Trend Truth: Grocery-to-Go

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Shoppers seem to get everything online these days, including groceries. FGI Research asks who buys online, what they spend, and why.

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Trend Truth: Grocery-to-Go

  1. 1. TrendTruth: Grocery-to-Go Folks seem to get everything online these days, even groceries. FGI Research asks who buys online, what they spend, and why.
  2. 2. Options for ordering groceries have expanded.
  3. 3. <ul><li>Not just for the home-bound anymore. </li></ul><ul><li>Online-ordering enables customers to select their grocery list, have someone else do the shopping. </li></ul><ul><ul><li>Home-delivery (77% of online shoppers have tried this option) </li></ul></ul><ul><ul><li>In-store pickup (46% have tried this option) </li></ul></ul><ul><li>Reflects growth of online retail in general. </li></ul><ul><li>But just who is buying…? </li></ul>
  4. 4. Big spenders are likelier to buy online.
  5. 5. <ul><li>Among shoppers spending over $500/month on groceries, 1 in 3 orders all of his or her groceries online. </li></ul><ul><li>Grocery-shoppers who buy 100% of groceries online also spend $1000+/month on groceries </li></ul><ul><li>Just half of those who order online spend $200 or less on such services </li></ul>
  6. 6. Motivations <ul><li>Time is the leading motivator, followed by convenience </li></ul><ul><li>Some use home-delivery option to save gas </li></ul><ul><li>Some use in-store pickup to ensure they buy only what they need, minimizing the risk of making impulse purchases </li></ul>
  7. 7. What are your motivations for using online- ordering with home-delivery?
  8. 8. What are your motivations for using online-ordering with in-store pickup?
  9. 9. Customers still see some downsides.
  10. 10. <ul><li>Online-ordering requires an extra fee. </li></ul><ul><ul><li>61% of home-delivery users </li></ul></ul><ul><ul><li>40% of in-store pickup users </li></ul></ul><ul><li>Mix-ups are a problem. </li></ul><ul><ul><li>31% of home-delivery users </li></ul></ul><ul><ul><li>25% of in-store pickup users </li></ul></ul><ul><li>Home-delivery: shoppers frustrated when items not in stock (29%) </li></ul><ul><li>In-store pickup: users frustrated by still having to go to the market (35%) and the lengthy process of getting in and out of the store (25%) </li></ul>
  11. 11. Targeting Non-Users <ul><li>36% don’t want to lose the “shopping experience” by going online </li></ul><ul><li>35% say their preferred grocer doesn’t offer online services </li></ul><ul><li>1 in 3 discouraged by the fee </li></ul><ul><li>Lower fees might change some shoppers’ minds (36%), as would tangible incentives like coupons (34%) </li></ul>
  12. 12. What changes would convince you to order groceries online?
  13. 13. Actionable insights <ul><li>Some shoppers are ordering groceries online. Of those who do, shoppers who spend the most are the heaviest users. </li></ul><ul><li>Some shoppers are discouraged by high fees, problems with the ordering process, and mix-ups in their deliveries. </li></ul><ul><li>Some shoppers might be likelier to try online-ordering were the fees lower, if they received benefits, or if their grocers offered the service. </li></ul>
  14. 14. Next steps <ul><li>Field a concept test to see how customers would respond to an online offering. </li></ul><ul><li>Use an awareness/usage study to find out whether customers are aware of – and if they are, whether they use – your existing online service. </li></ul><ul><li>Implement a satisfaction study to find ways of improving your existing service. A focus group, online or in-person, would offer detailed insight. </li></ul>
  15. 15. How do we know this?
  16. 16. Survey Methods <ul><li>Date of Survey: 6/21/2010 </li></ul><ul><li>Respondents: 203 </li></ul><ul><li>Sample Source: FGI SmartPanel </li></ul>This nationally-representative sample consists of adults aged 18 and up and is balanced to the US population using recent census data. One can say with 95% confidence that the maximum margin of sampling error is ±4 percentage points.
  17. 17. Why FGI <ul><li>Custom online panels </li></ul><ul><li>Branded online communities </li></ul><ul><li>SmartPanel: 100,000+ panelists </li></ul><ul><li>SmartPanel Community </li></ul><ul><li>Human experts who handle each step of the process with you and your customers in mind </li></ul>
  18. 18. FGI Research: custom panels, research experts, dynamic approach.
  19. 19. <ul><li>This TrendTruth is produced by FGI Research. Learn more about the market trends online at our TrendTruth blog… </li></ul><ul><li>… or follow us on Twitter! </li></ul><ul><li>@TrendTruth </li></ul><ul><li>www.fgiresearch.com/category/trend-truth/ </li></ul>

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