Win shoppers

Win shoppers by the strength of your retailer brand(s)

The importance of a retailer’s brand cannot be overstated. GfK Brand Architect research reveals that 30% of company revenue is generated by branding. Brand identity is equally significant to shoppers, as 60% of all shopper decisions are impacted by the retail brand they’re dealing with.

There’s an important distinction in how people think of retail brands. According to GfK consumer intelligence, shoppers choose between types of brands, such as premium vs discount brands. Therefore, the more strongly a retail brand is positioned in its category, the more likely consumers will buy from its stores.

Purchasing behavior is a key factor to consider for crafting retailer strategies. Shoppers explore different options depending on the product category they shop for: buyers of fast-moving consumer goods, for instance, visit (virtually or physically) an average of four different retailers within 3 months but only end up buying from three retailers. Tech & durables shoppers, in comparison, visit three retailers and only buy from two within 12 months.

Oliver Schmitz
Head of Retail DE & AT, GfK

The impact of brand strength

Source: GfK Brand Architect

To stand out, retailers should focus their brand-building on the three reasons why consumers choose one retail brand over another. These are:

Relevance — shoppers have different needs depending on the occasion of the shopping trip. The better a brand aligns with a shopper’s specific needs and preferences, the higher the relevance. Improving relevance with target consumers requires a thorough understanding of shoppers and tailoring offerings to cater to their unique requirements.
Ease of access — convenience and accessibility play a crucial role in shoppers' brand choices. Whether it's the proximity of physical stores, the availability of online shopping options, or the ease of navigating a website or mobile app, winning retailers provide seamless and hassle-free access to their portfolio. This involves offering user-friendly interfaces and multiple channels for engagement and purchase. Keep in mind that planned shopping excursions have different access requirements than spontaneous shopping.
Shopper experience — this encompasses all touchpoints and interactions a shopper has with a retailer brand. Retailers that provide excellent experiences achieve future relevance. This is earned by improving: customer service, store ambiance, product quality, checkout process, and post-purchase support.

Diane Gahl

Global Director, Brand Intelligence, GfK