Envirosell’s The Science Of Shopping Conference: Wendy Liebmann Presentation

josh hunter

• March 17 2009
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On March 9–11 some of the world’s leading minds in the field of retail research met in Los Angeles for the 2009 Envirosell Science Of Shopping Conference. One of the most interesting presentations came from WSL Strategic Retail CEO Wendy Liebmann, who discussed results from a study her company conducted called “How America Shops In Crisis”.

According to Liebmann, American shoppers are “frustrated, angry, but taking control.” She says that eight years of “chaos” acted as a catalyst that caused the mindset and behaviors of shoppers to change. Global warming, the gas price roller coaster, recession, 9/11, product recalls, mortage collapse, wars, and political scandal are all contributing factors, she says.

The most common question Liebmann hears from clients is: How long will this [the economic crisis] go on?

Her answer is forever.

“Now you think we are a little too pessimistic,” Liebmann says. “Your experience tells you that the economy will right itself in 12 to 18 months, and then slowly, by the end 0f 2010, we will come out of the recession as good old American optimism rebounds and drives spending again. But that’s not the case as we see it. We may come out of the recession by the end of 2010 (ask an economist), but when we do, nothing will be the same.”

According to the WSL’s research, 69 percent of the survey sample said they we cutting back on spending because they weren’t sure about the economy.

The same survey shows that 80 percent said they don’t want to shop for anything they don’t really need.

Another interesting stat from the survey is that 14 percent said they had bought clothing and accessories on mobile devices in the past three months.

So what can be done to stay relevant to today’s shopper?

Liebmann offers these six suggestions:

1. Know Your Shoppers

Sure, this one sounds like a no brainer, but something as simple as preferred customer cards allow retailers to track a specific customer’s spending habits and incentivize return business all at once. Most stores have room to improve in this area, and Liebmann says now is the time to do it.

2. Keep Them In The Store, Keep Them In The Brand

WSL’s research shows that as much as 80 percent of consumer purchases are made on a routine basis. Think about that for a second. If you can find ways to make your store the place these routine purchases are made then you’re going to succeed. Trader Joe’s is an example of a store that has this dialed.

3. Value Your Customers Values

This goes hand in hand with knowing your customer. Liebmann says creating a deeper relationship with customers will be more essential to retaining business than ever. Her research shows that 61 percent of those polled say they are eating dinner at home with family more often and 25 percent reported going back to church with family. Liebmann believes consumer’s values play a major role in shopping behaviors.

4. Be Where They [Customers] Want To Be, Reach Them Where They Are

What good is knowing your customer if you’re not offering them what they want where they want it? Mobile devices, shifts in online shopping behaviors, even vending machines opportunities are all factors in this solution. Liebmann says the new generation of shopper wants it their way, and uses the success of small electronics being sold in airport vending machines as an example of having your product where the customer is when they need it.

5. Create Emotional Real-Estate, Not Just Another Store

This one is another seemingly obvious thing retailers should be doing, but how many are actually achieving this? Customers want to be a part of something. They have new expectations of stores. They have values and sensibilities.

6. Innovate, Innovate, Innovate

This one is pretty self-explanitory and basically reiterates all the others. The customer is changing, so stores had better find new, innovative ways to keep them happy and spending money.