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BEST BEFORE 2018HOW TO PREPARE FORTHE FUTURE OF ONLINEGROCERY SHOPPING
ARE YOU DIGITALLYREADY TO FIGHTAMAZON?
AMAZON’S RECENT ACQUISITION OF WHOLE FOODS MARKS THE ENTRANCE OF THE ECOMMERCE GIANT INTO YET ANOTHER INDUSTRY.To consumers, this move comes across as an unexpected — but likely convenient — expansion of Amazon’s empire. To the vast majority of supermarkets and grocers, however, Amazon’s takeover looks like an ominous gray cloud shrouding the future with darkness and uncertainty.
CountlessCountless supermarkets and grocers that offer a digital experience have been pushed into a frantic scurrying to prepare for the future — a future that has likely been carefully mapped out by Amazon with months or years of preparation and strategy.
However, there is a silver lining to the dark cloud of Amazon’s entrance into this trillion-dollar industry.
GrocersGrocers and supermarkets that can capitalize on this move to drastically improve on every front will not only be in a better position to handle the new competition, but will also be on a path to becoming better and stronger businesses.
ContentSquare conducted a study that analyzed of over 37 million sessions and over 300 million pageviews for grocery, retail and superstores across the US, UK and France. Here’s what you can do to keep pace with the latest retail revolution.
SESSIONS+37 MILLION
PAGEVIEWS+300 MILLION
SECTION I MEMBERSHIP+
FOCUS
LOYALTY+ CONVERSION=
One of Amazon’s strongest features is its Prime Membership — a loyalty program that rewards customers with free shipping and steep discounts on a wide array of products.
There are roughly 40 million Prime users — the There are roughly 40 million Prime users — the majority of whom are active online shoppers. In fact, research suggests that these consumers convert at a rate that’s up to 22 times higher than the average conversion rate of the largest online merchants in North America.
The ContentSquare study found that logged-in The ContentSquare study found that logged-in members return to a site 23% more than unlogged visitors. They also bounce 64% less and view 148% more pages than unlogged visitors.
Not only do members engage more — they spend Not only do members engage more — they spend more. Member users have a conversion rate 10 times higher than unlogged users, and clock up 5% more buying sessions than their unlogged counterparts over the course of one month.
FurthermorFurthermore, members prospect less, are less volatile, and are more mature as consumers. Our study found that in one month, members generated 55.57% more revenue than unlogged visitors!
HARNESS THE POTENTIAL OF USER ACCOUNTS AND REWARDS PROGRAMS
#1
MEMBERS RETURN23% MORELogged members return to a site 23%more than unlogged visitors.
MEMBERS BOUNCE64% LESSLogged members bounce 64% lessthan unlogged visitors.
MEMBERS GENERATE+55% REVENUEMembers generate 55.57% morerevenue than unlogged visitors.
Supermarkets and grocery stores that encourage membership by offering attractive loyalty programs will see boosts in conversion.
Supermarkets and grocers can also learn from the intelligence behind Amazon’s audience development.
When it launched in 2005, Amazon Prime specifically When it launched in 2005, Amazon Prime specifically targeted college students by offering them free Prime membership for 6 months and discounted products for the duration of their academic tenure. College freshmen marketed to in 2009 are nearing 27 years old today, and have significantly more spending power than they once did. Their loyalty to Amazon, howevehowever, has largely remained unchanged.
The lesson here? With targeted marketing, a brand can nurture the loyalty of an entire generation.
By tailoring the digital experience to a specific active audience — and marketing accordingly — supermarkets and grocers can invest in a community of shoppers that will be with them in the long run.
BUILD ANDRETAIN ANACTIVE AUDIENCEOF SHOPPERS
#2
Supermarkets and grocery stores that can build and retain high value and active audiences will be able to rely on their loyaltytheir loyalty to grow.
THE TAKEAWAY
#3Building and retaining high value and active audiences will help focus marketing efforts and streamline the shopping experience.
Rewarding members with discounts and preferential shipping rates will greatly encourage conversions.
#2
Encouraging users to create an account will ensure return visits and reduce the bounce rate.
#1
SECTION II BENEFITS OF THE CURATED
SHOPPING EXPERIENCE
One of Amazon’s biggest assets is the ability to curate product suggestions for its users. A few clicks around Amazon’s site will throw up a series of suggested items based on what other users — with a similar history or potentially similar demographics — ended up buying. The more you search, the more fine-tuned these suggestions become.
Granted, Amazon has access to an almost Granted, Amazon has access to an almost incomprehensible amount of data about its shoppers’ preferences and purchases. They also are likely making use of machine learning and artificial intelligence to better understand and act on trends and patterns.
There is much online supermarThere is much online supermarkets and grocers can do to achieve a sophisticated understanding of their customers’ needs and expectations — and shape their platform accordingly. Digitally listening to customers and understanding why they behave the way they do from search to purchase allows businesses to optimize digital experiences towards success. And artificial intelligence is now available success. And artificial intelligence is now available not only to the giant brands, but to brands who are ready to innovate.
KNOW YOUR CUSTOMERS BETTER THANTHEY KNOW THEMSELVES
#1
Data-driven understanding of user engagement is the first step to designing a personalized shopping experiencexperience.
Wish lists are a terrific opportunity to increase business. Compiled by customers and featuring items they would like to receive, they are places they go back to again and again. Some wish lists can be shared with friends and family for special occasions like birthdays, baby showers, etc.
In our studIn our study, we found that the wish list — which was used by 9% of the population — has a conversion rate that is double that of the overall site. The average time spent on the wish list page is 84% higher than the average time spent on any other page of the site.
Offering the option to download the list to different Offering the option to download the list to different online formats and to share it through social media increases its impact and usability and results in more engagement and sales. Wish lists are also a convenient way to cross-sell and repurchase, so make sure you offer different options and platforms to interact with them.
EMBRACE THE CONVERSION POWER OF THE WISH LIST
#2
TIME SPENT ON THE WISH LIST IS84% HIGHERThe average time spent on the wish list page is 84% higher than the average time spent on any other page of the site.
THE WISH LIST HAS AX2 CONVERSION RATEThe wish list has a conversion rate that is double that of the overall site.
Supermarkets and grocery stores that allow customers to create and share wish lists see an increase in return shoppers and loyalty.
As well as pledging to reduce the cost of many grocery staples, Amazon is also planning to equip some Whole Foods with its Amazon Lockers, allowing customers to pick up their groceries at their own convenience.
Why is this significant? Because ContentSquare data Why is this significant? Because ContentSquare data shows that in-store pickup customers convert 6 times more than traditional eCommerce retail customers. These in-store pickup customers are still converting 5 times more on desktop than on mobile, highlighting the need for improving the mobile experience.
Even betteEven better, in-store pickup customers are shown to spend more than others, with a 6% higher average cart than eCommerce retail customers. The average cart for in-store pickup is $133 on desktop and $126 on mobile.
By combining a streamlined digital purchasing By combining a streamlined digital purchasing platform with a physical pickup option, businesses will effectively expand their reach and bridge the gap between online and in-store.
COMBINING DIGITAL SHOPPING WITH PHYSICAL PICKUP
#3
IN-STORE PICKUP CONVERTS6 TIMES MOREIn-store pickup customers convert 6 times more than traditional eCommerce retail customers.
IN-STORE PICKUP CUSTOMERSSPEND +6% MOREIn-store pickup customers spend more than others, with a 6% higher average cart than eCommerce retail customers.
DESKTOP IN-STORE PICKUPCONVERTS 5X MORETHAN MOBILEIn-store pickup customers convert 5 times more on desktop than on mobile.
Supermarkets and grocery stores need to understand how customers like to shop, and adapt their systems to include convenient pickup options.
THE TAKEAWAY
#3Offer in-store pickup options to reach a clientele that spends more and converts more.
Provide your customers with the option to quickly and easily set up user-friendly, shareable wish lists.
#2
Digitally listen to your customers to understand their behavior and identify trends and patterns, then translate this knowledge into a seamless, personalized shopping experience.
#1
SECTION III
A HAPPY USER IS A CONVERTED USER
Digital brands are constantly benchmarking their user experience and user interfaces to Amazon’s. Thankfully, grocers and supermarkets don’t have to invest billions to research, test, and fine-tune their own user-experience. Businesses today have the luxury of standing on the shoulders of giants to see what works and what doesn’t, and applying those real-world observations to their specific sites to get real-world observations to their specific sites to get real-world validation.
In today’s era of digital convenience, a stumbling block in the customer journey is a stumbling block to conversion. Supermarkets and grocery stores that want to thrive in the post-Amazon grocery world will need to review their systems and tackle every single pain point they can identify.
For For example, our survey showed that the pre-homepage, the welcome page that requests a login or a location before allowing the user to browse the products, has a 76% higher bounce rate than the average website bounce rate. Why? Because users are put off by the quantity of information they are being asked to provide before they can shop. With 13% of traffic landing on this pag13% of traffic landing on this page, stores are losing a lot of business.
A way to tackle this is to offer a pre-populated localization or display the popup in only part of the page, so it doesn’t block the ability to add to cart.
STREAMLINING YOUR DIGITAL EXPERIENCE FORA FLAWLESS INTERFACE
#1
THE PRE-HOMEPAGE HAS A+76% BOUNCE RATEThe welcome page that requests a location before allowing the user to browse the products has a 76% higher bounce rate than the average website bounce rate.
Supermarkets and grocery stores need to identify pain points in the customer journey and streamline the shopping experience accordingly.
One recurring pain point is shipping. While shipping isn’t as much of a digital experience issue, it is still a critical component of the customer experience overall. Consumers LOVE free shipping. In fact, free shipping is usually one of few the guaranteed ways to increase a conversion rate for any industry across the board.
AdditionallAdditionally, 28% of shoppers abandon their carts due to an unexpected shipping cost — a headache that Amazon has tackled brilliantly with its free shipping Prime benefit. This is a significant pain point for grocers and supermarkets, however, as online shipping costs can vary substantially depending on the size of the cart.
SHIPPING AS AKEY COMPONENT OF UX
#2
Grocers and supermarkets that advertise clear, attractive shipping policies will see more checkouts. UNEXPECTED SHIPPING
COSTS LEAD TO28% CARTABANDONMENT28% of shoppers abandon their carts due to an unexpected shipping cost.
THE TAKEAWAY
#3 Have a clear, attractive shipping policy.
Simplify the checkout process with easier forms, fewer screens, and fewer steps.
#2
Identify pain points in the customer journey and streamline the entire shopping experience, from adding to cart all the way to delivery/pickup.
#1
FINAL
THOUGHTS While Amazon’s trailblazing may seem daunting
for digital retailers, there are many lessons that can be learned and borrowed from the brand’s successes.
Grocers and supermarkets can compete with Amazon on the digital front by utilizing a number of different strategies in unison.
From developing an irresistible membership From developing an irresistible membership scheme to understanding how your customers like to shop and adapting your systems
accordingly, there is lots grocers and supermarkets can do to retain and grow their client base.
Digitally understanding shoppers, and optimizing platforms based on this understanding, will remove the guesswork from this challenge. It all starts and ends with the customer.
WWelcome to the brave new world of grocery shopping, and help yourself to a slice of the pie.
- ContentSquare Online Shopping Study- https://www.digitalcommerce360.com/2015/06/25/amazon-prime-members-convert-74-time/
- https://blog.kissmetrics.com/5-ecommerce-stats/
- https://www.digitalcommerce360.com/2015/02/26/growing-reach-amazon-prime
- https://www.digitalcommerce360.com/2015/06/25/amazon-prime-members-convert-74-time/
- https://www.digitalcommerce360.com/2015/01/27/45-amazons-us-customers-are-prime-members/
SOURCES
ABOUTCONTENTSQUAREContentSquare is a digital experience insights platform that helps
businesses understand how and why users are interacting with their
app, mobile and web sites. We compute billions of touch and mouse
movements and transform this knowledge into profitable actions
that increase engagement, reduce operational costs and maximize
conversion rates.
Using behavioral data, artificial intelligence and big data to provide
automatic recommendations, ContentSquare empowers every
member of the digital team to easily measure the impact of their
actions and make fast and productive data-driven decisions to opti-
mize the customer journey.
WWW.CONTENTSQUARE.COM
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