Shopper Marketing - September 2016 - 205


SHOPPING IN THE FLOW

SPECIAL REPORT
PART 1

NEW TECH IS COLLAPSING THE PURCHASE FUNNEL.

IS YOUR BRAND SAFE?

Retailers and marketers already trying to cope with
smartphone-shopping behavior and a collapsing purchase
funnel could face extinction if they don't respond wisely to a
bevy of newer, emerging technologies. Those who can evolve
today will be best positioned to win tomorrow.
Marketers who fail to anticipate customers' current and growing
enthusiasm for, and comfort with, emerging technologies -
such as wearables, virtual reality and connected TV and
appliances - risk being wiped out by a cresting wave of these
emerging technologies, according to new research by TPN.
The traditional purchase funnel has already been short-circuited
by smartphone-enabled mobile purchasing behavior. Now
consumers of all ages - not just Millennials - are happily
adopting new technologies to make their buying faster and their
lives easier, TPN's research shows.
From the first appearance of digital technologies, dynamicretail marketing agency TPN has been watching, studying
and researching the causes, effects and implications of
these technologies at retail. The agency's goal is to help
brands and retailers navigate today's quickly changing
digital retail landscape.
TPN has fielded a study about emerging technologies to
understand how the next wave might impact consumer and
shopper behaviors, and ultimately retail itself.
In this, Part One of our three-part series in Shopper Marketing
magazine, we'll set the context for how the marketplace has
changed and what's at stake. In Part Two, TPN will release the
results of its research. Part Three will offer solutions to help
retailers and brands navigate this new terrain.
Truth is, this research is proving that many retailers in particular
are woefully behind in adapting to their customers' heightened
Today's shoppers are doing it in their way, on their schedule

44% of shoppers go to Amazon first, before traditional search engines
33 % of Millennials review blogs before making a purchase
Millennials are more likely to buy something based on
77% ofsocial
media
more likely to visit a physical store
80 % ofthatGenhasZ are
entertainment
35 % of Gen Z read newsletters from brands
2

3

4

1

expectations regarding fast,
easy e-commerce and
digitally enhanced in-store
experiences. CPG brands
also must move quickly to realign their ad/marketing plans to
adjust for this new age of 24/7, always-on engagement.

What TPN is Learning
The broad research study is investigating how shoppers are
engaging, and plan to engage, in the latest shopper tech. We
want to understand how we as marketers can continue to
drive engagement and exert influence to make the buy
happen within this new paradigm.
As the agency continues to compile data, preliminary
results point to some big, new insights for nearly all
marketers - and some common assumptions that are
actually dangerous fallacies.
For example, it's widely believed that Millennials are far more
comfortable with using digital technologies for purchasing
than Gen X or Baby Boomers. In reality, far more Baby Boomers
than expected appreciate stores with technology, and far more
Millennials than expected prefer stores that have Associates to
help shoppers.
More broadly, research shows that widespread technologies like
mobile apps, in-store kiosks and connected TVs are most
preferred; however, about 50% of all consumers say they would
like to shop with technologies that are considered "emerging,"
including virtual reality, artificial intelligence, augmented reality
and robotic shopping carts.
More than 83% of respondents say that technology is making
shopping faster than 5 years ago, and 85% say that shopping is
easier than 5 years ago.
The downside for retailers and brands that have been slow to
adapt is that this consumer demand for speed and ease is
causing major breakdowns in the shopping experience.
"Technological innovation has caused, and will continue to
cause, a profound disruption in how we all do business," said
Sharon Love, CEO of TPN. "Not just in how we market and sell,
but how brands and marketers reorganize structurally and
operationally to thrive in this new reality."

5

1

TPN SPECIAL REPORT PART 1

www.tpnretail.com

1


http://www.tpnretail.com

Table of Contents for the Digital Edition of Shopper Marketing - September 2016

Contents
Shopper Marketing - September 2016 - Intro
Shopper Marketing - September 2016 - 1
Shopper Marketing - September 2016 - 2
Shopper Marketing - September 2016 - 3
Shopper Marketing - September 2016 - Contents
Shopper Marketing - September 2016 - 5
Shopper Marketing - September 2016 - 6
Shopper Marketing - September 2016 - 7
Shopper Marketing - September 2016 - 8
Shopper Marketing - September 2016 - 9
Shopper Marketing - September 2016 - 10
Shopper Marketing - September 2016 - 11
Shopper Marketing - September 2016 - 12
Shopper Marketing - September 2016 - 13
Shopper Marketing - September 2016 - 14
Shopper Marketing - September 2016 - 15
Shopper Marketing - September 2016 - 16
Shopper Marketing - September 2016 - 17
Shopper Marketing - September 2016 - 18
Shopper Marketing - September 2016 - 19
Shopper Marketing - September 2016 - 20
Shopper Marketing - September 2016 - 21
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Shopper Marketing - September 2016 - 28
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