GROCERY

THE NEW CONSUMER

SHOPPING JOURNEY

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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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