Grocery shoppers looking for personalisation from brands

Grocery shoppers looking for personalisation from brands
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Grocery shoppers are looking for that more personalised touch now, with research from Mi9 suggesting there are significant opportunities to increase sales for brands who tailor their approach towards the personal needs of the consumer.

According to the research, the grocery shopper nowadays is shopping more and has higher expectations from the brands they purchase.

Many shoppers (68%) also have a fixed routine when going to the supermarket, and online grocery shopping still isn’t the norm in Australia.

Check out the full release below for more info.

 

INTRODUCING AUSTRALIA’S ‘MODERN GROCERY BUYER’ – SAVVY SHOPPERS LOOKING FOR THE PERSONAL TOUCH

– Mi9 research uncovers the future of grocery shopping in Australia, providing new insight into consumer food purchases and family eating habits –

Wednesday, 26 March 2014: The modern grocery buyer is changing – with a $60 billion spending power savvy Aussie shoppers are demanding a more personalised experience when hitting the supermarket aisles on and offline, according to new research published today by Mi9.

Revealing new ways that Australian consumers are shopping for food, Mi9’s latest research report ‘The Modern Grocery Buyer’ highlights an urgent need for brands to change the way they target this profitable sector – with significant opportunities to increase sales up for grabs for those who tailor their approach to meet the individual wants and needs of shoppers.

Previously, grocery buyers were identified in a broad, stereotypical demographic grouping – Women 25-54, however Mi9’s research shows that richer profile, psychographic and behavioural factors have a significantly greater impact on shopping behaviour and product selection.

“We’ve reached a turning point in grocery shopping, consumers are more demanding and there is no longer a one-size fits all approach. Smart FMCGs and supermarkets who are ready and willing to take action will provide more rewarding and enriching experiences for shoppers by targeting them with products and unique offers based on their individual needs and preferences,” said Gabbi Stubbs, Mi9’s Head of Research & Insights.

The research identified three emerging segments of Australian grocery buyers:

  1. the ‘meal-to-meal shoppers’ who visit grocery stores usually on a daily basis and purchase items to eat that day,
  2. those that ‘love in-store shopping experiences’ and
  3. the ‘passionately digital’ – those that shop or search online to help them plan what to buy.

The Modern Grocery Buyer (MGB) is hyper-connected and their spending power is high. The total weekly grocery spend of a MGB who own a smartphone is more than $790 million a week, compared to those without a smartphone who spend $356 million – meaning MGB smartphone owners spend $434 million week, or $22 billion more a year on groceries than non-smartphone owners.

While we live in modern times, traditional family ideals are still commonplace when it comes to food; six in 10 (60%) are interested in cooking and food, 71% think it is very important to teach their children to cook and 69% believe it is very important to have a family meal at home most nights. 

“The line between the physical and digital retail environment continues to blur. Australian grocery buyers with mobile devices want more personalisation – it’s no longer just about rock bottom prices, but about providing consumers with an experience that’s right for them – such as deals targeted to their grocery buying habits, bespoke reminders for habitual purchases and more personalised and relevant product promotions to encourage loyalty,” continues Stubbs.

Who is Australia’s Modern Grocery Buyer?

Today’s modern grocery buyer is hyper-connected, digitally savvy and ‘always on’. 75% own a smartphone while half (50%) have a tablet. They spend on average 20 hours a week online for personal use and 25 hours watching TV.  56% of shoppers are women aged 25 years or over and around half (49%) have children at home. 73% are also the sole grocery buyer and increased pressures of work and lifestyle means shoppers are busier than in the past.

Key Insights

The Mi9 ‘Modern Grocery Buyer’ report also identifies how brands can drive sales and influence purchasing decisions based on three key insights:

Insight 1 – a new mindset

A household’s main grocery buyer is shopping more often and has higher expectations from the brands they purchase – a balanced blend of price, value, variety and service are all important. 48% shop more frequently with ‘top up shops’ becoming more commonplace, over half (52%) are spending more than in the past and 62% do a large weekly shop. One in three (31%) grocery buyers are also impulse shoppers, meaning that by targeting offers and promotions in the right way brands can boost sales. ‚ű

Insight 2 – path to purchase

The modern grocery buyer’s trip is planned, with 68% having a fixed routine around their main grocery shopping. A quarter (25%) shop on Saturday and over half (56%) make habitual purchases driven by ‘need’ and a third (32%) by ‘want’. 57% of consumers on routine shops say they would like greater personalisation of their shopping experience, indicating there’s plenty of room for advertisers to influence purchases.‚ű·µõ

Insight 3 – the future of Australian grocery shopping

While there is now a blurring of the digital and the physical worlds, online grocery shopping is still not the norm. Only 11% are shopping for groceries online, with just over a quarter (26%) having tried it and 23% planning to in future. When looking at the factors holding online shoppers back, 64% want to choose their own fresh products while 42% enjoy shopping in-store Рmeaning supermarkets have a huge potential to engage shoppers with personalised experiences to keep them coming back for more.ⁱⁱ

“What this research shows us is that retailers and brands can combat price wars with value add-services and digital experiences that drive differentiation. Leveraging digital both in-home and in-store by capturing consumer habits and preferences online will bring more personalisation to each step of the grocery buying journey and into the shopping experience – this is the key to unlocking product, store preference and ultimately loyalty,” concluded Stubbs.

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