What makes people loyal to their corner store?Jamie mash | amanda mckown | Dania peterson | angela robertson

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What is a corner store?When we set out to learn about corner stores, an essential first step was to establish a working definition for corner store. as we learned from our survey, different people have different definitions of what a corner store is. (see appendix, p. 43)

For the purposes of this study, we’ve defined corner stores as a small, independently-owned and operated convenience store in an urban environment.

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oUr mission:to direct our approach to the data we created a client scenario that established a direction for our team. in this analysis we aim to help a collective of independent corner store owners increase revenue by aligning with customer needs and increasing loyalty among shoppers.

Our process includes:

defining user types

identifying opportunities in the convenience shopping experience

understanding types of loyalty

proposing ways to build customer loyalty

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What motiVates people to Go to their corner store?in order to understand shopper motivations, we surveyed 100 convenience store shoppers to get a read on what drives them to their local store. (see appendix, p. 41-44)

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motivations for store visit

From the survey, we extracted 23 key motivations for visiting the corner store and mapped them against each other on a symmetrical matrix. Comparing these motivations allowed us to create high level clusters, suggesting higher-lever motivation-types.

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Clusters were named according to the connection, between the clustered motivations.

Quality: The quality cluster pertains to customer perceptions regarding the general store condition and product offerings.

Specialty items: The specialty items cluster connects motivations about specificity of offering and staff expertise.

Urgent need: The urgent need motivations revolve around getting exactly what you need when you need it.

Local flavor: These motivations refer to relationships that customers form with store owners and the neighborhood.

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hoW can We seGment the corner store User?the insight matrix suggested clusters of motivations that pointed to a range of customer needs. in order to understand how these motivations translated to loyalty, we plotted the motivations on a position map comparing loyalty and characteristics of store offerings.

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Generic customer need

Loyal customer

Disloyal customer

Specific customer need

love the character of the store

i’m familiar with the owner

i like to support local business

i can always rely on them for certain products

they have a wide variety of unique products

love the selection

it’s close to where i live

they make special orders for what i need

great for last minute needs

easy to grab a snack

it’s on my way to where i’m going

fills my late night cravings

it’s close, easy and they always have the basics

great when i’ve run out of toilet paper

Motivations from the insight matrix were plotted on the position map, comparing these motivations in terms of loyalty and product offering.

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Generic customer need

Loyal customer

Disloyal customer

Neighborhoodie

Specific customer need

love the character of the store

i’m familiar with the owner

i like to support local business

i can always rely on them for certain products

they have a wide variety of unique products

love the selection

it’s close to where i live

they make special orders for what i need

great for last minute needs

easy to grab a snack

it’s on my way to where i’m going

fills my late night cravings

it’s close, easy and they always have the basics

great when i’ve run out of toilet paper

Specialty seeker

Desperate shopperHappenstance

Each quadrant suggested a distinct user type.

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Neighborhoodie Specialty seeker

Desperate shopper

HappenstanceThe happenstance shopper may frequently use corner stores, but does not have a preferred store. They choose to buy what they need, when they need it, at what ever store happens to be closest or most convenient. The quality and experience of the store are relatively unimportant.

“ On my way to places I usually pass one and go in to quickly grab what I need.”

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Happenstance

Neighborhoodie Specialty seeker

Desperate shopperThe desperate shopper has an urgent need. They choose to visit corner stores as these needs arise. For the most part, they are not concerned with price, since they are desperate for a particular item.

“ Our corner store is extremely convenient, but I only shop there in emergencies, when I’m in the midst of making cookies and have run out of eggs.”

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Happenstance

Specialty seeker

Desperate shopper

NeighborhoodieThe neighborhoodie really likes their corner store and its owner and staff. They feel that the store is part of their neighborhood and want to support it. Their relationship to the store is more important than it’s offerings.

“ The nice people behind the counter at the store across the street from my house make me feel more connected to my neighborhood and encourage me to buy more from them.”

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Happenstance

Neighborhoodie

Desperate shopper

Specialty seekerThe specialty seeker loves their corner store for it’s unique offerings and quality products.

“ It’s a beautiful little store, with well-stocked, beautiful and unusual brands and items. It’s a treat to shop there.”

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Generic customer need

Loyal customer

Disloyal customer

Specific customer need

Loyal

Disloyal

Neighborhoodie Specialty seeker

Desperate shopperHappenstance

Depending on the situation, all individuals are motivated by each of these factors at some point or another. In terms of building clientele, the neighborhoodie and the specialty seeker provide the most loyal and predictable business for corner stores.

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What DiFFerentiates loyal cUstomers From Disloyal cUstomers?the position w map helped us see the general difference between the loyal and disloyal shoppers. in order to get a better idea of what differentiates these two types of loyalty, we did a semantic differential to see what attributes were responsible for those differences and what kinds of priorities each of them had.

price

proximity

consistency

character

offering

quality

experience

added services

price

proximity

consistency

character

offering

quality

experience

added services

important not important

important

important

important

important

important

important

important

not important

not important

not important

not important

not important

not important

not important

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happenstancespecialty seeker desperate shopperneighborhoodie

Disloyal shoppers:Loyal shoppers:

price

proximity

consistency

character

offering

quality

experience

added services

price

proximity

consistency

character

offering

quality

experience

added services

important not important

important

important

important

important

important

important

important

not important

not important

not important

not important

not important

not important

not important

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Loyal customers care about the unique character of the store. The store can be fancy, quirky or homey, anything but ordinary.

happenstancespecialty seeker desperate shopperneighborhoodie

Disloyal shoppers:Loyal shoppers:

price

proximity

consistency

character

offering

quality

experience

added services

price

proximity

consistency

character

offering

quality

experience

added services

important not important

important

important

important

important

important

important

important

not important

not important

not important

not important

not important

not important

not important

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The shopping experience is also important to the loyal customers. They care about pleasant interactions with store keepers and the store ambience.

happenstancespecialty seeker desperate shopperneighborhoodie

Disloyal shoppers:Loyal shoppers:

price

proximity

consistency

character

offering

quality

experience

added services

price

proximity

consistency

character

offering

quality

experience

added services

important not important

important

important

important

important

important

important

important

not important

not important

not important

not important

not important

not important

not important

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Loyal customers value additional services provided by their stores including package reception, change-making, and special orders.

happenstancespecialty seeker desperate shopperneighborhoodie

Disloyal shoppers:Loyal shoppers:

price

proximity

consistency

character

offering

quality

experience

added services

price

proximity

consistency

character

offering

quality

experience

added services

important not important

important

important

important

important

important

important

important

not important

not important

not important

not important

not important

not important

not important

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Not all loyal customers are created equal. The specialty seeker is more concerned with the specificity and quality of corner store offerings than the neighborhoodie.

happenstancespecialty seeker desperate shopperneighborhoodie

Disloyal shoppers:Loyal shoppers:

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at this point, we understood the differences between loyal and disloyal shoppers, but what are the differences between the loyalty types? after trying to differentiate using aeioU and another position map, (see appendix p. 55-56), we realized that another insight matrix would help us the most at this stage.

hoW can We Better UnDerstanD the loyal shopper?

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characteristics of loyalty

On this matrix, we compared characteristics of loyalty. These characteristics were pulled from the survey results.

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Clusters were named according to the connection between the clustered characteristics.

Character: These characteristics of loyalty are based on neighborly character and local charm.

Foundation of loyalty: These characteristics are what forms the foundation for a loyal shopper.

Specialty offering: These characteristics of loyalty are focused on the uniqueness of the offering and the special feeling of the experience as a whole.

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Within these loyalties, What traits are most prominent?taking a closer look at the insight matrix, the most interesting insight was the overlapping characteristics between the two loyalties. We took a look at these characteristics with a Venn diagram to understand more clearly where the overlap took place.

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The Venn diagram was derived from the insight matrix.

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characterneighborly servicesfriendshipproximitysupport local businessobligationreciprocity

specialty offeringproduct expertiseoffering-specific servicesuniqueness/quality of offeringtreating yourselfcharacterambience

foundation for loyaltyreliabilitytrustconsistency of offeringReliability, trust and consistency

of offering are the foundation of a loyal relationship between a corner store and its customers.

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at this point, we understood the user and what characteristics form strong bonds of loyalty. however, what are corner stores doing to meet these needs? how are they using offering and experience to define their store? We positioned them on a 2x2 to survey the current landscape.

hoW Do the oFFerinG + eXperience DeFine a corner store?

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Generic offering Specific offering

Differentiating experience

Generic experience

Convenience

Local Vibe Integrated Experience

Specialty Product

This position map compares the types of corner stores based on the experience and the offering that they provide.

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Convenience storesThe most common corner store follows the convenience model, nondescript stores providing desperate and happenstance shoppers with their essential needs. Proximity and convenience are the main drivers for customers.

“ I do not have any strong feelings about the corner store”

Integrated Experience

Specialty Product

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Local Vibe storesThese stores are locally owned and family run. Their character is defined by their owner and proximity usually sparks the first visit, but the relationship is what keeps people coming back. This store breeds local loyalty.

“ I really enjoy saying good morning to the workers there and they notice when I don’t come in, so it has become somewhat of a ritual.”

Integrated Experience

Specialty Product

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Specialty Product storesThis store offers specialty merchandise, and they cater to the specialty seeker. Proximity is not a factor, since customers are willing to travel farther and pay more for the special items and vast selection. This store also carried some general items for added convenience.

“ They also sell gorgeous cut flowers, wonderful magazines, wine, beer and imported chocolate.”

Convenience

Local Vibe

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Integrated Experience storesThis store brings offerings and expertise together to provide an integrated shopping experience. They offer unusual selections, and they have the staff knowledge to educate and consult the customers. They cater to all users.

“ They have a HUGE selection of craft-brew beer and wine, and the owner is super nice and knowledgeable, and I love supporting locally-owned businesses.”

Convenience

Local Vibe

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hoW can corner stores increase their loyalty?it is clear that the integrated experience model is the most effective way to capture customer loyalty. so, how do you get there? this position map migration helped us understand what corner stores needed to do to improve their experience and head in the right direction for success.

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Generic offering

Differentiating experience

Generic experience

Specific offering

Add expertise, and you’re fully integrated.

... but you can change what you offer.It’s hard to change

who you are ...

If convenience is your main driver:

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Generic offering Specific offering

Differentiating experience

Generic experience

... add expertise, and you’re fully integrated.

If your offering is unique...

If specialty is your main driver:

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Generic offering Specific offering

Differentiating experience

Generic experience

... adding quality products will boost loyalty

If you have a relationship with customers ...

If local vibe is your main driver:

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hoW can We look more BroaDly at opportUnity spaces For corner stores?the ten types of innovation was a good tool to see where corner stores are currently playing, and what possibilities could exists for their future.

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finance process offering delivery

business model

networking channelserviceproduct system

product performance

core processenabling process

brand customer experience

Product Performance: Some corner stores try to keep their products fresh

Product System: Some corner stores have tried to create a environment that supports their products

Services: Some corner stores offer additional services to their customers

Corner stores are currently only addressing the needs within offering

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finance process offering

business model

networking serviceproduct system

product performance

core processenabling process

Opportunities exist in many areas for corner stores to innovate.

delivery

channel customer experience

brand

Business Model: Corner stores have the opportunity to think beyond their current dominant business model, which is ‘people come to buy when need something’. They might consider distribution or an alternative service model.

Networking: Corner stores could explore networking opportunities with other corner stores or with local organizations.

Channel: Corner stores have the opportunity to think about distribution channels outside of the store.

Brand: Currently, corner stores are often so generic that the customers perceive them as nothing special. A strong brand and value proposition would help them deliver a consistent message and promise to their customers.

Customer Experience: The customer experience of corner store shopping should be expanded to serve each stage of the customer journey and to extend the experience far beyond the initial visit.

Identifying key areas that make the most sense for corner stores to improve upon will be the first steps in creating stronger businesses

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in conclUsion:your offering is your biggest driver for loyalty–find what you like and build your store experience around it.

to further your success, expand your reach beyond the in-store experience.

team 2: appenDiX

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corner stores: line charts frequency of use

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corner stores: line charts common purchases

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corner stores: pie charts store categorization

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corner stores: pie charts store loyalty

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specialty

standard

loyaltyno loyalty

juice

watermilk

cereal

bread

sugar butter

sandwich

snacks

liquor/beer/wine

household supplies

late night snackscondiments

softdrinks

hot coffee

coffee beans

ice gum

candy

paper goods

medication

cigarettes

newspaper

lotto ticket

cheese

processed food

ethnic foods

ice cream

atm

gourmet selections

get quarterssocial

corner stores: position map common corner store purchases/uses

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predictable

unpredictable

frequentinfrequent

need ingredient for recipe

(product selection)

(product selection)

(store use) (store use)

late night craving

looking for specialty item

pick up beer/wine to bring to a party

out of toilet paper

change for laundry or parking meter

get cash from atm

pick up newspaper

support local business

like staff

buy a snack

buy a soft drink

routine shopping

corner stores: position map shopping motivations

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often

occasionally

piece of communitystore

RELIAbILITy

NOTHING UNNOTICED

A LANDMARk

A RELATIONSHIP

corner stores: position map store representation

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specialty-driven customer journey map

triggEr travEL iNtEraCt BUy

desire for specialty

awareness of specialty stores• word of mouth • seeing it

traveling to store• walk • public transit

welcome impression• charm • character

explore store• layout • cleanliness • freshness • variety/selection

choosing purchases• taste testing • consulting • learning more

transaction• price • rewarded

Exit

specialty enhancement

goal: get what you want and enjoy it!

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specialty-driven customer journey map

trigger travel iNtEraCt buy

desire for specialty

awareness of specialty stores• word of mouth • seeing it

traveling to store• walk • public transit

welcome impression• charm • character

explore store• layout • cleanliness • freshness • variety/selection

choosing purchases• taste testing • consulting • learning more

transaction• price • rewarded

exit

specialty enhancement

Build relationship

with staff

insights:

• extended specialty experience offers more possibilities for relationship building. • the better the relationship, the more value to them and the more connection to the store. • specialty store allows you to be a resource for your customers.

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emergency-driven customer journey map

insights:

• emergency need does not warrant a relationship.

triggEr travEL iNtEraCt BUy

out of toilet paper

go to nearest corner store• walk/run

bee-line to toilet paper

pay

Exit

leave

goal: get what you need as fast as possible!

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understanding loyaltyposition map

Here we tried the axis of planned to unplanned visits as a way to understand loyalty.

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understanding store offeringsposition map

Here we explored ways that corner stores could compete for customers. The two routes that emerged were: offering the best of a certain product or being best suited for a particular audience.

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comparing types of shopperslist comparison

We listed the attributes of each shopper type to further refine our definitions as well as to help us see the similarities and differences.

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comparing neighborhood + specialty shopsaeioU

We compared the neighborhoodie to the specialty shopper across a common set of attributes to further understand how they were similar and different.

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comparing types of shopperpositioning map

Here we used the axis of infrequent visitor to frequent shopper and loyal to disloyal to try to determine which shopper type was the most predictable in frequency of shopping.