Understanding Consumer Buying Trends - Building Dynamic Product Lines
Buying habits have shown to be resilient in the face of changes in consumer lifestyles. In other words, buying trends tend to remain the same over long periods of time despite many changes in the product landscape. Understanding consumer behavior through a range of methods, including surveys and targeted advertising, is key for retailers struggling to gain traction with their products. But while these tools can provide valuable insights into what people want, they don’t always provide customers who are ready and willing to purchase right away or on a large enough scale.
In today's digitally-driven world consumers are more aware about how products are made than ever before and it is crucial for brands to take this into consideration when crafting new marketing campaigns targeting their target demographic.
Discount rates have declined and credit card penetration is high in developed markets. The days of easy access to credit are long gone. That being said, consumers are still highly motivated by deals and promotional activity. In fact a study by PointLogic revealed that 61% of card-carrying consumers surveyed said that near-term promotions were the primary reason for opening a new credit card account and 27% said that getting new rewards was the primary reason for switching from one specific card type to another.
The way forward for smart retailers is to identify the best opportunities for growth within their target market, then invest heavily in a packaging or advertising campaign to promote their product at the right price points.
Retailers should also be aware of the common mistakes made by their competitors when they understand that price promotions can make or break a campaign; some retailers set prices lower than their competitors, enticing consumers with a cheaper price than the competition. However, this tactic often backfires as customers feel misled. Furthermore, since many shoppers are always on the lookout for a better deal, it makes sense to set your prices at least 10-20% higher than your competition.
The truth is that price promotions are not appealing to everyone and other factors such as product quality and ease of use can provide success through the most simple of promotional activities.
Differences in buying habits still exist between regions of the world and between various consumer demographics. This means that the 'one size fits all' approach does not work. Retailers should be aware of these differences so they can effectively target their audience with suitable products to suit their needs, rather than attempt to cater for a broad range of consumers who have similar values and purchasing habits.
Consumers are now more aware about how products are made than ever before and it is crucial for brands to take this into consideration when crafting new marketing campaigns targeting their target demographic.. To do this, retailers must know as much as possible about their customers, understand their motivations and modify their messages accordingly.
Understanding consumer lifestyles is key to understanding their wants, needs and buying habits. Lifestyle analysis tools are available which can help retailers understand how consumers plan, spend and behave using big data analytics. With this knowledge, brands can better cater for the specific needs of their customers.
New technologies in retail merchandising such as virtual reality (VR) and augmented reality (AR) are also shifting the store into the digital age by making it possible to create a more realistic view of a product in an online setting than would ever be possible in a conventional store. Retailers must now ensure they have a firm grasp on what these new technologies mean for them, both from a marketing perspective as well as an infrastructure perspective.
Transformative retail strategies are now required to adapt to new customer behaviors and bring about the next wave of change for retailers. Retailers will need to embrace these new technology tools and use them to their advantage while also creating a truly memorable shopping experience for consumers.
1. How do you measure success of your campaign?
2. What are the three biggest influences on your target market?
3. When is a good time to introduce a novel product?
4. When is a great time to introduce a new package design?
1. How do you create, or refresh, your marketing campaign?
2. What channels are you using for your campaign?
3. How long is your campaign in place for?
4. What do you think is the best approach to continue this campaign over another 12 months?
1. Is the price of your product low enough to entice people to try it out?
2. Are there any other promotions that would make it more appealing to consumers?
1. Which marketing messages does your company deliver regularly and which have changed since launch?
2. How effective has each marketing channel been and how do you measure its impact?
3. Which consumer data is available to you and how do you access it?
4. Which data sources is your company using to determine its future marketing campaign?
1. Which channels are being used by your company for their marketing campaigns?
2. What metrics are used to evaluate the way in which your brand is promoted?
3. What key factors determine whether a specific marketing channel will be used by your brand?
4. How often do you plan on using a specific channel during the next 12 months and for what reasons?
1. Which marketing messages does your company deliver regularly and which have changed since launch?
2. How effective has each marketing channel been and how do you measure its impact?
3. Which consumer data is available to you and how do you access it?
4. Which data sources is your company using to determine its future marketing campaign?
1. What type of product is being promoted and to whom?
2. Where will it be sold and how will it be displayed in the store?
3. Who are the key influencers in your target market and how do you get them involved with your campaign?
4. Why is it important that your product be promoted in the way that you have outlined?
1. What types of products are you now selling and what benefits do they offer consumers?
2. Have there been many changes to the way in which people purchase products since the launch of your company?
3. How will you put together a strategy to get consumers to spend more money with your company in the next 12 months?
1. Which marketing messages does your company deliver regularly and which have changed since launch?
2. How effective has each marketing channel been and how do you measure its impact?
3. Which consumer data is available to you and how do you access it?
4.
Conclusion
There are several different key takeaways from the research that have been taken from this study. The biggest takeaways were the extensive data collection and planning process that occurred before the study began. The research, analysis, and development of different concepts, ideas, and designs were what contributed to the most significant results and ultimately allowed them to come up with an elaborated idea on how consumers would respond to a new approach to retail marketing strategies.
This will help retailers illustrate their store for customers so they can have a better understanding of what to expect when they walk into their stores. It also demystifies how valuable consumer data truly is if it is analyzed correctly.