Shopper Marketing - May 2018 - 11
MAY 2018 SHOPPER MARKETING
Target's Data Analysis Leads to More Relevant Marketing
By Samantha Nelson
MiaMi - Target used to think of its shopper
as a suburban soccer mom and tailored all
of its programs to her. Analyzing data has
changed that model. "We've learned a lot
over time," Target Media Network vice president David Peterson said at a February presentation at WPP Checkout in Miami. "It's
not just mom making purchase decisions."
Target maintains 100 million active
"guest profiles" to track the 25 million
unique digital visitors to its website each
week and 30 million transactions made
in its stores during that same period. The
retailer's focus on people-based marketing helps identify shoppers' interests and
where to target them. Target can measure
whether shoppers who saw an ad were influenced by it, tracking if they made a purchase online or in-store during a certain
period of time.
Knowing more about its shoppers lets
Target market to them in more relevant
ways, and CPGs want in on the action.
"We're seeing a lot of brands pushing us
to leverage our data for their purposes,"
Unilever was one of the first manufacturers to partner with the Target Media
Network to create custom programs. Unilever shopper marketing manager Natalie
Gillquist joined Peterson at WPP to explain
how the partners worked together in November 2017 to improve on a classic bulkpurchase incentive through targeted ads.
Unilever typically promotes these incentives through print ads, but for this effort
Target Media Network vice president David Peterson presents during the WPP Checkout event in Miami.
only ran two print pages instead of four
and redirected the money saved to digital
ads. Those ads were personalized so that
shoppers saw different qualifying products based on Target's purchasing models.
Sponsored Facebook updates supported
"We were looking to leverage brand love
to drive guests to Target and build a basket
that was more robust than they'd normally
buy," she said. "These are programs that we
run regularly, but we need to continue to
see growth. We believe the partnership with
Target has really helped to deliver that."
Target doesn't sell its data but is collaborating with hundreds of brands on programs based on its insights. The retailer
is also working on improving its shopper
profiles by eliminating duplicates created
by one person having multiple credit cards
or digital accounts. The goal is to be able to
have digital ads that target not just households but individual shoppers.
"More people are leaning into a customer-first approach than not," Peterson said.
"Having the insights of our guests has led
our merchandising strategies."
Being Digital Is Necessary, But
It Doesn't Guarantee Success
By Samantha Nelson
WPP's Carl Hartman, left, discusses digital and retail with Kiran Mani, managing director - retail at Google.
MiaMi - Retail is troubled, but the winners and losers aren't obvious. Traditional brick-and-mortar retailers have made
comebacks, while celebrated digital companies have failed.
During a keynote presentation at the
February WPP Checkout event, Google
managing director - retail Kiran Mani said
that companies with strong fundamentals
and a willingness to experiment are most
likely to succeed in the increasingly datadriven retail environment. "Digital brought
in an element that retail has never seen
before: a faceless consumer," Mani said. "All
of a sudden you have to guess a consumer
without seeing them and meet them at their
The old goal for a retailer to have 80%
of stores meet the needs of 80% of shoppers through 80% of their assortment is no
longer relevant now that 93% of Americans
are spending time online. Knowing how
to reach these consumers requires understanding them, which is a challenge since
only 1% of retail data is analyzed. "Everything that the customer does today is a data
point," Mani said. "Technology for technology's sake is taking the background.
People are talking now about how to put
the technology to use."
The biggest retailers including Walmart,
Amazon and Kroger have spent billions
investing in data. Most retailers can't afford
to do this, but there are some affordable
changes they can make to improve their
status. Amazon derives 30% of its sales
from recommendations, which requires
data, but one of its big advantages is speed.
The e-commerce giant's website loads in
less than three seconds while the average
retailer website takes 22 seconds to bring
up on a mobile phone.
Mani said companies that can lower their
site speed to five seconds will increase sales.
Retailers should also consider pain points
for shoppers, reducing the number of times
they need to click to make a purchase and
making payment easier.
Retailers should primarily be focused
on catering to the 2 billion shoppers with
mobile devices rather than worrying too
much about the millions with voice assistants. Alexa and Google Home do provide
challenges for brands since voice ordering
is mostly done at the category level and
advertisers can no longer rely on visual
cues, but those same things make it hard
to know the price of an item, which can
turn off shoppers.
"We all collectively belong to a generation that is extremely value conscious,"
Mani said. "We might be shopping for Teslas, but we love a discount. The magic is
going to happen when voice connects with
your TV and you can use visual and voice
Table of Contents for the Digital Edition of Shopper Marketing - May 2018
Shopper Marketing - May 2018 - Intro
Shopper Marketing - May 2018 - 1
Shopper Marketing - May 2018 - 2
Shopper Marketing - May 2018 - Contents
Shopper Marketing - May 2018 - 4
Shopper Marketing - May 2018 - 5
Shopper Marketing - May 2018 - 6
Shopper Marketing - May 2018 - 7
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