Grocery - The New Consumer Shopping Journey
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Transcript of Grocery - The New Consumer Shopping Journey
11THERE ISNO OFFLINEDigital influence on in-store sales has been on the rise since 2012,
jumping from 12% 1 to an expected 49% by the end of 2016 2.
Consumers are embracing the wealth of information available to
them online, but according to a study by Deloitte 1, there’s a gap
between consumers’ behaviour and retailers’ ability to deliver
desired experiences.
And it looks like retailers are missing out.
According to Forrester, online experiences influenced about
US$1.3 trillion of in-store sales in 2015 - over 5 times more than
e-commerce sales, which raked in US$0.3 trillion3. And 78% of
respondents to a PwC survey said that they were influenced in
some way by social media in 20154.
This indicates that digital experiences are now an integral part of
their shopping journey. And the influence is only growing.
While digital solutions are necessary to connect with this new
consumer, there isn’t a simple one size fits all solution. Digital
influence and the resulting digital needs vary by demographic
and industry.2 launchfire.com
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DEMOGRAPHICS
INDUSTRY
18-24 year olds are the most digitally influenced age
range, but that’s not the only demographic consideration:
ethnicity, socio-economic status, and location all impact the
level of digital influence.
Consumers are using digital at different points during their
shopping journeys in each industry. The level of influence
digital has also varies depending on industry, and even
product category within that industry.
Digital Influence isn’t just happening before heading into a
store either — consumers expect digital experiences while
they’re on the go. Largely, consumers have started to use
their smartphones to continue carving their own shopping
journeys: browsing in-store while looking up additional
information, price-matching, and reading reviews all of
which Deloitte refers to as “mobile influence.”
In 2015 34% - or US$1 trillion - of in-store sales in the US
were influenced by mobile content3, and 3/4 of the 23000
global online shoppers survey by PwC indicated they used
their device while in-store4.
MAKE ITMOBILE
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WHAT ARE THEY DOING?36% - comparing prices with competitors
36% - researching products
31% - accessing a coupon/promo code
25% - checking reviews about a product
And the numbers are even higher for millennials.
8 in 10 millennials (age 18-34) use mobile while in-store
35% - more likely to compare prices than shoppers over 35
43% - more likely to research product than shoppers over 35
38% - more likely to access coupon than shoppers over 35
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22
Digital influence in the Grocery sector is growing, but
unlike other sectors, that digital influence is taking place
predominantly on consumers’ smartphones while they are
in- store.
How are people using their phones?
Respondents to a survey by allrecipes.com indicated that5:
43% - look for coupons
39% - do price comparisons
37% - look up recipes
20% - read product reviews
And the stats are even higher for Millennials:
51% - find coupons
50% - compare prices
48% - look up recipes
50% -read product reviews
A CLOSERLOOK ATGROCERY
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HOW PEOPLESHOP IS ALSOCHANGING:Deloitte reported in 2014 that 67% of shoppers already
know what and where they want to buy1, indicating that pre-
shopping and the earlier stages of the consumer shopping
journey are less important to grocery shoppers.
A more recent study by the Food Marketing Institute found
that millennials in particular are “last-minute” grocery
shoppers, with nearly 37% of respondents saying they only
make a grocery list right before going to the grocery store6.
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It’s an important trend to note. Millennials are going to
have the most buying power by 2017, and they look for
food in distinctly different ways:
1) They Change it Up
Most Millennials shop by recipe or meal and are less likely
to buy the same staples every week7.
2) Where it Comes from Matters
Millennials are more interested in local, organic food with
recognizable ingredients and they like knowing where their
food comes from8.
3) Value is Important
Millennials shop for low prices. 85% will change brands
based on price and 56% switch brands to save money with
coupons7.
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Since grocery shoppers — especially Millennials — typically
don’t do a lot of pre-shopping, targeting consumers via
mobile at the Browse/Select and Purchase/Pay stages
of the consumer journey is the most effective option for
Grocery retailers.
CREATINGAN IMPACT
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Target consumers at the purchase stage with
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Target consumers at the purchase stage with
LET US HELP!
THE BOTTOM LINEHow people shop is changing, and that is good news for grocery retailers.
Shoppers are looking up recipes and coupons online while they’re in-store -- which means retailers have an opportunity to drive sales with mobile promotions.
Grocery retailers should invest in promotions that feature new products alongside tips or recipes as well as discounts.
SOURCES: 1 https://www2.deloitte.com/content/dam/Deloitte/us/Documents/consumer-business/us-cb-navigating-the-new-digital-divide-v2-051315.pdf 2 https://www.luxurydaily.com/mobiles-in-
fluence-on-offline-sales-continues-to-grow-forrester/ 3 http://www.mediapost.com/publications/article/268210/mobile-influence-on-store-sales-tops-1-trillion.html 4 http://www.pwc.com/us/en/
retail-consumer/publications/assets/Total-Retail-Global-Report.pdf 5 http://press.allrecipes.com/wp-content/uploads/2015/12/Allrecipes_2015_Grocery-Shopping-Digital_Trends_Measuring_Cup_low-
res_26AUG2015.pdf 6 http://www.fmi.org/research-resources/u-s-grocery-shopper-trends/u-s-grocery-shopper-trends-2015 7 http://awgadvertising.com/marketing-to-millennials-as-a-grocery-retail-
er/ 8 http://www.foodnavigator.com/Trends/Marketing/Who-made-my-tea-Stories-help-brands-reach-savvy-millennials
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