Walmart Unveils New 'Shopper' Framework

Minneapolis — Walmart is becoming more focused and structured in its approach to shopper marketing, while also implementing far-reaching changes to its merchandising and marketing practices that will affect suppliers. During his keynote presentation at the Shopper Marketing Conference & Expo in October, senior vice president of creative Andy Murray unveiled the retailer’s new framework.The end goal hasn’t changed: driving trips and building baskets is still the main objective. But Walmart is fine-tuning the way it uses insights and is working to develop best practices that increase conversion both by category and total box. Murray identified five core insights-based shopper marketing principles the retailer is using to guide its strategy:Customers need to believe they’re getting the best price and value. With price a key influencer in 68% of purchase decisions at Walmart, the retailer is backing its “Every Day Low Price” promise with tools such as Savings Catcher. It is also challenging supplier partners to provide PDQs and other in-store displays that have a very clear value proposition. Walmart wants to go beyond simply talking about value to creating value through displays that actually bring utility to the shopper to aid her in her trip.Customers will budget their time, money and effort in total and by category. Seeking to help customers manage multiple budgets and trip types, the retailer is implementing programs such as “Where America’s List Gets Done” – which cross-merchandises items based on a project or goal – as well as a variety of fulfillment options, including Walmart to Go and the Walmart Pickup Grocery test in Bentonville, Arkansas.Customers need to navigate the store quickly and easily. Shoppers spend almost one-fourth of a 45-minute grocery stock-up trip navigating aisles, Murray said. Walmart is working to leverage mobile technology that will streamline the shopper experience while also stressing clear sight lines and consistent navigational signage.Customers need inspiration to explore other areas of the store. While Walmart wants to benefit from the 31% of shoppers that respond to triggers and make unplanned purchases, chasing cross-box conversion can create clutter and confusion. The retailer is challenging suppliers to undertake the balancing act with tactics such as product demonstrations.Customers’ emotions influence their buying decisions. Walmart is improving design details such as color, sound, music and smells, all of which influence the quality of the trip. The retailer is also stressing P-O-P elements such as “treasure hunt” bins and clear EDLP messaging that can provide an emotional high.“These principles are built around what our customers want and need when they shop,” Murray said. “These ideas should shape everything we do.”He added that the art of retail is making these principles work together. How suppliers design their displays and packaging has a big impact on the overall shopper experience, and Murray challenged brands to improve the durability of their displays, engineering them beyond the point of sell-in to the chain to the display’s total life cycle so they can withstand the brutal retail environment.He also called on brands to retire the “stop, hold and close” approach to in-store activation. Instead of disrupting shoppers, he said brands should seek to inspire and engage them.In conjunction with the five core shopper marketing principles, Murray additionally identified 17 “Retail Moments of Truth,” each defined by an objective of the moment and standard practices that can win the shopper, pick up trips and build bigger baskets.For example, during “Walking in entrance,” the retailer’s main objective is to welcome and direct. Today the shopper is instead greeted with a plethora of signage. “Somehow, we’ve become overrun with standees in the entrances and throughout the store,” Murray said, indicating Walmart is working to pare down that messaging.Another moment of truth is “Standing at shelf,” where the retailer’s mission is to make it easy to distinguish the product offerings or to help the shopper decide what is right for her through value-added messaging.Many of these moments of truth are connected by mobile technology and enabled with digital signage, bringing content marketing squarely into the shopper marketing world. Murray cautioned that “always on” can get “always annoying” and challenged shopper marketers to take the driver’s seat and develop content that brings humanity and emotion back to each step of the customer journey. He called for information about brands that Walmart can share in a programmatic way and that it can tailor according to different moments of truth and environments.“We’re digging into understanding what our customers find helpful and how we can assist them at every step of their journey,” Murray said. “Once we understand it, we will have the best-in-class standards.”

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