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Making The Most Of Shopper Research

“We need shopper insights!” is the current cry we hear echoing in the halls of many FMCG companies of late.

But do you? And which ones? And what for?

Shopper insights are the current buzzwords. Large companies with consumer insights departments are bringing on shopper researchers, or re-hatting their consumer researchers as shopper experts.

So how do you optimise shopper research for maximum application, rather than just keep up with the Joneses?

ShopAbility Head of Shopper Research, Troy Rudd, and  Director Norrelle Goldring, discuss.

1.    Know what problem you’re trying to solve

What are the business objectives the research will help answer?

For example, are you losing share and want to understand why? Do you want to demonstrate category leadership with customers? Do you want to minimise the risks of a pack change? Are you spending too much on POS and want to cut back by focusing on just the key pieces?

2.    Determine whether the research is generic, diagnostic, or specific

Generic shopper research is fine to get a base level of understanding of how a category or channel works and is shopped, to identify major opportunities and executable elements, and to showcase knowledge with customers.

Generic shopper research covers what we call the ‘ 5Ws and 5Hs’  (who, what, when, where, why, how, how much, how many, how often, how long).  It also covers things like, degree of purchase planning, major occasions shopped for, and key missions (shopping trip types).

Specific research answers – specific problems and questions, for example:

• What are the maximum prices we can charge before we lose sales? (price optimisation/sensitivity monitor)
• What is the optimum pack mix for this channel (occasion/brand/pack/channel study)
• Where should we be putting displays instore for best offtake, and what should go on them? (shopper movement tracking).

3.    Match the methodology to the problem and research type

For shopper research to be robust, it doesn’t have to have a sample size of thousands.

If it’s exploratory – understanding how shoppers think – it’s more likely to be qualitative, e.g focus groups (claimed behaviour) and accompanied shops/channel immersions, as well as online diaries and surveys.

If it’s behavioural (shopper movement and tracking etc) it’s more likely to involve instore intercepts, observations, and maybe video or eye tracking.

Shopper research can be conducted both instore and out of store for a holistic view. E.g consumption profiles can be captured on-line, where instore communications and location require instore/in situ approaches.

The methodology will change according to the type of insights required.

4.    Know what you will do with the results

Specify in the brief what will be done with the research and how it will be applied (so it doesn’t just sit on the shelf).  E.g will it be used to devise new shelf layouts and planograms? Adjust pricing strategy? Change your POS materials?

5.    Write a specific brief

The more thorough and specific the brief, the more applicable the results. A format we find works well is the following ‘funnel’:

• Business objective (problem to solve/opportunity to leverage)
• Research objectives (main things to find out)
• Research questions (detailed questions)
• How it will be used/applied
• Timing and budget
• Any preferences for methodology and sample size
• Key stakeholders (internal and external).

6.    Don’t forget about the trade

Not only should you run the brief past the customer upfront for their inputs and best engagement at the results presentation, you’ll be needing their permission for instore components of the field research.

Good shopper research also often involves trade research: trade observations of shoppers, the category, the channel, motivations and barriers.

The trade provide a sense check on what the go to market realities are, irrespective of what shopper utopia might be.  The earlier you engage them, the better traction with results you’ll get.

About ShopAbility Insights capabilities:

ShopAbility  are a specialist Shopper Research agency – not the shopper arm of a consumer research agency. We are FMCG and Retail specialists, working end-to-end to deliver Shopper projects that build relationships with retailers, provide strong commercial direction and are focussed on the application in store.

Troy Rudd and Norrelle Goldring head up the Shopper Research division , available for qual and quant shopper studies.

Troy is a senior shopper research professional with more than a decade’s experience in qualitative and quantitative research in senior agency roles, underpinned with university marketing and psychology qualifications. Norrelle has worked at Senior Exec level in blue-chip global FMCG organisations for more than ten years. Between them they have run hundreds of research projects and bring energy, expertise and a rock solid track record to the table.

Call Troy on 0416 270 812 troy@shop-ability.com.au or Norrelle on 0411 735 190
norrelle@shop-ability.com.au if you’d like an analysis or discussion of your shopper research needs.

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