Have you seen The Customer Experience Factbook?

In this 180+ page report, you'll find all the information and support you need to build a profitable, effective CX Improvement Program that spans every part of your business. You'll be able to implement and manage meaningful and profitable change, and grow your bottom line despite a slowing economy.

Get it on Amazon (Kindle/Print)

Consumer confidence has a big impact on e-commerce

Nearly two-thirds of CPG omnichannel growth is down to e-commerce

Hand-in-hand with consumer confidence is the growing and evolving e-commerce channel. In fact, 2018's e-commerce sales increased by a whopping 35.4%, according to IRI's new research, Consumer Confidence Reflected in E-Commerce Growth.

Consumers are increasingly comfortable with online purchasing, and retailers of all stripes are upping their online offerings, working to enhance the shopper experience with simple navigation, assortment, good values and delivery options.

"Millennial and Gen X consumers are more at ease with online purchases than older generations, and as e-commerce becomes more of a routine, those shoppers are migrating offline efforts to save money to their online practices," said Joan Driggs, vice president of Content and Thought Leadership for IRI. "Online offers a lot of additional outlets for smart shopping, including easy comparison shopping and keyword search for more informed purchases."

E-commerce sales are the Shining Star of CPG Omnichannel
E-commerce sales for the latest weeks ending Dec. 30, 2018, were US$58.9 billion, a 35.4% increase from a year ago. These sales account for only 11% of total CPG retail sales; however, e-commerce accounts for 64% of total omnichannel growth.

"Pure-play retailers garner more than half of all online CPG purchases, but traditional brick-and-mortar retailers continue to invest and win share of the e-commerce pie," said Sam Gagliardi, head of e-commerce for IRI. "It is incumbent upon the future success of these traditional retailers to invest in the shopper experience both in-store and online."

Non-food items, particularly personal care and home care products, are tops in online purchases. IRI E-Market Insights reports that vitamins, pet food and supplies, and skin care products are the top- selling items. Pet food and supplies are often bulky items that are inconvenient to purchase off store shelves. Vitamins, typically purchased for specific health benefits, are likely considered easier to shop for online through keyword search and with access to additional information.

Specifically, Q4 Consumer Connect survey respondents say buying online allows them to find lower-priced beauty and personal care product options - 29% of total US consumers, 45% of millennials, 35% of Gen Xers, 27% of boomers and 14% of seniors. These results closely mirror thought on home care products, with 30% of total consumers, 43% of millennials, 36% of Gen Xers, 27% of boomers and 19% of seniors saying they find lower-priced options online.

While fresh and frozen items rank among the bottom of e-commerce sales categories, there are signs of significant growth, indicating that retailers - likely with the support of such flexible options as click-and-collect - are starting to crack the code on delivering fresh and frozen items via online.

Millennials and Gen Xers, the two generations most likely to find value in shopping online, are also the generations that report having the most difficulty affording needed groceries (34% of millennials, 36% of Gen Xers). More than half - 54% - of millennials and Gen Xers report they are less likely to make impulse purchases when buying online. With this in mind, e-commerce should be touted as a tool for helping shoppers stick to their budget. Overall, 50% of total respondents report they are less likely to make impulse purchases online, including 49% of boomers and 44% of seniors.

It's no surprise that 38% of all consumers like ordering online and picking up in the store, because it is convenient and is a good way to avoid shipping fees. In fact, 49% of millennials, 48% of Gen Xers, 38% of boomers and 24% of seniors feel the same.

In addition to purchases of bulky or heavy items, such as pet food, shoppers are increasingly going online for more sensitive purchases. IRI E-Market Insights reports that gastrointestinal and adult incontinence products are among the largest e-commerce growth categories. These products are not what people imagine themselves needing, so when these occasions arise, it's both a comfort and a convenience for shoppers to learn about and order products online.

"E-commerce sales will continue to climb in 2019 and beyond, with retailers increasingly investing in better ways to engage shoppers, including with improved navigation and mobile access, delivery and payment options, and endless aisle assortments," concluded Gagliardi.

Have you seen The Customer Experience Factbook?

In this 180+ page report, you'll find all the information and support you need to build a profitable, effective CX Improvement Program that spans every part of your business.

You'll be able to implement and manage meaningful and profitable change, and grow your bottom line despite a slowing economy. Grab this goldmine of easily adaptable and up-to-date strategies, walk-throughs, trends, technologies, research, suppliers and partners, plus all the supporting arguments you need to build a solid CX strategy.

While most marketers could list maybe a dozen key points for improving their brand's Customer Experience (CX), the researchers and writers at The Marketing Factbook have identified FORTY main 'CX Keys' which will help you drive your customers to new levels of delight, loyalty, advocacy and profitability.

The areas in which customers have direct contact with your organization are perhaps the most obvious places in which CX improvements can be made, and this report addresses all 24 of these 'Direct CX Keys', applicable to offline and online businesses alike.

At the same time there are many other areas that indirectly affect CX (such as the supply chain, policies and processes) in which every business can make simple but far-reaching improvements. This report guides you through the problems and solutions for all 16 of these 'Indirect CX Keys', many of which are often forgotten or under-played even in the best CX strategies.

Get it on Amazon (Kindle/Print)