How retailers can win even before the ‘first moment of truth’

Procter and Gamble coined the term the ‘first moment of truth’ (FMOT) 20 years ago. Known as FMOT, it’s the moment when a shopper notices the physical product in a retail environment and makes the decision whether to purchase or not.We’ve subsequently had the ‘zero moment of truth’ (the research phase before the first purchase) and the ‘less than zero moment of truth’ (before the research phase begins when brands can anticipate consumers’ needs).But for retail brands, the FMOT has to be of paramount importance. Nielsen and Popai data tells us that the influence of the store on purchase decisions ranges between 60 to 80 per cent, depending on category and the retail environment. Which means winning in store has an outsize influence on winning the FMOT.Unless you get it right, all the media dollars invested in brand awareness and consideration outside of store will be for nothing.So how can you maximise your chance in store to nail that crucial moment?Twenty years ago, brands had relatively blunt tools to influence the FMOT in-store. They had the principal asset of product packaging, an owned asset to sweat hard. And they had retail media options including aisle fins and shelf-talkers. But perhaps more importantly, trade marketing skills like visibility, shelf placement and trying to secure off-location. All of which still holds true today.But, with increasingly sophisticated and measurable retail media options, there are now new opportunities to win in store and influence the FMOT. This requires a rethink of the way in-store is considered by brands.Don’t forget the ‘retail’ in retail media Perhaps the starting point should be the recognition that retail media is more than media. Too many brands and media agencies are rushing to jump on the bandwagon of the media part of retail media without due consideration to the retail part. By this, I mean understanding the importance of display, merchandising and category management and how these impact the job to be done with the media. Different touchpoints in-store have varying degrees of importance and influence. The two most important are at the store entrance and the shelf. Use the store entrance to remind shoppers of your brand. Front-of-store screens are driving a relative revolution in what is possible versus even a couple of years ago. Although I’d argue there is still a misunderstanding of how to best utilise this medium. It is a poor choice, for example, to just re-run your outdoor campaign closer to the store. Instead, you should tailor creative knowing your customer is closer than ever to the point of purchase. Focus on the shelf If I was investing my dollars, I’d be focusing on the shelf. According to data from Nielsen and Popai, approximately 60 per cent of decisions in-store are influenced by retail media while 20 to 40 per cent are swayed by shelf communications. So, firstly, get your owned assets right. There are so many poor examples of packaging in the average FMCG retail environment.But, also you need to know how to communicate at the shelf. Which is where retail media options currently let brands down. I have a lot of fondness for the humble shelf-talker but times have moved on. Retailers need to be providing brands with more options at the shelf. Which is where digital signage and digital shelf-strips come into play. For the retailer, this is the unlock to truly be considered a retail media player. Digital shelf signage opens up true at-shelf attribution, dynamic pricing, inventory management, stock and the chance for biddable real-time media placement. This gives brands the option to advertise at shelf and immediately before the FMOT influence choice.Brands have a wealth of options available to them to master that FMOT. And as retail media continues to advance, digitising the shelf might even lead to some new moment of truth definition. How about the PFMOT – the ‘preceding first moment of truth’?