In the world of retail strategy, shopper marketing is the new black. While shopper marketing is still evolving as a discipline, some of its core tenants are already being adopted by other sectors. In particular, the concept of the shopper journey is being successfully adopted in areas as varied as government departments and transportation. This multiple step journey recognises that what occurs before and after purchase is just as important as the actual sales process. The concept of custo
mer journey mapping incorporates path to purchase but also extends to understanding the utilisation, recommendation, and repurchase of a product or service.
A state government department using this successfully is Regional Development Victoria (RDV), which is responsible for encouraging migration to regional Victoria.
All Australian states and territories have similar departments, as there are important economic and social reasons for supporting the growth of regional areas.
In most cases, these departments have encouraged settlement in regional areas using above the line advertising, with images of bucolic country lifestyles frequenting these campaigns.
In 2011, RDV took a different approach and commissioned ShopScience to apply a shopper marketing approach to the challenge of encouraging migration.
The mapping of the path to purchase was a core element of this because, for most people, the process of moving interstate is a multi-stage process.
Those moving from a metropolitan city such as Melbourne go through many stages in their ultimate aim of ‘buying’ a new lifestyle in regional Victoria.
Our research found the process could be viewed as a sales funnel that progressively narrows over multiple steps.
It started with the 49 per cent of Melbourne adults that did want to move to regional Victoria to the few per cent who actually made a move.
By identifying each step, ShopScience provided recommendations for RDV strategies to broaden the funnel, and reduce the people dropping off at each stage.
New strategies from this that are seeing positive results include a restructured RDV website, which better supports the information requirements of intending movers at each stage.
Looking past sea changers
In a completely different sector, path to purchase mapping has been successfully utilised by airports seeking to increase the uptake of onsite car parks.
For many airports, car parks are an important source of revenue, but are traditionally marketed using standard above the line advertising and promotions.
Through mapping the steps in the process of planning and undertaking an air travel holiday, airports have identified critical points in the planning process.
These include when consumers actually make decisions about whether to drive to the airport, and where to park when they get there.
Once these points are identified, it’s easier to develop strategies to communicate the benefits of airport car parking while customers are making these decisions.
This means airports have been able to substantially increase their car park sales and, in some cases, reduce their overall advertising spend.
There’s no doubt that as shopper continues to mature, there will be many more instances where progressive brands borrow its principles to improve marketing performance.
Mark Fletcher is the director of ShopScience, an Australian agency that helps retailers and brands use shopper insights to increase sales and profit.