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Online grocery shopping: The digital path to purchase thought piece
1. The digital path
to purchase
Understanding shopper Evolution Insights compares and contrasts the
behaviour in online shoppers’ online and offline path to purchase.
grocery
“For many, the online The online food and grocery journey along the path to
space is perceived as market continues to grow purchase and how they are
rapidly presenting new influenced during that journey
somewhat of an enigma opportunities for consumer can we hope to understand
which remains on the goods companies to engage with any clarity how as
periphery of traditional shoppers, increase sales and marketers we are able to target
develop their category products and marketing
shopper marketing strategies. But to date only a messages most effectively.
activity”. minority of players have fully
embraced the online channel. We believe that the underlying
approach to developing an
“Only by understanding For many, the online space is online strategy should be no
the shopper’s journey perceived as somewhat of an different. Like in the physical
enigma which remains on the world, we need to understand
along the path to periphery of traditional the shopper’s profile, the array
purchase and how they shopper marketing activity, of influences that affect the
are influenced during that more an afterthought than an shopper’s mind-set and, of
integrated component of a course, the marketing
journey can we hope to holistic channel strategy. At initiatives which are available
understand with any Evolution however we believe to help interrupt shoppers on
clarity how as marketers firmly that online activity their journey.
should sit at the heart of the
we are able to target shopper strategy, following the …but shopper marketers
products and marketing same fundamental principles would do well to understand
messages most we have learned in-store while the marked differences
acknowledging the marked
effectively.” differences between the
between the in-store and
online world.
physical and online worlds.
What is greatly important and
In-store and online shopper often underestimated, is just
marketing strategies should how different the online and
follow the same fundamental physical can be when it comes
principles… to influences on shopper
behaviour, both in terms of the
We know from the store-based influences on the shopper’s
world of grocery retailing that mindset and the shopper
any successful shopper strategy marketer’s ability to engage
is driven from the shopper’s people at the point of
perspective. Only by purchase.
understanding the shopper’s
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2. First let’s look at shopper store. They are also less au fait
“While two shoppers may profiling with technology. This
well behave in similar shopper’s approach to online
ways in-store, when Shopper profiling takes on new shopping mirrors closely the
dimensions in the virtual world way they would shop a
shopping online their physical store –picturing the
and this can help explain clear
mind-sets and differences in behaviour when store’s aisles in their head,
consequential behaviours people shop online. shopping category by category.
can contrast greatly.”
Though often a blunt The younger – so called
instrument, profiling is a useful generation Y or iPod
means to start segmenting any generation – shopper has
market. Clearly the socio- grown up with online
demographic, lifestage and technology has few, if any,
lifestyle characteristics are as physical or emotional
relevant online as they are attachments with the in-store
offline, but the virtual world shopping experience. This
arguably requires further shopper is more inclined to use
depth in analysis of these digital cues such as recipes,
attributes as well as additional ideas, social media and
dimensions for consideration. promotions to help them
navigate the store.
Access to high speed internet,
modes of transport and the In this example we note that
shoppers’ degree of while these two shoppers may
technological know-how are well behave in similar ways in-
good examples. These store, when shopping online
additional factors at the most their mind-sets and
basic level dictate whether or consequential behaviours
not a shopper is able to use contrast greatly.
the online channel at all. At a
more subtle level they help us Now let’s look at how the
understand some of the different circumstances
differences in shopping between an online and
behaviour we see between traditional shop can greatly
online and in-store channels influence changes in
such as changes in bulk buying behaviour.
and impulsive behaviour.
We know from our existing
Let us consider an example research that shopper
comparing an older and a behaviour is greatly influenced
younger more technologically by the circumstances of the
aware shopper, and how their shopping trip. In the physical
behaviour may differ when world the circumstances of the
shopping online. Take an older shopping trip may involve
shopper first. This shopper’s leaving the house on a specific
behaviour has been heavily mission or popping into a store
conditioned by their vast on the way home from work.
experience of shopping in-
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3. The circumstances of the trip same time they use the shelves
“The circumstances of the affect, for example, the and promotional displays –
trip affect, for example, shopper’s mind-set, the route perhaps subconsciously – to
they take round the store and help choose new products or
the shopper’s mind-set, how much time they have on perhaps make the odd impulse
the route they take round their hands to consider their purchase. The point to note
the store and how much purchases. However, when here is that because they are
shopping online the methodical and walk the whole
time they have on their circumstances of the shopping store, they have high exposure
hands to consider their trip are transformed almost to shopper marketing
purchases.” entirely. This is because an initiatives throughout their
online shop can take place journey. Now let’s imagine
almost anywhere: at work, on how that same shopper may
a laptop while watching behave when shopping online.
“Fundamental differences television, or even in the Here the shopper takes their
kitchen while looking through laptop into the kitchen and
between the the fridge and cupboards. looks through the cupboards,
circumstances of shopping adding items directly into their
in-store or online have a We suggest these fundamental online store – rather in the
same way as they would write
profound influence on differences between the
their list. They buy everything
circumstances of shopping in-
shopper behaviour.” that they need quickly and
store or online have a
profound influence on shopper effectively, but in this case
behaviour. Indeed we would their exposure to shopper
go as far as to say that the marketing initiatives is very
“And it’s not just shopper limited. Impulse purchases are
extent of difference between
profiles and circumstances the circumstances could lost and as a result average
basket size is probably smaller.
that influence behaviour: actually result in the same
shopper having a different
the online store itself can
modality depending on It’s not just shopper profiles
also drive behaviour.” whether they are shopping on and circumstances that
or off-line. This influences how influence behaviour: the
they shop, what exposure they online store itself can also
have to shopper marketing and drive behaviour
how many unplanned
purchases they make – While the shopper’s profile
crucially it influences what and circumstances can clearly
they buy. influence online shopping
behaviour, so can the online
Let’s look at how these store itself – sometimes with
different circumstances can unpredictable or even negative
affect behaviour using an results.
example of a methodical and
organised shopper. In the Unlike a physical store where
physical world this shopper the shopper’s journey is
typically makes a list before dictated by the store’s static
visiting the supermarket. On layout, POS materials, off-shelf
arrival they walk up and down displays and signage, the
most of the aisles picking up online shopper can take many
items from the list. But at the
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4. different journeys and is more important to be able to
“Retailers’, and therefore somewhat less interrupt shopper effectively
consequently predictable. and efficiently once they are
further into their journey.
manufacturers’, ability to Essentially there is a need to
When a shopper embarks on
interrupt is currently poor maximise a shopper’s field of
their online shopper journey
and there is a requirement they are typically faced with a vision no matter whether they
buy from a list or using cues
to develop more effective number of choices. These may
provided by the retailer’s
include building a shopping list
tools to interrupt the website.
based on previous purchases,
shopper’s journey as they using recipes for ideas,
browse through products.” shopping by theme such as We believe that retailers’, and
promotions or navigating consequently manufacturers’,
through categories or ability to interrupt is currently
departments. The choice poor and there is a
made at this initial stage is requirement to develop more
“Overall we perceive the likely to influence profoundly effective tools to interrupt the
level of sophistication as purchase decisions from the shopper’s journey as they
offset and help drive the browse through products. It is
sitting someway behind in- remainder of the journey. during the journey itself –
store marketing in during the decision making
effectiveness but see great For example, if a shopper process – where opportunities
for shopper marketing are best
potential.” starts by visiting the
targeted.
promotions page, we would
expect them to make a high
proportion of impulse At present attempts to
purchases and be more interrupt the shopper’s
inclined to buy outside of their journey are restricted in the
typical brand repertoire. main to promotional listings at
Furthermore their subsequent the head of product pages and
buying behaviour would clearly in a few cases the use of
be influenced by what they banners. Asda does in some
have already bought on cases recommend products
promotion. In contrast, if a that you may like – a tool we
shopper starts with a list based are surprised that is not more
on previous purchases, this widely used. Overall we
could have the effect of perceive the level of
reducing their brand repertoire sophistication as sitting
since they will not be exposed someway behind in-store
to new or alternative products. marketing in effectiveness but
Subsequent behaviour is likely see great potential.
to involve filling gaps in the
shopping list. Online grocers need to
leverage their ability to know
The challenge to interrupt what the shopper has already
bought, both on the current
Given these initial decisions and previous trips,
that shoppers make, we recommending
believe this makes it all the accompaniments
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