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The grocery digital divide
Digital’s impact on the consumer path to purchase
Digital’s increasing influence on grocery is disrupting the consumer path to purchase. This shift is creating new opportunities for consumer products (CP) companies that can look beyond the in-store experience to deliver on the digital imperative.
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- Looking beyond the store to bridge the grocery digital divide
- Delivering on the grocery digital imperative
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Grocery consumer’s appetite for digital is growing
2016 was a tipping point for grocery. According to our 2017 grocery digital divide survey, digital influence on grocery sales in store grew from 33 percent to 51 percent during the year, putting it on par with early adopting categories.
In fact, digital now permeates the entire consumer path to purchase, influencing awareness, selection, purchase, and loyalty:
- Find inspiration: 77 percent of consumers surveyed used digital touch points to drive awareness.
- Browse and research: 80 percent of shoppers surveyed have used a digital device to browse or research grocery products.
- Select and validate:19 percent of the time the use of digital increases grocery spending.
- Purchase and pay: Consumers who embrace digital before or during a shopping experience end up converting nine percent more frequently than those who do not use digital up to the purchase decision.
- Reconsider: 29 percent of grocery consumers surveyed try products based on online recommendations or reviews.
Looking beyond the store to bridge the grocery digital divide
Despite the growing digital influence on grocery, there’s still a divide between consumer’s ideal path to purchase and their current grocery shopping experience.
In comparison to 42 percent across other categories, only 33 percent of grocery shoppers believe that digital makes shopping easier. This gap suggests that there is significant growth potential for companies who can improve the digital grocery experience for consumers. The challenge lies in how to go about giving them the convenient, curated, and integrated experience they desire.
Partnerships with retailers are important for CP companies, as they can provide new opportunities to drive brand engagement and accelerate organic growth.
Delivering on the digital grocery imperative
Many companies have yet to fully engage in efforts to deliver on the new digital grocery imperative.
CP companies can transform their business models to drive brand engagement and win in today’s omnichannel marketplace.
Those who can adapt to bridge the digital divide and engage customers in store, online, and via social channels stand to benefit from the growth in digital-hungry consumers. Those who don’t may leave money on the table.