The New Digital Role in Shopping

Wednesday, Sept. 19, 2012

According to a new study by Ryan Partnership, branded shopping apps are the strongest driver behind unplanned purchases. Branded content on social networks drives people to try new products, and texts and social media are most likely to influence where people shop.
The study finds that consumer usage of digital tools to support shopping has grown tremendously in just 18 months. In 2010, usage of digital shopper tools was more limited to early adopters, while in 2012 the vast majority of shoppers have woven them into multiple points throughout their path to purchase. The RetailNet Group projects that this shift from analog to digitally-influenced shopping will continue for the foreseeable future.

Projected Influence of Digital Tools on Shopping Trips
Influence	2011	2016
Analog	54%	36%
Digitally influenced	38	53
Source: RetailNet Group, September 2012

“Digital retail,” in the study, is defined as the use of digital communications to engage shoppers along the path-to-purchase and drive incremental sales. Any marketing-related digital interaction that the shopper has in-store would be considered part of the digital retail universe.”
Shoppers' usage of digital retail tools, ranging from store websites and mobile coupons to daily deal sites and QR codes, has doubled or even tripled, depending on the tool, in the previous 18-month period. 96% of the survey respondents said they have used at least one digital shopping tool, with the majority using multiple tools.
The five most heavily used tools were:

• Store websites (64% of respondents)
• Downloadable coupons (61%)
• Search engines (51%)
• Retailer emails (53%)
• Brand websites (49%)

Additional tools mentioned include daily deal sites, brand social media, mobile coupons and shopping apps.

Digital Tools Used When Shopping Or Planning To Shop (% of Respondents)
Digital Tool	2012	2010
Store websites	64%	28%
Downloadable coupons	61	28
Search engines	59
Retailer Emails	53	25
Brand sites	49
Brand emails	47
Daily deal sites	37
Reviews/recommendations	36	12
Load to card coupons	28	10
Brand social media	26	12
Retail social media	23
Mobile coupons	18	5
Retailer texts	16	5
Shopping apps	14
QR codes	8
Source: RyanPartnership, September 2012

Kim Finnerty, VP, Consumer and Shopper Insights at Ryan, says "... usage of digital tools during the planning phase of shopping is... virtually ubiquitous..."
The survey of 8,000 primary household shoppers about their usage of various digital retail tools found that shoppers use different tools for different purposes, and which tools impact which behaviors.

• Social Media from retailers is the strongest driver of new brand and product trial. Brands launching new products should feature their new offerings not only in their own social media efforts, but in their retailers' as well.
• Shopping Apps and retailer tools are strongest drivers of unplanned purchasing.  It is important for the Brand to be a part of the retailer's digital tools as their traditional tools, opines the report.
• Texts Messages from Retailers and Brands are most likely to influence choice of where to shop.

Tool Impact on Product Trial (% of Respondents Who Bought Products/Brands Never Before Purchased)
Influence Tool	% Bought
QR codes/bar code readers	22%
Shopping apps	32
Retailer texts	21
Mobile coupons	19
Retailer social media	36
Brand social media	32
Load-to-card coupons	20
Reviews/recommendations	29
Daily deal sites	26
Brand emails	26
In-store brand sites	25
Pre-shop brand sites	29
Brand sites	19
Retailer emails	21
Search engines	16
Downloadable coupons	18
In-store retailer sites	15
Pre-shop retailer sites	17
Retailer sites	15
Source: RyanPartnership, September 2012

The study points to shopping apps and social media updates as the tools best poised for near-term growth, because they deliver the strongest combination of shopper utility (such measures as "makes shopping more fun," and "makes me feel like a smart shopper"), and behavioral impact ("I make more unplanned purchases," "I try products or brands I never bought before," "I spend more than I planned").
The impact of digital shopper experiences on the selection of a retailer was quite strong.  Interestingly, retailers’ own social media updates were the strongest driver of a shopper’s selection of a retailer. Although quantifiable ROI data can be challenging to come by, retailers’ recent efforts to scale up their social media following seem to be bearing fruit, notes the report.

Most Important Tools Influencing Retailer Choice
Tool	% of Respondents
Retailer social media	44%
Product reviews/recommendations	42
Pre-shop brand sites	42
Shopping apps	40
Pre-shop retailer sites	37
Retailer emails	37
Brand social media	36
Brand emails	34
Source: RyanPartnership, September 2012

Finnerty concludes that "... two years ago, early adopters were the only consumer segment using shopping apps and following retailers' updates on social media... Now, the vast majority of consumers are weaving these digital tools into their path to purchase,..".