When it comes to studying how consumers use mobile to shop, the grocery market is a particularly interesting case study. So much of the space is being disrupted by the growing number of online marketplaces offering online grocery delivery — which keeps many consumers out of the stores, and away from those tempting, high margin, impulse purchases.
But new research shows that mobile is actually helping more than it hurts. Mobile coupons, mobile shopping lists and mobile research take the friction out of the shopping experience. How consumers use mobile for grocery shopping is particularly key in understanding how consumers use mobile to shop, in general.
This subject was the basis of a recently released Nielsen report titled “The Future Of Grocery,” which provided analysis on how eCommerce and digital technology were shaping consumer shopping preferences and commerce decisions around the world. The survey polled 30,000 online respondents in 60 countries to understand how digital technologies — such as mobile transaction enhancements — will shape the grocery retail future.
“The connected commerce era has arrived,” Patrick Dodd, President of Global Retailer Vertical for Nielsen, wrote in the report. “Consumers are no longer shopping entirely online or offline; rather, they’re taking a blended approach, using whatever channel best suits their needs. The most successful retailers and manufacturers will be at the intersection of the physical and virtual worlds, leveraging technology to satisfy shoppers however, wherever and whenever they want to shop.”
From a retailer’s perspective, that “blended approach,” involves understanding to which degree consumers turn to online to start their shopping experience, how that translates into mobile, and how that mobile consumer chooses to use their device to influence their shopping decisions. Mobile, the report shows, plays a major role in helping a consumer reach their decision – even in the grocery shopping realm.
“At present, shoppers do all of the work putting the pieces together to arrive at their final purchase decision,” said Dodd. “In a competitive retail environment, retailers and manufacturers can add value and differentiation by providing digital tools to help consumers take control of their shopping experience while also increasing sales potential. Mobile in particular can tip the scales in favor of increased shopper control, empowering them to shape the shopping experience more than ever before.”
In-store digital enhancements such as mobile coupons, mobile shopping lists, shopping apps, Wi-Fi access, and more are on the rise across major grocery retailers, but there’s still a gap in consumers around the world who actually choose to use those perks. But Nielsen’s global survey results shows consumers are becoming increasingly open to digital options, which starts with mobile.
“Use of online or mobile coupons and mobile shopping lists are the most cited forms of in-store digital engagement in use today,” the report stated.
These key stats show how consumers use mobile and how that may transfer over time:
“Use of online or mobile coupons and mobile shopping lists are the most cited forms of in-store digital engagement in use today,” the Nielsen study reported. “Consumers aren’t just picking up the phone to order; increasingly, they’re pulling up the retailer’s webpage or using their mobile app. One-quarter of global respondents are already ordering grocery products online for home delivery, and more than half (55 percent) are willing to use it in the future. The milkman is back, but this time he’s gone digital.”
So will clicks replace bricks? No. And the fact that mobile coupons and QR codes are still leading shoppers back into stores shows that the future of retail is a combination of online, mobile and mobile in-store experiences that create that “blended” experience Dodd speaks off. The key to keeping shoppers interested in spending money in the “bricks” and making those “clicks” count, however, is making sure the shopping process is smooth, which can be enhanced by mobile technology, depending on how it’s executed in stores.
“While the majority will continue to shop for the bulk of their grocery purchases in store, retailers need to ensure the experience is pleasant, efficient and relevant to keep shoppers coming back,” said Dodd. “Infusing technology in the in-store experience will be an important enabler in this process, helping retailers address shoppers’ biggest frustrations. But make no mistake, technology will never be a substitute for the basic elements of a great shopping experience, including innovative store design, ample selection, executional excellence and exceptional service.”
Nielsen’s study also highlights how mobile adoption and Internet penetration — particularly in developing regions — has helped spur online grocery sales, all of which can be attributed back to the increase in mobile usage. The Asia-Pacific region specifically continually exceeds the global average for online grocery and delivery. In China, for example, 46 percent of respondents say they use and online ordering and delivery services, and 30 percent use online automatic subscriptions for the services (vs. 14 percent globally). The report also indicated that “booming smartphone ownership and usage have created huge mobile commerce opportunities.”
“In the consumer packaged goods industry, change has been more evolutionary than revolutionary, but digital is redefining what it means to ‘go’ shopping. Lines between the physical and digital worlds are blurring. Shoppers are growing accustomed to the benefits of digital in other retail settings and are beginning to expect them in grocery as well. Savvy retailers are winning by leveraging technology to enhance the shopping experience and meet consumers’ evolving desires,” Nielsen reported.
The study also analyzed consumers who use “click and collect” services, which blends together the online and mobile shopping experience with the bricks-and-mortar. Nielsen’s study reported that just 12 percent use this service for picking up groceries, but that may also be because there aren’t many major grocers who offer the service. Curbside pickup, which has become increasingly more popular in the past few months, garnered a response from 10 percent of respondents who said they use the service. But a majority of global respondents said they’d like to use the ordering options in the future.
“The last mile of eCommerce presents sizable logistics and cost concerns that have not yet been solved,” Dodd said. “Therefore, retailers need to experiment with clever ‘delivery’ options that circumvent these issues. Retailers in France and Italy, where labor costs are high, have seen some success with ‘click and drive’ initiatives, and we expect growth will continue in the future, especially as retailers strengthen their online offering and framework.”
And to help understand how Nielsen reported its stats, below is a breakdown of how consumers use mobile in their mobile shopping experience — by regions.
Online/Mobile Coupons: Percentage who use (vs. those who are willing to use in future):
Download retailer apps/loyalty programs on their mobile device for offers (vs. those who are willing to use in future):
Login to store Wi-Fi via mobile to receive offers while shopping (vs. those who are willing to use in future):
Scan QR codes using mobile to get product information (vs. those who are willing to use in future):
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