The cost-of-living storm that we’ve all weathered over the past year looks set to continue as inflation levels remain sky high and purse strings continue to be tightened, all of which present a stubbornly challenging picture for grocery brands. There is, however, a ray of sunshine for brands, as this tough environment has made consumers more receptive than ever to change.

Our research shows that a whopping 75% of shoppers have altered their grocery shopping habits as a result of the cost-of-living crisis, with 33% of shoppers substituting their normal purchases with new brands. Consumers are more aware of what they’re putting in their baskets than ever before, presenting both a challenge and an opportunity for brands. Therefore, it really pays to invest in understanding and analysing the consumer psyche when it comes to their checkout decisions, writes Colin Horan, Strategic Partner, FMCG at Clear Channel UK.

How are consumers behaving?

Despite the rise of online and proliferation of alternative shopping methods, in-store remains king, with 91% of UK consumers choosing to purchase their groceries in-store. However, there are some distinct differences in how consumers behave when they shop in-store, versus online. Our research shows that real world shoppers are 3 times more likely to switch from their preferred brand, and 3.5 times more likely to make impulse purchases.

Compared to shopping online, which can often be a more functional process, we know that the supermarket environment puts shoppers under high cognitive load, as they are processing the myriad of information and choices they have to make. The average UK supermarkets contains a staggering 45,000 SKU’s, with shoppers whittling that down to a basket size of around 50 items per visit.

Once in-store consumers enjoy evaluating prices and promotions, whilst also perusing brands and products to discern quality. These distractions make them more likely to deviate from their shopping list and leads to a 2.5 times greater chance they will try a new brand.

How can brands stand out on the shelves? Faced with a slew of choices, consumers can sometimes find themselves overwhelmed. We’ve all experienced that feeling of paralysis when trying to decide exactly which brand of baked beans to buy, or what bottle of wine to choose when you’re entertaining friends. When in this situation, people tend to fall back on the familiar – they default to what they already know and trust. Knowing this, we can clearly see that that grocery brands need to start influencing the decision-making process before consumers even enter the store to occupy this place of trust and familiarity.

Out of Home (OOH) advertising has long-established itself as a powerful brand building channel for grocery brands. The beauty of OOH is in its ability to reach 97% of the UK, which enables brands to effectively connect with light category buyers across a multitude of consumer occasions. The commute to work, the weekend walk to the park, or the routine drive to the supermarket. But Out of Home can also act as a final reminder to consumers as they enter the supermarket, switching that brand light on to remain familiar in aisle and creating a fluent path to purchase.

Out-of-Home in action

Point of Sale (POS) Out of Home could be considered as one the original forms of Retail Media, but in its transition to a digital first channel, it’s able to deliver dynamic, data-driven messages that connect with shoppers in the most effective moments. At Clear Channel we’re continuing to evolve what Retail Media looks like in OOH, by developing an in-store digital screen network through our long-standing partnership with Sainsbury’s. Having a connected digital estate that spans the full funnel (broadcast reach, hyper-local and POS), it gives advertisers a unique opportunity to communicate a consistent message across the purchase journey.

To get the most out of each step of the Out of Home consumer journey, there are several important considerations:

1. Don’t forget the importance of reach. Out of Home’s superpower is in its ability to reach 97% of UK adults, giving you a platform to connect with light category buyers, and drive penetration.

2. Utilise the flexibility of Digital OOH. Digital OOH gives you total freedom to deliver data-driven messages in the right place and time. Aligning your brand with a particular category entry point or activating around your key sales occasions.

3. Use data to make your plan smarter. Planning in proximity to points of purchase is a proven method for driving action, but there’s now more sophisticated mobility data available to enable brands to find their audience in the real-world.

4. Close the loop with POS. Our recent study with retail experts Shoppercentric proved that POS Out of Home increases the fluency of decision-making at the shelf, and improved likelihood to purchase.

5. Create powerful posters. Optimising your creative for OOH will drive increased effectiveness and can double brand recall.

Although the outlook for consumers continues to be stormy, by understanding and investing in customer understanding it’s clear that the cost-of-living crisis can be an opportunity for grocery brands to build trust with their customers. By fostering familiarity with customers, through methods such as OOH, brands can continue to cash in on consumers’ increasing focus on what goes into their baskets.

 

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