The word “integration” connotes connections, and in Shopper Marketing, connectivity must manifest itself on multiple levels: within the Shopper Marketing organization itself; between Shopper and other departments across the organization at-large; between Shopper and its retail customers; between Shopper and outside, partner brands; and between Shopper programs implemented in-store, online and on digital devices.
Shopper Marketing, a Confab member said, must be “holistic, and work for the retailer, the shopper and the brand. We need to think about the brand experience holistically.” However, a “lack of alignment” often yields “conflicting objectives and inefficiencies” and “results in lost opportunities.”
The Silo Conundrum. At issue is that Shopper, as with every other specialized group within a large organization, operates in a silo that can place both cultural and functional distance between it and other siloed departments. This problem can be particularly acute for Shopper Marketing, which in some organizations resides within the Sales function, while at others is parked in the Marketing department. Sometimes it reports both to Sales and Marketing, and even moves between the two functions. As one Confab member put it: “Shopper Marketing lives in different parts of the organization.”
This creates a schism for Shopper Marketing in terms of how its role is perceived. Is it more about Sales or Marketing? It is about both, but the conflicting expectations contribute to a pervasive and persistent lack of understanding about its role, and therefore its value.
Several Confab members observed that the “Marketing” dimension of Shopper tends to be disregarded by those in Sales, and, even worse, not respected by those in Marketing. Still more troubling: “Some people within the organization don’t even know that Shopper exists.” To succeed, Shopper must have “a seat at the table” and “become a part of the next generation of Joint Business Planning (JBP).”
The Retailer Complication. Further complicating matters is that Marketing too often dominates what happens in-store without an understanding of the retailer’s needs — or the shopper’s. The Brand group simply shoehorns consumer-focused advertising and brand messages into the retail setting. This doesn’t work, in large measure because Retailer and Shopper insight – and the all-important call-to-action – are missing.
One Confab member spoke in-depth about a “customer-back” approach, and the importance of close collaboration with retailers, as well is with other brands at other Consumer Packaged Goods companies. Among the key priorities: “plans grounded in our customers’ needs; plans that are inspired and aspirational; effectively leverage our strengths; shopper solution-oriented plans; differentiated and customized.”
“Shopper Marketing is not leveraging the retailer’s influence,” another Confab member noted, while citing research that Shoppers are 8 times more likely to visit a retailer’s website than a brand’s site.
The goal is to “deliver on our vision to be our customers’ most valued supplier.” However, few in Marketing seem to be aware of, much less understand, such objectives. “Brands want to see their campaigns celebrated in Adweek, and don’t care about sales,” a Confab member said. Another echoed: “Nobody challenges the brand people on ROI; they just need to win awards.” As a consequence, Shopper programs “don’t align with national brand strategies.”
Insights, Budgets & Media. Throughout the day, several Confab members articulated the lack of alignment in a range of ways, not only with respect to Integration itself, but also Insights (“Marketing doesn’t understand the difference between consumer and shopper insights”); Measurement (“we are held to a higher standard for ROI than the Marketing department”); and Human Resources/Training (“we need to join the dots of expertise.”)
A lack of integration also corrupts Budgeting (“we need budgeting transparency across the organization”; “we are very siloed in funding”; “we are given little money and few resources, but there are big expectations”).
The integration conundrum further affects Media planning, which is riddled with disconnects — and a fundamental imbalance — between traditional, digital, and in-store. The store itself must be thought of as media, however a lack of integration applies to the relationship between the Shopper function at brands and their retail customers, as well. Aligning with retail customer timelines can be especially daunting.
Shopper Marketing “has longer lead times than other vehicles,” making it difficult to integrate “media, digital and Shopper.” The result is a different “look and feel” and “different messages.” This can be compounded when multiple agencies are competing for the same business.
The Digital Disconnect. This problem may be most pronounced when it comes to Digital Shopper Marketing. While research shows that a significant majority of those in Shopper Marketing believe Digital plays an essential role in Shopper Marketing, 59% say a function other than Shopper Marketing manages Digital and 63% say an agency other than the Shopper Marketing agency handles Digital Shopper Marketing.
Fixing “organizational segregation” is no small task. To the extent the issue is addressed, the attempted remedies consist of piecemeal “patching” versus a serious effort to integrate: “We need a trustworthy way to get the whole organization to understand Shopper Marketing,” said one Confab member. “We’re standing in each other’s way,” another said.