But social networks a non-factor in driving purchase according to latest study of shopper behaviour, practices
But social networks a non-factor in driving purchase according to latest study of shopper behaviour, practices
Consumers are turning to mobile technologies to help plan and conduct in-store purchases, according to a new study.
US ‘action-biased’ marketing agency, Catapult released its study of digital shopper marketing (DSM) tools and practices, following its survey last year conducted with Forrester Research, to gauge the role of digital technologies in shopping and purchase decisions.
This year’s online study of 1,345 US consumers sought to understand more about their familiarity, usage, intentions and impact of a broad range of DSM tools. Completed in August, the study targeted those defined as the primary shoppers in the grocery, volume, pharmacy and club channels. Catapult defines DSM as the use of digital communications to engage shoppers along the path to purchase – from “at home” to “on-the-go” to “instore” touch points, all aimed at driving sales and building equity for brands and retailers.
“Our 2009 study gave us an initial read on how shoppers were beginning to engage with these relatively new DSM tools and the potential impact on their respective shopping practices and purchase decisions,” explained Jason Katz, Catapult’s emerging media executive vice president. “One year later, the latest study lets us probe a bit further to understand shopper behaviours and practices around DSM. We’re also gaining valued insights about the impact these technologies may be having on what shoppers choose to buy and where they decide to shop.”
Smartphone adoption driving use
Katz noted that although just one-third of US consumers own smartphones, the category is growing quickly, which gives those with the devices access to a broader range of applications and services. “We’re seeing across-the-board increases in on-the-go DSM mobile tools, whether it’s GPS locator services, mobile coupons loaded directly to retailer frequent shopper cards or mobile search capabilities,” he added.
Another key finding from the study is the true emergence of ecommerce, which manifested itself in several ways. “We found that nearly ten percent of consumers shopped an online grocer in the past six months, double the level of our 2009 results,” Katz said. “Nearly half of all consumers shopped Amazon.com, while almost one-quarter shopped Walmart.com during this same period. This strong showing for online shopping offers brands an ideal opportunity to recoup revenue lost to private label brands in traditional retail outlets, given Nielsen projections of 20 to 25% annual growth from this channel.”
Just as consumers are becoming more receptive to mobile shopping tools, the study revealed that they are becoming savvier about which technologies best fit their planning and shopping needs. The highest adoption rates for shoppers were for technologies that deliver value, such as cost savings or helpful planning information. Printed web coupons, retailer website promotions, online circulars and ratings/reviews all made the cut.
Increasingly tech-savvy consumers
On the flip side are those tools that shoppers feel are neither useful nor influential to their purchase decisions. “For instance, QR [quick response] codes, Snaptell and location-based check-ins all had minimal awareness, as if they were widgets in search of a shopper need,” Katz added. “Consumers are quickly becoming more adept at filtering out shopping tools that don’t accomplish their needs, which puts added pressure on DSM tools overall to prove their worth in consumer and shopper terms.”
The survey found that social networks such as Facebook, Twitter and blogs are also falling short of the mark, at least for the time being. “These tools, while useful in their own right in building brands and communities, are not perceived by shoppers as helpful in their planning or shopping cycles and will need to be repurposed to drive influence for consumers,” Katz predicts.
The study found that nearly half of all consumers across grocery, pharmacy, volume and club channels were satisfied with DSM technologies. In a related finding, 29% of consumers said they have a more positive shopping experience when using DSM, with all of the major grocery chains outpacing this overall satisfaction reading.
