Coca-Cola executives discuss how they work with retailers to design in-store experiences.
January 15, 2012
NEW YORK — Before a store can design a successful in-store shopping experience, it must first understand the shopper, attendees learned Sunday in a panel called "Customizing the In-store Experience to Meet Consumer/Shopper Preference" at NRF's Big Show. Executives from Coca-Cola Refreshments explained how their company works with retailers to understand when and why customers buy. Only then do they decide how to best place beverage products throughout stores.
"Great in-store experience starts with shopper insights," said Claire Quinn, director of national shopper insights, for Coca-Cola.
The company studies shoppers' path to purchase to determine product placement. Specifically, it looks at:
Why is the shopper shopping?
When consumers shop in a grocery store, for example, Quinn said they are there to either stock up on groceries, to get specific products, such as items for dinner that night or to grab things like milk and bread to tie them over until the next stock-up trip.
By understanding those buying behaviors, Coca-Cola works with stores to place products where customers will be most motivated to buy them, Quinn said.
For example, the shopper stopping in to pick up food for tonight's dinner will probably stick to the store perimeter, choosing items from the deli or the bakery. So, Coca-Cola makes sure to place products at the end caps so they are easy to grab.
How does the shopper shop?
By attaching RFID tags to thousands of shopping carts, Coca-Cola was able to study how shoppers navigate stores. The research showed that most start counter-clockwise, go around to the right, then go to the back and circle around the perimeter and shop back to front.
"Understanding this type of behavior really helps us with our in-store placement," Quinn said.
What does speed have to do with it?
Coca-Cola's research also showed that shoppers speed up their paces as they come to the end of their shopping experiences. They may have children with them and need to leave or realize they need to get home to make dinner, so the latter parts of their trips are often rushed.
This taught the company, Quinn said, that shoppers are more open to learning about new products or messaging early on in their shopping trip. So, it's best to put new products or complex messaging at the front of stores.
Read more about customer behavior.