Making Lottery Align with Consumer Trends
Top-off shopping: 80% of the world’s population is shopping more often, more frequently, and making smaller purchases. 25% say they are shopping much more frequently. 1 in 7 shoppers ‘top-off’ shop every single day! 14% of people say they top-off regularly for the very purpose of buying lottery tickets. This vital fact reflects the role of Lottery as a driver of increased frequency of top-off shoppers. How can Lottery contribute even further to this consumer behavior, and further capitalize on it? The notion that Lottery is an impulse purchase may not be entirely misguided. BUT much more interesting than that notion is that for a significant minority, the purchase of a lottery ticket is actually a driver of shopping behavior. And of course, from the retailer point of view, that is a tremendously powerful idea, making lottery players a very valuable target market.
Motivations for consumers to shop at neighborhood stores include the desire to support local businesses. They don’t want their local merchants to go out of business. They want to support local suppliers, local product, local economies in general, local everything. This is an important trend that speaks to underlying values which are becoming more and more a primary driver for consumer behavior. Lottery should increase its affiliation with local economies and stores.
Of course, convenience is the biggest driver. Consumers know they might pay a little more. Though interestingly, it is not clear whether they do view convenience stores as more expensive. Fully 20% of survey respondents said they shop at Convenience Stores to save money! No parking problems and much less time to shop means that the consumer is saving on the precious commodity which is their time.
Too, 1 in 3 products bought in super stores are thrown away! 43% of survey respondents said they shop at Convenience Stores to reduce this waste and have fresher food. As consumers, we are noticing that fact and that further justifies the proposition of paying a little more to buy products that will not be wasted. This calculus is steering us away from superstores to local merchants.
Convenience Retail is all about the experience, not the transaction or acquisition of a product. Think about how Starbucks totally reinvented the experience of buying a cup of coffee, creating an experience that consumers are happy to pay extra for. How can lottery enhance the theatre of how it is presented in the convenience store? Retail stores want Lottery to help them enhance the theatre and drama of in-store shopping because it is what drives footfall and increases dwell-time in store.
Retailers are evolving to become experiential and reflective of the values of their clientele. Stores are getting rid of cigarettes which are a key driver of footfalls. That means that Lottery’s role of driving footfall and dwell-time is increasingly valuable to retailers. Food service is becoming the big footfall driver for convenience stores. We may think that consumers at convenience stores value least expense more highly than other attributes. Not true anymore. The segment that is quite willing to pay more for premium offers and convenience is increasing.
25% of the world’s population leave home in the morning without eating breakfast. Some of them do not eat breakfast at all, but the market for those that do is huge – and “breakfast-to-go” is increasing. This is a high margin and traffic-driving category for convenience stores. How could Lottery take advantage of this scenario?
People are so busy – 51% of people do not know what they are going to do for dinner before Noon! Think about that. This fact points at why people’s life-style is pushing them more and more into the world of Convenience stores.
Consumers are increasingly looking for businesses that reflect their values. Design agencies are paid to think of things in a more complicated way. But simple is often better. In his opening talk, Ray Bates showed a slide of happy children and an ice cream cone with a simple statement of “3 euro”. That’s all that was needed to tap into the demand at this particular venue of a fairground where parents are struggling to manage their restless children. One selling benefit – 3 euro to make your kids happy!
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