Today’s consumers aren’t just shopping a single channel—they blend brick-and-mortar wth digital channels and shop fluidly based upon their unique needs, according to a recent Neilsen study. This approach has tremendous opportunities for consumers, but is a challenge for businesses because no two consumers are alike. Customer profiles are not built on demographics any longer, but on individual behavior, which may change by season and by channel. To succeed, service providers need to be aware of the consumers’ path in their journey.
Nielsen uncovered, for example, several insights around impulse shopping. Marketers may assume impulse shopping may happen more often at brick-and-mortar stores rather than online, yet there are several categories where online impulse shopping happens more often than in physical stores.
Specifically, consumers make more online impulse purchases across the grocery, household care, snack and personal care categories than at brick-and-mortar stores, according to the survey. In fact, U.S. consumers are 5% more likely to make an impulse purchase in the grocery category online than in a physical store. Maybe now the purchase of Whole Foods by Amazon.com makes a bit more sense!
Relating consumer’s shopping behavior to physical location is now possible with technology like Darwill’s IP targeting technology. Knowing specific categories of interest, based on past behavior and paid with mobile ads, could help with spur impulse purchases. It’s therefore important for businesses to be able to reach mobile consumers as close as possible to the point of purchase.
“Retailers looking to win with omnichannel opportunities know that offline behavior doesn’t necessarily translate online,” the report said. “For retailers and manufacturers, understanding consumers, including where they shop and why, is vital part in understanding the complete consumer path to purchase.”
In another Nielsen report, “E-Commerce is fueling U.S. retail growth and omni-shopper opportunities”, reiterates this point. “Knowing where consumers are shopping—whether it be in-store, out-of-home or online—is key to devising a comprehensive retail strategy to succeed in today’s increasingly digital marketplace,” said this report.
In aggregate, e-commerce represents a small, but growing portion of fast-moving consumer goods (FMCG) sales in the United States. This omnichannel approach is also important to take into account when dealing with different demographics. For example as consumers spend more money shopping for groceries online, it’s critical to understand who is shopping online and why. The report said Millennials are the most likely to use e-commerce for small orders, 10 items or less (65% say they shop for small orders online, compared to 57% of Boomers). Millennials are the least likely, however, to use e-commerce for large orders of 40 or more items (15%, compared to 22% of Boomers). Preference for home delivery also increases with age: 83% of Boomers prefer to this, compared.
Has consumer shopping data becomes more refined, it’s clear sophisticated and accurate technology like Darwill’s IP targeting can play a key role. Not every customer responds to the same advertising message. The goal of any campaign is to get the most bang for your buck, and sending a message resonating most effectively to the audience drives sales or leads.
Further, because of Darwill’s broad scope and experience both in data and in direct mail, our in-house data team provides highly sophisticated reporting and analytics so your direct-marketing campaigns reach the best targets to produce the best results.
That’s where the data experts at Darwill can help.