Why do you need shopper marketing?

There’s something terribly disturbing happening in stores around the world. The companies that manufacture the products on the shelves are losing money while the stores themselves are making profits. But they’re not profiting from the sales of the goods. The revenues from the fees that retailers get from their consumer goods suppliers are keeping them in the black.

Consumer goods suppliers are stuck in the past, where retailers dictated trade terms, like deep discounts and escalating fees for slotting, listing, gondola ends, etc., a a slew of unconditional terms that guarantee income for the retailer with no accountability for delivering results.

It’s time to balance this scale so that the weight of influencing shoppers in-store is equally distributed. More importantly, consumer goods marketing needs to shift to a win-win proposition for both the manufacturer and the retail channels it uses. Both partners in this equation should be reaping rewards by converting browsers into buyers.

With shopper marketing, the needs of both parties are addressed. The retailer wants category growth—which comes from drawing in more shoppers, more frequently, and getting them to buy more products on each visit. The manufacturer wins by selling more product to more shoppers, creating the opportunity to increase consumption—the ultimate goal, because boosting consumption is the only way to sustain long-term brand growth. When both the retailer and the supplier gain positive results, both businesses and their relationship benefit.

Shopper marketing achieves these objectives, beginning with a basic understanding of the ultimate consumer, then the shoppers who purchase for them—a crucial link in the path to purchase. Break out of the herd. Explore shopper marketing as an extension of your consumer and trade marketing so that you get more out of your promotional spending than a lot of bull.

How have you integrated shopper marketing into your organization? And what results have you experienced?


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