Moms’ shopping trends

1. Moms’ shopping trends Today’s purchase path and what influences moms Lindsay Jurist-Rosner Microsoft Advertising

2. SHOPPERS COUNTRIES MOMS

3. New shoppers’ behaviors Seek better value More advance purchase research Using different channels Reduced volume Word-of-mouth

4. The study’s shopping moms Average age: 37 Average household income: $60K Decision makers Grocery: 90% Home electronics: 52% Home improvement: 54% Store loyal Grocery: 95% Home electronics: 74% Apparel: 85% Home improvement: 91% Fast food: 82% • Microsoft Advertising | Carat | Essential Research | Project Red | 2010 • Moms are primary decision-makers and highly store-loyal.

5. Moms’ purchase decisions are no longer linear,they’re more dynamic than ever.

6. The new shopper paradigm Word of mouth feedback loop Needstate Research Purchase Post purchase In-store experience ‘Pre-tailing’ Retailing ‘Post-tailing’

7. 3 core shopping patterns emerged • Source: Which of the following best describes your initial reasons for making this purchase? Impulse Habitual Research

8. Purchase patterns differ by purchase type

9. The new shopper paradigm Word of mouth feedback loop Needstate Research Purchase Post purchase In-store experience ‘Pre-tailing’ Retailing ‘Post-tailing’

10. Moms on a mission Necessity Item for home Treat Needstate Moms have made 3-4 different decisions about their purchase before they start their research. Budget, product, brand, placeare the key inputs.

11. Moms change their minds after researching 70-80% of moms changed something about their planned purchase as a result of their research. Price, retailer, brand: 3 most likely to change. Huge impact of digital marketing, circulars, coupons, word of mouth. Research

12. Moms at the point of purchase Place is selected based on priceand proximity. Online choice is about price and delivery speed. 20% of moms changed their minds about their purchase at the point of purchase. 25% of moms used cell phones in store to inform their purchase decision. Purchase

13. Moms talk Word of mouth feedback loop Needstate Post purchase Moms are significantly more likely to talk to people about purchases they make in each category—with the exception of home electronics. 40% of moms engaged in some word of mouth activity post-purchase.

14. Shopper paths around the world More frequent shoppers Most impulse shoppers Heavier researchers Most WOM Moms more likely to buy apparel on impulse

15. Purchase triggers, globally Most likely to purchase a treat (grocery) 98% of WOM is digital; 78% on mobile More likely to be influenced by advertising Twice as many research sources Most likely to engage in post-purchase action Driven less by necessity and more by kids’ needs

16. Shopportunities for marketing to moms 1 2 3 Get to know the touch points and triggers along the shopper path to purchase Understand the role of digital especially for researching purchases Recognize and leverage word of mouth as a key driver Success requires an integrated approach to media and in-store experiences. Online, mobile, social communication are critical to your results.

17. Thank youlindsajr@microsoft.com