To reduce the cost of shipping high bulk/low value per cubic inch products like diapers and toilet
paper, Amazon is co-locating employees in seven of Proctor & Gamble’s warehouse
distribution centers. Watch for products with different
“values per cube” to follow different paths to the online market.
reports that shoppers under 45 are much more likely to have digital connections
with their ShopRite stores than older shoppers. It’s clear from reports like this and our own
research that if
you want to better engage younger grocery shoppers, it's key to “talk digital.”
recent study sponsored by Match ShopLab and Novartis Consumer Health found that
one out of every five shoppers had downloaded their food retailer’s app. Retailer-branded apps hold
great potential for increasing shopper engagement and building loyalty, but they aren't all created equal.
As commercial real estate begins to recover from "the Great
Recession," most professionals expect a new normal that involves a blended shopping
experience, rather than a return to the good old days for all types of retail, including grocery.
Growth opportunities available from “cracking the code” of big data related to shopping behavior is moving retailer-manufacturer collaboration to a whole new level, and participants are reaping competitive advantage.
subscription economy is booming in the UK, and there are lessons there for the
US and beyond. Here are a few examples from a recent Telegraph article; these companies
are built around the concept of "delivering solutions.”
Canadian grocer Longo’s
recently launched a mobile app for
both iPhone and Android platforms that’s producing more sales, more
visits, and greater shopper engagement. It's becoming increasingly clear
that strong digital connections are emerging as a way for retail to
MySupermarket.com certainly upped the ante on price transparency when
they made it possible for shoppers to compare prices across major online
retailers -- but they're also expanding the definition of great
Chipotle’s recent video and game are getting
lots of attention from consumers and
professionals. It's a terrific example of how content marketing works in social media by using stories to connect with customers on an emotional level.
Good Eggs, a “farm to fridge” food aggregator, only sells products that customers
have already ordered. It's one of the new “food hubs”
that are connecting farmers and retailers/consumers in entirely new ways.
The cost-effectiveness of traditional advertising is eroding. TV ad spending approached $65 billion last year vs. $3 million for digital video – but guess which one grew 45% and which one grew 6%? Programmatic ad buying is going to accelerate this trend.
Monetizing social data has been difficult because “contacts”
don’t necessarily translate into influence on other people's buying decisions. The true influencers are the ones you want, and Pursway is applying big data techniques to customer data bases to find them.
Now that Weis Markets offers online grocery shopping with store pick-up at 14 locations, their customers are routinely reminded of
the benefits of online shopping. This will certainly help accelerate the
growth of the practice, and it gives Weis a point of difference in many markets.
Canada’s Metro supermarkets launched a re-vamped “digital ecosystem”
last week, featuring a more intuitive and personalized website and an iPhone
app that can sync with the site. It's a big step forward in delivering on their personalization promise to shoppers.
Aisle50 provides savings to consumers who buy a branded
product online and are willing to pick it up at their food store and use the store's
loyalty card to facilitate the transaction. The shopper gets savings, the CPG brand gets a sale, and the retailer gets a visit from the customer. Sweet.
IKEA Family, the retailer’s unique loyalty program,
works because the focus on “a better everyday life” keeps them customer-centric and the
intent to serve “many people” ensures engagement with mainstream customers.
Customer satisfaction with brick-and-click/omnichannel retailers dipped below that of pure-play etailers for the first time since May 2012 in the Opinion Lab's Customer Feedback Index ratings. Check the performance by function for
snapshot of the two channels' strengths and vulnerabilities.
Can the flat-fee pricing model that Netflix applies to TV and
Spotify applies to music work for books? Maybe, maybe not, but the attempt is more evidence that digital devices are opening up opportunities to experiment with pricing models.
Ocado's CEO and cofounder Tim Steiner believes that
increasing online grocery’s appeal to the mass market will generate the tipping point for online food shopping. Our POV? The effect on brick-and-mortar stores will differ depending on how they respond.
Customer response to The Gap's "Reserve in Store" pilot was so strong it
surprised company leadership. The lesson is that shoppers are using new digital capabilities to unbundle what used to be considered “normal”
Wong say's Google's "water" is search queries and Facebook's is sharing. He makes a case for creating value by focusing
on people’s experience “in each moment," and so far he's making money at it with Kiip.
Why do some stores draw shoppers who visit to
touch and try the products and then buy online, while other retailers consistently
convert visits to sales? The key difference is the experience. If your store is
boring, it’s time to change that.
Online grocery shopping is growing faster in the UK than
elsewhere, and a lot can be learned from what’s happening there, especially related
to shoppers’ response to supply and demand. Ocado is a good place to look.
powerful example of how shifts in online shopping behavior
can quickly change the competitive landscape. Trip Advisor's latest website change has had a big impact on shoppers - and rocked it's market.