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40 percent of customers only make their purchase decision on site



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40 percent of customers only make their purchase decision on site


Around 40 percent of customers wait until they are in front of the shelf before choosing a product. Another ten percent change their mind at short notice because of what is known as shopper marketing in the store, and 29 percent choose products in categories they actually didn’t want anything from.

This is reported by the US industry magazine AdvertisingAge. The paper cites a recent study by OgilvyAction, which concludes that local marketing tricks still work extremely well. According to this, retailers’ marketing activities lead to the fact that 20 percent of consumers end up leaving certain goods they wanted to buy in the store.

Overall, according to the study, 72.4 percent of customers make one of four important purchasing decisions in front of the shelf. But that doesn’t mean it has to be the case every time, with every single purchase, admits Jeff Froud, senior strategic planner at OgilvyAction. The study does not reveal the extent to which purchasing decisions are ultimately influenced by advertising measures outside of the shops. However, there are two important factors that support spontaneous customer decisions.

As the consumers surveyed state, tasting and the respective product presentation play an important role. The question of the price obviously comes later. According to the influenceability of customers, shopper marketing experiences regular growth spurts. As a Deloitte survey shows, the area is currently growing at an annual rate of around 21 percent. The US group Procter & Gamble (P&G) alone is said to invest at least 500 million dollars in this area of ​​marketing every year.

According to the Deloitte figures, other companies in the retail sector are even significantly higher. “The importance of on-site marketing is increasing,” explains Heike Hallerberg, Junior Account Executive at OglivyAction Germany. The investments differ from company to company. “Our customer approach is increasingly shifting to the shops,” said P&G Chairman-CEO AG Lafley, explaining the shopper marketing trend during a press conference at the International Advertising Festival in Cannes.

The reason for this is that more and more consumers say that they only make their purchasing decisions spontaneously in the store. At Ogilvy, however, it is confirmed that communication or at least on-site product presentations and demonstrations have more of an impact on consumers than pure price dumping. The good news for retailers is that product presentation can create brand equity, says Froud. -pte

www.ogilvyaction.com