The Homa Files

Excerpted from Mediaweek, “Stop & Shop Deploys Scan It! in 50 Stores” by Katy Bachman, January 8, 2009

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Launched in Aug. 2007, Modiv Media’s Scan It! system is designed both to save shoppers time, and offer targeted promotions based on current shopping behavior and purchase history. Here’s how the system works: Shoppers pick up a hand-held device as they enter a store and scan their loyalty cards, allowing the system to track the shopper’s progress through the aisles.  They scan and bag their items as they make their way through the store. 

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Coupon offers appears on the device for products in the area where they are shopping.  If the shopper scans the item, the offer is instantly redeemed and the new price is reflected in the total on their scanner.  Once they are ready to check out they scan their loyalty card and pay. 

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A number of major brands have launched campaigns with Modiv Media, including Coca-Cola, Unilever, ConAgra and Procter & Gamble. Retailers—which get a share of the revenue from participating brands—pay for the installation of the system. “Our partnership with Modiv Media is helping us increase customer loyalty and sales by extending our ongoing effort to provide the fastest, easiest and most rewarding personal shopping experience possible,”

According to the CEO of Modiv Media, the Scan It! system saves shoppers as much as 10 to 15 minutes in the store and leads to an increased average spend of $7 more per basket, compared to shoppers that don’t use the system.  

Edit by NRV

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For AMS students – past & present:: A Rogers’ Five Factors analysis of the new device:

The good news…

• Observable: Yes, very.  Other shoppers notice and watch to see how it works.
• Trialability: Good.  Store associate there to assist with “training” and answer questions and convince shoppers to give it a try. 

The bad news…

• Relative advantage: Exclusive coupons may entice some shoppers to continue to use it.  Looking at how long self-scan lines have been in operation it is obvious that most shoppers prefer to use the traditional method of checking out.
• Simplicity: Questionable.
• Compatibility: This will likely be the biggest hurdle for most shoppers.  “Trusting” the technology and their ability to master it is likely to take time since it is very different than the current shopping experience. 

Possible vertical niche? 

(Patient) Moms shopping with kids.  Some blog comments from mothers shopping with little ones say that the device keeps their kids engaged and entertained while shopping.

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Full article:
http://www.mediaweek.com/mw/content_display/news/out-there/place-based/e3i7463e6c2968d742bf50c4fcc2b357a09 

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This entry was posted on February 5, 2009 at 7:28 am and is filed under Mktg - Consumer Behavior, Mktg - Promotion, Mktg - Shopping Behavior. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.