Going online to shop is increasingly popular for consumers, growth in online sales is outstripping in store purchases. This trend has been true for sectors like travel and fashion for a while, but more recently FMCG online sales reflect this trend as well. According to NielsenIQ’s Connected Commerce report (2018) about a third of consumers now go online to purchase FMCG goods more than they go in store to buy them. Although bricks and mortar still holds the lion’s share of retail sales, eMarketer predicts that ecommerce sales share will reach close to 18% by 2021¹, so brand manufacturers and retailers would do well to develop online if they haven’t done so already. Marks and Spencer’s partnership with Ocado highlights this fact; although M&S have come late to the party they have definitely seen the benefit of online grocery shopping.
WHY ARE MORE CONSUMERS SHOPPING ONLINE?
The way we shop has changed significantly, faster and broader internet connectivity puts more control into our hands. NielsenIQ found that 42% of consumers shop online for groceries because it is more convenient and flexible to their lifestyle. Ultimately when shopping, consumers are looking for the best experience, most convenient and frictionless service. As technology improves, online ticks more of those boxes.
With the knowledge that ecommerce is important for the future, showing strong growth and that the consumer is ready and willing to buy online the next challenge is then leading them to that purchasing decision. Here are some key factors that will help that conversion rate:
Consumers are looking for great deals, any discounts or promotions that might reduce the cost. Online shopping is no different from bricks and mortar in this aspect.
User experience is a key driving force for the future of ecommerce; for online grocery shopping this looks like access to the full product information as well as those products being easy to find, saving time and effort.
In an increasingly globalised society, access to a wide variety of products is beneficial as different cuisines and dietary requirements are catered for.
Having products in stock may seem like an obvious point, but it is essential for sales, especially to those loyal to specific brands.
MANAGING YOUR ONLINE PRODUCT PORTFOLIO EFFECTIVELY
Once you have your product content online and distributed to retailers the challenge then becomes how to best meet the customers demands. Looking after a product portfolio across multiple retailer websites to guarantee that all product information and pricing is consistent, stock levels are good and the customer has a great experience requires a lot of time, effort and resources. This is where automation through ecommerce analytics tools can help.
NielsenIQ Brandbank’s eCommerce Insights (eCI) is a way for omnichannel brands to maintain a complete overview of their online presence. It meets your customer’s demands by helping you deliver the value, experience, assortment and convenience they require.
We aggregate your data every day to report on 3 key business areas:
Check that your products are accurately listed online and how to expand your portfolio. Get analysis on which of your products are available for purchase and how many are listed on the virtual shelf. You can also monitor your competitors as well, especially those disruptor brands that may not be present in physical stores.
Learn how your products perform against specific keyword searches and then how best to optimise those products for each retailer site. Make sure that product images and information are current and consistent granting consumers the experience they’re seeking.
Keep an eye on you pricing strategy and promotions, while also gaining information on what promotions your competitors are using and the effect they have on sales. You can then adjust your pricing accordingly and measure success.
Through eCI you have a tool that gives insight and analysis on how your products are positioned at present and the journey they took to get there. You will receive up-to-date reports providing you with data on product status online and possible trends to act on within your category, as well as important competitor information helping you to act or react quickly to any possible opportunities or threats.
We understand that not only is it important to measure data on your products as well as your competitors, but consumer data is also vital to successful sales. For this reason we will soon introduce analytics on reviews and comments on our eCI platform. You will be able to manage direct consumer feedback and help support future new product development.
To find out more about eCommerce Insights and how you can use it to transform your ecommerce strategy, contact your NielsenIQ Brandbank account manager on 77 88 25 10 or email email@example.com.