Decoding Shopper Behavior with Virtual Shopper Research
By Concept Sauce
- article
- Virtual Reality Research
- Shopper Research
There’s no success in retail without doing the due diligence to understand shopper behavior – making data analytics a valuable ally for retailers and category managers. After analyzing comprehensive data sets collected in a virtual store setting, retailers can decipher patterns, preferences, and trends among consumers to create more personalized and appealing shopping experiences.
Read about how ConceptSauce did this for a toilet paper retailer by clicking the link below!
Unrolling Success: The Impact of Shopper-Centricity on Toilet Paper Sales
Knowing how to organize products in-store is not as simple as finding out what products are being purchased—instead, retailers and category managers must investigate the ‘why’ behind consumer purchase decisions.
Data analytics is the backbone of shopper-centric planograms, helping retailers make informed decisions for product placement strategies to optimize sales and stay ahead of the competition in providing in-store shopping experiences that resonate with consumers.
Leveraging Data Analysis Techniques for Shopper Insights
Consumer data used for designing shelf layouts can come from a number of sources, ranging from transactional records to in-store tracking systems and even online shopping behaviors. Employing a mix of data analysis techniques allows organizations to glean multifaceted insight and refine decision-making strategies.
One crucial aspect of data analysis is predictive modeling, a technique that allows retailers to forecast future shopping trends and behaviors. Machine learning algorithms are another facet of data analysis, allowing retailers to sift through mountains of data to identify patterns and correlations that might not be apparent at first glance.
Additionally, consumer behavior analysis takes a closer look at how shoppers interact with products in-store. After a thorough consumer behavior analysis, retailers can make strategic decisions about product placement, layout, and inventory that better align with shoppers’ preferences and create a shopping experience that feels tailored to individual customers.
Market Research and External Insights
To truly thrive, retailers must look beyond their target consumers to consider the ‘bigger picture’, including broader industry trends, competitor strategies, and consumer sentiment. Conducting market research and seeking external insights allows retailers to gain important context that helps them better position themselves within the market. With this knowledge, they can monitor, anticipate, and adapt to evolving consumer demands and ensure that their store planograms remain relevant and responsive to the evolving needs of their shoppers.
Traditional market research practices like IDIs, observational shopping studies, and other qualitative practices have historically gotten the job done regarding getting to know consumer trends.
However, new innovative platforms, like Concept Sauce, are emerging and bringing a whole new meaning to ‘getting inside the mind of the customer’ with tools like a 3D virtual shelf, which provides an immersive and accessible experience for deeper market research.
Customization and Personalization in Planogramming
Looking past the social aspects of shopping, a consumer’s journey toward a purchase decision is an inherently individual and personal experience. Research backs this belief, as a study found that up to 73% of consumers favor businesses that provide personalized shopping experiences.
Customized and consumer-centric planogramming hinges on these insights by acknowledging the diverse needs and preferences of different shopper demographics to create a dynamic shopping experience.
Tailoring store layouts and product placements to individual shopper needs and segments, such as age groups, lifestyle choices, or cultural backgrounds, fosters a sense of inclusivity and understanding, strengthening the relationship between the brand and its customers.
When you pair customization with shopper data, retailers can create planograms that reflect their diverse customer base’s unique characteristics and buying behaviors. This customization level enhances product offerings’ relevance and helps build trust and loyalty with shoppers.
Advanced technologies like AI and augmented reality can be used to create even more personalized shopping experiences, such as virtual planogram simulations that adapt to individual shopper profiles.
Implementing Data-Driven Planograms
Collecting all the data and hard numbers is arguably the ‘easy part’ of implementing insight-led planogram strategies – the real challenge is turning data insights into actionable planogram strategies.
This task involves deciding on topics like:
- Which products to highlight
- How to group items
- Where to place products for maximum visibility and appeal
While it’s not always easy to apply summary data to store or product layouts, insights can be translated into practical strategies. Retailers can enhance visibility and appeal within their store or product layout by making informed decisions about product features, item grouping, and optimal placement, resulting in a more engaging and profitable shopping experience.
Also, incorporating real-time data allows for on-the-fly adjustments to planograms. This agility enables retailers to respond quickly to changes in shopper behavior, such as sudden shifts in demand or emerging trends.
Techniques for Refinement
Customer satisfaction is paramount to retail success, so establishing feedback loops and embracing iterative improvements are essential for retailers to refine their approaches continuously.
Feedback loops allow retailers to continuously re-evaluate and assess product placement strategies based on shopper responses and foster an ongoing dialogue with customers. This iterative process ensures that planograms evolve in tandem with shopper preferences and market conditions.
As a final note, it’s just as important that your work team understand the data and analytics behind your shopper-centric strategy as it is to apply them. Adding research and numbers to the mix drives innovation, but only if the people reading them understand what they represent and how to use them optimally.
By providing training and investing in the right technology, you can curate a well-informed team capable of applying research and numbers to create shopping experiences that benefit and are enjoyable for your customers.
Driving Category Growth with a Shopper-Centric Experience
The key to future thriving retailers boils down to using data to stay ahead of the curve when it comes to catering to consumer expectations. Embracing shopper-centric planogramming—backed by data—can transform how retailers create tailored and meaningful experiences that build stronger brand-consumer relationships.
The Shopper-Centric Approach for Category Growth: Revolutionizing Planogramming
Don’t miss out on the competitive advantage data provides. Download our complimentary ebook today for deeper insights into how shopper-centric planograms drive category growth and enhance customer satisfaction.
Author
Abs Chamali
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