WWW.MEDIAPOST.COM
The New Digital Role in Shopping
by Jack Loechner, Wednesday, September 19, 2012 6:15 AM
According to a new study by Ryan Partnership, branded shopping apps are the strongest driver behind unplanned purchases. Branded content on social networks drives people to try new products, and
texts and social media are most likely to influence where people shop. The study finds that consumer usage of digital tools to support shopping has grown tremendously in just 18 months. In
2010, usage of digital shopper tools was more limited to early adopters, while in 2012 the vast majority of shoppers have woven them into multiple points throughout their path to purchase. The
RetailNet Group projects that this shift from analog to digitally-influenced shopping will continue for the foreseeable future.
Projected Influence of Digital Tools on Shopping TripsInfluence20112016 Analog 54% 36% Digitally influenced 38 53 Source: RetailNet Group, September 2012“Digital retail,” in the study, is defined as the use of digital communications to engage shoppers along the path-to-purchase and drive incremental sales. Any
marketing-related digital interaction that the shopper has in-store would be considered part of the digital retail universe.” Shoppers' usage of digital retail tools, ranging from
store websites and mobile coupons to daily deal sites and QR codes, has doubled or even tripled, depending on the tool, in the previous 18-month period. 96% of the survey respondents said they have
used at least one digital shopping tool, with the majority using multiple tools. The five most heavily used tools were:
- Store websites (64% of respondents)
- Downloadable coupons (61%)
- Search engines (51%)
- Retailer emails (53%)
- Brand websites (49%)
Additional tools mentioned include daily deal sites, brand
social media, mobile coupons and shopping apps.
Digital Tools Used When Shopping Or
Planning To Shop (% of Respondents)
Digital Tool20122010 Store websites 64% 28% Downloadable coupons 61 28 Search engines 59
Retailer Emails 53 25
Brand sites 49 Brand emails 47 Daily deal sites 37 Reviews/recommendations 36
12 Load to card coupons 28 10 Brand social media 26 12
Retail social media 23 Mobile coupons 18 5 Retailer texts
16 5 Shopping apps 14 QR codes 8
Source: RyanPartnership, September 2012 Kim
Finnerty, VP, Consumer and Shopper Insights at Ryan, says "... usage of digital tools during the planning phase of shopping is... virtually ubiquitous..." The survey of 8,000 primary household
shoppers about their usage of various digital retail tools found that shoppers use different tools for different purposes, and which tools impact which behaviors.
- Social Media from
retailers is the strongest driver of new brand and product trial. Brands launching new products should feature their new offerings not only in their own social media efforts, but in their retailers'
as well.
- Shopping Apps and retailer tools are strongest drivers of unplanned purchasing. It is important for the Brand to be a part of the retailer's digital tools as their traditional
tools, opines the report.
- Texts Messages from Retailers and Brands are most likely to influence choice of where to shop.
Tool Impact on Product Trial (% of Respondents Who Bought Products/Brands Never Before Purchased)
Influence Tool% Bought QR codes/bar code
readers 22% Shopping apps 32 Retailer texts 21 Mobile coupons 19
Retailer social media 36 Brand social media 32 Load-to-card coupons 20
Reviews/recommendations 29 Daily deal sites 26
Brand emails 26 In-store brand sites 25 Pre-shop brand sites 29
Brand sites 19 Retailer emails 21
Search engines 16 Downloadable coupons 18 In-store retailer sites 15 Pre-shop
retailer sites 17 Retailer sites 15
Source: RyanPartnership, September 2012 The study points to
shopping apps and
social
media updates as the tools best poised for near-term growth, because they deliver the strongest combination of shopper utility (such measures as "makes shopping more fun," and "makes me feel
like a smart shopper"), and behavioral impact ("I make more unplanned purchases," "I try products or brands I never bought before," "I spend more than I planned"). The impact of digital
shopper experiences on the selection of a retailer was quite strong. Interestingly, retailers’ own social media updates were the strongest driver of a shopper’s selection of a
retailer. Although quantifiable ROI data can be challenging to come by, retailers’ recent efforts to scale up their social media following seem to be bearing fruit, notes the report.
Most Important Tools Influencing Retailer ChoiceTool% of Respondents Retailer social media
44% Product reviews/recommendations 42
Pre-shop brand sites 42 Shopping apps 40 Pre-shop retailer sites 37 Retailer
emails 37 Brand social media 36
Brand emails 34
Source: RyanPartnership, September 2012
Finnerty concludes that "... two years ago, early adopters were the only consumer segment using shopping apps and following retailers' updates on social media...
Now, the vast majority of consumers are weaving these digital tools into their path to purchase,..". For more
information from the Ryan Partnership, or for
access to the PPT report, please visit here.