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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
$$$
