Retail media solutions: how digital touchpoints influence shoppers
Expect digital touchpoints to be a critical part of the consumer journey this holiday season. As consumers increasingly do their grocery shopping both online and in-store, consumer packaged goods (CPG) companies have an opportunity to influence shoppers at key digital touchpoints from discovery to purchase to advocacy.
Whether shopping for large holiday meals or picking up last minute items, holiday shoppers are on the go. And many consumers are turning to ecommerce for their shopping needs. Overall adoption of ecommerce has grown 2X since 2019, according to 84.51°’s research, and so has the rate of hybrid shopping, meaning people who shop both online and in-store. Looking ahead, 85% of households plan to either maintain this accelerated rate of ecommerce usage or increase even further this year.
A recent survey by the Food Industry Association had similar findings. Convenience and the ability to stay within a budget are seen as large draws for online grocery shopping, even though online shoppers still shop in-store. Being able to review the total cost of a virtual shopping cart before checking out gives shoppers more control and allows them to remove unnecessary purchases. While consumers who shop online said that 70% of their grocery trips are in person, 62% believed that online shopping saves more time.
As ecommerce continues to grow, it’s more important than ever for brands to maximize opportunities to engage shoppers through digital touchpoints. Consumers are looking for digital experiences that are relevant, personalized, convenient, and easy. And in today’s digital era, CPGs are more likely to drive conversions by reaching consumers as they’re shopping or on the verge of checking out.
A rise in retail media solutions is giving CPGs a growing array of digital options for connecting with shoppers. For example, Kroger Precision Marketing (KPM), the retail media business of the Kroger Co., powered by 84.51°, enables advertisers to reach shoppers across multiple channels and touchpoints. Options include product listing ads that appear on the search results on Kroger properties; personalized coupons on Kroger ecommerce sites as well as offsite ads via Roku, Pinterest, Instagram and much more.
Shoppers appreciate the ease and convenience of digital coupons, but each shopper has different preferences and needs. Segmenting digital couponing by shopper type and other criteria allows brands to provide customers with relevant coupons that drive value and loyalty.
Relevancy is key because customers are more likely to stay loyal to the brands that meet their specific needs, preferences and interests.
For instance, armed with 84.51°’s data science and first-party data from Kroger’s loyalty card program, which is comprised of data from one out of two U.S. households and more than 2 billion annual transactions, KPM ensures CPGs are only sending coupons to qualified and relevant audiences.
If a CPG wanted to inspire customers to try out its new cranberry dessert during the holidays, it could send a coupon to customers who previously purchased cranberry products and other factors that make them the ideal audience. Customers win by only receiving coupons that are relevant to them, creating a positive experience that incentivizes them to become loyal customers.
Shoppers also have preferred channels for discovering and accessing coupons. As 84.51°’s research shows, hybrid shoppers typically fall into two categories: “Digital Dabblers” and “Digital Champs.” Digital Dabblers are less committed to ecommerce, while Digital Champs engage frequently in shopping online. While Digital Champs leverage the majority of their digital coupons online, most Digital Dabbler coupon usage occurs in-store. In addition to delivering relevant content, it’s important for brands to be mindful of shoppers’ channel preferences and segment their digital coupon strategies accordingly.
Brands have more opportunities than ever to engage and influence holiday shoppers on a digital landscape. Retail media solutions offer unique advantages that include the ability to customize ads for maximum impact and conversion tracking. Taking advantage of these digital tools will help deliver a customer experience that resonates with shoppers throughout the holidays and beyond.
For more insights on winning customers this holiday season, check out our new white paper, Holidays 2022: 8 key shopper insights and how brands can respond to win the in-store and digital shelf this season.
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