Five Behaviors that Define the New Exchange Between Brands & Shoppers
The purchase funnel has been a useful tool for marketers for over 100 years. But the fragmentation of media, abundance of retail channels, and rise of shoppers with unprecedented information access have weakened this model’s relevance, says Jim Lucas, EVP, Global Insights and Strategy at SGK.
Shoppers are no longer constrained by the purchase funnel. Today’s shoppers are keenly aware of the value of their behavior—so much so that they treat their behavior as a medium of exchange. Consumers trade personal information for better functionality (Google, Yahoo, etc.), for more relevant deals from a loyalty program (American Express’s Link, Like, Love), or for the ability to participate in something larger (Pepsi’s Refresh Program).
Looking at this new exchange between shoppers and brands, we’ve focused on the 5 transactions that are most common and best allow us to accommodate shoppers’ personalized paths to purchase, as well as the possible benefit to shoppers of each type of transaction.
- Attention is how we connect to the world; it shapes and defines our experience. Attention is the mechanism that underlies our awareness of the external world and regulates our thoughts and feelings; a way to reframe a situation, category, etc.
- Engagement helps the shopper achieve selective attention: focus on a task at hand, find a relevant solution, and devote attention to eagerly processing.
- Purchase is about making it easier for shoppers to buy the right product for themselves, reaffirming choice.
- Loyalty is a reminder of the value shoppers received from last use; reinforcement of how smart their decisions were.
- Advocacy is about allowing the shopper to share her experience/solution with others—a way to pay-it-forward—and serves to help guide new shoppers.
For more insight read Jim Lucas’s full article, The Purchase Funnel Is Dead; Long Live Shelf-Out in Checkout, Vol. 1 Issue 2.