mobile in the consumer journey

01

Mobile in the ConsuMer Journeyhow Mobile is shaping the Future oF groCery shopping

Storyforward

Executive summary ................................................................................ 3

Study methodology ................................................................................ 4

Introduction: The mobile as lover ........................................................ 5

A Shopping Sea Change ......................................................................... 7

The head & the heart: A new mobile engagement model ................. 15

Conclusions & key take-aways ............................................................. 21

table oF Contents

Storyforward

02

03

exeCutive suMMary

Mobile technology has begun to transform the way we grocery shop—more consumers are using their mobile

phones to download coupons, compare prices and find information throughout their shopping decision-making journey. But while mobile technology is steadily advancing across the globe, brands and retailers are not tapping into the true potential of the mobile channel to engage more personally and emotionally with consumers.

Microsoft® Advertising and OmnicomMediaGroup conducted “Mobile in the Consumer Journey” research in Brazil, Japan, South Korea, the UK and US in order to explore how mobile usage is evolving across markets at different stages of smartphone evolution, and to better understand how brands can respond to the changing dynamics of mobile shopping technology. Several key findings emerged from the study:

1. The use of mobile in the planning and in-store phases of the consumer journey is growing. 33% of average consumers1 use their mobile phones to compare grocery prices. That number increases to 71% among savvy smartphone users.

2. Mobile is beginning to resonate in the ‘head’ space (functional and rational) through the use of coupons, mapping, shopping lists and loyalty card apps. 35% of average consumers1 use apps or websites recommended by friends or family while grocery shopping.

3. Consumers are seeking more integrated, seamless experiences in both the ‘head’ and ‘heart’ (emotional) spaces, so they can optimize function, while getting more enjoyment from their shopping experience. 22% of average consumers1 want to interact with brands throughout their shopping experience.

4. Despite the personalization qualities inherent within the mobile device, the emotional need-states of consumers are being left in the aisles. The growth of strictly price-driven functions means marketers risk ‘a race to the bottom,’ where brand equity is lost in a series of mobile-driven price wars.

“ Mobile in the Consumer Journey” will reveal the role that mobile devices are currently playing in the grocery category, while demonstrating clear opportunities to move beyond function, in order to provide the better brand experiences that lead to higher sales.

1 Global average

04

study Methodology

QualitativeMicrosoft Advertising and OmnicomMediaGroup partnered with Flamingo Research to speak with 161 consumers across markets, via blogs and face-to-face ethnography. Consumers in Brazil, Japan, Korea, UK and US blogged, chatted, taped, typed, scanned, filmed and texted their grocery shopping experiences for six weeks. The results were analyzed prior to the quantitative phase.

QuantitativeWe also executed a survey via Global Market Incite (GMI) to 2,500 people, across the same five markets, in order to:

•understand the role of mobile across the shopping/consumption experience for FMCG/CPG categories

•explore how people use mobile during the shopping/consumption experience

•investigate how the consumer interacts with advertiser messages via mobile throughout the shopping/consumption experience

•learn regional differences; and flesh out implications for marketers.

A Note on the RegionsWe chose markets based on the smartphone adoption curve. In some markets, such as Brazil, retail is less saturated and mobile is still emerging. In other markets, such as Japan and Korea, technology development is ahead of consumers; even standard feature phones contain subscriber-customized features that enable smartphone-like enablement. Markets such as the US and UK are right in the middle of these two extremes.

“ I could not live without mobile technology. Maybe that sounds a bit sad, but life would not be as interesting!” Female in London

And quantified our findings with

2,500 online surveys across the

five markets

05

introduCtion the Mobile as lover

Grocery shopping is a profoundly important part of

family life: what we buy online or in stores helps shape the experiences we share together. Consumers have both functional and emotional needs as they shop;

they’re focused on both finding the best deals for their wallets, and also taking care of their families, friends and loved ones through their choices.

In 2011, Microsoft Advertising conducted a study called “Meet the Screens” (Microsoft Advertising, BBDO & IPSOS OTX, 2011) in order to better understand how consumers interact within multi-screen environments. Using Jungian archetypes, “Meet the Screens” revealed how consumers around the world see themselves and their screens as they use TVs, PCs, mobile phones and tablets.

“Meet the Screens” revealed that unlike any of the other three screens, the resulting mobile archetype—the Lover—was consistent across geography and demographic. No matter the age or culture, all consumers relate to their mobile phone in a more personal and intimate manner than they do the PC, television and tablet.

Data within our new mobile study supports our 2011 research. According to “Mobile in the Consumer Journey”, only 11% of consumers who own smartphones, tablets and computers would give up their mobile phones before their other screens. In fact, 55% of consumers would give up their tablets first.

Mobile phones are the most personal consumer devices—and have the potential to bear new opportunities for marketers

06

In the following study, we’ll explore:

•How consumers in the US, UK, Brazil, Korea and Japan are using mobile phones throughout the grocery shopping journey

•What consumers expect from mobile technology, products and retailers to aid their shopping experiences in the future

•How marketers can capture both the ‘head’ and the ‘heart’ throughout their customers’ shopping experiences in order to raise brand awareness, consideration and loyalty, while increasing shopping basket size.

introduCtion the Mobile as lover

Among those who own all three Brazil Japan Korea UK US Avg.

Computer/Laptop 38% 34% 22% 41% 34% 34%

Tablet 49% 60% 55% 54% 61% 55%

Smartphone 13% 7% 24% 5% 6% 11%

For marketers, the level of intimacy of mobile technology makes new opportunities to engage consumers throughout the shopping journey possible. Content delivered on-the-go has the ability to inspire and entertain consumers; yet, as you’ll see in our research, not every marketer has taken

advantage of its inherent strengths.

Which device would you give up first?

In all markets, shoppers would

give up their tablets before any

other device

And their smartphone last

07

a shopping sea ChangeMobile teChnology is disrupting Conventional shopping behavior

Mobile is changing the way we shop. Always on, always connected, and always in our pockets, mobile is the

natural successor to PCs and laptops in digital retail. Mobile technologies lend consumers more immediate control over what they buy and how they buy it. Consumers who own smartphones are using them to make shopping more efficient: they are searching for lower prices, finding stores, sourcing information and looking up reviews. With mobile phones at their sides, individuals and families are starting to shop quicker, easier, cheaper and smarter.

FrequencyWhile daily shopping is slightly more popular in Japan, Brazil and Korea, shopping visits generally occur every few days, illustrating that even with better technology, grocery shopping is still an activity that takes time and occupies significant mind space.

33%of consumers use their mobile phones to compare grocery prices.That number increases to 71% among savvy smartphone users.

Which of the following describes the frequency with which you shop for groceries?

0%

10%

20%

30%

40%

50%

60%

70%

I shop daily for items I need I shop every couple of days as fill-in-top-up

I do a big weekly shopping trip

I do my big shop about every two to three weeks

Global US Brazil Korea UK Japan

08

a shopping sea Change

If you create a shopping list, how do you manage it?

“ Cooking and enjoying meal times gives me the most joy right now. My favorite bits of technology would be my computer and my smartphone. They improve every single day and so do I, thanks to them.” Female, Seoul

Shopping ListsConsumers are using their mobile devices at varied phases in their shopping journey. For planning, more than two-thirds of consumers make a list before they shop. And 30% of those consumers make the list on their mobile devices—a trend that we expect will continue to grow.

0%

20%

40%

60%

80%

100%

On paper On my mobile I just remember it


30% store their shopping lists on

their mobiles

09


What consumers like about their shopping experiences

What they like bestThe majority of our shoppers enjoy their grocery shopping experience. The number one joy consumers get from shopping is satisfaction from finding a good deal. But consumers still rate meeting people and discovering new and different products high on their lists, leaving room for less functional pleasures. When one considers the marketplace aspect of shopping that’s been around for centuries, it makes sense that consumers would want a rich, social experience while shopping.

UK

ALL

•Finding a good deal—saving money on my shopping

•Meeting people•Looking at

new/different products

Brazil

• Finding a good deal—saving money on my shopping

• Meeting people• Freshness/

quality of products


• Comparing (prices/ products)

• Discounts/ Bargains

Japan


• Generating meal ideas

• Relaxing


• Discounts/ Bargains

• Product attributes

Korea


• Meeting people• Freshness/

quality of products

USA

10


Coupons and dealsMore smartphone owners compare prices in-store than feature phone owners, with Korea leading the pack. In Japan, 20% of all coupons are delivered via mobile, while newspapers are still the primary source for US shoppers (73% newspaper compared to 13% mobile). Brazilian shoppers get coupons mainly in-store (56%) with 7% delivered via mobile. Direct mail delivers 54% of offers and deals in the UK. And Japan and Korea lead QR code downloads.

How do you get coupons and vouchers?

FEWER THAN 20% get coupons

and vouchers from their mobiles

0%

10%

20%

30%

40%

50%

60%

70%

Through the newspaper or

magazine

In the mail At the store Through email Through my mobile

Through my mobile either from an app or a website


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Views on advertisingFinally, and perhaps not surprisingly, younger consumers are more likely to view video ads on their mobile phones, with more than 20% engaging a few times per week.

How often do you view video content on a mobile phone?

20%engaging a few times

per week

0%

5%

10%

15%

20%

25%

Daily 2-3 times a week Once a week A few times a month Once a month or less

(Global average)

Ages 25-34 Ages 35-54

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Mobile’s role in the consumer journey:But how does this shifting behavior play out along the full spectrum of the consumer journey? A study conducted in 2011, “The Consumer Journey: How One Woman’s Quest for the Perfect Bottle of Shampoo Reveals New Opportunities for The Digital Marketer”, (Microsoft Advertising & IPSOS OTX, 2011), established a five-stage model for consumer FMCG/CPG shopping experiences. If we superimpose results from “Mobile in the Consumer Journey”, we find that consumers across all five markets currently use mobile heavily during the planning and in-store phases of their shopping experience. And among savvy smartphone users surveyed across all categories, that number increases significantly, indicating that as smartphone penetration grows and technology improves, we will likely see the average consumer start to embrace this more advanced behavior.

As smartphone penetration grows and technology improves, we will likely see the average consumer start to embrace more advanced behavior.

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Viewing grocery-related advertising (14%) [43%]

Deciding what I need to buy (22%) [44%]

Checking in with family re: what I need to buy (27%) [42%]

Check apps for health and/or origin of food (13%) [54%]

Opportunity: Inspire what I buy in store [44%]

Opportunity:Choosing where

I shop [60%]

Opportunity:Entertainment while

shopping [40%]

Comparing prices while I shop (33%) [71%]

Take pictures of products (16%) [67%]

Download content via QR code (14%)

Use a coupon stored on my mobile

phone (25%) [57%]

Sharing and receiving deals (25%) [43%]

Considering possibilities Considering possibilities Taking inventory/making a list/seeking detail

The Consumer vs. the Shelf

Fun, good health, enjoyment,

togetherness

Search for info on what brands to buy (22%) [56%]

Sharing via social network or blog

(13%) [35%]

Pre-Trigger Trigger Pre-Shopping In-Store Usage

MOBILE IN THE SHOPPING JOURNEY TODAY (NUMBERS BELOW REFLECT GLOBAL AVERAGES)

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Mobile’s role within the journey offers up a wealth of opportunities for marketers to engage consumers in

new and unique ways. But the manner in which marketers reach consumers via mobile today ignores key phases in the journey, and focuses on practical and functional needs, rather than on the emotional potential the mobile device has the capability to deliver.

According to consumers, grocery retailers and brands are not currently meeting demand for better mobile engagement while grocery shopping. Consumers want live offers pinged to them as they enter the store, interactive store mapping to guide them around the store and seamless integration with their shopping lists. These three expectations can improve the functional benefits of mobile along the journey, but there’s also room to move beyond the head—to engage the heart.


“ I use my smartphone when on the move all the time, and mostly use my iPad 2 when at home, on the sofa.” Female, Tokyo

Consumers want live offers pinged to them as they enter the store

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the head & the heart a new Mobile engageMent Model

Groceries are a highly emotional category. And as we’ve seen with “Meet the Screens”, the mobile phone is the most

personal and intimate of all devices. Consumers see their mobiles as their Lover, yet brands treat them as the PC archetype, The Sage. The subsequent opportunity for brands to leverage the mobile as Lover in order to engage the ‘heart’ and protect brand equity is a powerful opportunity.

Mobile can appeal to a consumer’s practical needs—the head—in more cohesive ways.

Head shopping is practical and rational. Consumers are focused on where they can buy products. What’s cheapest? Where is the closest location? Opportunities exist for marketers to continue to provide cost-savings tools, while enabling cohesive logistics such as directions, store maps and timely alerts that make the shopping experience easier… all of which free up consumers to move into more emotional territory.

Marketers can utilize mobile to move into more emotionally resonant areas—the heart—to truly win over consumers.

In contrast, ‘heart’ shopping is more emotional. What shall I buy that helps me care for myself and/or my family? What can we splurge on that’s a special treat and helps us have fun together? What can I cook that my girlfriend will love?

This is untapped territory in the mobile ecosystem; brands and retailers in the mobile space have been almost entirely focused on the practicalities of a purchase, including cost and location. But opportunities exist for brands to infuse more excitement, exploration and a sense of emotion into the grocery shopping experience.

THERE’S ROOM TO MOVE BEYOND THE HEAD…

TO ENGAGE THE HEART

While brands are getting better at engaging ‘the head’ via offers, coupons and price comparison apps, they risk losing an opportunity to engage ‘the heart’

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Value beyond price

•Simplification

•Ease

•Calculation

•Processing

Richer shopping experiences

•Enrichment

•Care

•Connection

•Sharing

Goal: Land the function and move beyond to provide richer experiences

The head is more about...•Chore

•Reason

•Restraint

•Focus

•Thinking

•Satisfaction

The heart is more about...•Pleasure

•Emotion

•Exploration

•Openness

•Feeling

•Excitement

IS MORE ABOUT....PLEASUREEMOTIONEXPLORATIONOPENNESSFEELINGEXCITEMENT

IS MORE ABOUT....CHOREREASONRESTRAINTFOCUSTHINKING

17

MOST ENJOYABLE PART OF SHOPPING IS FINDING A GOOD DEAL/SAVING MONEY ON SHOPPING

55%

THERE’S ROOM TO MOVE BEYOND THE HEAD…

TO ENGAGE THE HEART

OPPORTUNITIES EXIST FOR BRANDS TO INFUSE

MORE EXCITEMENT, EXPLORATION AND A SENSE OF EMOTION

CONSUMERS WANT LIVE OFFERS PINGED TO THEM AS THEY ENTER THE STORE

SAY THEY WOULD BE OPEN TO TECHNOLOGY AND MEDIA THAT ALLOWED THEM TO MANAGE THEIR PERSONAL GROCERY LISTS ON THEIR MOBILE PHONES

INTERACTIVE STORE MAPPING TO GUIDE THEM AROUND THE STORE

AND SEAMLESS INTEGRATION WITH THEIR SHOPPING LISTS


18


“ If brands don’t make the shift into the heart space, they risk ‘a race to the bottom’ , when consumers aggressively compare prices and lose sight of brand equity. The mobile opportunity is not just about pushing a product; it’s about providing personal identification, intimate engagement and a sense of community.”

Head Heart

Try a new product or brand

•Offer promotions and offers

•Support trial by making information available through the web

•Showcase the brand’s novelty and unique benefits

•Give support through peer and expert reviews

•Provide feedback channels via the web

Make planning easier•Provide a way to help organize

information on deals, coupons and loyalty cards

•Enable shoppers to feel in control by keeping them organized

Make the shopping trip more efficient

•Make it easier to create shopping lists by providing inventory and menu and recipe needs

•Help the shopper keep track in store of what’s on the list vs. what’s in the cart

•Provide navigational aid in-store

•Enable brands to inspire the shopper; make meal planning more fun and less of a chore

•Help shoppers feel smart and efficient in their choices

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First, we found that there’s a strong openness to interruption as long as a product is relevant. 55% of consumers

(global average) say they would be open to technology and media that allowed them to manage their personal grocery lists on their mobile phones. Brand marketers can provide bespoke experiences through recommendations (e.g. Moms like you bought…) for products, recipes, tips and more.

This engenders a sense of sharing, partnership and even community. As a result, brand

marketers let the consumer know that they are on their side, not only helping them to get the shopping done, but also inspiring them with hyper-relevant messages.

Second, it’s essential to connect the head and the heart with more cohesive experiences. Many of the services consumers want exist now, but they’re siloed. Consumers agreed that it takes too much time to explore, download and use separate apps for different functions. Providing seamless experiences will be critical to mainstream adoption of mobile shopping.

There are two key ways that marketers can leverage the intrinsic strengths of mobile through the consumer decision-making journey

20


How can it all work together? Here’s an example:

Pre-Trigger Trigger Pre-Shopping In-Store Usage

Des

crip

tion

How do I take care of myself and those that I care about? How do I have fun?

Menu Panning, List Making: •What do we eat? What

shall we buy?•What will we enjoy?

Pre-Store: Where shall I buy it? How much will it cost?

In-Store: When will I buy it?

Meal times, discussion: •How was the

experience?•What do we say

about it?•Shall we buy it

again?

How

M

arke

ters

Pl

ug in

Brand Awareness Planning: Recommendations, Guidance, Inspiration

Pre-Store Purchase: Ease, Simplification, Fluidity

In-Store Purchase: Relevance, Efficiency, Exploration

Consumption: Satisfaction, Sharing

Sponsored Videos—Provide cross-screen interaction via morning show apps and videos

New Products & Recipes—Seamlessly integrated into basket

Meal Planning—Variety, exploration, spontaneity

Product Stories—Authentic connections, provenance

Health Management—Nutritional and allergy information

Weight Management—Dietary regimes and recommendations

Crowdsourcing— Reviews, tips

Reminders and shopping lists

Simplification—More effective filtering of detail

Less work—Cleaner, leaner experiences

Basket Value Comparison—Basket comparison rather than just single items

Instant Offers—Automatic uploading of offers on entry

Live Offers—Pop-up/location-specific messages

Live Total—Adding up basket as you shop

Recommendation—Healthier, cheaper and/or more environmentally-friendly options

Route Planning—Automated route plan based on grocery list

Price Comparison—At shelf (include price per unit and per 100g)

Entertainment—Entertain the kids while you shop

Video Demonstration—Cooking labs that relate back to in-store experiences

Sharing Experiences—Social media and face-to-face word of mouth

Customer Feedback—Ensure satisfaction and give opportunities for customers to see others’ satisfaction

Mic

roso

ft A

dver

tisin

g So

lutio

ns—

Exam

ples

TODAY Show app for simultaneous TV viewing

MSN Video

Bing

Good Housekeeping app

Parenting app

MSN OnPoint app

The MSN Homepage, Lifestyle Living and Love apps, plus Fox Sports for inspiring every day, special occasion and game day menus

Bing apps

MSN Money app

MSN Money Smart Spending app

MSN OnPoint app

MSN Lifestyle Living app

Bing

Wine for Dummies app

MSN Money app

Xbox 360 app and MSN Entertainment for in-store, long-line entertainment

Skype

MSN Postbox

Behavioral, Geo and Demographic Targeting and Rich Media Solutions.

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ConClusions & Key taKe-aways

“Mobile in the Consumer Journey” makes it clear that opportunities exist to embrace the ‘heart’ space throughout consumers’ decision-making journeys, while making shopping experiences more cohesive via the mobile device. We offer the following recommendations to marketers who want to anticipate emerging consumer behavior and tap into the unique qualities of mobile technology:

Embrace the Mobile as the Lover

Mobile bests laptops and tablets as the preferred device.

•As the Lover archetype, it is the most personal and intimate device, rarely more than three feet away from us

•Mobile’s ability to assist, inspire, entertain and connect with grocery shoppers on a personal level is an untapped opportunity

Understand today’s consumer behavior…

Mobile technology has disrupted our habitual grocery shopping behavior.

•Consumers are embracing the on-the-go functionality of mobile

•Price checking among smartphone users is higher than ever, with 33% of average consumers1 using price comparison apps and websites on their mobile devices and 71% of savvy smartphone shoppers across category

...with a keen eye to what they expect tomorrow

Grocery retailers and brands are not currently meeting consumer demand for better, seamless mobile engagement while grocery shopping.

•Consumers want live offers pinged to them as they enter the store

•They want interactive store mapping to guide them around the store

•They expect seamless integration with their shopping lists

Finally, don’t leave the ‘heart’ behind

Mobile can play to the ‘head’ space in a smarter, more cohesive way, while marketers embrace the more emotional, personalized attributes of mobile within the grocery shopping journey.

•Marketers must avoid a ‘race to the bottom’ , where they risk losing brand equity

•Mobile can move into the ‘heart’ space to inspire shoppers throughout their shopping journeys and to increase shopping cart size

1 Global average

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about MiCrosoFt advertising global insights & analytiCs

While many tech and media companies conduct market research that describes what consumers are doing, the Microsoft Advertising Global Insights & Analytics team believes innovation stems from

getting at the why. As a result, we go beyond behavior to focus on why consumers do what they do—whether that’s choosing one brand over another, or exhibiting a preference for a specific platform. Our goal is to create more robust, insights-driven narratives that put a human face on our audience, making it easier for customers to tell creative, relevant and connected stories across platforms.

Natasha Hritzuk Senior Director of Global Insights and Analytics

[email protected]

New York, NY

Kelly Jones Head of Marketing Insights

[email protected]

New York, NY

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Some examples are for illustration only and are fictitious. No real association is intended or inferred.

This document does not provide you with any legal rights to any intellectual property in any Microsoft product. You may copy and use this document for your internal, reference purposes.

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