Contents. 2. 1 Our point of view on eCommerce and Shoppers. 2 Key ecommerce challenges for FMCG brands. 3 Our approach.
eCommerce Decisions Finding brand and category growth in eCommerce
Contents
1
Our point of view on eCommerce and Shoppers
2
Key ecommerce challenges for FMCG brands
3
Our approach
4
Why Kantar TNS?
5
Appendix
2
1 Our point of view on eCommerce and Shoppers
3
The global state of online grocery shopping shows huge growth opportunities
Online value share of market as at June 2016
Early adopters
Mature markets
Fully digital
SOURCE: Kantar Worldpanel, Europanel, Intage
At a global level, eCommerce is growing fast but the share of products purchased online vs. offline varies significantly by category Total category incidence of eCommerce Purchased Online Cosmetics Facial care Perfume/cologne Baby food Pet food Skin care Infant milk Hair care OTC medicines Personal hygiene products Household cleaning Laundry Oral care Fast food Alcoholic beverages Food groceries Tobacco / cigarettes Non-alcoholic drinks
Purchased offline
20 17 17 16 15 14 13 10 9 9 8 8 8 8 7 6 5 5 0%
YoY % change +11 +1 +7 -2 +10 +8 -+5 +28 +15 +16 +20 +22 +11 +30 +22 +11 +38
20%
40%
60%
80%
100%
SOURCE: Kantar TNS Connected Life 2016 Base: Category purchasers
5
Understanding eCommerce requires a holistic approach Shoppers use eCommerce both as a touchpoint and as a point-of-sale eCommerce can contribute to sales conversion whether the purchase is made online or offline.
1. You need to influence shopper decisions at the shelf to increase brand and category conversion
2. You need to connect with shoppers along the path to purchase to maximise touchpoint impact
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What we already know about shoppers
eCommerce is still commerce Whether online or offline, brands have to break through in these environments Instore
eCommerce
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…and (e)shoppers are still shoppers Whether online or offline, shoppers use shortcuts to make decisions at shelf Instore Searching is bad…
eCommerce Finding is good!
Searching is bad…
Finding is good!
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The same shopper truths apply both online and offline
1
2
3
Shopping missions and category usage occasions are key
Shoppers use shortcuts based on their task at the shelf
Shoppers make constant, subconscious trade-offs between the three shopper currencies
More than shopper profiles or personas, the context of the shopping ‘moment’ determines shoppers’ brand choices and preferences
Successful shopper marketing distinguishes Decided shoppers who know what they want, from Open shoppers who are making a brand choice
Shopper marketing needs to leverage the understanding of time, money and energy
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But the eCommerce context does create some differences in how people shop and what they are influenced by Shoppers don’t draw hard lines between the online and the offline world, nor do they separate brands from shopping.
In-store
Online purchase decisions are a culmination of numerous influences, with online and offline, in-store and out-of-the store contexts intersecting in many different ways: think ‘omni’! To influence shoppers, we have to understand their universe – from brand through communications and purchasing.
Online
Plan Search Select buy
Offline
Out-of-store
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How can we identify opportunities and influence shoppers in eCommerce?
2 Key ecommerce challenges for FMCG brands
Do you have the right strategy for growing your market share in eCommerce?
Your business issues You need to identify ways to increase your category and brand sales on eCommerce websites that are owned and controlled by retailers:
What strategies do you need to adopt to win with shoppers in eCommerce and how does this change by customer and device? How can you optimize your brand touchpoint activities and messaging on each of the eCommerce sites where you have a presence? How can you advise customers on the organisation, structure and information architecture of the digital shelf to achieve category growth?
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You need to identify how to better engage with shoppers and promote sales growth on retailers’ eCommerce sites
How can I grow my category and brand in eCommerce?
More shoppers engage with my category
How can I get more shoppers to shop my category in eCommerce?
How can I improve the findability and presentation of my category and products in eCommerce?
More shoppers buy my category
How can I increase shoppers’ conversion with the category and my brand in eCommerce?
How can I maximise the effectiveness of my brand’s marketing activities in eCommerce?
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The shopper path is our starting point for understanding eCommerce behaviour Which path are your shoppers taking? Which challenges do you need to prioritise? There are four steps along the shopper path
Plan & Access
Navigation & Search
Buy
Compare & Select
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eCommerce makes it easy for shoppers to skip steps, creating five new possible paths, each of which poses a different challenge for influencing the shopper
Plan/Access: Challenge is to get shoppers to plan/consider the category in eCommerce
Open: Challenge is to ensure shoppers can easily search for and navigate to the category
Decided: Challenge is to ensure shoppers who already know what they want can find it quickly
Access to Buy: Challenge is to get on ‘favorites’ list or disrupt other brands on list
Automated: Challenge is to identify ways to motivate shoppers to ‘subscribe’ or disrupt other subscriptions
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There are 8 ways to influence shoppers at the digital shelf Introducing the Super 8 Search
Navigation
Product details
Checkout
Favourites
Offers
Media
Advocacy
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Super 8 activation must be tailored to each retail customer website How do the ‘Super 8’ influence shoppers of your category in eCommerce? Advocacy
Favourites
Media
Offers
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3 Our approach
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eCommerce Decisions helps you identify ways to influence shopper choice at the digital shelf
We use a combination of research techniques to understand e-shoppers motivations, behaviour and attitudes
Understanding how and why
Observing behaviours
Measuring attitudes
22
Our research methodology includes three main techniques
Understanding how and why
Cognitive interviewing A recollection based one-on-one interviewing style designed to recreate the context and mindset of the shopping trip.
Digital observations with eye-tracking
Observing behaviours
To identify which of the Super 8 touchpoints influence shoppers the most. In addition, click tracking allows us to understand their behavioural shopping sequence.
Quantitative interviews and modelling
Measuring attitudes
An online/mobile survey conducted among 150 shoppers per category per retailer to measure the attitudinal elements that shape shopper behaviours. Impact of onsite touchpoints calculated using Connect, our regression modelling framework.
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Cognitive interviewing helps us understand how and why eCommerce shoppers do what they do Cognitive interviewing is a recollection-based, one-on-one interviewing style that is immensely helpful when the need is to create a vivid narrative of how choices are being made and how we can influence these. It helps us get as close as we can to real experiences and behaviour by using memory-enhancing context-recreation techniques. This provides a granular replay of the decision-making moment, while providing insight into the non-conscious contextual influences on the decision.
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Digital observations offer a deep dive into eCommerce shopper behaviour We use a range of digital observation techniques across multiple device platforms (PC, tablet, mobile) to precisely track shopper behaviour. Depending of your specific business issues and the market you’re working in, we use a range of digital observation technologies across multiple devices (PC, tablet, mobile) to address your needs: Some of the technologies we typically use include: -
Click-path tracking
-
Wearable camera
-
Screen video capture
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By quantifying attitudes and the shopper path, we provide clear direction on how to maximise influence on eCommerce shoppers We use implicit questioning and statistical modelling to measure the reach and impact of eCommerce touchpoints. This allows us to measure the attitudinal elements that shape shopper behaviours and purchase decisions, to map out shopper’s journey within retailer websites and the category, and to define and prioritise our goals and actions.
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4 Why Kantar TNS?
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Why Kantar TNS?
1 We have a deep understanding of shopper behaviour across retail channels, and know that eCommerce must be viewed in the omnishopper context.
2 We use the most appropriate combination of advanced research techniques and technology to observe and talk with shoppers.
3 We go beyond UI and UX to generate insights that both brand and trade marketing can apply to increase shopper conversion and category growth.
4 We provide stronger insights on shopper behaviour than digital agencies who cannot assess eCommerce in context, to advise on actions.
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Brand growth: we understand insights are the means to an end We work with our Kantar and WPP colleagues to help you activate insights Whether it’s consulting on category management, retail market insights, integrated marketing, online or offline commerce, integrating virtual reality or activating Shopper Marketing plans, we have a lot of experience collaborating with our Kantar and WPP partners.
Measures and sizes the eCommerce category landscape
Provides consulting on category management, shopper marketing, organisational change and sales management for eCommerce.
Salmon is a global digital commerce consultancy that defines and delivers ecommerce solutions for the leading brands.
Builds digital solutions for some of the world’s largest brands through expert integration of strategy, creative and technology.
Drives conversion, action and purchase through award-winning programs that change behavior and inspire people to buy well.
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5 Appendix
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5-1 Shopper truths
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Shopper truth #1 Shopper moments unlock growth opportunities Missions and occasions, not shopper types, are the primary drivers of shopper behaviour Shopper segmentations are not a useful lens for evidencing differences in behaviours and motivations of shoppers. Rather, context determines the same shopper’s behaviour in different shopping moments: Mission determines channel choice needs and expectations
Consumption Occasions by Trip Mission Immediate
That Day
Later
60 50 40
Intended consumer usage occasion determines the product the shopper chooses
30 20 10 0
Large Shop
Connected Shopper study in soft drinks, TNS 2016
Medium Fill In
Small
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Shopper truth #1 Shopper moments unlock growth opportunities (cont.) Situational context affects shopper decisions Shoppers do not simply remember a brand or product. Our associative memory integrates situations and occasions into an ‘associative memory network’. This indicates the importance of framing shopper behaviours in the context of given moments. Occasions and missions are the building blocks of the shopper context or situation. They define how shoppers perceive the category and select and buy a brand or product within it.
Shoppers buy to fulfil consumer needs. For example they buy wine for a specific situation they have in mind, such as dinner at home, as a gift or for a social gathering. Depending on the occasion, the same shopper may buy wine on a trip to get food for dinner, or make a special trip to a wine shop, or as part of their weekly grocery shopping – possibly making different selections each time.
These situational frames allow us to act on shopper behaviours, because they make a distinction between behaviours and motivations on different trips.
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Shopper truth #2 Behavioural economics is built in to all our thinking and work ‘Decided’ and ‘Open’ lead to fast vs slow thinking Decided shoppers
Open shoppers
‘Decided’ shoppers use ‘fast thinking’ to search for the items they want, but the brain perceives searching as a negative experience.
‘Open’ shoppers are actively selecting a product using criteria based on the occasion for which they are shopping the category.
Making it faster and easier for shoppers to find the products they want is proven to increase shopper spending.
Highlighting the relevant needs created by each occasion makes it easier for shoppers to choose products (‘perceptual fluency’)
Rayner, K., (1998) Eye movements in Reading and Information Processing: 20 years of research Hans-Werner Hunziker, (2006) Im Auge des Lesers: foveale und periphere Wahrnehmung – vom Buchstabieren zur Lesefreude
Elder R. And Krishna A., (2011) The Visual Depiction Effect Yarbus, Alfred L. (1967), Eye Movements and Visions
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Shopper truth #2 Whether online or offline, stores that sell faster sell more Making it faster and easier for shoppers to buy increases sales Online
£4,00
£4,00
£3,50
£3,50
Spend per minute
Spend per minute
Offline
£3,00 £2,50
£2,00 £1,50
£1,00 £0,50
£3,00 £2,50 £2,00 £1,50 £1,00 £0,50
£0,00
£-
avg