Unwrapping Customer Emotions at Cacao Boys Chocolate Shop

    Introduction

    In this post, we aim to differentiate in-store visitors and online purchasers, helping marketers understand the key differences between someone who enters the store and someone who buys online for pickup or delivery. By exploring the emotional triggers that drive customers to buy chocolate, such as comfort, joy, and nostalgia, we will uncover how these motivators can be leveraged to create more compelling ad campaigns. Utilizing sales data from Cacao Boys, visitation data from RainBarrel, and segmentation data from EthoSense, we will showcase actionable marketing strategies to enhance customer engagement leading to an increase in return on ad spend (ROAS) and purchase conversion rates.

    EthoSense is comprised of nine value segments, that further breakdown into 80 audiences. Exploring in-store and online shopping behaviours at the value segment level allows for strategic insights about consumers groups, while the more granular audiences provide a tactical approach for activation. 

    Traditionalists in Muskoka Lakes

    Overview of Muskoka Lakes

    The Muskoka Lakes region, located approximately 2-hour drive north of Toronto, is well-known for its natural beauty and historic charm. A popular spot for retirees, the region is characterized by an older demographic of empty nesters. Nearly 60% (twice the national average!) of all Muskoka Lakes residents belong to 5 individual EthoSense audiences that are part of the Traditionalists value segment, comprised of 15 EthoSense audiences in total.

    Characteristics of Traditionalists

    As Traditionalists, these local Moskokans are a group of Canadians who are deeply rooted in family structure and enjoy spending time with loved ones. They may be risk averse, seeking stability and familiarity.

    The 5 Traditionalists EthoSense audience found in the Muskoka area:

    1. Traditionalists – Midscale, Skilled Trade Mature Singles & Couples (31% of Muskoka Lakes Population)
    2. Traditionalists – Modest, Public Sector, Mature Singles & Couples (10% of Muskoka Lakes Population)
    3. Traditionalists – Midscale, Skilled Trade Rural Singles & Couples (10% of Muskoka Lakes Population)
    4. Traditionalists – Modest, Skilled Trade Small Town Singles & Couples (2% of Muskoka Lakes Population)
    5. Traditionalists – Upscale, Professional Mature Singles & Couples (2% of Muskoka Lakes Population)

    Shopping Behaviours

    When Traditionalists visit the Cacao Boys shop, they are likely to bring along the whole clan for a bit of quality time of shared indulgence. Now, Traditionalists are often cautious, so they are likely to stick with their tried-and-true favourites at the shop,  passing on the flavour-of-the-month bonbon.

    Visitation and Purchase Patterns

    Understanding the visitation and purchase patterns of different customer segments is crucial for tailoring marketing strategies. The chart below illustrates the distribution of visitors to the store and online orders across the nine EthoSense value segments. Notably, Traditionalists dominate both visitor and online buyer distributions, while Change Seekers and Confident & Self-Motivated segments have nearly twice the presence in the online buyer distribution compared to in-store visitors.

    Local vs Out-of-Town Visitors

    With their strong presence in the Muskoka Lakes area, it is no surprise that the Traditionalist visitors are predominantly residents living within a 25km radius of the Cacao Boys shop. These Traditionalists shoppers are likely out enjoying an afternoon in town, making a stop for a sweet treat.

    The Good Life and Experienced, the next largest value segments in terms of visitation, tend to be out-of-towners from the GTA, likely visiting the Muskoka area as a day trip or for a cottage getaway.

    High-Value Customer Groups

    On average, an online order placed to Cacao Boys has more items and adds up to more than the average basket in-store. The average online order rings in at $83, versus an in-store order of $35. Cacao Boys has 2 high-value customer groups based on the EthoSense value segments: Confident & Self-Motivated and Change Seekers. Both spending above the online basket average, but with differing visitation habits.

    Confident & Self-Motivated

    • Characteristics: Health-conscious via quality, status-driven, worldly explorers
    • Shopping Behaviours: Prefer in-store pickup, high average spend of $93 per order at Cacao Boys
    • Marketing Strategy: Showcase premium, limited-time offerings. Use luxurious visuals and exclusive experiences

    Confident & Self-Motivated customers travel from the GTA area to the store to either pick up their online order or make a purchase in person. These shoppers seek out high-quality items that align with their health-conscious diets. Their purchase decisions are influenced by a desire for status, ensuring they buy the finest offerings available to them. This discerning behaviour highlights a trend towards premium experiences and products. Additionally, they admire entrepreneurial spirit and may respect businesses like Cacao Boys, which embody innovation and dedication to quality.

    Change Seekers

    • Characteristics: Convenience-driven, health-conscious via organic, stress-relief seekers
    • Shopping Behaviours: Prefer online shopping, high average spend of $90 per order at Cacao Boys
    • Marketing Strategy: Introduce new products, engage with community activities

    Change Seekers love the convenience and comfort of online shopping, often avoiding in-store experiences. They indulge in chocolate as a means of escapism, enjoying the warm and fuzzy feelings it brings. Seeking stress relief and comfort is key for them, and this may be achieved through products or connection with a brand. They also prefer organic products, which they view as a healthier option. Additionally, Change Seekers favour eco-friendly products and may choose business like Cacao Boys based on their packaging or fair-trade product sourcing.

    Campaign Concepts Guided by Emotions

    Bringing insights to campaign concepts is made easy with EthoSense, and marketers can use this information in practical ways to create a tailored experience to different customer groups. Below are three examples of campaigns Cacao Boys could use to target their local and high-value customers, including product offerings to highlight for each:

    Cherished Moments, Timeless Tastes

    Target Audience: Traditionalists

    • Highlight classic products such a dipped sponge toffee, chocolate chip cookies and ice cream bars.
    • Emphasize family-centric moments, like sharing a pack of chocolate dipped Twizzlers or peanut butter cups.
    • Offer a loyalty a program that includes a free treat on your birthday or a free confection with 10th purchase, to keep loyal shoppers engaged.

    Experience the Extraordinary

    Target Audience: Confident & Self-Motivated

    • Showcase premium bonbons made with luxurious ingredients including Madagascar vanilla bean or Prosecco.
    • Highlighted limited-time offerings such as during Cranberry festival or special partnerships and collaborations such as Drip Nordic Seed Crisps with JOEY.
    • Promote custom bonbon boxes for special occasions or as premium gifts.

    Unwrap the New

    Target Audience: Change Seekers

    • Promote the introduction of new and adventurous products including dipped candied ginger or pina colada bonbons.
    • Create social buzz through through online contests, such as the “Design YOUR Bar”.
    • Engage through community activities, such as Yoga on the deck and partnerships with local business like Muskoka Marshmallow Co. to build connection.

    The Impact of Rising Chocolate Prices on Customer Segments

    Over the past year, chocolate prices have really shot up, and it’s been quite the ride! The main culprit? Cacao prices have gone up nearly 5x due to a mix of bad weather and diseases hitting cacao crops in West Africa, which is where over 70% of the world’s cacao comes from. Climate change hasn’t helped either, with droughts making things even tougher for cacao farmers.

    What does this mean for the Cacao Boys target customer groups?

    Change Seekers are drawn to new and exciting products, and might be more willing to try new offerings despite higher prices. Social buzz around the new products will help amplify the novelty and quality for these shoppers.

    Traditionalists may experience sticker shock at rising prices. The nostalgia for well-loved products will keep them coming to the store, and loyalty programs or bulk discounts can help retain them as customers.

    Confident & Self-Motivated are seeking high-quality products and are willing to pay a premium for them. While prices may have gone up, they are likely to continue to see the value-for-dollar when superior quality of the product is emphasized.

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