Study: Digital Drives Most Grocery Spending
September 20, 2017Most in-store grocery purchases were influenced by digital media somewhere on the path to purchase, a new study by Deloitte shows. 51% of brick and mortar grocery sales are influenced by digital, according to the study.
“The majority of food and beverage purchases still happen in the store, but consumers’ online or mobile experiences impact those purchases much earlier in the shopping journey,” Deloitte Vice Chairman and Consumer Products Leader Barb Renner said in a press release.
“The Grocery Digital Divide” study validates the importance of multichannel marketing that creates value for customers from the time they start making food decisions with online research to when their purchases are rung up in a brick and mortar store. This article unpacks the study’s 4 most important findings and analyzes the digital influence along the path to purchase.
Digital Influence
Several digital channels impact customer thinking and spending.
Digital media influenced 51% of in-store grocery sales in 2016
This is a 300% increase from 2013 and an 18% year over year change.
Significance: It’s the first time digital influence has influenced the majority of grocery purchases. Historically, digital has influenced most other product category purchases like apparel, home and electronics by higher margins than grocery, but that gap is narrowing.
33% grocery shoppers said that digital inspired them to spend more
In 2014, almost 22% of customers said digital drove them to spend more on groceries.
Significance: There is a distinct correlation between digital media and customer spending. Which digital media inspires this spending is harder to pin down (and is not addressed in this study).
1 in 3 shoppers think digital makes grocery shopping easier
For comparison, over 4 in 10 consumers in other retail categories think digital makes shopping easier.
Significance: There is room for improvement on the digital front. There’s a gap between the 33% who think digital makes spending money easier and the 51% who admit that digital impacts their purchases.
41% grocery shoppers use grocery retailers’ apps
Just 27% of customers use a consumer product company’s app.
Significance: The grocery-branded app is an important digital touchpoint to customers that is used both before and during a visit to the store.
Path to Purchase
Grocery shoppers want a convenient, curated and integrated experience from the time they begin making food decisions to the time they check out with a cart full of groceries. Here is what the study found about grocery shopper preferences along the stages of the consumer’s path to purchase.
Awareness Stage
• 77% consumers use digital channels to dive product awareness
Shoppers get inspired to purchase specific products from several types of digital media, including recipes, cooking blogs, Pinterest, family and friends and crowdsourced offerings.
Analysis: That’s more than 3 in 4 shoppers who become aware of a product or aware that they need certain ingredients because of something they saw online. Do your digital channels inspire food envy and cooking creativity?
Research Stage
• 80% of shoppers use a digital device to research grocery products
• 90% consumers said they consider a set of brands before arriving at the point of sale
• 34% grocery shoppers use a smartphone to help select a brand during a shopping trip
Customers utilize grocery retailer websites, weekly circulars, email, manufacturer websites, direct mail and ask in-store associates for product research.
Analysis: Despite the growing demand for ecommerce, grocery shoppers show a clear preference for webrooming (online research but buy in-store). Customers research product reviews, where the products come from and look for info about how companies run their businesses (with an eye on green and ethical practices). Do your digital channels make product research user-friendly?
Decision Stage
• 19% of shoppers say the use of digital increases grocery spending
Digital media that affects purchase decisions include grocery store apps, manufacturer app and QR codes. In-store signage and displays also factor into decisions made while physically grocery shopping. Value and ingredients are key factors when consumers make decisions, according to the Deloitte study.
Analysis: Providing coupons and product information could make the difference between a sale or putting a product back on the shelf. Are you using your traditional and digital channels to sway purchase decisions?
Purchase Stage
• 29% of shoppers try products because of online recommendations
Recommendations come from friends and family, online product reviews and Social Media posts.
Analysis: Using Social Media for more than pushing out sales is important. As a grocer, you are a food expert! Make product recommendations and link to reviews. Do customers need to look at channels other than yours to find product reviews?