As discussed in previous sharketing posts, shopper marketing is a philosophy that recognises the difference between consumers and shoppers. It is based on an understanding of shopper behaviour and motivations as well as a focus on the retail channel. Where did it all begin?
Shopper marketing originated in the FMCG environment where the supermarket isles are packed with branded products and the principals of category management, in store displays, shelf space, packaging and retail promotions are obvious.
Recognising the opportunity to gain a competitive advantage through shopper marketing, the philosophy has spread from FMCG and consumables to less tangible industries such as telecommunications, financial and other services.
In a service offer, the typical FMCG marketing principals are not as obvious. The type of shoppers and the tools required to understand the shopper’s behaviour differ from traditional marketing. The product itself is intangible but the theory of shopper marketing is the same. This is because shopper marketing is about marketing in a purchase environment, whether that is a retail store, a website, a wholesaler or even a bank.
The first bank that comes to mind when you think about a real shopper marketing approach or channel focus in Australia is BankWest.
BankWest, now owned by CBA, commenced an aggressive assault on the Australia’s big four banks in 2007, when they announced the expansion to the east coast with 160 new branches, slashing bank fees and extending trading hours.
The new BankWest doesn't look like a bank
But we’ve heard all this before, an aggressive expansion plan, the promise of lower fees, more convenient hours and lots of cleaver advertising. What made BankWest standout for me? Why was this the first financial institution that came to mind?
The answer is simple. They stopped thinking like a bank and started thinking like a retailer. BankWest realised the power of the retail channel and focusing their marketing efforts on the shopper and on their customers. In the process they have revalutionised retail banking in this country.
Actually, that’s not accurate. The larger banks began the process of making their branches more customer friendly a few years ago. I remember when the CBA removed all the little pens tied up with chains and did away with the deposit slips that you had to fill in. I was amazed at the time. But how will they know how much I want to deposit? Then the ANZ put seats in the branches so you didn’t have to stand for half an hour to get served. But lets face it, as exciting as they were at the time, these were small, incremental changes.
BankWest however, made a statement. They wanted to give the east coast stores a very retail look. The store design turned the normal bank fitout on its head. Shoppers and customers were given priority and were encouraged to move around open spaces. Meeting areas were designed with modular walls for privacy.
BankWest 'store' design is comfortable and warm
New customer friendly initiatives were integrated into the store design, including, a cappuccino machine with free coffee, a coin counting machine, comfortable couches, plasma TV with entertainment for the kids, teller cash recyclers which allowed increased mobility around the store for staff and even retail product for sale.
Unique customer initiatives - cappuccino machine, coin counting machine, comfortable couches, phone banking, modular meeting spaces
Following this retail model, BankWest opened many of its new stores in shopping centres, with stores opening the same as any other retail store in the shopping centre.
As I write this, I realise that I have been referring to the BankWest branches as ‘stores’. To me they are more like stores than bank branches. We have come a long way since the pens were tied down by a chain. G-D forbid you should need to borrow a pen!
It will be interesting to see how the big four respond to the BankWest retail model based on the principals of shopper marketing.
Enjoy a free coffee and happy banking (I never thought there was such a thing)
