Shopper insights: What they are and how to best use them

Understanding the nuances of shopper behavior has become a critical success factor for brands and retailers alike. 

As consumer preferences shift and shopping habits evolve, gaining insight into what motivates purchasing decisions is essential for staying competitive. This is where shopper insights come into play. 

By using shopper insights, companies can uncover valuable truths that shape everything from marketing efforts to product development. 

In this article, I’ll explore what shopper insights are, why you need them, how to best use them and more. Let’s get into it.

Shopper insights are data points that explain the customers’ shopping experience. 

This research reveals why people buy certain products, how they shop (whether in-store or online) and what influences their decisions. And these insights go beyond just sales numbers — they dive into the preferences, behaviors and even the emotions behind a purchase.

For businesses, shopper insights are incredibly useful because they can help fine-tune strategies in several key areas:

• Marketing: Knowing what motivates shoppers allows companies to create more targeted and effective marketing campaigns.

• Product placement: Whether it’s positioning products on a store shelf or showcasing them online, insights help ensure they catch the customer's eye at the right moment.

• Personalization: With a better understanding of what customers want, businesses can tailor online experiences and recommendations to individual preferences.

• Product development: Insights can reveal opportunities for new products or improvements to existing ones that align with customer needs.

• Sales growth: When companies know their shoppers, they can make smarter decisions about pricing, promotions and inventory, ultimately leading to increased sales.

In short, shopper insights give companies a clearer view of how to meet customer expectations and boost overall business success.

Why do you need shopper insights?

Shopper insights give businesses a deeper understanding of their customers and how they shop. It’s not enough to know what people are buying — you need to know why they’re buying it, how they found it and what influenced their decision, which is all included in shopper insights. 

Here are the immediate benefits of shopper insights:

1. Improves your customer’s experience: When you know what your customers want, you can make their shopping experience smoother and more enjoyable, whether it’s through better product recommendations or a more intuitive store layout.

2. Tailors your marketing efforts: Instead of broad, generic marketing, shopper insights allow for more targeted messaging that resonates with specific customer groups, leading to more effective campaigns.

3. Optimizes product placement: Insights show where and how products should be displayed to maximize visibility and sales, both online and in physical stores.

4. Allows you to stay competitive: Understanding shopper behavior gives you an edge you need in a crowded market. It helps you adapt quickly to trends and shifts in customer preferences, keeping you ahead of the competition.

5. Maximizes sales and profitability: With the right insights, you can fine-tune everything from pricing to promotions, ensuring that your business decisions are aligned with what shoppers are actually looking for.

What’s the difference between shopper insights and consumer insights?

The difference between consumer insights and shopper insights comes down to the focus and the stage of the buying process they examine.

Consumer insights: 

Consumer insights tell us about the person outside of the shopping experience. They explore the broader behaviors, preferences and motivations that influence a person’s lifestyle and decisions. Consumer insights focus on who your customers are, what they care about and why they choose certain brands or products in general —  not just when they’re shopping.

For instance, consumer insights might look at:

• Why someone prefers sustainable or eco-friendly products

• The emotional connection a person has with a particular brand

• What drives long-term loyalty to a brand

Shopper insights: 

On the other hand, shopper insights focus specifically on what happens during the shopping experience — whether online or in-store. They dig into how people behave when they’re actively shopping, what influences their decisions at the point of sale and what pushes them to choose one product over another.

Examples of shopper insights include:

• What makes a shopper pick up one item off the shelf and not another

• How store layout or website design impacts buying decisions

• How promotions or packaging play a role in the final purchase

In a nutshell, consumer insights help businesses understand the bigger picture of who their customers are, while shopper insights zoom in on the actual shopping journey. 

Now that we’ve covered the differences, let’s briefly discuss how a trending topic for both — AI — can be used to help gain shopper insights.

Using AI for shopper insights 

Using AI for shopper insights is becoming increasingly popular, and there are several ways businesses can use it to better understand their customers:

1. Data analysis: AI can quickly analyze vast amounts of data from various sources, such as sales transactions, customer interactions and online behavior. This helps identify patterns and trends that might not be immediately apparent, providing deeper insights into shopper behavior.

2. Customer segmentation: AI algorithms can segment customers based on demographics, purchasing habits and preferences. This allows businesses to tailor marketing strategies and product offerings to specific groups, improving engagement and conversion rates.

3. Predictive analytics: By using historical data, AI can predict future shopping behaviors and trends. This helps businesses anticipate customer needs, optimize inventory levels and plan effective promotions.

4. Sentiment analysis: AI tools can analyze customer feedback from social media, reviews and surveys to gauge sentiment toward products or brands. Understanding how shoppers feel can guide product development and marketing strategies.

5. Personalization: AI can help create personalized shopping experiences by recommending products based on individual preferences and past behavior. This not only enhances customer satisfaction but also drives sales.

6. In-store analytics: For physical stores, AI can analyze foot traffic patterns and shopper movements to optimize store layouts and product placements, ensuring that items are easily accessible and visible.

By integrating AI into their strategies, businesses can gain more actionable shopper insights, leading to better decision-making and enhanced customer experiences.

Here are some tips on how to effectively use shopper insights to drive business success:

1. Integrate data sources: Combine data from various channels (such as in-store purchases, online shopping behavior and customer feedback) to get a comprehensive view of shopper behavior. This holistic approach helps identify trends that may be missed when looking at data separately.

2. Lean on technology: Use advanced analytics tools and AI to process large datasets efficiently. These technologies can help uncover patterns, segment customers and provide predictive insights.

3. Segment your audience: Break down your customer base into distinct segments based on behaviors, preferences and demographics. This allows for more targeted marketing and personalized experiences that resonate with each group.

4. Test and iterate: Implement strategies based on shopper insights and monitor their performance. Conduct A/B testing to see what resonates with customers and be willing to adjust based on the results.

5. Focus on the customer journey: Map out the customer journey to understand how shoppers interact with your brand at various touchpoints. This can highlight areas for improvement, such as simplifying the purchasing process or enhancing customer service.

6. Utilize real-time insights: Keep track of real-time shopper behavior to quickly respond to trends or changes in preferences. This agility can help you capitalize on opportunities or address issues before they escalate.

7. Collaborate across departments: Share shopper insights across teams to ensure a unified approach. Collaboration fosters innovation and helps align strategies with customer needs.

8. Act on feedback: Regularly gather and analyze customer feedback to stay attuned to their preferences and pain points. Use this information to make informed decisions about product offerings, pricing and promotions.

9. Invest in training: Ensure your team understands how to interpret and utilize shopper insights effectively. Providing training on data analytics tools and consumer behavior can empower employees to make data-driven decisions.

10. Stay updated on trends: Keep an eye on industry trends and emerging technologies that can impact shopper behavior. Staying informed helps you adapt your strategies to changing market conditions and consumer preferences.

By applying these tips, businesses can effectively enhance customer experiences, optimize marketing strategies and ultimately drive sales growth.

Finding shopper insights involves tapping into a variety of sources that shed light on consumer behavior and preferences. Here’s where you can look to gather these valuable insights:

1. Point-of-Sale (POS) data: Start by analyzing transaction data from your POS systems. This can reveal purchasing patterns, popular products and peak shopping times, giving you a clear picture of what your customers prefer.

2. Customer feedback: Don’t underestimate the power of direct feedback. Surveys, reviews and social media interactions can provide invaluable insights into customer satisfaction and preferences, highlighting areas for improvement.

3. Web analytics: Tools like Google Analytics are essential for tracking online shopping behaviors. They help you understand how customers navigate your website, including page views, bounce rates and conversion rates, so you can optimize the shopping experience.

4. Market research reports: Third-party market research firms publish valuable reports on consumer trends and competitive analysis. These insights can help you benchmark your performance and identify industry shifts.

5. Focus groups: Conducting focus groups allows you to dive deeper into shopper attitudes and motivations. These discussions can uncover the reasons behind consumer behavior.

6. Social media listening: Monitoring social media platforms for mentions of your brand or products can give you real-time insights into shopper sentiments and opinions. Social media listening tools can help you track these conversations effectively.

7. Loyalty programs: If you have a loyalty program, analyzing that data can reveal repeat purchase behaviors, customer preferences and how effective your promotions are at keeping customers engaged.

8. E-commerce platforms: For online sales, your e-commerce platform likely has built-in analytics tools that track customer behavior, product performance and sales trends, offering a wealth of insights.

9. Retail analytics platforms: Consider using specialized retail analytics tools that aggregate data from multiple sources. These platforms provide visualizations and dashboards that make it easier to understand shopper behavior.

10. Competitor analysis: Keeping tabs on your competitors can also provide valuable insights. Analyzing their marketing strategies, product offerings and customer reviews can help you identify gaps in the market and new opportunities.

By applying these various sources, you can gather comprehensive shopper insights that inform your marketing strategies, product development and customer engagement efforts.

1. Zappi Optimize Pack

Zappi’s Optimize Pack is ideal for brands who are looking to optimize their product packaging based on consumer feedback to evaluate new pack ideas, identify winners and optimize them directly with target shoppers to achieve in-shelf success. 

Optimize Pack can help brands answer questions like: Which of my pack design routes have the most potential? How do the packs perform on shelf and fit with the brand? Or even, how can I improve my pack designs to maximize their impact?

This tool ultimately helps brands determine how to create packaging that stands out on shelf using heat mapping, consumer verbatims, emotional responses and more through rich consumer feedback — all of which provides clear guidance on what to improve and why.

Learn how Zappi Optimize Pack can help you create packaging that works for your brand and stands out on shelf by requesting a demo.

2. RetailNext

RetailNext is an advanced analytics platform designed specifically for retailers who are looking to optimize their physical store operations based on detailed shopper insights.

It combines data from various sources, including video analytics, point-of-sale systems and customer engagement metrics to provide a comprehensive view of in-store shopper behavior. 

RetailNext helps users understand traffic patterns, dwell times and conversion rates. The insights gained can inform decisions about store layout, staff allocation and promotional strategies, ultimately enhancing the customer experience and increasing sales. RetailNext also offers real-time dashboards and reporting tools, making it easy for retailers to track performance and adapt quickly to changing shopper behaviors.

3. Crimson Hexagon

Crimson Hexagon is a social media analytics platform that is particularly valuable for brands looking to leverage social listening to inform their shopper insights and overall marketing strategies. 

It provides insights into consumer sentiment and behavior by analyzing social media conversations, online reviews and other user-generated content. By leveraging AI and machine learning, it can identify trends, opinions and preferences among shoppers.

This tool allows brands to understand how customers perceive their products and competitors, helping to inform marketing strategies and product development. With its ability to segment audiences and track brand mentions over time, Crimson Hexagon helps businesses stay connected to their customers' needs and adapt to changing market dynamics.

Here are three practical use cases for shopper insights:

1. Optimizing store layout and product placement: A grocery store can analyze shopper insights to understand traffic patterns and product interactions within the store. By studying which aisles customers frequent and where they spend the most time, the store can optimize its layout. For instance, placing high-demand items at the back of the store can encourage customers to walk through other sections, increasing the likelihood of impulse purchases. Additionally, using shopper insights to identify complementary products can lead to strategic placements, such as positioning snacks near beverages, which can boost overall sales.

2. Personalizing marketing campaigns: An online retailer can use shopper insights to segment its customer base and create targeted marketing campaigns. By analyzing past purchase behavior and preferences, the retailer can send personalized emails with product recommendations tailored to individual shoppers. For example, if a customer frequently buys athletic wear, the retailer can promote new arrivals in that category or offer discounts on related products. This level of personalization not only enhances the shopping experience but also drives higher engagement and conversion rates.

3. Improving product development: A beauty brand can gather shopper insights from social media, customer feedback and sales data to identify emerging trends and consumer preferences. For example, if insights reveal a growing interest in vegan and cruelty-free products, the brand can prioritize developing new offerings that align with these values. Additionally, analyzing customer reviews can highlight specific features or ingredients that shoppers love or dislike, allowing the brand to refine its products and better meet consumer demands.

These use cases demonstrate how shopper insights can drive strategic decisions across various aspects of a business, from merchandising and marketing to product development.

Shopper insights are no longer a nice-to-have — they are essential for businesses looking to thrive in today’s dynamic market. 

By diving deep into the data that reveals how customers behave throughout their shopping journey, companies can make informed decisions that enhance customer experiences, drive sales and ultimately build long-term loyalty. From optimizing store layouts and personalizing marketing campaigns to refining product development, the applications of shopper insights are vast and impactful.