Categories
September 9, 2019
Understanding the Omnichannel Shopper is crucial to surviving in an increasingly digital economy.
0
Almost 70% of consumers in the US shop in both the online and brick-and-mortar retail world. This makes them what we would call Omnichannel Shoppers, and they are especially valuable because on average they spend more in all channels than consumers who shop in one channel alone.
Of these Omnichannel Shoppers, roughly 81% rely on digital research when they are discovering, shopping for, and purchasing your products. Even if their ultimate purchase is transacted in brick-and-mortar retail, on average 35% (and even more in certain categories) are likely to validate their choice on their mobile devices, even when they are poised to purchase the product in a physical store!
In an Omnichannel retail world, the digital Path-to-Purchase dramatically impacts how consumers interact with brands and ultimately how they shop. How can brands map and leverage it to optimize behavior and consumer choice to their advantage?
As brands have moved their marketing online, many have embraced e-commerce (through pioneers like Amazon and Walmart, or even Direct-to-Consumer, most notably in beauty and personal care brands like Harry’s Shaves).
Few CPG and FMCG brands are ignoring e-commerce, but they may struggle to understand and harness the digital Path-to-Purchase, even if brick-and-mortar continues to be their dominant selling channel. And the largest e-commerce platforms like Amazon and Walmart offer very few options for brands to differentiate themselves and stand out on the e-commerce grid.
Adoption of online grocery by consumers hasn’t eliminated brick-and-mortar as a shopping channel; if anything, shoppers may look for products online that fulfill a “job to be done,” shop for it in a physical store, and ultimately purchase the product in another retail outlet offering a better price.
Early adopters experiment with either “click and deliver” or “click and collect” e-commerce alternatives offered by most major grocery retailers, introducing yet another variable in Omnichannel choice. And the number of consumers who move comfortably across the range of channels, continues to grow.
Now, grocery represents the fastest growing online purchase category.
Digital grocery has emerged not just as an alternative for consumers, but as an integrated component of the total Omnichannel shopping experience. In a pre-Omnichannel retail world, Path-to-Purchase was divided neatly into categories:
Omnichannel Shoppers now move seamlessly between digital and physical retail, blurring the lines between actions that used to be discrete and sequential.
It is imperative for marketers to understand the optimal opportunities to intercept the consumer in each of these activities, understand how and why they make choices, and how to affect consumers’ ultimate buying behavior on the Omnichannel Path-to-Purchase, regardless of where the purchase finally occurs.
Recent research by PRS IN VIVO has taken a hard look at Omnichannel inflection points with some surprising implications for how brands can look beyond e-commerce alone as a way to win in an Omnichannel Shopper experience.
Our research revealed five key behavioral insights that can help brands navigate the new Omnichannel shopper journey in order to drive sales growth:
Brands who anticipate this behavior and create content to fit “jobs to be done,” fare better than those who rely on brand awareness alone to drive more consumers to a choice inflection point. Using passive tracking, we identified search terms used by consumers like “How to make meatloaf” which led them to recipes incorporating Hellman’s Mayonnaise, a somewhat unconventional ingredient in meatloaf preparation.
Conversion to purchase is often influenced by engagement that anticipates “jobs to be done” in the most oblique ways. “How to clean mussels” was a search which led consumers to a page on a Knorr website, walking would-be chefs through the secrets to de-bearding these shellfish favorites and appending a recipe including Knorr bouillon cubes as a key ingredient.
When the online retailer is Walmart or Amazon, brands should not rely on these retailers to help them stand out distinctively. Further, their unique and rigid grid requirements disadvantage brands in specific, and actually different ways, relative to how consumers perceive products almost unconsciously. Savvy marketers need to understand these differences in order to optimize product presentation in either channel.
But more than that, brands in categories like pet food, haircare, and household products saw deeper engagement with the brand’s site when the brand satisfied a perceived need.
We have written a lot about behavioral science and the Drivers of Influence that can be applied to decode consumer choice. In the coming months, we will share more with you about Behavioral Design, the combination of BeSci and Design Thinking to create winning interventions in the Omnichannel Path-to-Purchase.
By combining Behavioral Science and Design Thinking, brands now have a chance to drive their own destiny even in the more conscripted e-commerce environments like Walmart and Amazon, the complex online platforms of other large grocery retailers, and in physical brick-and-mortar stores. By understanding how consumer choice is impacted by the new inflection points in the Omnichannel Path-to-Purchase, brands can learn how to harness BeSci and Design Thinking to their best advantage.
Disclaimer
The views, opinions, data, and methodologies expressed above are those of the contributor(s) and do not necessarily reflect or represent the official policies, positions, or beliefs of Greenbook.
Comments
Comments are moderated to ensure respect towards the author and to prevent spam or self-promotion. Your comment may be edited, rejected, or approved based on these criteria. By commenting, you accept these terms and take responsibility for your contributions.
More from Ruben Nazario
Digitally driving shopper growth by managing online product content.
Top in Quantitative Research
Why are we still measuring brand loyalty? It isn’t something that naturally comes up with consumers, who rarely think about brand first, if at all. Ma...
Sign Up for
Updates
Get content that matters, written by top insights industry experts, delivered right to your inbox.
67k+ subscribers