If you’re a fan of Netflix’s original series Stranger Things, then you might have noticed the show’s very deliberate illustration of the retail struggles of the 1980s: a desolate downtown with “For Rent” and “Out Of Business” signs plastering empty windows, juxtaposed with a flashy, neon, bustling Starcourt Mall. Today, we see a similar phenomenon taking place, as CBS News recently reported that more than 7,000 stores have closed so far this year. These closures aren’t due to an abandonment of one brick-and-mortar location for another as they were 30 years ago, but rather a quest for convenience that is made possible through technology.
This means brands must adapt to meet their consumer groups in a digital environment. However, this endeavor is much more complicated than just coming up with an e-commerce strategy. E-commerce has become plain, old commerce as consumers flow easily between channels, feeling as comfortable online as they do in-store and vice versa. The choices, the vast information available and the ability to take (complete) control of the shopping experience changes the relationship that consumers have with brands. Not only do they become promiscuous, but they become even more of a moving target for marketers.
More importantly, brands and marketers must now view this basic consumer behavior with another vital layer: brand category. Preliminary research across multiple categories conducted this summer by my market research consultancy shows that category influences how people shop. It also impacts the size of the four groups below, which will differ by category. While brands still need to understand where their target audience lives on the shopper spectrum, they also must have a deep understanding of where their product or service lives from a category standpoint.
Defining The Shoppers
Our research has found different types of shoppers, and understanding them is the very foundation of understanding today’s consumer behavior:
• Mainstream Loyalists: Nostalgic and a little bit naive, these shoppers hold onto traditional ways of doing things. They can be a bit more mainstream and loyal, and they stay with brands they know, which they perceive as higher quality. This “safe” consumer might seem like a desirable target, but this is a shrinking constituency.
• Quirky Connoisseurs: Coloring outside the lines and holding strong opinions, these shoppers care about brands but are willing to try new things to get what they want. And what they want is things that reflect them, meet their needs and are high quality.
• Unengaged: Always just on the outskirts of the action, these unengaged shoppers do the same, with wishy-washy opinions on brands, and will easily change if something is on sale.
• Promiscuous, Semi-Involved: These shoppers are somewhat involved and engaged but may have a hard time finding the products that are right for them. Happy with options on the market, they have strong opinions when it comes to category — although they may be willing to change if presented with a better option.
Understanding The Impact Of Category
It makes sense that shoppers do not all behave in the same way, but it’s also important to understand how the behavior of these groups changes from category to category. Our research showed significant differences in how people shop in certain categories, and also that people change their behavior entirely depending on what they are purchasing. The ratios of these four groups vary dramatically from category to category. For example, the automotive category has a significantly higher percentage of mainstream loyalists than the ice cream category. Understanding this context gives the researcher a better toolkit for helping their clients.
We can see these categorical behavioral changes amplified as we start to examine the differences between online and in-store behaviors. If we loosely group products into two categories — automated and enriched — we start to see massive changes in behavior among types of shoppers. Automated, everyday purchases, such as household supplies and regularly used beauty products, may be subscribed to online and never thought about again. This disrupts our carefully crafted consumer journey. On the other hand, more expensive luxury, or enriched, purchases, such as cars or large appliances, are requiring even more interaction from brands to entice an information- and engagement-hungry buyer.
Our struggles may not have to do with a cultural shift from a downtown core to the neon-festooned malls of the 1980s so starkly illustrated in Stranger Things, but there is a massive shift happening just the same. As the digital ecosystem grows and online transactions continue to rise, brands will find it even more essential to not only understand their consumer with context, but also have a deep knowledge of how these consumers are shopping in their particular category.
