Last week I chanced upon this report from JiWire looking at the impact of mobile on the Path To Purchase for CPG (i.e. grocery store items). The email was ominously titled “Mobile is Transforming Consumer Path to Purchase for CPG”, and I distinctly remember rolling my eyes at the time: yet another all-too-obvious-prophesy announced as if we didn’t know this years ago. But then I actually read the report – and although it had its fair share of the ridiculous (e.g. 64% of people prefer using their smartphone in-store, versus 15% who prefer using their laptop in-store; their laptop?) – there are a few interesting data points worth highlighting and thinking through:
1. Retailer Apps are the most popular and used; CPG Brand apps are the least popular and least used
32% of those surveyed had a retailer app; only 12% had any CPG brand app. This makes sense if you think about it. Retailer apps can are much more aligned with your retail experience – you go to the store to purchase and so having an app that can give you store coupons, sales, info etc. makes a lot more sense than having 20 different CPG apps.
If you’re a CPG brand, think really really hard before you make an app. Apps are expensive – and totally no good if no one is actually using them. It may actually be more productive to partner with retailers to get into their apps for coupons etc. – or even partner with other kinds of apps if you want exposure.
2. Mobile Ads seem to encourage new product discovery
65% of people were somewhat likely or very likely to buy a new product based on seeing a mobile ad for the product. 47% of people say they have already tried a new CPG product based on having seen a mobile ad for it. Furthermore, according to JiWire, mobile ads drove a 44% average lift in incremental store visits.
These are pretty astounding numbers if true. The beauty of digital marketing is its ability to be really targeted and give you back lots of data. Its super easy to validate the premise above – and if you’re a CPG launching a new product, you’d be a fool not to test it out. And if it works, baby, you’re in business (literally).
3. Shoppers Tend To Use Their Mobile Phones In Store
Duh. What’s surprising is that according to JiWire, only 51% of consumers use their device in-store, leaving a full 49% who have still yet to do so. Also, on average consumers use their devices in-store 4-5 times a month.
If you’re a CPG you should be thinking really, really hard about how to influence purchase behavior in-store for those who are using their mobile phones in-store. And if you think you have figured it out, you can salivate over the fact that half of your potential customer base still hasn’t even started using their mobile in-store.
4. Mobile Push Marketing Works
Here’s the kicker: 69% of consumers admitted they were more likely to purchase a product based on store or brand marketing programs, and 48% of them were likely to be influenced by promotions – either sales or coupons. That’s absolutely huge.
For CPGs, the key focus is on conversion – on getting someone to actually buy your product. If the above is true, CPGs can create highly focused ROI-positive programs based on mobile push marketing in-store. And potentially save a boat load of money by not spending as much on marketing that is further away from the point-of-sale.
Also, mobile doesn’t only have to be used in-store for increasing awareness; solutions like SnippCheck allow mobile to be used in the validation of purchase related promotions and in enabling in-store promotions that can drive purchase.