In Inside the Mind of the Shopper, world-renowned retail consultant Dr. Herb Sorensen, Ph.D. uncovers the truth about the retail shopper and rips away the myths and mistakes that lead retailers to miss their greatest opportunities. Every year, says Sorensen, shoppers will spend a quadrillion seconds in supermarkets and they'll waste 80% of that time. Drawing on Sorensen's breakthrough second-by-second analysis of millions of shopping trips, this book reveals how consumers actually behave, move, and make buying decisions as they move through supermarkets and other retail stores. Sorensen presents powerful, tested strategies for designing more effective stores, improving merchandising, and driving double-digit sales increases. He identifies simple interventions that can have dramatic sales effects, and shows why many common strategies simply don't work. You'll learn how to appeal to the "quick trip" shopper, make the most of all three "moments of truth," understand consumers' powerful in-store migration patterns, improve collaboration between manufacturers and retailers, learn the lessons of Stew Leonard's and other innovators, and much more. Then, in Part II, Sorensen presents revealing interviews with several leading in-store retail experts, including crucial insights on using technology and retailing to multicultural communities.
The world's #1 guide to retail success, complete with crucial, up-to-date insights--including new case studies, ideas, strategies, and tactics from today's best retailers, like TopShop, IKEA, and Best Buy. Smart Retail incorporates several valuable chapters, including:
Opportunities to learn from past retail pioneers: simple yet effective strategies your competitors have forgotten.
How to use data to drive profit and growth.
How to do more with less, and maximize the value each team member brings to the table.
How to use new technology to develop highly productive, innovative "Remote Teams."
Covering everything from creating the ultimate retail experience to understanding the customer and the importance of motivated workers, this is the book that will equip managers, teamworkers, retail entrepreneurs and indeed anybody who sells direct to customers, with practical winning ideas and strategies.
Table of Contents
- About This eBook
- Title Page
- Copyright Page
Inside the Mind of the Shopper: The Science of Retailing
- Copyright Page
- Praise for Inside the Mind of the Shopper
- Author’s Notes and Acknowledgments
- About the Author
- Preface Rethinking Retail
- Introduction Twenty Million Opportunities to Buy
PART I: Active Retailing
1. The Quick Trip: Eighty Percent of Shopper Time Is Wasted
- Three Shoppers: Quick Trip, Fill-In, and Stock-Up
- Rise of the Small Store
- Perils of Promotion
- The Big Head and Long Tail
- Heads You Win
- The Communal Pantry
- Layered Merchandising
- The Right Paths for the Right Shoppers
- Purchase Modes and Selection Paradigm
- Spending Faster
- Conclusion: Dual Chaos
- 2. Three Moments of Truth and Three Currencies
- 3. In-Store Migration Patterns: Where Shoppers Go and What They Do
4. Active Retailing: Putting Products into the Path of Shoppers
- Active Retailing
- Put the Right Products in the Path of Customers
- Double Conversion™: Converting Visitors to Shoppers to Buyers
- Packaging Must Play the Starring Role
- Holding Power—How Long Is Long Enough?
- Stopping and Closing Power: VitalQuadrant™ Analysis
- Playing the Niche
- Good Is the Enemy of the Great
5. Brands, Retailers, and Shoppers: Why the Long Tail Is Wagging the Dog
- Where the Money Is in Retail
- Massive Amounts of Data
- Shifting Relationships
- A Refreshing Change: Working Together to Sweeten Sales
- Beyond Category Management
- A New Era of Active Retailing: Total Store Management
- Pitching a Category’s Emotional Tone More Precisely
- Retailers Control Reach
- The Urgent Need for Retailing Evolution
- 1. The Quick Trip: Eighty Percent of Shopper Time Is Wasted
PART II: Going Deeper into the Shopper’s Mind
6. The Quick-Trip Paradox: An Interview with Unilever’s Mike Twitty
- How do you define a quick trip?
- Why do shoppers make so many quick trips?
- What factors do consumers consider in deciding where and how to shop?
- How do consumers think about shopping trips?
- What did you learn from this research?
- How could it be that even warehouse clubs and supercenters—whose design so strongly encourages stock-up shopping—receive more quick trips than stock-up or fill-in trips?
- Given that quick trips account for two-thirds of shopping trips, how can retailers and manufacturers cater to these shoppers?
- What is the Quick-Trip Paradox?
- Given this paradox, how can retailers and manufacturers capitalize on the quick trip?
- Could the shoppers’ motives for making the trip offer insights into the best assortment to offer?
- How can retailers best meet the needs of quick-trip shoppers?
- What are the implications for retailers and manufacturers?
7. Integrating Online and Offline Retailing: An Interview with Professors Peter Fader (The Wharton School) and Wendy Moe (University of Maryland)
- How did the Internet change the study of shopping behavior?
- In what way are the online and offline patterns similar?
- Studying the Same Shoppers on Different Paths
- How are paths in the supermarket similar to paths online?
- Can online retailers learn from offline shopper behavior?
- Tell me about what you’ve found out about crowd behavior?
- What have you learned about licensing and sequencing—such as the purchase of vice items after virtue items?
- What have you found out about the pace of the shopping trip?
- What have you learned about shopping momentum?
- What have you learned about the role of variety in shopping?
- What have you learned about efficiency? Is it better to allow shoppers to get quickly in and out of the store, or should retailers try to prolong the trip?
- This raises the question of whether shoppers are in the store for utilitarian reasons alone, or if they are interested in an experience. What is the difference?
- What have you learned so far about what shoppers are looking for when they go online?
- How do online retailers use these insights about shopper visits?
- This captures the whole point of what we’ve called “active retailing.” Online is leading offline in this area. How does this come into the physical store?
- How do some of the complex forces of shopping behavior play out? Why is there a need for better modeling?
- What topics are you studying now?
8. Multicultural Retailing: An Interview with Emil Morales, Executive Vice President of TNS Multicultural
- This book looks at how retailers need to move toward active retailing by anticipating and responding to shoppers’ needs. What does active retailing mean in the context of multicultural marketing?
- What are some of the challenges facing the multicultural shopper that retailers need to be aware of?
- What is the significance of the Hispanic segment in U.S. markets?
- What makes this segment attractive to retailers and manufacturers?
- How can manufacturers and retailers seize this opportunity?
- Why do Hispanic customers shop so many channels?
- Given the popularity of tienditas and other small stores, do U.S. Hispanic shoppers have any interest in larger stores?
- How does this use of many channels affect the way Hispanic shoppers plan to shop?
- How does the U.S. Hispanic market react to loyalty cards and other mechanisms to collect customer data?
- How does culture drive shopping behavior?
- You mentioned the second aspect of culture, subjective culture. How does this affect shopper behavior?
- How does the process of acculturation unfold and what do retailers need to know about it?
- Given the close family relationships in Hispanic culture, how do retailers need to respond?
- What issues of product selection or packaging do retailers and manufacturers need to address for this segment?
- How are companies winning with U.S. Hispanic consumers?
- How successful have manufacturers and retailers been in responding to the opportunity of the U.S. Hispanic market segment?
- Can you give an example of how a retailer or manufacturer has used an understanding of multicultural marketing and U.S. Hispanic markets to build its business?
- You’ve focused on Hispanic markets in the U.S. How do these insights apply to other markets?
- In closing, what would be your top tips for retailers and manufacturers who seek to address multicultural shoppers?
9. Insights into Action: A Retailer Responds: An Interview with Mark Heckman of Marsh Supermarkets
- What are the most important things to keep in mind when implementing changes in the retail format, such as those described in this book?
- What have been the results in the stores you’ve redesigned?
- How are retailers beginning to implement new designs, such as serpentine or inverted perimeter approaches (discussed in Chapter 3)?
- How do retailers decide whether to take new approaches?
- In my opinion, what supermarkets are doing is trying what works willy-nilly. You are going to get a lot more tweaking of what works than you are radical departures. What do you think?
- At Marsh, are you moving in the direction of an inverted store (as discussed in Chapter 3)?
- How do shoppers react to these new formats?
- Shoppers will hang in there to learn the new store formats?
- Are you comfortable with the idea that customers become shoppers only within the walls of the store?
- You’ve looked a lot at pre-shopping, which we have not considered in the book. How do people decide what store to shop at, and what kind of metrics do you look at outside the store?
- Can you shed some light on what are the half dozen most important metrics you use?
- One measure we are using is how many seconds it takes for each store to generate a dollar of sales. They run anywhere from 30 seconds to 120 per dollar. What do you think about this measure?
- Do you have your own shopper segmentation scheme at Marsh?
- Are you doing something distinctly to serve quick trippers?
- Is there a brand/retailer partnership?
- What shoppers tell us is sometimes a very poor source?
- I think shoppers would love to spend a lot more money in stores, but they can’t figure out how to do it. I think there’s a huge amount of unfulfilled shopping out there. What do you think?
- What are you doing with new technologies?
- 6. The Quick-Trip Paradox: An Interview with Unilever’s Mike Twitty
- PART III: Conclusions
- PART IV: Appendix
Smart Retail: Winning Ideas and Strategies from the Most Successful Retailers in the World
- Copyright Page
- Dedication Page
- Photo Acknowledgments
- Introduction to this Edition
- Preface—Why retailing?
Part One—You: Starting at the beginning.
- Chapter One. What do you want for yourself?
- Chapter Two. Rising above the crowd
- Chapter Three. Keeping it simple
- Chapter Four. Rolling those snowballs
Part Two—Team: Make us happy and we will make you money.
- Chapter Five. What’s the Big Idea?
- Chapter Six. How to build great teams
- Chapter Seven. How to get people out of bed
- Chapter Eight. All we need is a little better every time
Part Three—Customer: Make me happy and I will give you my money.
- Chapter Nine. We love shopping here!
- Chapter Ten. Price and value
- Chapter Eleven. Promote or die
- Chapter Twelve. Marketing for real people
Part Four—Store: Make it brilliant and they will spend.
- The Fundamentals
- Chapter Thirteen. Discovery!
- Chapter Fourteen. The great big theater of shop
- Chapter Fifteen. Detail, detail, detail—the store environment
- Chapter Sixteen. And finally ... how we got here
- Epilogue—And we’re done?
- Appendix I. Your job and Smart Retail
- Appendix II. Take-action time
- Appendix III. Street time
- Appendix IV. Books for retailers
- Title: Know Your Shoppers (Collection)
- Release date: August 2013
- Publisher(s): PH Professional Business
- ISBN: 9780133577686