E-Commerce From a - PRS IN VIVO · 2017-09-22 · E-Commerce From a Shopper’s Perspective ......

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E-Commerce From a Shopper’s Perspective:

Overcoming The Challenges

Velocity Conference

Charlotte, NC

Sept 14, 2017

Jonathan Asher, Executive Vice President, PRS IN VIVO

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E-commerce is booming

• 40% growth in the US in the past two years - $70 billion to $100 billion

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E-commerce is booming - selectively

CPG Online = 2%

CPG in Brick & Mortar = ~98%

Total CPG = ~$600 Billion

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Only 2% of total CPG sales occur online

CPG Online = 2%

CPG in Brick & Mortar = ~98%

Total CPG = ~$600 Billion

Reluctant to purchase perishables online

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Overcoming the hurdles

Hybrid solutions

• Curbside pick up

• Deliver to door

Subscriptions

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Other Barriers

Online display

• Unfamiliar

• Difficult to compare

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Difficult to Compare & Contrast

Limited SKUs Are Immediately Apparent – Effort is Required to See More

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Desktop: Focus on Top 3 Rows

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Mobile: Visibility Drops With Scrolls

From here, visual noting falls below 40%

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Select the Wrong Variant

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120 Capsules

$29.99

240 Capsules

$44.99

6 oz.

$5.97

29.2 oz.

$5.37

Vs. Vs.

Select the Wrong Size

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Proprietary Shopper Research

• Two categories

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Proprietary Shopper Research

• Three layouts

◦ Current

◦ Call Out

◦ Shelf

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Proprietary Shopper Research

• Online usage and attitudes plus in-person eye-tracking

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What Did We Learn?

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Online shopping can be improved!

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Enhanced Visual Engagement

• Shoppers view more items – Trash Bags

Current Trash Bags Call Out Trash Bags Shelf Trash Bags

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Enhanced Perceptions of Shopping

• Shelf > Current for both Trash bags and Ranch

◦ Overall

◦ Easy to shop

◦ Find the right product for me

◦ Differentiate products in the line

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Enhanced Perceptions of Shopping

• Call Out > Current only for Trash bags (harder to get key info from pack)

◦ Easy to shop

◦ Find the right product for me

◦ Differentiate products in the line

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Implications

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Enhanced Layout

A Shelf Context is Most Advantageous

• Familiar; Quick Comparisons

• Explore Specific Execution with E-tailers

◦ Very different from current

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Enhanced Product Descriptions

Call Outs Can Help with Copy Heavy Packages

• Facilitates shopability & product comparisons

◦ Closer-in to current

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But sufficient design equities must be retained to ensure recognition

In-Store Online

Simplified Pack Graphics

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Visceral Visuals

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Leveraging the Web to Illustrate Features…

Multiple images show sizing (in hand) and also what the scoop inside looks like.

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…Facilitate Product Comparisons…

Helping shoppers choose the right form of Similac for their child.

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…and Provide Additional Information

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Overcoming The Challenges

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E-commerce Will Continue to Grow

Average purchase = $35 in-store vs. $148 online

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But Brand Choice Will Be Up For Grabs

Fewer than half have a preference between National Brands and Private Labels

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Adopt Ordering & Fulfillment Solutions

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Embrace Change!

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Explore Optimizing Online Shopping

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Explore Optimizing Online Shopping

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Two Words = Success

Shopper Experience

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Two Words = Success

$$$

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Thank You!

Jonathan Asher

Executive Vice President

T: 201.720.2724

jonathan.asher@prs-invivo.com