The digital world has become part of our day-to-day lives in how we work, how we relax and how we shop. In many ways, there is no longer a line separating our digital and physical lives.
Although younger shoppers are 2-3X as likely to have shopped using emerging media, 42% of their overall spend still occurs through physical stores (vs. 38% of Millenials’ spend).
IGD have predicted the online channel to grow to 11.2% of total groceries by 2027 (currently 10.1%).
So physical stores aren’t going anywhere, but we also know that 50% of Brits combine online and offline channels when shopping for groceries.
Many of us talk about shopping journeys being either “online” or “offline”, but the reality is no journey is linear. There is usually a mix of channels involved in the trigger, the decision making and the final purchase.
Brands need to help retailers remove the barriers between different parts of the shopping journey to seamlessly integrate digital and physical, making for an easier and more enjoyable shopping experience.
There’s an app for that…
87% of adults in the UK own a smartphone. For many of us, our phone is the most important tool we use in our day-to-day lives.
Retailers can utilise their mobile apps to make shopping easier and more enjoyable, both online and in store.
Aiding navigation e.g. B&Q’s app tells you which aisle to find your product in.
Provide personalised vouchers and product recommendations e.g. myWaitrose digital vouchers.
Triggering rewards or loyalty points e.g. Asda Rewards, you can also set alerts to tell you when your favourite products are on deal.
Scan & Go and processing payments e.g. Sainsbury’s SmartShop, which now allows iPhone users to check-out in-app using Apple Pay.
Shoppers are also known to use their smartphones to compare prices across retailers. 72% of UK Amazon shoppers say they regularly check the prices of products they see in-store on Amazon.
What else can brands and retailers do to use smartphones to make shopping easier and more enjoyable?
The age of the QR code
In the early 2010s, QR codes were all the rage with marketeers. Many brand managers wanted to put a QR code on everything, but the problem was… the general public had no idea what they were or how to use them.
This was one of the many things that changed in 2020. For better or worse, we all learned how to scan a QR code, making them relevant to the shopper marketing toolkit for the first time.
Just like any other tool, there are good and bad uses of QR codes in store.
The content needs to add value to the shopper. Whether it’s a discount, a competition or information about the product, the QR code needs to direct them to something they actually want.
The point of sale material needs to give a clear call to action. During a busy trip around the supermarket, it’s unlikely that many shoppers will scan a QR code just because it’s there. That’s why it is critical to give people a reason to get their phone out and take the time to scan and follow the link.
The future is intelligent
Retailers are already using VR/AR technology in store by providing customers with information about products before they buy them. This could include anything from video tutorials on how to cook a new dish to interactive displays helping you choose the right wine to pair with that dish.
Retailers will also start to use the metaverse to create new experiences for their customers, using it as a tool to make shopping more exploratory, interactive and personalised.
The metaverse is still in its infancy and most of us are far from ready to shop there. We have seen a few examples of shopping experiences in virtual reality, but it will take a few years to be suitable for a mainstream audience.
What do you think? Do you think you will ever shop in the metaverse?
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