During The COVID-19 Pandemic, Shoppers Are Looking To Get In And Get Out.
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Whether your state has lifted the lockdown or closed again after the recent spike in COVID-19 cases, consumers’ desire for some kind of normalcy is growing. The way consumers shop has shifted online, which seems like a natural transition in the age of omni-channel marketing. The question is, what can brick-and-motor stores do to remain relevant? To prepare for the next normal?
Besides practicing healthy and safety measures, integrating “shopper solutions” throughout the consumer journey can provide a unique in-store experience. Consumers begin their journeys looking to fulfill certain needs or to solve problems. Shopper solutions provide a “one-stop shop” in which consumers can find two or more complementary products designed to satisfy consumer needs. The classical example is Clorox
My colleagues and I at Villanova University’s School of Business conducted a series of studies (a field study, retail lab studies, online studies) to examine the effect of shopper solutions on consumer responses. In this ongoing project, the key findings provide opportunities for retailers to attract consumers back to the store.
Put similar items together in stores
It is a no-brainer that consumers value convenience. In fact, Deloitte Insights found that consumer preference for convenience pertains to all channels, and providing the right type of convenience is important. The consumer journey taking place in the digital space is definitely different than that of the in-store experience. This provides an underexplored opportunity for retailers to fulfill consumer motives to return to the store.
Across our studies that examined cold/flu and snack solutions, the findings suggest that perceived shopping convenience was higher when retailers provided a shopper solution. The convenience was defined by how quickly and easily consumers could locate the merchandise needed. Moreover, the shopping convenience lead to higher purchase intentions, as well as word-of-mouth and loyalty intentions.
Given the newfound importance of overall wellbeing, shopper solutions dedicated to enhancing consumers’ physical and mental health will be attractive. For instance, the need to boost the immune system can be addressed by providing a solution displaying products such as vitamin C supplements, ginger tea, and any antioxidant supplements, in a central location rather than in their dedicated aisles dispersed throughout the store. To address mental health, aroma candles and essential oils, yoga mats, comfortable clothing, and mediation kits can be offered in a central location. Consumers will appreciate retailers presenting a variety of solutions geared towards addressing specific needs.
Retailers and manufacturers should work together, but retailers will get the credit
Shopper solutions are most often collaborations between retailers and manufacturers. In a field study conducted in a high-end women’s boutique clothing store, offering complementary products together in outfit solutions increased the quantity and breadth of products sold and the total sales amount. This suggests that both retailers and manufacturers can benefit from shopper solutions. However, there is a catch.
In a study using a cold/flu solution, we find that it really mattered which company was seen as the provider of the shopper solution. When the shopper solution is provided jointly, consumers expressed higher word-of-mouth and loyalty intentions toward the retailer than the manufacturer. The reason for this was partly due to a difference in perceived concern for consumers. That is, how much do retailers or manufacturers care about their customers, and are they truly concerned about their customers’ welfare? While the customers’ perception of manufacturers remained unchanged no matter whether the solution was provided, we found an effect for retailers. Specifically, retailers were viewed as more concerned for shoppers when a solution was present. It seems that consumers give more credit to the retailer than the manufacturer when a solution is provided, even when they know it’s a joint effort between the two.
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Target the smart shoppers
“Smart” shoppers strive to improve their shopping experience by saving time and energy. For these individuals, shopper solutions will be especially favorable. In our study, we assessed the smart shopper by asking questions such as: do you feel like a winner, or do you take a lot of pride when shopping smart? We found a positive impact from providing shopper solutions among all shoppers, but the effect was much stronger for “smart” shoppers than those less concerned with efficient shopping.
Retailers can segment their target market based on smart shoppers to determine the extent to which the shopper solutions can best be integrated into the store. The versatility of shopper solutions allows them to be practical across other channels as well.
