Cartifacts_10th-edition

cartifacts 10TH EDITION

Cartology's

must-read + The latest from research, insights and the retail media industry

1

Welcome to our 10th issue We have exciting new customer insights to share with you in this bumper edition! Because, as we say at Cartology, unless it ends in a customer, does any of it matter?

With Christmas right around the corner, there’s no better time to get a deeper understanding of how customers plan and shop. We know they’re making their lists (and checking them twice!) and we also know they can be spontaneous shoppers too, with 33 per cent of BIG W baskets unplanned.

Get to know the BIG W customer better with some insightful results from our BIG W Customer research as we unlock how, where and why BIG W customers shop the way they do.

Walk the customer journey with us as we unpack the role of retail media and the solutions it offers marketers and brands.

See it in action as Campos, the Sydney-based coffee brand, shares how it drove 34 per cent new-to-brand customers and 131 per cent sales growth with Cartology.

All this and more awaits.

Enjoy the read and for those who have been with us for all 10 editions, thanks for joining us on the journey. Wishing everyone a Merry Christmas and a safe, well deserved break.

The Cartology Team

The BIG Picture Understanding the BIG W customer journey

R

etail media delivers great experiences for shoppers at every stage of the customer journey. When the partnership between Cartology and BIG W was created this year, we put customers at the heart of it all to deliver an even better shopping experience for families who love the BIG W brand and the commercial partners wanting to connect with them.

2

CARTIFACTS

Unlocking the BIG W customer To know a customer is to understand them. So, to develop a comprehensive portrait of the BIG W customer and their shopping behaviour, Cartology and research partner Nature undertook a quantitative survey of 2,112 BIG W customers aged 18 - 75 who have shopped at BIG W in the past six months in at least one category.

Digital opens the door Today, access to e-commerce is literally at our fingertips allowing us to search, discover and add-to-cart at the tap of a finger. BIG W customers love this convenience and increasingly begin their shopping journeys online.

Digital is the front door, with 74 per cent researching online before they head in-store. With 36 per cent spending over 30 minutes on BIGW.com.au per visit, brands can prime customers online to enhance the opportunity for sales conversion in-store.

Seeking big value Value and special offers are the top two purchase drivers,

with 94 per cent looking for specials, promotions and bargains, and 49 per cent are more likely to shop during a shopping event. Inspiration often strikes along the way, with over a third of a typical BIG W basket unplanned and 92 per cent of customers browsing two or more categories per visit.

In-store is the heart of BIG W For a sensory shopping experience, nothing beats the theatre of in-store.

In fact, it remains the preferred way to shop for BIG W customers, with 76 per cent of monthly customers shopping mainly in-store. There they can browse, touch, feel and experience the store while exploring, with 46 per cent of BIG W customers spending more than 30 minutes in-store per visit.

The customer journey is ever-evolving, giving brands more opportunities than ever before to meet customers all along the path to purchase and unlock something BIG. n

Why customers love BIG W

77% say BIG W

has good prices

77% say I can

collect Everyday Rewards points

60% say I can

shop many different product categories

Source: Big W Customer Portrait Research, Nature and Cartology 2022 n=2,112

3

CARTIFACTS

The Role of Retail Media We get the rundown from Anthony Kyriacou, Senior Marketing and Brand Experience Manager, Häagen-Dazs & Snacks How does retail media support Häagen-Dazs' above the line media plan?

Retail media ensures that the messaging customers see is reinforced in-store/online at the final moment of truth, when consumers are in a purchasing mindset. As online capabilities become increasingly sophisticated, e-commerce has also become a vital component in supporting HäagenDazs’ overall plan. The 4

opportunity for above the line and online retail media to work hand in glove to personalise offers and appeal to different segments has proven to be effective.

As much as possible, we look to tailor and link HäagenDazs’ above the line activity to our shopper activity – our past campaigns would suggest that this is the most impactful way to reach customers and build purchase intent.

CARTIFACTS

Changing customer behaviour is a key driving force behind retail media.

We’re seeing customers browse, discover and purchase at the click of a finger. How has the role of marketing / media planning changed in response?

Ease of accessibility to product information and customers’ expectations in this space has never been greater. Consequently, having your product appear on shelf is no longer enough – ensuring you have a comprehensive SEO strategy, premium online content, product inspiration etc. have all become fundamental components to incorporate in the overall media/marketing plan.

In addition, given the increased sophistication in online and with more consumers making the switch to buying online, ensuring that your above the line activity feeds into the point of purchase has also become a prominent consideration when planning.

The opportunity also exists now to serve customers with highly targeted and personalised comms and offers, so finding a way to incorporate this in the overall plan has become a really important consideration.

What are your customer objectives over the next 12 months and how does retail media support?

Being a relatively new brand to the Australian market, Häagen-Dazs’ objective over the next 12 months is to continue to build purchase intent and drive trial. Retail media plays a critical role in facilitating our ambition to get more ice cream in consumers’ hands. We know the opportunity to influence customers' purchasing decisions is greatest through the amplification of engaging and personalised retail media.

What do you see as the biggest opportunity for brands in retail media?

For mine, the greatest opportunity exists in the strong execution of all the

elements we have mentioned above. Brands that can deliver personalised, targeted, and differential comms are the brands that will see the greatest impact. Also, with the increased sophistication in e-commerce, it is essential that brands plan for a strong online presence and incorporate it as a key component of their overall go-to-market strategies.

Moreover, ensuring that your retail media is in harmony with other below and above the line media, and ensuring there is creative synergy will help make for a strong omnichannel activation and another great opportunity for brands to fully maximise their retail media activity.

Lastly, I think that brands that can effectively align the needs/objectives of the customer, retailer and brand all in one, are the brands that will show up with the greatest impact. n 5

The

Customer Journey Delivering impact and cut-through across the entire connected customer journey

T

he customer journey has become increasingly connected and non-linear, giving brands extensive opportunities to engage with shoppers and impact purchase behaviour when they are switched-on and receptive to inspiration.

We take a walk through the four distinct phases of the customer journey and the role for brands. n

6

BE SEEN

BE CONSIDERED

BE CHOSEN

BE PREFERRED

Fuel discovery and drive salience of your brand or product to secure top of mind awareness.

This is where brands can connect with customers and help them navigate the store to find your brand and product.

Once customers are in-aisle they are primed to purchase and actively choose what brand to buy, so maximum visibility at shelf, online and in-store is vital to ensuring selection and purchase.

The final, important step is to reconnect with customers, prompt re-purchase and drive brand loyalty. Here, the role for brands shifts to reengaging with customers when they are next in-market to make sure they choose your brand again. To do this, efficient, precision targeted and personalised messaging is key.

CARTIFACTS

DISCOVER

ENGAGE

RE-ENGAGE

PURCHASE

Grow awareness and fuel discovery of your new product range

Reconnect with customers to prompt repurchase

Prompt purchase consideration and push customers to the aisle

Maximise shelf exposure in-store and online to drive

conversion

In the latest Cartology playbook This is Retail Media, we outline in more detail the role retail media plays in driving customer outcomes and how it delivers unique solutions across the customer journey. You can download the playbook here.

7

CARTIFACTS

Ready, set, shop!

The Christmas customer is coming with bells on.

DID YOU KNOW?

57%

of BIG W customers are thinking about or planning their Christmas celebrations in September.

70%

of BIG W customers are looking to BIG W for their Christmas decorations.

Source: Project Santa’s Wish List, Customer Sentiment Research, October 2021.

8

I

n the lead-up to Christmas, customers are making a list (and checking it twice) to make sure they have all the trimmings for their festive feasting, family gatherings and summer socialising.

From groceries to gifts and decorating, Woolworths and BIG W have customers covered. Christmas planning and shopping see customer numbers and sales rise dramatically

nationwide with Woolworths and BIG W seeing +151m transactions combined during the 2021 Christmas period1, plus significant increases in basket size.

This Christmas, it’s digital first The Christmas customer is hungry for information and inspiration. Their Christmas shopping journey starts with digital, the new ‘front door’ of retail. At Woolworths.com.au and BIGW.com.au, customers

CARTIFACTS

can search, explore and browse for new products and seasonal favourites to add to their shopping lists and carts.

In the month leading up to Christmas, we see a marked increase in visits on both website and app, as well as a rise in searches on Woolworths.com.au.

Woolworths’ e-com sales are growing dramatically too, showing 42 per cent growth year on year4, with one in three shoppers planning to do more of their shopping online this Christmas3.

Value is an expectation Customers are mindful of the need to make their grocery budgets go further, especially in the current economic climate.

With over half of all customers engaging with supermarket loyalty programs at Christmas5, we see a dramatic

increase in engagement with Everyday Rewards eDMs and redemption of special offers.

26% of customers are also shopping more from discount department stores compared to a year ago6 as customers look for value and rewards when they’re needed most.

Reach customers on their shopping journey The Christmas shopping journey offers brands extensive opportunities to meet and interact with customers when they are switched-on and receptive to inspiration.

Cartology’s tailored omnichannel retail media solutions engage shoppers throughout their customer journey. n

FUN FACT Christmas confectionary stocking sales spike +271% and Christmas pudding sales are close behind at +150%7 Source: Woolworths Transaction Data 1/12/21 28/12/21 vs. 3/11/21 - 30/11/21

Source: 1. Woolworths Transaction Data, 10/11/2021 - 28/12/2021 (Christmas Campaign Period) vs. 11/11/2020 - 29/12/2020 (YoY). BIGW Transaction Data, 10/11/21 - 28/12/2021(Christmas Campaign Period) vs. 11/11/2020 - 29/12/2020 (YoY).2. Woolworths Group Third Quarter Sales Results. Reported 3 May 2022.3. Woolworths Consumer Pulse Survey 2022 n=877 4. Woolworths Transaction Data, 10/11/2021 - 28/12/2021 (Christmas Campaign Period) vs. 11/11/2020 - 29/12/2020 (YoY) 5. Cartology Christmas Study 2022. Q.Which of the following statements applied to you last Christmas, when it comes to supermarket loyalty programs? n=1000 6. Customer Connections Sentiment Tracker July 2022'

9

CARTIFACTS

Getting to know...

Robbie Hills After a whirlwind first few months, Robbie is riding the retail media wave.

1

Tell us about your role at Cartology?

I lead the Sales and Client Partnerships teams across Cartology. That includes working with some of Woolworths' largest national commercial suppliers, media agencies and specialist retail media partners.

Two months in and the time has flown by. I have been blown away by the amazing job that the entire Cartology team is doing including Sales, Product, Operations, Marketing and People and Culture and Finance. They have built a powerhouse of retail media in AUNZ (and globally) in a very short space of time.

2

What's exciting about being at Cartology and part of the Woolworths Group?

10

It has been so good to learn a new industry and the myriad ins and outs from some of the best in the business. I’m quickly learning from the commercial leaders and teams how things work, what is working well and where there is room for improvement.

The most exciting aspect is that we are really only at the start of the retail media wave in Australia.

There is strong momentum from across the advertiser ecosystem for true, closedloop ROI from media investment with the need for rigorous, privacy-safe,

first party data solutions – which is where Cartology comes in.

3

Can you give us a wider view on retail media from your experience working across global markets?

In my previous roles at Google, I watched the rise of retail media very closely to see how the channel was evolving. The rise of not only Amazon ads in the last few years, but traditional retailers like Walmart, Tesco, Carrefour et al have seen dollar share increase at hockey stick levels.

This really hit home at the Cannes Creative Festival

Industry insider

(logo1)

Check out the latest news and global trends from the retail industry.

Always on my list ✔ Twinings lemon and

ginger herbal tea

✔ Fresh blueberries

1 N estle's Purina

and raspberries

✔ Greek

yoghurt

makes major gains

✔ Arnott’s

2 F rom going

Mint Slices

shopping to always shopping, Dentsu 2023 media report

✔ Dill pickles

this year where retail media was truly front and centre with dominant brand presence from Walmart Connect and Amazon.

In Europe and the US, retail media is very much seen as a distinct channel when it comes to planning, media buying and measurement.

Advertisers and agencies have built specialist retail media teams - and I believe that here in AUNZ, we are not far away from that being the case.

4

Best career advice you've had?

There are a few I have always utilised:

3 B eyond retailer Always be respectful, transparent and honest with people and teams (a no BS policy).

media: $3.9bn 'owned' media wave coming

Try to enjoy and have fun at work. We spend so much time at our jobs that it is best if you like what you do and the people you do it with. Look at how you can add value to a team outside your own. An opportunity may come up that’s right up your alley.

When you're on a call, always ask if you're on speaker phone, and make sure you let others know when they are, too. n 11

COFFEE KICK Cartology and Campos brew up buzz

OBJECTIVE: Increase customer

penetration and grow awareness of the Campos brand outside of NSW.

SOLUTION:

Famous in Sydney but new to a wider audience, coffee brand Campos enlisted Cartology’s help to generate buzz around their range and grow customer penetration. A full funnel, highly targeted omnichannel solution and consumer promotion was designed to drive trial and engagement .

Cartology developed a strategy to switch coffee buyers (Beans and Ground) to Campos’ range through the use of Cartology formats, without price promotion.

A competition to win a premium coffee machine appealed to existing Bean and Ground category buyers and also Pod or Instant buyers looking to upgrade. Cartology also layered targeted eDMs in states with lower customer penetration. n 12

CARTIFACTS

“The Campos ‘Win a La Marzocco Coffee Machine’ consumer promotion delivered exactly what we wanted it to.

The Cartology team understood our goals and presented us with a strategic framework which recommended messaging and media usage along a highly considered path to purchase.

The results speak for themselves. I'm so proud of the Cartology and Campos teams who worked closely together to deliver some truly great results.”

SARAH ANSELL HEAD OF MARKETING AT CAMPOS COFFEE

RESULTS

17%

Av. customer uplift outside NSW (v pre-period)

DID YOU KNOW? • 84% of customers say drinking tea/coffee is a daily ritual • 2 in 3 enjoy multiple cups a day • 3 in 5 say it helps them relax

34%

New-to-brand customers

6x ROI

Source: Woolworths Gather Panel, Category Insight Survey, October 2021, Base: Purchased from the Packaged category at the supermarket L3M including tea/coffee, n=275 Woolworths Transactional Data, Cartology Campos campaign 6/04/2022 - 17/05/2022

13

Get in touch Talk to us about our unique, customer-focused media solutions Contact your Cartology representative for more information