CPGmatters: Adding Virtual Connections Could Increase Sales at Shelf
Through a special arrangement, presented here for discussion
is a summary of a current article from the monthly e-zine, CPGmatters.
to a survey from Cisco, retailers must respond to technology-savvy consumers
by combining web-like and in-store shopping experiences to create "mashops" in
order to drive growth and build brand awareness. Mashops get their name because
they "mash up" the virtual and physical worlds to create a new way
Creating "mashop" experiences will lead retailers to introduce
technologies such as interactive digital displays, video assistants, social
networking technologies and Wi-Fi networks that enable shoppers to remain connected
with trusted people and information while they are in the store.
groups of technology-savvy shoppers have emerged from the study: calculating
shoppers and extreme shoppers. Calculating shoppers (56 percent of the general
population) use the web to inform their buying decisions. Extreme shoppers
(11 percent of the general population, with high representation from Generation
Y) use the web and smartphones to find the lowest possible price. And while
extreme shoppers receive the most attention, the larger group of calculating
shoppers has the greatest impact on retailers’ revenues and
margins, according to Cisco.
Among calculating shoppers:
- Most prefer to research products online rather than speak with store staff.
- One in three use retailers’ Facebook pages and coupon-sharing sites.
- One in four use web-based group buying sites such as Groupon.
- More than half (54 percent) wanted to try a mashop-type service in the
store. Most of these (73 percent) preferred access to mashop-type services
using a touch screen at the shelf edge.
- More than half (54 percent) wanted product and price comparisons, and peer
reviews on touch screens in the store.
- More than four of ten (44 percent) wanted a virtual video adviser with
web content on a large screen or tablet service in the store.
Most important for retailers, calculating shoppers expect to increase their
value-seeking behavior over the next two years, further accelerating margin pressures.
- Adding Virtual Connections Could Increase Sales at Shelf – CPGmatters
- My Shopping, My Way – Are You Ready for the Tech-Shaped Consumer? – Cisco
Discussion Questions: How do you envision the “mashops” of the future evolving? What features of the virtual world will retail be most pressed to add to brick & mortar retail in the near term? How would you rate the threat to margins as more web tools are found in the store?