WPP - The Modern Grocery Run

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BEYOND

CONVENIENCE
What Consumers Really Value About the Modern Grocery Run

INTRODUCTION
Online grocery has been a juggernaut. In the three years
since the start of the pandemic, the modern grocery run
has changed shape significantly. Today’s consumer splits
their grocery trip between in-store and online in a fluid
fashion, while marketers scramble to adjust in real-time.
They’re asking questions like: “When will online
grocery’s growth level out? What will be the ultimate
balance between in-store and online? How should we
tailor our marketing for the online space?”

Instacart, WPP and VMLY&R Commerce teamed up to


explore these questions and conducted two phases of
research, kicking off in January 2022 and then following
up 12 months later. We surveyed 4,200 U.S. online
grocery consumers to identify similarities and
differences in how people shop online versus in-store. 

Our findings point to a need for a fundamental shift in


how we market to consumers going forward.

Convenience has always played a central role in the


appeal of online grocery but since more and more
consumers have shifted to online grocery shopping, it
has become a cost of entry. 

In the modern era of commerce, marketers need to


frame online shopping as more than just a convenience
to be more meaningful to today’s consumer. Marketers
have a chance to understand the many opportunities
that online shopping brings so they can position it
beyond just ‘fast and easy’ and tap into online grocery’s
full potential to empower, inspire, and engage
consumers throughout the shopping journey. Finally,
marketers need to deeply understand the online
consumer to optimize their path to discovery, more
effectively convert them and, ultimately, personalize
their online experience as much as possible.

WPP Instacart VMLY&R Commerce 2


IN THE MODERN ERA
OF COMMERCE,
MARKETERS NEED TO
FRAME ONLINE
SHOPPING AS MORE
THAN JUST A
CONVENIENCE, TO
BECOME MORE
MEANINGFUL TO
TODAY’S CONSUMER.
VOLUME
SHIFTS TO
ONLINE
Let’s time travel to the year 2033. According
to the VMLY&R Commerce Pathfinder Survey
(January 2023), two out of three consumers
will be doing more than half of their grocery
shopping online. This represents a market
opportunity of $425 billion by 2025. 

While the acceleration in e-commerce


numbers is leveling off across many
categories, evidence shows that consumers $425B
are still prepared to shift more of their hard-
earned dollars to the online grocery channel.
BY 2025

Sources: Incisiv Inc., Digital Maturity Benchmark: Grocery Industry 2022,


McKinsey Grocery Retail B2B Survey, McKinsey Grocery Retail B2B
Survey projection for 2027. Assumes 35% online penetration of
~$1.2T 2027 Expected U.S. Annual Grocery Spend.

64% 65%
ONLINE GROCERY 62%
55%
GROWTH & MOMENTUM
By 2033, 2 out of 3 consumers will do more than
half of their grocery shopping online.

While the success of online grocery was fast-


tracked by the pandemic, many believe this

was an inexorable long-term shift.

At the end of the day, the data tells the story.


Online grocery continued to grow its customer 0%
base in 2022, and 86% of respondents are
1 year 3 years 5 years 10 years
satisfied with their current online grocery
experience. The consumer outlook on the
 2024 2033
future of grocery has also improved. 
VMLY&R Commerce Pathfinder (Jan 2023)

N = 2200

WPP Instacart VMLY&R Commerce 4


ONLINE GROCERY CONTINUED TO

GROW CONSUMER BASE When
IN 2022
it comes to shopping for groceries online, which of the following bes
When it comes to shopping for groceries online, which of the describes you?
following best describes you?
56%

44%
40% 41%

~85% 19%
of 2021 consumers did the same
amount of online grocery
I havebeen
been ordering I haveI have
beenbeen
doing it once
shopping or more in 2022
I have been
I have ordering online I have
ordering online been doing
doingit itonce in I Ihave
have only started
I haveonly started buying
only started
online regularly
regularly forthan
for more more
12 in aonce
while
in afor moore
while than
for more buying
buying groceries
groceries within
within
regularly for more than 12 a while for more than 12 groceries within the last 12
than months.
12 months 12 months
than 12 months. the
thelast
last12
12 months.
months.
months months months

EXPECTATIONS ARE BEING MET


How satisfied are you overall with online grocery shopping?

Completely satisfied 40%

Somewhat satisfied 46%

86%
Neither satisfied nor dissatisfied

4%
7%

SATISFIED
Somewhat dissatisfied

VMLY&R Commerce Pathfinder (Jan 2023)
 Completely dissatisfied 3%


N = 2200

WPP Instacart VMLY&R Commerce 5


CONSUMERS’ OUTLOOK ON THE FUTURE OF GROCERY
SHOPPING IMPROVED SIGNIFICANTLY FROM 2022 TO 2023

In 2022, 24% of respondents said they expected to buy strong customer satisfaction, the brands that tap into the
more than half of their groceries online within a year. By full-funnel marketing capabilities that online grocery offers
2023, that number went up to 42%, an increase of 75% in will be at an advantage.

just one year. With such a healthy YoY increase and such

At these points in the future, what percentage of your grocery shopping will be
online? (change from 2022)

<25%
24-49%
50-74%
75-100%

OF MY SHOPPING
OF MY SHOPPING
OF MY SHOPPING
OF MY SHOPPING

WILL BE ONLINE WILL BE ONLINE WILL BE ONLINE WILL BE ONLINE

2022 2023 2022 2023 2022 2023 2022 2023

In 1 Year 34% 12% 29% 34% 24% 41% 14% 14%

In 3 Years 28% 8% 28% 29% 28% 45% 16% 17%

In 5 Years 27% 9% 25% 27% 26% 40% 22% 24%

In 10 Years 26% 12% 20% 23% 24% 34% 29% 31%

While consumers remain optimistic about the future of and you can summon a grocery cart full of items to your
online grocery, the opportunity still exists for marketers
 door by lifting no more than your index finger. If you are a
to reimagine the ways they intercept, grab attention or consumer on a mission, whose time is at a premium, online
‘surprise and delight’ online consumers to deliver the
 is a no-brainer – search, click, add to cart, job done. 

same engagement once achieved only in-store. 

There’s also an element of discovery and impulse that


Marketers need to start by re-examining the fact that happens naturally in a physical store that marketers can
people shop differently online for groceries than they do
 bring to life online. What’s needed is an infusion of
in-store, so using the same tactics won’t work. Consider creativity across the full commerce consumer journey – or
the 3-D nature of shopping in a brick-and-mortar location. what we call creative commerce. From digital storefronts
You are immersed in the retail environment, open to a and shoppable formats to live streaming and new AI
variety of sensory inputs and even the influence of the innovations, brands now have more tools in their kit to
people around you.
deliver an experience at the moment of conversion,
regardless of channel. 

Though buying online lacks these sensory cues, online


grocery shopping has plenty of its own allures. You have So, in a world where the grocery aisle moves to the palm of
access to the entirety of a store from your sofa, you can your hand, how does a brand master the art of conversion?

instantly research a product and see what others think of it,

WPP Instacart VMLY&R Commerce 6


ONLINE WINS ON
CONVENIENCE,

BUT THE STORY
DOESN’T END HERE
You may not be surprised to know more consumers see online as
convenient. When we asked respondents which one ‘wins’ across a
host of attributes, 66% chose online shopping over in-store because
it ‘saves them time’ while nearly 61%, chose online over in-store
because it ‘is easier’.

This clear value proposition suggests that we, as marketers, should


focus on this functional frame of convenience when selling our
brands online, right? Well, not so fast. How do we make a brand
stickier or grow brand love if we rest on our laurels?

ONLINE GROCERY
SHOPPING WINS ON
CONVENIENCE BENEFITS
30%
Saves me time
66%

34%
Is easier
61%

43%
Better overall value
50%

49%
Is more personal
46%

49%
Is more reliable
45%

In-store Online

VMLY&R Commerce Pathfinder (Jan 2023). N = 2200

WPP Instacart VMLY&R Commerce 7


INSIGHT: CONVENIENCE IS MULTI-DIMENSIONAL
Our research showed there is no shortage of things people done’ or even ‘volunteering’, while 60% would do
would do with the time and energy given back by a more something nice for themselves. ‘Relaxing and recharging’
convenient shopping trip. According to Statista, the tops the list, while ‘spending time with family and friends’
average consumer makes 1.6 grocery trips per week, and also ranks highly. Some variability shows up when we
spends about 45 minutes in-store. That’s over 60 hours per consider different customer segments – for example those
year, excluding getting to and from the store. 
between 18-24 were more likely to say they’d do
something meaningful like volunteer (22%, indexing at 172)
Four in 10 respondents in our study would do something or explore recipes (28%, indexing at 145). Convenience
productive with the time saved by pursuing a convenient benefits are not one-size-fits-all.
online grocery trip like ‘other errands’, ‘getting more work

ONLINE SHOPPING GIVES ME TIME BACK TO DO THINGS

Take care of an errand


Relax and recharge

Volunteer
40% Get together with a friend

More work for my job


60% Spend more time with
family

Spend more time


planning meals Spend more time exploring
recipes

I want to do (do something fun, or relax, etc) VMLY&R Commerce Pathfinder (Jan 2023)

I need to do (other chores, etc) N = 2200

NOT ALL TIME IS CREATED EQUAL FOR ONLINE


GROCERY CONSUMERS, WITH HOURS AFTER WORK
BEING ESPECIALLY PROTECTED
32% 30%
It’s also worth noting that not all time is
created equal for online grocery
consumers. 9am to 5pm is ‘shopping
17%
time’ – the hours when most orders are
placed. 5pm to 9am is ‘me time’ – when 12%
9%
people want to make the most of the
time they got back.

6 AM - 9 AM 9 AM - 12 PM 12 PM -5 PM 5 PM - 8 PM After 8 PM

WPP Instacart VMLY&R Commerce 8


THERE IS NO
SHORTAGE OF
THINGS PEOPLE
WOULD DO WITH
THE TIME AND
ENERGY GIVEN
BACK WITH A MORE
CONVENIENT
SHOPPING TRIP.
Convenience doesn’t have to be solely about the
direct benefits of saving time and effort to get
products in consumers’ hands. We can tie
convenience back to the indirect benefits of what

ACTION

consumers can do more of. Online platforms and the
brands that sell through those indirect benefits can
play an empowering role in consumers’ lives by
REFRAME CONVENIENCE
 making a connection to the downstream benefits of
AS EMPOWERMENT greater convenience.

CASE STUDY: CONSUMERS GET This year, Michelob ULTRA teamed up with Instacart to run a
co-marketing campaign during the playoffs. This
THEIR PLAYOFF ESSENTIALS partnership included activations both on and off the
Instacart app to grab consumers attention and make
WITHOUT MISSING A SECOND Michelob ULTRA the drink of choice for the playoff season.

OF GAMEPLAY Michelob ULTRA marketing channels – including TV


commercials, OTT/CTV ads and paid social campaigns –
featured Instacart as the delivery partner of choice by
encouraging consumers to stock up on ULTRA. QR codes
and links seamlessly took viewers to a dedicated Michelob
ULTRA page on Instacart, where consumers could shop
game day favorites, including the brand’s Organic Seltzers
and Pure Gold Light Lagers, check out and get everything
delivered, without missing a single second of gameplay. 

On the Instacart App, Michelob ULTRA snagged the


exclusive beer sponsorship of Instacart’s Game Day Pop

Up campaign. This included being a key feature in
KEY RESULTS
Instacart’s marketing campaign creative shots, being front
and center on the homepage of the app, and being
Michelob ULTRA was:

featured on Instacart’s social and CRM channels. All of these


• The #1 beer on Instacart during the campaign

tactics drove consumers to a shoppable landing page


• #1 in new customer growth in category

where Michelob ULTRA got to curate a full collection of


• #1 in share growth in category during

game day favorites that users could shop from their favorite

the campaign
local retailers.

Creating connected, multi-channel campaigns on and off


the Instacart App helps brands bring together best-in-class
storytelling with the ability to get their products in
consumers hands in as fast as an hour.

WPP Instacart VMLY&R Commerce 10


CONVENIENCE
DOESN’T HAVE TO BE
SOLELY ABOUT SAVING
TIME AND EFFORT…

IT CAN PLAY AN
EMPOWERING ROLE IN
CONSUMERS’ LIVES.
GUIDE
DISCOVERY

IN THE

ENDLESS AISLE
Online retailers and platforms are deepening
relationships with consumers by turning grocery
shopping into personalized experiences built around

their needs and preferences. With new formats and
features, brands are enabling top-of-funnel inspiration
and discovery across online formats in the endless aisle.
Eighty-three percent of respondents stated it was ‘easy
to find new products to try.’ However, discovery doesn’t
always equal conversion — nor is it always meant to,
which is why marketers must invest in a full-funnel
approach to seamlessly and strategically guide
consumers from discovery to purchase.  

In another survey question, 61% of respondents agreed


that they tend to ‘buy what they bought last time’. So
how does a brand ensure they stand out if consumers are
more inclined to default to past purchases? Brands have
to not only earn consumers' attention, they have to keep
it long enough to win their preference.

WPP Instacart VMLY&R Commerce 12


INSIGHT: ATTENTION AS PREMIUM
Gaining attention and keeping it is easier said than done. Our world
is a kaleidoscope of stimuli with multiple messages competing for
our attention at any given time, including when shopping. As many
as eight in 10 respondents say they are multi-tasking while shopping
for groceries. So for brands that need to grow penetration and bring
more consumers into their fold, it’s important to know exactly which
ad products are best at targeting their precise goals. 

Equipped with this knowledge, brands must then leverage those


products strategically. For example, shoppable display ads on
Instacart can help meaningfully drive new to brand conversions for
Instacart’s brand partners. Marketers can use insights like these to
put together a thoughtful approach and evaluate if their objectives
align with the products they’ll use to better engage, connect and
convert consumers.

Marketers can also capitalize on the insight that 61% of consumers


say they ‘buy what they bought last time’ by deeply understanding
the targeting capabilities that different ad products offer.

Developing this understanding prevents brands from missing out on


crucial opportunities to capture, upsell or cross-sell repeat buyers,
or even go after new-to-brand buyers who may favor competitors
within that category. For example, by creating a “reach” campaign a
brand can harness the power of behavioral targeting to get in front
of new growth audiences, whether that is someone who hasn’t
purchased from that brand or brand’s category before, or has or
hasn’t purchased the brand’s products before.

We can also drill down into how people are shopping by category
to find that relevance. For example, in categories like feminine

care and childcare, respondents indicate a growing desire to

shop online, which tees up brands to invest in becoming more
discoverable and relevant. Working with platforms that are

investing in growing new verticals, and increasing discoverability

on center of store are optimal partners in growing basket size.

MULTI-TASKING EXACERBATES
ATTENTION GAP

81% 61%
MULTI-TASK I BOUGHT WHAT

WHILE SHOPPING I BOUGHT LAST
ONLINE TIME

VMLY&R Commerce Pathfinder (Jan 2023). N = 2200

WPP Instacart VMLY&R Commerce 13


THE GAP BETWEEN WANTING TO BUY ONLINE AND ACTUALLY
DOING IT POINTS TO FRICTION, ESPECIALLY FOR PERSONAL
CARE AND ALCOHOL
% of total users not currently buying category online but want to

Feminine care (tampons, pads, etc.) 21%


Child care (diapers, baby wipes, etc.) 18%
Alcohol 17%
Cosmetic products (hair styling, makeup, etc.) 14%
Over-the-counter (OTC) medication 13%
Pet Food 12%
Oral hygiene products 12%
Cleaning products 10%
Toiletries (shampoo, conditioner, etc.) 10%
Paper goods (paper towels, tissues, etc.) 9%
Soft drinks (soda, iced tea, etc.) 6%
Milk and dairy 2%
Fresh cut meats 1%

Take a look under the hood at the various products


in your arsenal, the objectives they hit and the
targeting capabilities they offer. Understand these
deeply so you can develop the most strategic and

ACTION thoughtful campaigns that are best set up to


capture busy consumers at the right time – from
discovery mode all the way to a repeat purchase.
COMBAT THE ATTENTION Whether adopting shoppable display ads or new
GAP WITH STRATEGIC video formats, a data-backed approach to the
online journey will help engage, connect and
TARGETING  convert consumers in the moments that matter.

PRO-TIPS
Instacart makes it easy for advertisers to set up campaigns based on their top
objectives. See the cheat sheet below to easily understand what Instacart offers:

Reach: Be seen by the consumers
 Engage: Get consumers to interact Maximize Sales: Get consumers to
you want
with your brand
purchase your products

• Products include display ads, • Products include shoppable • Sponsored product is the best
shoppable display ads and display ads and shoppable
 format for driving sales

shoppable video ads


video ads
• Targeting is automatically
• Targeting is based on
 • Targeting is keyword-based
determined by a machine
consumer behavior
learning model
 

Restrictions may apply. Please contact your Instacart representative for additional information.

WPP Instacart VMLY&R Commerce 14


BOTH THE DELIVERY BRAND,
AND HOW YOU DELIVER
YOUR MESSAGE MATTER

Brand matters when it comes to products but also counts with


the online delivery platform. Nearly eight in 10 (77%)
MULTI-TASKING
respondents say the delivery platform brand is important or EXACERBATES
very important. Even more (82%) say they like it when the
online ‘delivery brand recommends new products’ and 83% ATTENTION GAP
are open to even ‘more suggestions’ than they currently get. 

After choosing the right platform partner, you need to think


creatively to make your brand, products and message stand

82%
out. That means going beyond banners – look for platforms
that offer opportunities like shoppable ads off the site, live
streaming, conversational commerce, rich video and more. Or
collaborate on an entirely new format. We are in a new era of LIKE WHEN THE APP
creative commerce, where being transactionally efficient is RECOMMENDS PRODUCTS
not sufficient – brands must engage emotionally.

There are many ways to connect. Our research revealed that


empathy is a winning strategy and that, surprisingly, digital
done right can be highly personal.

INSIGHT: YOU DON’T


HAVE TO BE ‘IN-PERSON’
TO BE PERSONAL 
83%
ARE OPEN TO MORE
SUGGESTIONS ABOUT
About one in two respondents (46%) consider online to be more NEW PRODUCTS
personal than in-store, an extraordinary leap from the previous
year’s 26%. Growing familiarity with online shopping and
increasingly customized offerings underlie this shift and tell us
that brands via delivery platforms have permission to build
relationships with consumers. 

VMLY&R Commerce Pathfinder (Jan 2023)



N = 2200

WPP Instacart VMLY&R Commerce 15


ABOUT HALF

OF CONSUMERS
CONSIDER ONLINE
TO BE MORE
PERSONAL THAN
IN-STORE.
Go a step deeper than personalization. Don’t stop at serving consumers
the right product at the right time or even inspiring them with recipes
and lifestyle content. Cultivate a relationship that transcends products
ACTION and sees them as humans rather than consumers. Focus on not just
what they want to buy, but how they want to buy it and why. 

SURPRISE AND
Our research showed that inspiration and information are both possible
DELIGHT THROUGH and welcome online, so long as they are relevant. For instance, 83% of
‘HUMANIZATION’ respondents would be ‘open to more suggestions about new products’.

ONLINE GROCERY FORMAT CAN PROVIDE INSPIRATION AND


INFORMATION TO ENCOURAGE PRODUCT DISCOVERY
When it comes to shopping for groceries online, how
much do you agree with the following statements?
The site/app recommends new items to me 80%
I tend to browse the website to decide what to order 80%
I would be open to more suggestions about new products 79%
I can easily tell if an item fits my dietary preferences 78%
Items recommended to me are relevant to me 78%
I like when the site/app recommends products to me 78%
It is easy to find new products to try 76%
I consider coupons and deals heavily 73%
I read product reviews 73%
I multi-task (e.g. watch TV or listen to music) while shopping 72%
I put things in my cart over the course of several visits to the site/app 68%
I plan ahead of time before I open the site/app 68%
I buy items recommended to me by the site / app 68%
I am more likely to let my family help choose what to buy 67%
I sit down and put everything into my cart at once 63%
My household collaborates to choose what we buy 57%
I just buy what I bought last time 51%

PRO-TIPS
Shoppable display and video ads on Instacart are creative The add-to-cart functionality makes that inspiration
banners or videos that have “add-to-cart” functionality. The shoppable and allows marketers to curate the exact
creative content gives marketers the opportunity to tell a products the consumer needs to bring that moment to life.
story or deliver a message using something like lifestyle Consider harnessing the power of shoppable display and
photography or video so that consumers can imagine video ads to focus on not just what the consumer wants to
themselves enjoying those products in their own lives. buy, but how they want to buy it and why. 

WPP Instacart VMLY&R Commerce 17


CONCLUSION CONTACT

As volume shifts from in-store to online, we need to For more information about WPP’s strategic
find ways for brands to connect with consumers partnership with Instacart, please contact Doug
Chavez - VP, Global Strategic Partnerships, WPP
digitally as well as physically. Since consumers are
[email protected] 

open to input from online delivery platforms and


have a growing sense of online as personal, the
KEY CONTRIBUTORS:

channel becomes a vivid and emotive space for


Julianne Hudson, VMLY&R Commerce

your brands to reach your customers beyond ‘fast


and easy’. Brands who lean into this new reality of
Brian Owens, VMLY&R Commerce

convenience as empowerment will win sales and Jon Bird, VMLY&R Commerce

share no matter where they’re buying your Doug Chavez, WPP

products – online or off. Suzanne Skop, Instacart

Victoria Pollard, Instacart

BEYOND THE RESEARCH, We believe the future of grocery won’t be about


HOW CAN WE HELP? choosing between shopping online and in-store.
Most of us are going to do both. So we want to
bring the best of the online shopping experience to
WPP recognizes the critical importance of
physical stores, and vice versa.

partnerships in the marketing ecosystem.


That’s why we were the first agency network https://www.instacart.com/company/updates/
to establish a dedicated Strategic Partnerships introducing-connected-stores-making-shopping-
function, and it’s why today we have the most seamless/
developed and wide-ranging partnerships in
the industry. We launched our partnership with
Instacart in 2022 to accelerate expertise and
investment in online grocery and last-mile For more of our POV on in-store + online, read our
connected store blog. 
delivery for our joint clients. 

WPP Instacart VMLY&R Commerce 18

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