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© 2013 Kantar Retail
Shopping moments are now ubiquitous, particularly for the growing proportion of shoppers
using “smart” mobile devices. In a world where it is difficult to distinctly identify when a
consumer is “going shopping,” it is time to rethink our understanding of shopper journeys.
The initial Path to Purchase models typically depicted
a linear journey, beginning from the point at which the
consumer recognizes a need (the “Create Demand” phase
in many models), through a multi-step shopping process, to
the point at which the consumer evaluates the experience
with the product purchased (“User Satisfaction”). However,
even casual observers of consumer/shopper behavior
usually recognize that these Path to Purchase models
simplify what is often a complex, multi-faceted shopping
process.
With the advent of and increasing adoption of digital tools
and technologies, the initial Path to Purchase models have
been reincarnated in myriad forms that have one thing
in common: they are not linear. In these “post-digital”
models, a new conventional wisdom holds that shoppers
repeat steps, reconsider, and review alternatives across
channels and touchpoints—sometimes in an iterative
fashion—and this manifests itself in a model that is circular
or asynchronous. Kantar Retail challenges that new
conventional wisdom with the assertion that the shopping
process in the digital era is indeed linear in the sense that
a straight line can be drawn from the starting point of need
recognition to post-purchase consideration—regardless
of the path, the final goal is the same: purchase. The
more representative way of mapping the behavior from
“point A” to “point B” morphs from “straight-line linear”
to “sequentially linear”—a continuous, connected series
of events that looks like a series of zigs and zags until a
purchase is made (picture a Chutes and Ladders game
board—as you move along the Path to Purchase, you run
across information or run into barriers that either launch
you forward or set you back).
This process becomes potentially even more recursive
when shoppers leverage digital tools and technologies—
especially those that are mobile—as part of the shopping
process. Because mobile touchpoints are ever-present—
literally in a shopper’s pocket or only an arm’s length
away—it is increasingly common for shoppers to be
shopping two retailers at the same time (in a store in
the “real” world and virtually on a smartphone) or to be
shopping while interacting with multiple screens (so-called
couch commerce—i.e., shopping on a tablet while watching
television). Consequently, the concept of “channel” is
increasingly irrelevant to a shopper who is omni-channel in
her interaction with retailers and brands in both the “real”
world and the virtual world.
Regardless of the image used to visualize or map the
process, it is the combination of on-demand access to
information and mobile engagement that has transformed
the Path to Purchase.
The Shopper Has Gone Omni-Channel
Omni-channel is a term that has been used by retailers to
describe the evolution of their often-compartmentalized
multi-channel operations to an eco-system that would
provide a seamless experience across all platforms and
shopper touchpoints. From the retailer perspective, a
true omni-channel experience requires knitting together
disparate customer database, supply chain, marketing, and
merchandising systems—all very much a work in progress
for most retailers. However, the equipped, engaged, active
digital shopper is already there. She is interacting with the
retailers and brands that resonate with her across myriad
platforms, via multiple gadgets and technologies … in the
shopper cloud (Figure 1).
Source: Kantar Retail analysis
Figure 1: The Omni-Channel Shopper Cloud
- 2 -
© 2013 Kantar Retail
The New Path to Purchase
Contrary to popular belief, the Gen Y cohort is not on the leading edge of
eCommerce but clearly leads in terms of eShopping activity.
Shoppers today are:
ƒƒ Equipped: Shoppers are clearly operating in a post-
desktop world, where access to information is not
tethered to a deskbound computer. Among primary
household shoppers, 47% have a smartphone and 24%
have a tablet computer, according to Kantar Retail’s
ShopperScape®
research.
ƒƒ Engaged: ShopperScape®
also indicates that across
13 measures of digital activity, from spending time
on social networking sites, to accessing retailer Web
sites on a mobile device, significantly more shoppers
are participating this year vs. last year. Shopping-
related digital activities with the greatest growth in
participation include downloading coupons to a mobile
device, using retailer apps on a mobile device, and
researching products on a mobile device while in
stores. Contrary to popular belief, the Gen Y cohort
is not on the leading edge of eCommerce but clearly
leads in terms of eShopping activity. Gen Y shoppers
are perhaps best characterized as “(digital) social
butterflies” with above-average rates of participation
in social networking and social media activities.
Meanwhile, Gen X shoppers also have high rates
of participation in social networking activities, but
take digital engagement one step further by also
over-indexing on more purposeful activities such as
researching online and in the store before purchasing.
ƒƒ Active: Nearly six in 10 primary household shoppers
have made an online purchase in the past six months.
Additionally, digital tools and technologies play a
growing role in the shopping process across a wide
variety of situations:
-- Shoppers are increasingly more active when it
comes to pre-trip planning for grocery shopping.
Even though the most prevalent pre-trip activities
are “old school” (e.g., making a handwritten list,
selecting paper coupons to take on the trip), the
growth in pre-trip engagement comes from digital
activities such as looking at online circulars,
searching for coupons online, loading electronic
coupons to frequent shopper cards, and using
Twitter and Facebook to scout out deals and
connect with retailers.
-- A significant increase in shoppers participating in
Amazon’s Subscribe and Save discount program is
evidence of more active Amazon grocery shoppers.
-- Regardless of where shoppers ultimately make a
purchase, more than a quarter start the process of
shopping for consumer electronics at Amazon.
-- Stores may still be the top source of decorating
ideas and where the most shoppers learn about
new home décor products, but nearly a quarter
of Gen Y shoppers get décor inspiration and
information from Pinterest.
-- Online shopping sites have the most monthly
apparel shoppers, surpassing power centers,
regional malls, and lifestyle centers—all of which
experienced a year-over-year decline in their
monthly apparel shopper bases.
New … and Evolving … Shopper
Expectations
The omni-channel shopper evaluates all shopping
experiences against a new criteria set that is influenced by
the depth and breadth of her interactions with retailers and
brands.
ƒƒ Personalization: Web sites and apps adjust shopping
experiences and offers based on shoppers’ history and
stated preferences.
ƒƒ 24/7 Access + Convenience: Always-on access
combined with continuing innovation in delivery models
(e.g., augmenting home delivery via van delivery or
third parties with click & collect options and “drive”
formats) match up with the shopper’s definition
of convenience, regardless of how she defines
convenience for any given shopping occasion.
ƒƒ Conversation: Digital technology makes it easier for
retailers and brands to solicit shopper input … and
easier for shoppers to reach out.
ƒƒ Price Transparency: Price comparison tools and
related functionality make shelf price knowledge
universal.
- 3 -
© 2013 Kantar Retail
The New Path to Purchase
Source: Kantar Retail analysis
Figure 2: Two New Steps in the Path to Purchase
ƒƒ Exclusive Promotions: Retailers use digital’s ability
to personalization communication and experiences to
make shelf prices less relevant by offering unique and
customized promotions.
Two New Steps in the Path to Purchase
Access to and use of digital information alters pre-
shopping research and post-purchase advocacy,
reshaping two aspects of the path to purchase and adding
two steps (Figure 2).
Trusted Source
A trusted source for information is a new, key area of
focus that influences shoppers before they choose the
point of purchase. Trusted source activity impacts both
in-store and online purchases: 49% of shoppers have
researched a product online before making purchases
at a store, and the most common pre-purchase activity
before making an online purchase is reading product
reviews (Figure 3). Additionally, the concept of shoppers
turning to a trusted source as part of shopping journey
applies to shopping trips as much as to specific product
searches—as evident in shoppers’ growing pre-trip
engagement.
With more research happening before and during
purchase, retailers and brands must consider:
ƒƒ Are we a trusted source? How do we become one … as
well as participate in conversations where shoppers
are?
ƒƒ How can we ensure that our brands and products end
up on the list?
ƒƒ What is the right balance of information, tools, and
engagement to remain relevant and drive sales?
Understanding the source of influence is even more
important for routine purchases where shoppers may
rarely take the next step (i.e., once a brand or product
decision has been made there is no reason to revisit those
decisions). So being in the right place at the right time
through monitoring social media and being present in all
appropriate trusted source venues is even more critical.
Source: Kantar Retail analysis
Figure 3: Illustrative Trusted Source Resources
3rd Party/Social
ƒƒ Google/Search
ƒƒ Blogs
ƒƒ Communities
ƒƒ Facebook
ƒƒ Twitter
ƒƒ Pinterest
ƒƒ Other Social
Manufacturer
ƒƒ Vendor.com
ƒƒ Brand sites
Retailer
ƒƒ Retailer.com
ƒƒ Amazon.com
The concept of shoppers turning
to a trusted source as part of
shopping journey applies to
shopping trips as much as to
specific product searches—as
evident in shoppers’ growing
pre-trip engagement online.
- 4 -
© 2013 Kantar Retail
Post-Purchase Advocacy
User and shopper advocacy can be the best of public
relations or the worst, and the impact is magnified many
times over when shoppers can use social media to share
both positive and negative experiences. When everything
goes according to schedule, advocacy can deliver a
really compelling upside. But even positive advocacy
can create unexpected demand that has a downside
and creates operational fallout—everything from out
of stocks to forecasting and replenishment glitches.
Of course, the flip slide also is a real possibility—
disgruntled and dissatisfied shoppers can quickly
turn the omni-channel shopper cloud into a black cloud
hovering over affected brands, products, and experiences.
In either situation, the new power of advocacy requires
planning, quick response, and agility across channels.
In an omni-channel world, users have the potential to
control the brand—or at least highjack brand messaging.
An environment where control was possible gives way to
one where managing and understanding influence is the
norm.
Mary Brett Whitfield
Senior Vice President
Mary Brett Whitfield, Senior Vice President, leads shopper insights research and content development for Kantar Retail.
Mary Brett has extensive experience helping retailers and suppliers leverage shopper insights and other primary research
data for performance improvement. She has worked at retail companies in market research, strategic planning, and sales
development roles and has a strong background in industry and company analysis, competitive positioning work, apparel
retailing, and online retailing.
ABOUT THE AUTHORS
For additional information regarding this article, please contact marybrett.whitfield@kantarretail.com or
anne.zybowski@kantarretail.com.
What Has Changed What It Means What To Do
Shoppers add “choose trusted
source” to shopping routines.
Shopper marketing needs to start sig-
nificantly before shoppers are in front
of a shelf or are ready to click “add to
cart.”
ƒƒ Be present wherever and
whenever shoppers are
ƒƒ Ensure visibility at every
potential point of influence
Through social media and
social networking, shoppers
have the ability to share and
shape opinions through advo-
cacy.
The retailer and brand mindset must
shift from an environment where
retailers and brands wield control to
one where they are but one of myriad
influencers.
ƒƒ Adopt a test and learn culture
ƒƒ Be willing to fail quickly
Meeting Shopper Needs along a New Path in an Omni-Channel World
To succeed in an environment where the Path to Purchase has morphed as digital shoppers become omni-
channel, shopper insights are critical.
Source: Kantar Retail analysis
The New Path to Purchase
Anne Zybowski
Vice President
Anne Zybowski, Vice President, Retail Insights, leads all of Kantar Retail’s digital retailing research and insights. In addition
to her focus on e-commerce and how digital is impacting the path-to-purchase and the bricks-and-mortar store, she is also
involved in our apparel line of trade. Anne recently worked as the lead analyst on Target, Walmart, and Sears/Kmart. She is
a presenter and trainer for Kantar Retail seminars, and has recently been featured in National Retail Federation and PLMA
programs among other industry events. Before joining Kantar Retail, Anne was a Vice President at Stern Stewart & Co.
working as the lead project manager and consultant for a variety of retailers including JCPenney, Whole Foods Market, and
Ahold. Other industry experience includes pharmaceutical, automotive, CPG, and Information Technology.

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The New Path to Purchase by Mary Brett Whitfield

  • 1. - 1 - © 2013 Kantar Retail Shopping moments are now ubiquitous, particularly for the growing proportion of shoppers using “smart” mobile devices. In a world where it is difficult to distinctly identify when a consumer is “going shopping,” it is time to rethink our understanding of shopper journeys. The initial Path to Purchase models typically depicted a linear journey, beginning from the point at which the consumer recognizes a need (the “Create Demand” phase in many models), through a multi-step shopping process, to the point at which the consumer evaluates the experience with the product purchased (“User Satisfaction”). However, even casual observers of consumer/shopper behavior usually recognize that these Path to Purchase models simplify what is often a complex, multi-faceted shopping process. With the advent of and increasing adoption of digital tools and technologies, the initial Path to Purchase models have been reincarnated in myriad forms that have one thing in common: they are not linear. In these “post-digital” models, a new conventional wisdom holds that shoppers repeat steps, reconsider, and review alternatives across channels and touchpoints—sometimes in an iterative fashion—and this manifests itself in a model that is circular or asynchronous. Kantar Retail challenges that new conventional wisdom with the assertion that the shopping process in the digital era is indeed linear in the sense that a straight line can be drawn from the starting point of need recognition to post-purchase consideration—regardless of the path, the final goal is the same: purchase. The more representative way of mapping the behavior from “point A” to “point B” morphs from “straight-line linear” to “sequentially linear”—a continuous, connected series of events that looks like a series of zigs and zags until a purchase is made (picture a Chutes and Ladders game board—as you move along the Path to Purchase, you run across information or run into barriers that either launch you forward or set you back). This process becomes potentially even more recursive when shoppers leverage digital tools and technologies— especially those that are mobile—as part of the shopping process. Because mobile touchpoints are ever-present— literally in a shopper’s pocket or only an arm’s length away—it is increasingly common for shoppers to be shopping two retailers at the same time (in a store in the “real” world and virtually on a smartphone) or to be shopping while interacting with multiple screens (so-called couch commerce—i.e., shopping on a tablet while watching television). Consequently, the concept of “channel” is increasingly irrelevant to a shopper who is omni-channel in her interaction with retailers and brands in both the “real” world and the virtual world. Regardless of the image used to visualize or map the process, it is the combination of on-demand access to information and mobile engagement that has transformed the Path to Purchase. The Shopper Has Gone Omni-Channel Omni-channel is a term that has been used by retailers to describe the evolution of their often-compartmentalized multi-channel operations to an eco-system that would provide a seamless experience across all platforms and shopper touchpoints. From the retailer perspective, a true omni-channel experience requires knitting together disparate customer database, supply chain, marketing, and merchandising systems—all very much a work in progress for most retailers. However, the equipped, engaged, active digital shopper is already there. She is interacting with the retailers and brands that resonate with her across myriad platforms, via multiple gadgets and technologies … in the shopper cloud (Figure 1). Source: Kantar Retail analysis Figure 1: The Omni-Channel Shopper Cloud
  • 2. - 2 - © 2013 Kantar Retail The New Path to Purchase Contrary to popular belief, the Gen Y cohort is not on the leading edge of eCommerce but clearly leads in terms of eShopping activity. Shoppers today are: ƒƒ Equipped: Shoppers are clearly operating in a post- desktop world, where access to information is not tethered to a deskbound computer. Among primary household shoppers, 47% have a smartphone and 24% have a tablet computer, according to Kantar Retail’s ShopperScape® research. ƒƒ Engaged: ShopperScape® also indicates that across 13 measures of digital activity, from spending time on social networking sites, to accessing retailer Web sites on a mobile device, significantly more shoppers are participating this year vs. last year. Shopping- related digital activities with the greatest growth in participation include downloading coupons to a mobile device, using retailer apps on a mobile device, and researching products on a mobile device while in stores. Contrary to popular belief, the Gen Y cohort is not on the leading edge of eCommerce but clearly leads in terms of eShopping activity. Gen Y shoppers are perhaps best characterized as “(digital) social butterflies” with above-average rates of participation in social networking and social media activities. Meanwhile, Gen X shoppers also have high rates of participation in social networking activities, but take digital engagement one step further by also over-indexing on more purposeful activities such as researching online and in the store before purchasing. ƒƒ Active: Nearly six in 10 primary household shoppers have made an online purchase in the past six months. Additionally, digital tools and technologies play a growing role in the shopping process across a wide variety of situations: -- Shoppers are increasingly more active when it comes to pre-trip planning for grocery shopping. Even though the most prevalent pre-trip activities are “old school” (e.g., making a handwritten list, selecting paper coupons to take on the trip), the growth in pre-trip engagement comes from digital activities such as looking at online circulars, searching for coupons online, loading electronic coupons to frequent shopper cards, and using Twitter and Facebook to scout out deals and connect with retailers. -- A significant increase in shoppers participating in Amazon’s Subscribe and Save discount program is evidence of more active Amazon grocery shoppers. -- Regardless of where shoppers ultimately make a purchase, more than a quarter start the process of shopping for consumer electronics at Amazon. -- Stores may still be the top source of decorating ideas and where the most shoppers learn about new home décor products, but nearly a quarter of Gen Y shoppers get décor inspiration and information from Pinterest. -- Online shopping sites have the most monthly apparel shoppers, surpassing power centers, regional malls, and lifestyle centers—all of which experienced a year-over-year decline in their monthly apparel shopper bases. New … and Evolving … Shopper Expectations The omni-channel shopper evaluates all shopping experiences against a new criteria set that is influenced by the depth and breadth of her interactions with retailers and brands. ƒƒ Personalization: Web sites and apps adjust shopping experiences and offers based on shoppers’ history and stated preferences. ƒƒ 24/7 Access + Convenience: Always-on access combined with continuing innovation in delivery models (e.g., augmenting home delivery via van delivery or third parties with click & collect options and “drive” formats) match up with the shopper’s definition of convenience, regardless of how she defines convenience for any given shopping occasion. ƒƒ Conversation: Digital technology makes it easier for retailers and brands to solicit shopper input … and easier for shoppers to reach out. ƒƒ Price Transparency: Price comparison tools and related functionality make shelf price knowledge universal.
  • 3. - 3 - © 2013 Kantar Retail The New Path to Purchase Source: Kantar Retail analysis Figure 2: Two New Steps in the Path to Purchase ƒƒ Exclusive Promotions: Retailers use digital’s ability to personalization communication and experiences to make shelf prices less relevant by offering unique and customized promotions. Two New Steps in the Path to Purchase Access to and use of digital information alters pre- shopping research and post-purchase advocacy, reshaping two aspects of the path to purchase and adding two steps (Figure 2). Trusted Source A trusted source for information is a new, key area of focus that influences shoppers before they choose the point of purchase. Trusted source activity impacts both in-store and online purchases: 49% of shoppers have researched a product online before making purchases at a store, and the most common pre-purchase activity before making an online purchase is reading product reviews (Figure 3). Additionally, the concept of shoppers turning to a trusted source as part of shopping journey applies to shopping trips as much as to specific product searches—as evident in shoppers’ growing pre-trip engagement. With more research happening before and during purchase, retailers and brands must consider: ƒƒ Are we a trusted source? How do we become one … as well as participate in conversations where shoppers are? ƒƒ How can we ensure that our brands and products end up on the list? ƒƒ What is the right balance of information, tools, and engagement to remain relevant and drive sales? Understanding the source of influence is even more important for routine purchases where shoppers may rarely take the next step (i.e., once a brand or product decision has been made there is no reason to revisit those decisions). So being in the right place at the right time through monitoring social media and being present in all appropriate trusted source venues is even more critical. Source: Kantar Retail analysis Figure 3: Illustrative Trusted Source Resources 3rd Party/Social ƒƒ Google/Search ƒƒ Blogs ƒƒ Communities ƒƒ Facebook ƒƒ Twitter ƒƒ Pinterest ƒƒ Other Social Manufacturer ƒƒ Vendor.com ƒƒ Brand sites Retailer ƒƒ Retailer.com ƒƒ Amazon.com The concept of shoppers turning to a trusted source as part of shopping journey applies to shopping trips as much as to specific product searches—as evident in shoppers’ growing pre-trip engagement online.
  • 4. - 4 - © 2013 Kantar Retail Post-Purchase Advocacy User and shopper advocacy can be the best of public relations or the worst, and the impact is magnified many times over when shoppers can use social media to share both positive and negative experiences. When everything goes according to schedule, advocacy can deliver a really compelling upside. But even positive advocacy can create unexpected demand that has a downside and creates operational fallout—everything from out of stocks to forecasting and replenishment glitches. Of course, the flip slide also is a real possibility— disgruntled and dissatisfied shoppers can quickly turn the omni-channel shopper cloud into a black cloud hovering over affected brands, products, and experiences. In either situation, the new power of advocacy requires planning, quick response, and agility across channels. In an omni-channel world, users have the potential to control the brand—or at least highjack brand messaging. An environment where control was possible gives way to one where managing and understanding influence is the norm. Mary Brett Whitfield Senior Vice President Mary Brett Whitfield, Senior Vice President, leads shopper insights research and content development for Kantar Retail. Mary Brett has extensive experience helping retailers and suppliers leverage shopper insights and other primary research data for performance improvement. She has worked at retail companies in market research, strategic planning, and sales development roles and has a strong background in industry and company analysis, competitive positioning work, apparel retailing, and online retailing. ABOUT THE AUTHORS For additional information regarding this article, please contact marybrett.whitfield@kantarretail.com or anne.zybowski@kantarretail.com. What Has Changed What It Means What To Do Shoppers add “choose trusted source” to shopping routines. Shopper marketing needs to start sig- nificantly before shoppers are in front of a shelf or are ready to click “add to cart.” ƒƒ Be present wherever and whenever shoppers are ƒƒ Ensure visibility at every potential point of influence Through social media and social networking, shoppers have the ability to share and shape opinions through advo- cacy. The retailer and brand mindset must shift from an environment where retailers and brands wield control to one where they are but one of myriad influencers. ƒƒ Adopt a test and learn culture ƒƒ Be willing to fail quickly Meeting Shopper Needs along a New Path in an Omni-Channel World To succeed in an environment where the Path to Purchase has morphed as digital shoppers become omni- channel, shopper insights are critical. Source: Kantar Retail analysis The New Path to Purchase Anne Zybowski Vice President Anne Zybowski, Vice President, Retail Insights, leads all of Kantar Retail’s digital retailing research and insights. In addition to her focus on e-commerce and how digital is impacting the path-to-purchase and the bricks-and-mortar store, she is also involved in our apparel line of trade. Anne recently worked as the lead analyst on Target, Walmart, and Sears/Kmart. She is a presenter and trainer for Kantar Retail seminars, and has recently been featured in National Retail Federation and PLMA programs among other industry events. Before joining Kantar Retail, Anne was a Vice President at Stern Stewart & Co. working as the lead project manager and consultant for a variety of retailers including JCPenney, Whole Foods Market, and Ahold. Other industry experience includes pharmaceutical, automotive, CPG, and Information Technology.