Tuesday, March 13, 2012

Mobile promotions trump brands in grocery & drug store shopping

Nearly 75 percent of consumers in drug and grocery stores would switch brands if offered real-time mobile promotions delivered to their smartphones while shopping in a store aisle, according to the second part of Aisle Buyer’s mobile shopping survey.

The least brand conscious group consists of 25-34 year-old shoppers, with 82 percent willing to switch brands if they received a mobile offer for a competing product while in the store.“Mobile Shopping Survey Series, Part 2: CPG Shopping Behavior.”

What we found most interesting about this survey is that while it focuses on drug and grocery store shoppers, we suspect it applies more broadly to packaged goods. It also points out that mobile promotions marketing is going to be very, very big.

The survey also found that 81 percent of smartphone owners go to grocery and drug stores prepared with a list of items to buy. Of this group, only 8 percent list specific brands to purchase.
This indicates that a large majority of shoppers are making brand decisions while they are in the store aisle, providing a unique opportunity for brands and retailers to influence pre-purchasing decisions via a customer’s smartphone.

Other key findings from the survey include:

90% of 25-34 year-old smartphone owners expressed interest in receiving instant offers for the things they were already shopping for through a grocery or drug store-based mobile shopping app

When they are in a grocery or drug store aisle, smartphone owners’ purchasing decisions are based on:

Price/everyday low value (76%)
Promotions/getting the most for their money (58%)
Coupon availability (51%)
Brand loyalty (38%)
Generic or store brand availability (26%)
New products from existing or emerging brands (22%)

Brands must adapt to the online world

“For years, brands have relied on traditional in-store shopper marketing tactics such as endcap displays, dump bins and sampling programs to influence the purchase decisions that are being made in the store aisle. But today’s shopper has become increasingly tech savvy, and brands need to adapt their age-old strategies to remain competitive in our new online world,” said Andrew Paradise, AisleBuyer’s CEO.

“Given that a majority of shoppers enter stores with only rough shopping lists, they are incredibly impressionable when they are in the aisle. As brand marketers look for new ways to feature their products when shoppers are considering the competition, they should look no further than something consumers already have in hand – their smartphones.”

Additional data from the survey series will be shared over the coming weeks.

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