Consumer Journeys in Flux: The Change You Cannot Wait to Discover Is Happening Right Now
It feels like we have entered the “Waiting” period. Containerships waiting to unload in San Francisco Bay, people waiting for their turn to get a vaccine, parents waiting just a little longer before committing to summer plans. Businesses, as well, are mired in the inertia of mixed signals and shifting priorities.
Inaction is action. But for business, now is not the time to wait.
Now is the time to prepare the space for consumers as they embark upon their post-pandemic value journeys.
So why aren’t more businesses taking action? We think it has to do with a lack of inspiration. You need to be inspired to risk an action.
Today, we share a consumer journey story to inspire you. We hope that by looking back, you can see the way forward.
When you wait too long, categories can get “tooth-crackingly” stale
It was 2011 and the challenge was big. Disruption within the same-old-same-old coffee aisle of traditional grocery was not going to be an easy feat. Long dominated by well-known brand stalwarts of Folgers and Maxwell House, the grocery coffee aisle was beyond ready for a refresh. Keurig and k-cups were just beginning to gain a foothold. The away-from-home coffee scene had already exploded with a Starbucks café on almost every block. A number of 3rd wave coffee house players were coming on the scene. Yet, despite all of this change, the coffee aisle continued to look like it had for decades. A lot of oversized and value-priced canisters filled with Robusta ground coffee flagged by a handful of lesser-known brands attempting to take a more premium position.
The Starbucks brand was in an interesting spot. Once reliant on the sales and marketing partnership with Kraft Foods, the brand had recently pulled out of that relationship to seize control of their fate in channels. Much like a pro sports team bringing in top-talent, free-agent players in the hopes of winning it all, Starbucks invested in their future by recruiting cross-discipline CPG talent from the heavy-hitters of P&G, Kellogg’s, General Mills and Kimberly-Clark. Newly formed teams of marketers, sales, category management and shopper insights had to learn to work together in this environment. They were charged with the creation of process, capabilities, and retail block&tackle tactics. But, strategically, the big bet Starbucks had placed on creating their own capabilities and center of expertise was a risky move. The expectations were sky high and the team knew it. Small changes and incremental adjustments were just not going to cut it.
And now it was time to make things happen. It was time to disrupt the sleepy coffee aisle in grocery. The clock was ticking. Where to begin? With insights, of course.
Step 1: Ready. Set. Learn!
Category sales had been relatively flat for several years with promo and deals a big driver. Only the arrival of k-cups had managed to move the curve with an uptick in single-cup machine adoption. Yet, Starbucks’ understanding of the coffee consumer centered on the café landscape. Up to this point, the at-home coffee consumer had been painted with a fairly broad brush. But who were they really? And how might they segment out based on behavior as well as attitude? What did Starbucks need to know in order to bring something new to the aisle? Something that might compete and win against a backdrop of low-price and trusted brand competitors?
The Shopper Marketing and Shopper Insights teams joined forces with Category Mgmt to first understand the current shopper and the in-aisle dynamics. Foundational learning including in-store observation, qualitative, and a robust online survey were executed.
Out of the initial insights work, a story emerged.
The at-home coffee consumer was not a homogenous group. They were divided into a more value-driven, traditional-brand loyal group and a variety-seeking, more experimental group who placed a greater emphasis on taste and aspirational brand. And then there were the Dualists! They had a foot in both camps depending upon occasion and the differing preferences of other members of their household. It turned out that for the value-driven shopper the aisle experience as all about ‘get in and get out.’ Look for the red or blue can and choose on price. But it was a different story for the rest of the coffee shoppers. More time was spent browsing, comparing products, looking for specific roasts, etc. In cross-category comparisons, shopping for coffee, for them, was much like exploring the wine aisle. It had an emotional element with associations of the sensory experience – the warmth, sight, sounds and smells of fresh-brewed coffee at-home.
The insights team was onto something. The learning sparked new ideas on ways to disrupt and speak to these more premium-oriented coffee buyers. Trade-up was the name of the game. The next step? Figure out how to orchestrate new shopper behavior in the aisle and at the point of purchase.
Step 2: Design to Influence New Shopper Behavior
Although new to the Starbucks brand, the team was not new to best practices on ways to influence grocers. The team knew how to help grocers move the needle of category sales in their stores. From the very beginning of the initiative, the team partnered with a retail design expert. The designer brought know-how on translating shopper and category insights into merchandising, at-shelf communication, and shelf set configuration strategy. The combination of insights and design proved to be a powerful combination. The outcome was a data-supported recommendation on product categorization and plan-o-gram to drive trade-up and improve browsing and shop-ability of the set. Further, Starbucks designed at-shelf and end-cap elements to bring in sensory cues of at-home coffee, brewing, and even aroma. The goal? To increase dwell time and encourage variety-seeking, premium shoppers to find more of what they love. The initiative, code name Silver Siren, was sold into test market with Safeway and work was underway to launch in a set of West-Coast test and control stores.
Step 3: Take it to the Next Level of Shopper Journey Learning
Did the investment in aisle renovation pay off for the retailer and the category? Was trade-up happening among the Dualist target shoppers?
In addition to a test/control methodology to measure category and brand sales, the team doubled down to gain additional shopper insights around the effectiveness of design influence and impact of the change. In partnership with Ignite 360, pre-shop steps of consideration, choice and planning were integrated into an in-aisle deep-dive. Observation of shoppers’ path, dwell time and browsing behavior combined with at-shelf interviews created real-time learning on the first “moment of truth.” Starbucks could see the role of merchandising and the impression of key communication such as signage, product display, and the aroma upon the consumer.
Additionally, a brief shopper survey was administered via tablet to obtain a measurable read on noticeability and shop-ability. Bringing all data together, the team was able to marry control store test sales with contextual shopper learning to get a full picture of those key points of influence driving selection. Research was conducted in both test and control stores and at two different time periods – early in test and later – to help shed light on trial and repeat. The cross-functional Starbucks team was able to engage first-hand to see and hear the shopper input for themselves.
The Big Reveal – Did It Work?
The data proved invaluable and the rich insights even more so. The story was clear. The merchandizing and design changes had a meaningful impact on category sales in test stores relative to control stores. A double digit increase in category sales was achieved primarily due to trade-up. While Starbucks brand saw an increase in basket dollars, the bigger story for retailers was the category growth. Insights identified from shopper learning helped the team, and retailer partner, understand what elements were driving the shift and which were less influential thus informing changes to the set and prioritization of investment to increase profit margin. The retailer was impressed and signed on to partner on a roll-out of additional stores in other regions. A sales story was developed to pitch the initiative to other retail customers with another national player signing up for their own customized display and test.
The Power of Knowing Your Consumer’s Journey
Yes, the challenge was big. A risky action like aisle reinvention is not for the faint of heart. Starbucks went all-in to do it right and, armed with data and insights around the coffee consumers’ journey, they built the case for innovation. The team moved from same-old-same-old to a little café-inspired oasis of discovery in grocer’s center store. The approach to consumer journey and shopper experience brought a multi-disciplinary lens with design collaborating closely with sales, marketing and insights. Each element of the display was grounded in consumer truth either amplifying to address underlying motivations or serving to overcome existing barriers. It was an undeniable win with insights as a key enabler for success.
So, when is the right time to undertake your own consumer journey effort? You may not be embarking on a total aisle reinvention but that doesn’t mean you don’t need to understand the consumer journey. With Covid having a profound impact on current consumer behavior, to say the situation has changed is an understatement. What you thought you knew can likely be thrown out like yesterday’s disposable face mask. Movement toward e-comm shopping solutions, mobile pay, drive-up and delivery have certainly been accelerated disrupters in retail. The landscape of in-store shopping is also unchartered territory with significantly less browsing as shoppers seek to get in and out even more quickly, deal with increased out-of-stocks, etc. The seismic aftershocks will continue for some time and brands like Target, Wayfair and Thrive Market are jumping in to make sense of it all, while it is happening, are poised to take the pole position as first movers and innovators and will lap their competition. Don’t get stale.
But Wait, There’s a Twist
While we all wait for In-store research to resume (inaction), there is no need to wait for online research (action). We continue to leverage online and virtual expertise to you get closer to your consumers while also investigating the growing use and unique dynamics of online shopping. In fact, going virtual with your research allows for a natural environment to discover more about the online shopping experience including pre-trip triggers and planning, retailer choice and modes of shopping.
What does System 1 shopping look like online? How will adoption of tech-enabled shopping tools play out in a non-pandemic future? Where should you be placing your bets now for maximum return? But don’t just take our word for it. Go to the source and speak to the clients who have entrusted us with their big challenges and shopper problems.
The Starbucks story of coffee aisle reinvention is well-known to our COO, Lisa Osborne. Back in 2011, Lisa was our client at Starbucks. She hired us to get the insights and help build that shopper story. Lisa believed in our know-how, client service, insights i.d. abilities and storytelling so much that, eventually, she joined the organization to help others, like herself, achieve the same incredible results. Today, Lisa helms our consumer journey ensemble of experts and consults with our clients to design learning programs that go deeper, uncovering the journey and mapping back to the points, and modes, of influence to orchestrate new consumer behavior for growth.
To help you take the next step towards action, reach out to us at hello@ignite-360.com or connect with Lisa directly at lisa@ignite-360.com.