Guest Blog by Rich Scamehorn
Market research is a crucial part of a successful business venture. When you know what your customer is thinking and what drives consumer behavior, you can successfully target them and make your product a success. 6.7 billion dollars are spent on market research each year, and it’s an ever-growing business especially as technology and social media sites continue to spawn anew each day.
However, in the past, market research on shopping behavior has been very limited. For example, if a retailer or manufacturer wanted to monitor customer behavior, they would simply strive to track in-store behavior and purchases. Alternatively, companies could survey shoppers about their in-store behavior to try to understand why they bought (or didn’t buy) the products on the shelves.
For example, they might notice that shoppers appeared to prefer whole milk to skim milk, or that cereal on the middle shelf was more popular than cereal on the lower shelf – but it was difficult to understand why. Essentially, companies would try to make educated guesses about shopper behavior based on shopping trends, attitudinal surveys and tracking how people behaved while inside a supermarket.
Although such information was helpful, it was also very limited. The scope was narrow and results could be flawed.
However, thanks to advancements in virtual technology, manufacturers now have access to real, verifiable data that shows exactly how people shop and what leads them to make purchases. Shopper research can now be taken to the next level thanks to virtual simulations and 3D displays that allow manufacturers and retailers to try out store displays and packaging ideas before they invest time and money in them in the real world.
With these new technologies, the days of trial and error are over. And that’s great news, because in today’s world, stores are looking to do more than just offer the goods and services customers want. In order to compete in an over-saturated market (including online options), stores have to make sure that they offer a streamlined experience. That means that they have to make the shopping experience as seamless and smooth as possible. With the advent of simulations, stores can really put the needs and wants of their customers first and foremost.
With virtual store simulations, for the first time, we are able to see into the mind of consumers and actually predict their next moves. This means that we can help clients create in-store marketing plans accordingly and ensure that our clients don’t waste thousands of dollars on ineffective displays. From packaging to shelf arrangement, we provide data to ensure that every decision is made with real, first-hand knowledge and unquestionable statistics.
Virtual simulations are also invariably useful when it comes to working with manufacturers in different locations and perhaps even from different cultures. Unlike traditional in-person meetings that feature a Power Point presentation and plenty of talk, a virtual simulation allows clients to interact with the data no matter where they are on the globe. That means that even if your team is spread out across the country, they can still take part in the important process of shopper market research.
In particular, this is true for franchisees who come from different countries and might not be well-versed in English. With the simulations, it’s much easier to get the point across and bridge the language gap, which helps to ensure that everyone is included in the conversation and everyone’s voice gets heard.
We all know that the Internet has forever changed our society, and it has also forever changed the way that people shop and the way that people interact. In order to keep up with these trends, it’s time for market research itself to change. We have to continue to be innovative and progressive, and to change with the demands of the day as well as stay one step ahead of the curve. And, with virtual simulations and high-tech shopper research abilities, we can do exactly that.
Rich Scamehorn is CRO of InContext Solutions