Where’s the WOW in Grocery?

Posted by on Mar 6, 2014 in Brand eCRM, CPG, Digital Coupon, Digital Strategy, Loyalty, Online Grocery, Online Marketing, Sliderpostings | 0 comments

Enjoyed this recent post from McKinsey’s David Edelman, You Need Your “WOW”.  Across the spectrum, consumers are overwhelmed with information and underwhelmed with product and service. Got it. No industry is more in need of a “WOW” moment than Consumer Packaged Goods (“Coupon Fatigue? Calling All Digital Grocery Burnouts!”). A massive “new market-like disruption” is the only answer – meaning, consumers must get something they never dreamed they’d ever get. And it can’t be a one-off event – like winning a sweepstakes (or a random “we remembered your birthday event”) – consumers are onto that trick and only the gamers are playing. The game changer only changes the game if it comes into play every purchase, every trip, for the average consumer. Not such an easy task when your shoppers number in the millions, shop weekly and your product is one of 25 products in the basket (out of a possible 20,000 in the store) when they do. Grocery is indeed a unique challenge. If you know it – comment below. What makes Grocery a uniquely challenging place to innovate?...

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Coupon Fatigue? Calling All Digital Grocery Coupon Burn-Outs!

Posted by on Mar 4, 2014 in Brand eCRM, Burnout, Consulting, CPG, Digital Coupon, Digital Strategy, Learning, Load to Card, Loyalty, Online Coupon, Online Grocery, Online Marketing, Printable Coupon | 0 comments

In no area of marketing does innovation have greater potential to positively and significantly impact the daily lives of more people than in the weekly task of GROCERY SHOPPING.  And yet for all the money, technology, data and brainpower invested, we have very little to show for it as an industry (no offense to those who have been trying, I’ve been right there with you for more than a decade). The best opt-in rates for digital consumer engagements in grocery are less than 10% (lower than that on average).  Maintaining that engagement is a whole other challenge. Most grocery consumer engagement is funded through and by digital couponing, a tactic that appeals to less than 15% of U.S. Households on an ongoing basis and is currently “out of vogue” with brands desperate for new ways to build brand value (and profit margin). Less than 1% of Grocery sales occur online (although this is changing, more on that in another post later). As a result, there are literally billions of brand and retail marketing dollars stuck in increasingly inefficient marketing channels – not because they don’t want to go online (many famous pronouncements have been made to move budget dollars online over the last 15 years) – but no existing solution has the scale to spend that kind of money (not even the biggest dogs in the digital CPG fight). Never, never, never has there been a spending population more patient and willing to test nearly anything and everything – and the fact that there has been no true game changer – well, I’ve literally seen it break hearts. The heart breakers – “great ideas” that turned out to be not-so-great; super cool companies with value propositions that left consumers cold; hot and hungry teams  that turned out not so “hot” at follow-through; “game changers” and “killer apps” with funky or ambitious names that … in the end …have struggled to deliver the only things that really matter: meaningful, scalable, repeatable impact on volume of units moved “brand value” creation store preference and retailer share of their customer’s spending. Many of the pioneers, thinkers, doers, and innovators that I’ve run across along my journey have given up – clients and colleagues – they call it “coupon fatigue” (because a lot of these efforts centered around varying consumer currencies like coupons). They jump out and start businesses in other industries, where the ground is more fertile for innovation…and the consumer value proposition is, quite frankly, easier to deliver. But it’s not the time to give up! It’s time to admit that (I hate to say it), is going to take a village. We need to pool together the collective insight from...

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