THE CONTINUING IMPACT OF DIGITAL ON SHOPPERS AND STORES
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PANEL INTRODUCTION
Jodi KahnChief Consumer Officer
FreshDirect
Deepika PandeyGroup VP, Digital Marketing
Walgreens
Mike BrennanChief Operating Officer
Peapod
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THE SHOPPER DRIVEN RETAIL FUTURE
Always On, Seamless, Personalized
Dynamic, Transparent, Endless
Any Category, All Devices, Borderless
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1214
1620
25
32
CPG ONLINE MARKET
Source: Nielsen
US Online CPG Sales($ Billions)
Online Penetration% of shoppers who claimed to purchase a CPG product online in past 3 months
2012 2013
6.5%
9.2%
2010 2011 2012 2013 2014 2015
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FRAGMENTING BEHAVIOR…CONTRADICTING FACTS
CPG shoppers do not engage digitally
Of total retail sales digitally influenced or sold by 2017
“I frequently shop for and purchase pet supplies, vitamins, cleaning products and frozen foods on line for the variety”
68%
Feel the grocery store is more convenient
74%60%
FROM THE CONSUMER
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9%
15%
12%
14%14%
13%
22%
Low value seeking, low shopping enjoyment
Research driven, tech savvy
Low trust, low tech savvy
Enjoy shopping
PATH FORWARD IS FOCUSED ON SHOPPER TYPES…Of the 32% of digital shoppers, 7 shopper segments
Source: Nielsen Digital Shopping Information Survey; Updated Jan 2014
Digital Reluctants
Tech Averse
Digital Advocates
Non Planners
Tech Savvy
Grab & Go
Researchers
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PERSONALIZE SHOPPER COMMUNICATIONS…
Source: Nielsen 2014 Print to Digital Survey
Opportunity to reach shoppers through many touchpoints
Source: Nielsen 2014 Print to Digital Survey
Communication Vehicle# of touchpoints used by shoppers: % by shopper segment
■0–3■4–7■8–11
Communication Enabler% of shoppers who own device
Easier to reach younger shoppers through Smartphone/Tablet
Smartphone Tablet
80%
71%
52%
30% 61%
51% 39%
26%
■Millennials■Generation X■Boomers■Greatest Generation
Tech Averse Digital Advocates
14% 9%
57%47%
29%43%
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13%
0%
0%
56%
56%
69%
69%
56%
44%
94%
94%
INVESTING FURTHER IN DIGITAL TOUCH-POINTS
Source: 2014 Retailer & Manufacturer partner survey; Q6 – In 5 years, do you envision spending more, the same, or less than you do today on each of the following marketing vehicles?
Apps for phones/tablets
Social media sites
Emails to shoppers
Text messages to shoppers
Store website
Money-saving apps
Money-saving websites/blogs
In-store kiosks
Mailed circular
Newspaper circular
In-store circular
93%
90%
86%
86%
79%
74%
57%
48%
14%
7%
2%
Retailers Manufacturers
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RETAILERS WIN WITH MORE DIGITALLY ENGAGED SHOPPERS
0 1 2 3 (+) 4 (+) 5 (+) 6 (+)
Aver
age
Equi
ty S
core
Number of Retailer Touchpoints
0 1 2 3 (+) 4 (+) 5 (+) 6 (+)
Shar
e of
Wal
let I
ndex
Number of Retailer Touchpoints
Source: 2014 Print to Digital Survey; Sources = Emails to shoppers, Store website, Apps for smartphones/tablets, Social media sites, Money-saving websites/blogs, Money-saving apps, Text messages to shoppers, In-store kiosks, Circulars – In-store, Circulars – Mailed, Circulars – Newspaper; Equity Score: a quantitative value that describes the level of affinity shoppers have for a retailer (taking into account a variety of factors including awareness, shopping behavior, and store preferences)
Mass
Mass
Grocer
Drug
Drug
Grocer
Online
Online
Share of Wallet Equity Score
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OPTIMIZE CHANNEL AND FORMAT
Source: Q2 2013 Digital Shopping Information Survey
Shopper Segments Shopper Needs Retailer ModelsManufacturer Collaboration
Small Format
E-Commerce
Home Delivery
Pricing
Form, Size, Content
Supply Chain
Non-Digital
Grab & Go
Non Planners
Tech Savvy
Researchers
Digital Advocates
Tech Averse
Digital Reluctants
Convenience
Price/Value
Service
Shopability
Assortment
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$7,003$5,850
THESE ARE VALUABLE SHOPPERS
Digital Advocates
Lowest household spend across all channels Highest household spend across all channels
Source: Digital Shopping Information Survey – Updated Jan 2014
Non Digital Yearly spend
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WHAT THIS MEANS FOR YOU…
Find Your Shopper Types
Personalize Communication
Optimize Channel & Format
c360.cnf.io
Choose Your Session From the List
Click / Tap on Each Poll to Respond
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POLLING QUESTIONSAre these Yes/No questions or can there be multiple choice?
Today e-commerce represents approximately 4% of FMCG sales. By 2020 do you think e-commerce’s percentage of FMCG sales will be:- 10%
- 15%
- 20%
- 25%
For your company how big of a priority is E-Commerce:– High priority: We have leader
dedicated to growing this area
– Medium priority: We want to meet shoppers needs who want to shop online, but don’t see this as a growth area.
– Low priority: While we are monitoring the growth of E-Commerce, we think it represents a low percentage of how customers want to shop
Currently, how much do you buy via e-commerce of your total purchases (includes digital goods):- Less than 10%- 10%–30%- 30%–50%- Over 50%
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YOUR OPPORTUNITY TO SHARE AND CONNECT!
What do you think shoppers want in a digital shopping experience, and what role does a physical store presence play.
What impacts do you see mobile having in shopper engagement, on advertising and path to purchase?
AUDIENCE Q&A WITH PANELIST
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IN CLOSING…
Let’s continue the dialogue
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