Are Your Store Brands Connected?
Without question, today's consumers have unprecedented choice and power over retailers and brands. Consumers are demanding – they want it all. They want selection and quality and value. On top of it all, technology is evolving fast. In today's world, therefore, it's a must to leverage technology, particularly mobile phones and social media, as new ways to connect with and engage today's consumers with your store brands.
Rise of smartphones
Raise of hands, how many of you have a smartphone? Nearly one – third (31 percent) of all U.S. mobile subscribers now have smartphones – and have downloaded an average of 27 apps. Already consumers are using smartphones as part of their shopping routine; mobile coupons are increasingly popular and offer the deals consumers are seeking without the hassle of clipping a paper coupon.
Smartphone loyalty cards eliminate the need to carry a plastic membership card and help consumers track their spending. Other apps enable shoppers to plan their grocery lists, view nutritional information or schedule delivery. Are your apps highlighting your store brands?
Influence of social media
Social media also has turned the relationship between retailers, brands and consumers on its head: Consumers now interact with retailers, brands and, more importantly, each other. If they have something to say about a store, product or service, a ready-made audience is listening – 33 percent of Americans tell Nielsen they are more likely to share a negative experience online.
Why does this matter? Friends and family dominate the "trust zone" when it comes to recommendations about a purchase decision, but 42 percent of consumers place trust in online reviews, well above other media sources such as product websites and TV.
ShopRite is one retailer that knows how to bridge social media and grocery shopping. In November, it became the first retailer to deploy Facebook's "Like" button on grocery products.
Some businesses, however, have been slow to adapt. But they probably should not dismiss social media as a fad. Consider the facts: It took radio almost 40 years to reach 50 million users, while TV took 13 years. The Internet had 50 million users in just four years, and Facebook alone had 200 million users in less than a year!
Social media now cuts across all age groups, and females – key to the CPG industry, as moms are the key decision-makers when it comes to buying goods for the household – are more likely to be engaged with such sites. In fact, our research shows that moms, particularly new moms, leverage social media to expand their influence and search for solutions as they wrestle with the challenges of raising children and managing household budgets during a tough economy. What's more, new moms are almost three times as likely to visit a social networking site as the average 18-plus female.
Retailers are encouraged to view social media as a storefront through which to draw consumers to your store brands. Offer consumers opportunities to save money or free apps that help them shop – and highlight your store brands in the process. Consumers want to be involved, and as a retailer, you need to find a way to engage with them in a meaningful interaction, whether it is responding to consumer complaints or offering promotions.
Is your media mix evolving? A TV commercial or newspaper ad alone is no longer sufficient. In less than five years, social media has taken a place at the marketing table – and has, by many measures, become one of the most efficient ways of reaching consumers.
While there's no magic bullet, the key is acknowledging the unprecedented power of consumers and maintaining the flexibility to evolve. Open a dialogue with shoppers; make their lives simple; give them what they need. That's connecting with your consumers – and creating value.
Straight Talk delivers monthly store brand insights from The Nielsen Co., New York. Todd Hale is Nielsen's senior vice president, consumer & shopper insights.