Shopper Digest: Shopper Currency

2024 will be a year comprised of challenges driven by macro factors. It will be more difficult to obtain money and secure the shoppers’ purchases especially when the demand is shrinking, on top of the more aggressive competition in the market. What this means is the efficiency and the effectiveness of driving activations and campaigns, will be key to drive both revenue sales and business profitability.

In the ever-evolving landscape of consumer behaviour and brand engagement, understanding the concept of "shopper currency" has become increasingly vital for marketers seeking to drive sales, profitability and foster brand loyalty. Shopper currency encompasses the valuable resources individuals invest when making purchasing decisions: MONEY, TIME and ENERGY. Each of these resources holds distinct significance in the consumer journey, presenting both challenges and opportunities for marketers. 

MONEY: Affordability. As the most tangible form of shopper currency, often takes centre stage in marketing discussions. Pricing in general oftentimes will be the most important, if not one of the key factors that influence shoppers’ decision-making during the point of purchase.

Every brand hopes to give the deepest discount to be the cheapest in the market. However, our resources, most likely are always limited. One way a brand can explore, is to assess the impact and effectiveness of your past promotions, in order to optimise your investment in: 1. Promotion Mechanics, 2. Depth of Promotions and 3. Length of Promotions – to generate the highest benefit vs. the cost of business, which means the highest incrementality.

While competitive pricing remains crucial, modern consumers also consider value propositions that extend beyond mere cost. Factors such as quality, convenience, and brand relevance play pivotal roles in shaping purchasing decisions. Therefore, introducing TIME and ENERGY. Savvy marketers focus not only on offering competitive prices but also on highlighting the overall value their products or services provide. To leverage money effectively as a shopper currency, marketers can employ strategies such as: Crafting compelling value propositions that justify higher price points marketers can tailor their messaging and offerings to align with consumer preferences and financial goals.

TIME: Accessibility. Consumers seek seamless and efficient shopping experiences that minimise time spent on research, decision-making, and transaction processes. Recognising the value consumers place on their time, marketers must prioritise convenience and simplicity throughout the customer journey. One way a brand can explore to effectively work with time as a shopper currency, is to assess and to optimise your efforts in: 1. Channel Distribution Strategy, and 2. In-Store Visibility – to ensure your brand is always accessible and available in-store, and ready to generate the conversion during the shopping trip.

ENERGY: Applicability. The emotional connection beyond prices and time-saving conveniences, consumers invest significant emotional energy in their shopping experiences. From researching product reviews to engaging with brand content and making purchasing decisions, consumers navigate a complex landscape of emotions and motivations. Brands who understand and leverage this emotional currency can establish deeper connections with their audience, fostering loyalty and advocacy. To tap into the emotional dimension of shopper currency, brands can: Craft authentic brand narratives that resonate with consumers' values, aspirations, and lifestyles. Personalise interactions and communications to demonstrate a genuine understanding of individual preferences and needs. By acknowledging and addressing the emotional aspects of the consumer journey, brands can create memorable experiences that inspire long-term brand loyalty and affinity, and always remain at the Top of Mind within the shoppers’ consideration.

In the dynamic world of marketing, comprehending and optimising the three forms of shopper currency – MONEY,TIME, and ENERGY – is essential for driving sustainable growth and success. By recognising the nuances of the interplay between these resources and consumer behaviour, marketers can tailor their strategies to meet evolving expectations and preferences. Whether through competitive pricing, seamless experiences, or emotionally resonant storytelling, the strategic utilisation of shopper currency enables brands to forge meaningful connections with their audience and thrive in an increasingly competitive marketplace.