Catalina Study Shows Increased Need for Personalization in CPG Marketing to Drive Shopper Engagement
According to a new study published today by Catalina,the personalized digital media company, shoppers are highly selective when it comes to making CPG purchases, buying on average less than one percent of products available on grocery store shelves during a one-year period. Further, the study “Engaging the Selective Shopper,” which took place over 52-weeks and examined the purchasing choices of more than 32 million American shoppers across 9,968 U.S. grocery stores, revealed that every shopper has a different purchasing profile and no two shoppers ever purchased the same items.
“At a time of unparalleled choice in the grocery store, shoppers ignore all but a tiny fraction of available products,” said Todd Morris, EVP of corporate development and marketing, Catalina. “To reach today’s selective shoppers, CPG marketers need to adopt a more personalized approach to the way they market and promote their products and reward their buyers. Since no two shoppers are the same, retailers and brands should tailor their communications to the specific needs and preferences of individual shoppers and households.”
Catalina’s analysis shows that over the course of a year shoppers buy just 0.7 percent of all available products in the grocery store. Even top shoppers – those who account for 80 percent of all store purchases – buy just 1 percent of available products. This trend applies across all aisles of the grocery store. For example, the average department shopper is buying just 1.7 percent of available Dairy products and 0.2 percent of available Health and Beauty products. Although demographics are a long-held segmentation practice for CPG marketers, the results of this study indicate that age and income have very little impact on shopper selectivity.
“The ability to engage shoppers based on their spending habits results in a better experience for the shopper, while driving loyalty with our stores,” said Rebecca Kane, vice president, customer specific marketing and digital, Ahold USA. “At Ahold, we have been investing heavily in innovative ways to engage the shopper both in and out of the store. Understanding the needs of each individual shopper is core to this strategy, and personalizing interactions from SCAN IT! Mobile to recommended savings on their screens is just one of the ways that we’re providing shoppers with a better experience.”
“Engaging the Selective Shopper” further illustrates the importance of embracing personalization based on an understanding of the shopper’s actions and preferences. Major retailers, like Ahold, have already expanded their loyalty programs to build deeper relationships by creating an experience tailored to individual shoppers. A free copy of the report is available for download at http://info.catalinamarketing.com/selective-shopper/.
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