Member Article

Creating passionate shoppers: facts vs experience

We know that the multiples are better than discounters in just about every area. Research shows that Tesco, Asda, Sainsbury’s and Morrisons offer a far superior range, better service, shorter queues and a better taste than Aldi or Lidl.

Yet people continue to shop at discounters. Which tells me that they don’t always care about facts - they care about experiences.

Now that’s partly to do with perception and things like expectation-setting – people’s sense of how positive their shopping experience was is directly related to how positive they expected it to be, so the shops with the lowest levels of consumer expectation (i.e. Lidl and Aldi) find it easier to come off looking good.

However, I believe that this element of ‘passion’ is a key factor. People’s shopping habits (grocery or otherwise) are often more likely to be emotional than rational – experiential not factual. They want a story to tell. People don’t just want practical benefits; they want to be part of a bigger story. Think of those friends who regularly brag about the amazing bargains at Lidl, recounting the great deals they got to anyone who’ll listen. It’s partly about price but it’s also about the story of it all and the feeling of success. Perhaps it’s the British tendency to champion the perceived underdog and they feel superior for ‘getting one over’ on the bigger stores. Whatever the reason, they’re personally enthusiastic about their shopping experience and keen to share it with others.

So multiples need to replicate that. They need to recognise that experience is often a bigger motivator than fact and give customers a reason to feel passionate about their brands.

Tesco’s farm range is a good example – it positions itself as higher in quality than their previous entry tier but at a price point that competes with the discounters, plus the authentic, British-grown and healthy style of the branding makes customers feel good about buying it. The multiples can capture shoppers’ imagination and offer more than just a bargain. So, when thinking about how to beat the discounters, multiples must make sure that they don’t get too distracted by trying to win in areas like price. Offering a great shopping experience and creating passionate shoppers is key to success.

To find out more, visit Newton’s website and download the full ‘Beating the Discounters: myth-busting and the £4billion opportunity’ report.

This was posted in Bdaily's Members' News section by Tim Murray .