IN-STORE MATTERS

   The Point of Purchase Advertising International trade association has conducted some major new research in at-retail shopping behavior.  In spite of the advent of on-line shopping, smart phones and loyalty programs, one surprising fact emerges:  people still make the majority of their purchase decisions in the store.
   POPAI’s 2012 Shopper Engagement Study hired a respected research firm, supported by major retailers and global brands, to determine how American shoppers actually grocery shop.  Using sophisticated technology and in-depth analysis, the study finds that “today’s in-store decision rate has reached an all-time high of 76%.”
   Does this suggest that we don’t know what we plan to buy when we go shopping?  Of course not.  Instead, it documents that most of us make many decisions while in the store.  Perhaps we switch package size or brand, perhaps we generally plan to buy something but specifically decide when we’re in the aisle.  Whatever the case, what happens in-store matters. 
   The message for marketers and retailers alike?  If you don’t put your brand on ‘display,’ you’re less likely to put your brand in the shopper’s basket.  It’s the “point of purchase” for a reason – and we have proof.

RIFF ON SETH

Seth Godin is a web powerhouse, a brand unto himself.  He recently wrote about online v in-store  retailing in a post you can read here.  One disagrees with Seth with trepidation because this guy thinks deep thoughts and has proven highly successful in influencing others with those thoughts.


But Seth's missed an important aspect of retailing.  He suggests that "end caps and promotions and speed tables and other interactions will not be there because they are in the direct interest of us the shopper, but because they were placed there by the retailer to help generate income."  


He goes on to say, "Online merchants have done an extraordinary job of honestly presenting relevant information and drawing a bright line between editorial and merchandising. Which means that they’ve given up a huge amount of power. Since online merchants can’t make a particular item sell, they have far less leverage. They make up for it by selling everything, indifferent to which item you choose. In short, they’ve traded their power to you, the customer, in exchange for volume."

Though some power has been ceded by the merchants, I believe that many consumers would prefer if the online world exercised a bit more power than they sometimes do.  And this is where in-store can beat online almost every time.  I go to that dress shop or that bookstore or that salon because (a) they know me and (b) they curate for me.  Yes, yes, I can read reviews and do my own searches and spend loads of time delving into my options and evaluating them but what I really want is for that merchant to know me and serve my best interests.  The ones that do this well win.