Step)
• San Francisco, CA (ROE)

There is no cost to attend and the party begins at 6pm!

What are you waiting for? RSVP here now. We look forward to seeing you there.

Thank you for visiting the OnPoint blog! If you have any questions, comments or inquiries, please contact OnPoint@maxpointinteractive.com.

Expected Mother’s Day Shopping Behavior

“Americans will look for sentimental and unique ways to shower mom with affection this year,” said NRF President and CEO Matthew Shay. When it comes to items to purchase and where/how to shop, consumers are well prepared.

Popular items chosen for purchase: This year, consumers will spend on special meals/outings, clothing, flowers, electronics and more. According to the NRF survey, two-thirds (66.4%) will buy flowers, spending a total of $2.2B, and nearly one-third (32.8%) will treat mom to a new blouse or sweater, spending $1.6B on clothing and accessories. Those buying electronics (12.7%) will shell out a total or $1.6B, and over half (54.3%) will treat mom to a nice meal. Last but not least, consumers will spend $1.8B on gift cards and $1.3B on personal services (trip to the spa).

Where people will shop: Department stores will be packed up until Mother’s Day as more than one-third (35.6%) of consumers will shop at a department store. If the perfect gift for mom is not found at a department store, however, consumers will head to discount and specialty stores. While shoppers will still also shop online, in-store shopping is still the most preferred way to get gifts for mom.

How people will shop: With all of the new technology available to consumers today, more are headed online to complete research and prepare lists before heading in-store. Nearly 39.3% of smartphone owners and 51.2% of tablet owners plan to use their devices to research products/compare prices, redeem coupons, look up retailer information and search for the perfect gift.

Retailers – expect crowds this Mother’s Day as shoppers make room in their budget for that special gift for mom. Since shoppers are already heading online before heading in-store, make sure the ads you serve are reaching the right audience, use relevant messaging, provide Mother’s Day shoppers with coupons, stock up on popular items, and continue to reach and cater to shoppers once in-store this Mother’s Day weekend.

From everyone at MaxPoint, we wish you a safe and Happy Mother’s Day!

Thank you for visiting the OnPoint blog! If you have any questions, comments or inquiries, please contact OnPoint@maxpointinteractive.com.

More ad dollars are being allocated towards digital and advertisers are working with retailers to develop campaigns that can be executed across all channels. However, creating “cross-platform” campaigns can be difficult, especially when it comes to buying different types of media and integrating them into a single plan. From campaign creation to optimization and reporting, there is a lot to learn when it comes to working across multiple platforms. As the digital advertising industry grows, some of the common challenges to creating “cross-platform” campaigns include a need for:

Reducing complexity. When it comes to buying different types of media, there’s a concern for reducing the complexity of digital advertising and moving towards transparency between publishers and advertisers – knowing exactly what you are paying for.

Effective targeting. There is a struggle to effectively deliver an advertisement to the relevant audience. In order to achieve maximum ROI, retailers need to make sure advertising reaches an audience that fits their shopper profile. Fortunately, today, localized targeting ad solutions allow you to apply high accuracy targeting – getting local reach while maintaining national scale.

Once these challenges are addressed, the opportunities digital advertising vehicles provide can demonstrate a strong return on investment and continues to be a great complement to traditional ad methods. Data-centric planning combined with strong ad elements and DMA specific messaging/targeting are all components of a strong advertising campaign. Leverage current creative used for traditional channels for pre/mid-roll video ads on digital channels to reach a whole new audience and deliver a strong marketing mix.

Thank you for visiting the OnPoint blog! If you have any questions, comments or inquiries, please contact OnPoint@maxpointinteractive.com.

Take for example, Whole Foods Market.  The national retailer launched a shopper marketing campaign last summer specific to American-Muslims in time for Ramadan, a significant holiday for Muslims requiring daily fasts broken by a daily meal called “iftar.”  The catch is that foods consumed during Ramadan must be halal-certified (foods allowed under Islamic dietary guidelines.)  Finding halal-friendly foods can be difficult or at best limited to small, local ethnic markets.  Prior to the 2011 Ramadan holiday, Whole Foods partnered with Saffron Road Foods, maker of halal-friendly cuisine and products.  Together, they hit the social media machine and found that Muslims were overwhelmingly excited about the accessibility of halal-certified foods provided by a large retailer like Whole Foods.

With American-Muslim support combined with cause marketing, price-promotion components and the utilization of social media channels such as bloggers like Yvonne Maffei’s “My Halal Kitchen,” Whole Foods was able to reach Muslim consumers online where halal conversations were already taking place.  Through these efforts, Whole Foods was able to drive significant in-store traffic and played a major role in increasing Saffron Road’s sales in August by 300%.

This was a win-win for everyone.  Saffron Road gained significant exposure and increased sales while Whole Foods gained market share among the American-Muslim population. Marketing with a broader view on global and social diversity will prove to be the next generation of successful shopper marketing strategies.  Imagine how complementing this social media strategy with targeted digital display or video advertising to ethnicities could further enhance the effectiveness.

Thank you for visiting the OnPoint blog! If you have any questions, comments or inquiries, please contact OnPoint@maxpointinteractive.com.

MaxPoint interviewed Peter Hoyt, CEO, Path to Purchase Institute, recently on the shopper marketing industry and how it is changing with the emergence of new technology. The interview focuses on the change in the shopper marketing path-to-purchase and recommendations for how to reach shoppers at every touch point – highlighting digital advertising. Check out the full interview below.

MaxPoint: With more technology, resources and information available to shoppers these days, the shopper pathway is moving away from a simple, linear model to a highly complex, non-linear model. Retailers and Brands are now challenged with new and expanded touch points to reach and build relationships with shoppers. What are your thoughts on how marketing strategies need to change in order to reach shoppers at every touch point?

Hoyt: It’s easy to over complicate the challenge. Like anything else, if you break it down into smaller pieces, it’s pretty straightforward. One of the big differences between traditional marketing and shopper marketing is that with shopper marketing one targets a segment of shoppers (people who want or need diapers, shampoo, a refrigerator, etc.). So instead of trying to blanket a demographic by harvesting ever greater reach or GRPs, shopper marketers hone in on the path their prospective customer is most likely to take and seek to intercept her, as often as possible with a relevant appropriate message.

Procter and Gamble likes to work with a framework that I think helps a lot. They call it “Store-Back”. Think about your shopper’s journey backwards, so to speak. Start where she would encounter your product in-store… at the shelf (Packaging? Signage? P-O-P?), then move out to when she is “on the go” (mobile? OOH?), or at home or pre-shopping (Search? Social? Strategically placed banner ads?).

More traditional vehicles can be incorporated as well. We’re seeing more and more consumer magazines and other media begin to describe their audiences in terms of being comprised of shopper segments and their media as offering meaningful touch points on the path to purchase. Just bear in mind, the further you get from her mission, the less direct impact your messaging will have on the ultimate purchase decision.

MaxPoint: What marketing channels do you see being the most impactful in reaching shoppers on the path to purchase?

Hoyt: I should probably stop holding them up as the paragon of marketing virtue but again, I would point anyone who is thinking about this to consider the approaches being taken by P&G. P&G pretty much coined shopper marketing in its current form. They fight hard to get their messaging in-store. But retail communications is very hard to scale. If one chain is accepting and responsible about merchandising compliance, the next will be less so. P&G’s approach is to “control what you can control”. So they’ve been investing very heavily in all things digital. They are successfully engaging shoppers on-line, through search, social, well-placed banners. Anywhere and everywhere she might be looking for answers or resources, they want a P&G product to appear with the appropriate message.

A lot of what P&G sells is targeted to younger women, often younger mothers. In this case digital is especially important. Millenials, the 18-35 year old set, use the web to find answers twice as often as Baby Boomers, and when she has her first baby, her use doubles again. Across all age groups, she is going on-line for up to 45 minutes before she goes shopping. Whether she’s looking for value or assortment, the fact is that the primary target for most messaging directed at shoppers can be effectively reached on-line.

MaxPoint: Do you see digital advertising as an impactful way to reach these consumers? If so, would you recommend more shopper marketing dollars being budgeted towards digital advertising methods to reach shoppers before heading in-store?

Hoyt: I recommend that folks fish where the fish are. If your target audience is using the web to gather information, find answers, decide where to shop or what to buy, then, by all means, you should invest in a more robust digital presence. Ask a lot of questions of your customers. Only do so with a “Store-Back” mentality and the path will reveal itself.

Thank you for visiting the OnPoint blog! If you have any questions, comments or inquiries, please contact OnPoint@maxpointinteractive.com.

The below advertisements are effective because the product and messaging appealed to the Hispanic consumer. However, advertisers also leveraged video advertising to get their ads in front of the target audience. Why? In 2011, Hispanics appeared less responsive to in-store messaging (messaging at shelf or in-store TV) than non-Hispanics. In order to reach Hispanic shoppers effectively, brands and retailers needed to move beyond these methods and find the right marketing for these consumers.

H2oh! “Braids”

Axe “Premature Perspiration”

Given online ad spending predictions and consumer preference, the digital advertising route is becoming the more effective way to reach the Hispanic audience. And, this is clear as these video advertising campaigns were received well by the Hispanic consumer group. Check out this blog post on why digital advertising makes sense for Hispanic shoppers this year.

Hispanic marketers have a lot to live up to in 2012. What creative advertisements will we see for the Hispanic consumer group this year? Only time will tell.

Thank you for visiting the OnPoint blog! If you have any questions, comments or inquiries, please contact OnPoint@maxpointinteractive.com.

To clarify, when we talk about local, we don’t mean corner stores or local brands. We’re talking about national campaigns that pinpoint consumers at the neighborhood level. For example, a car maker wants to create targeted awareness of their brand for all their buyers. Not everyone in the country is an intended buyer so the car maker needs to find a way to target a lot of people, but be smart about it. Cue a better, more efficient and more effective way to target existing and prospective customers.

In order to achieve this level of precision, companies are turning to “big data” solutions. These solutions analyze billions of data points consumed by neighborhoods across the U.S. such as offline point-of-sale data, social media, videos, music, local Web pages and online magazines.  This data can be used to score each neighborhood and determine its interests — perhaps it’s neighborhoods across the country with residents most interested in a healthier lifestyle, in the market for a new car or who currently use your competitor’s product. By analyzing these data sets, companies can look at clusters of people who are most likely to be interested in their products or services.

In many cases, brands will use this local approach to complement an existing campaign. Targeting at the neighborhood level across the entire nation helps to curb that wasteful ad spending. By finding a relevant audience at a national level, brands can combine reach with efficiency and serve the right ads to the right potential buyers at the exact right time to create demand for a product. While most advertising programs require brands to create campaigns weeks or months in advance of when they’d like to drive interest in their product or services based on the time of year or a special event, highly-localized digital campaigns of any size can easily be created in a matter of hours by reusing digital assets to drive consumers into stores.

By developing a highly-customized local digital advertising strategy that complements existing campaigns, retailers and brands can consistently and effectively drive sales that help to increase revenue and create a more personal relationship with customers. More on localized advertising solutions here.

Thank you for visiting the OnPoint blog! If you have any questions, comments or inquiries, please contact OnPoint@maxpointinteractive.com.

Recently, as I was searching online for something completely unrelated, I stumbled upon a programming language I’d never heard of. It reminded me that there are programming languages out there of which I’m yet unaware, and this led me to wonder how often organizations limit themselves by staying within their programming “comfort zones.”

Take recruiting, for example. I know that some organizations discard candidates based solely on the programming languages listed on their resumes. This is short-sighted. If you’re hiring top talent, they can learn a new language easily. Get them a syntax book and a project, and watch them go. I’ve yet to be proven wrong on this.

This limited view of language often extends further into the organization. Shouldn’t it be about getting maximum productivity, and not just about programming in one language? Don’t you want to pick the best tools for the job, versus saying I’m only a Language X shop? Especially given the fact that programming languages are relatively transient, evolving over time. Fifteen years ago, C++ was considered cutting edge and a default language choice for a wide range of programming tasks. Now, it’s only used when there is a real reason to do so, because other languages are easier and more productive. There is a reason most websites’ back ends are written in languages like PHP, Ruby on Rails, Java, or ASP.NET, and not C++. I think this is how we should look at all languages.

How do you know you’re making a good tradeoff, if you don’t know what the other languages can do, what their strengths are? Is something else more efficient? Think of the reason there are so many container classes in languages. It’s because there are tradeoffs. You need to know what’s out there, and keep an open mind. By artificially limiting your work to one language, you’re limiting your ability to innovate and expand your products.

This isn’t to say that your organization should add languages into your products just because you can—rather, choose a set that works for your situations, then evaluate if there are real reasons and justifications for adding others. At Maxpoint Interactive, our primary programming languages are Java, C#, and Python. But we use other languages, like C++ and Clojure, for specific parts of our system when it makes sense.

The bottom line is, use what will best promote productivity. Languages change and you must be able to evolve—that includes your workforce. How do you get your product implemented and out the door faster, quicker, better? That’s what it’s all about at the end of the day. So, why artificially limit yourself?

Thank you for visiting the OnPoint blog! If you have any questions, comments or inquiries, please contact OnPoint@maxpointinteractive.com.