Consumers now engage even with offline categories on their smartphones
Facebook India and
Boston Consulting Group have released three new reports that delve into
COVID-19 induced changes in the consumer path-to-purchase across mobile phones,
apparel, and consumer packaged goods (CPG) categories. The reports are the
follow up to the ‘Turn The Tide’
report released last month.
A key takeaway from the
latest reports is that digital influence has increased significantly in urban
consumers - up to 70% for mobiles , 55%-60% for apparel, and up to 20-25% for
the non-food CPG categories.
There are three kinds of
consumer trends that we are witnessing that have made the smartphone even
more central to our lives – reversal of past trends such as bringing the
outside in-home through virtual experiences, acceleration of past trends
leading to stronger adoption of digital and online, and formation of new habits
such as DIY.
The findings were revealed
during a virtual event and panel discussion attended by several leaders of
India Inc, and saw businesses such as Samsung India ,
Mondelez India ,
and Big Bazaar, all of which have deep offline retail networks, throw light on
how they’ve leveraged digital in these times.
The reports
also points out that some of these trends are here to stay even beyond the
pandemic. 90% of consumers who have purchased apparel online during the
lockdown show willingness to continue. Within CPG, this figure is 80% for food
related sub-categories, and 84% for non-food related sub-categories.
Furthermore, the reports reveal that people intend to explore online channels a
lot more for purchasing smartphones, consumer packaged goods, and apparel in
the coming six months. For instance, 55% intend to increase online spends for
mobile phones in the next six months.
Three Steps Business Can Take Across The Funnel To
Build For The Increasing Digital Influence:
Leveraging the
cross-industry experience and consumer understanding of Boston Consulting Group
and Facebook India ,
the report also lays out recommendations for mobile, CPG and apparel businesses
to explore along the new path-to-purchase. Examples highlighted below.
Pre-Purchase:
o Create digital
experiences and influence to replicate in-person experiences: Due to
physical distancing, less number of people are likely to walk into a store,
experience the product, and make a consecutive purchase. Therefore, more
virtual experiences need to be built for the remote living reality.
Brand example: Recently
Samsung partnered with Facebook to train offline retailers to go digital in a
big way. In the first phase,
Samsung and Facebook have already trained more than 800 offline retailers, with
more training sessions lined up in the coming weeks. The training is focused on
enabling offline retailers build a digital presence through the Facebook family
of apps, making their business known locally, and building credibility among
the local population by setting-up their business pages and accounts on
Facebook, Instagram and WhatsApp. As a result, the offline retailers are likely
to witness a growth in their business as they discover more local consumers
online.
Purchase:
o Relook at media mix model urgently to build
efficiency in acquisition: As
businesses, and especially those with traditional product categories, start
spending more online, they would feel the urgent need to understand truly
incremental outcomes by platform as well as cross-platform efficiency. This
would increase the need for industry-leading digital measurement standards.
Brand
example: Cadbury 5 STAR ran Facebook and Instagram video ads in 2019, and
saw*:
o 2.6X
return on ad spend from Facebook as indexed to TV
o 1.8X
return on ad spend from Instagram as indexed to TV
o 5.8X
return on ad spend from short video ads on Facebook and Instagram
o 1.3X
higher return on ad spend from ads with upfront branding
*As per custom mix modelling (CMM) by
Nielsen
With the rise in demand for in-home
snacking during lockdown, Cadbury Chocolates leveraged their website to bring
consumer's favorite snacking brands right to their doorstep. Both Facebook and
Instagram were instrumental in getting the message across. Cadbury Chocolates
witnessed 1.2x return on investment as a result of this.
Post-Purchase
· Stay
connected with your consumer in times of physical distancing: In times of physical distancing, it’s essential to
stay in touch with the customer and continuously eliminate friction in the
path-to-purchase. Consequently, conversational marketing digital solutions
driven by WhatsApp, Facebook Messenger, and digital CRM tools can prove to be
very effective to engage the consumer with value-driven outreach
after the purchase has taken place.
Brand
example: With increased
digital adoption (recharges, bill payments etc.) amongst the telecom customers,
Vodafone Idea Limited (VIL) launched a WhatsApp chatbot to cater to consumer's
needs