Digital-in-store: how can FMCG brands use it to drive growth?

Digital instore

Consumers are becoming more omnichannel and expect a similar shopping experience in store as online: they want convenience, to save time, and to have more control over their spending. As retailers are transforming and digitalizing their stores to meet shoppers’ expectations, FMCG brands must adapt to these changes and to the shift in shopping habits.

These changes bring new opportunities: a wealth of data, interactivity, personalization, contextualization… So let’s take a look at the impact of all this on FMCG brands and the best practices for your marketing strategy.

From hypermarkets to convenience stores, find out more about how retailers are digitalizing their stores in France in this article.

Growth of digital in-store: what is the impact on FMCG brands?

Retailers reap a clear benefit from the development of digital in-store. But as major retailers change their practices, how does this affect strategies for FMCG brands? And what challenges await?

Quicker shopping and more budget control

Digital in-store affects the way consumers shop, and therefore the way they interact with brands.

First of all, in-store shopping is becoming faster. People who use Scan & Go regularly (40% of French people in 2020) cite saving time as the number one reason for using it according to the 2020 Harris Interactive & budgetbox survey.

They don’t waste time wandering up and down the aisles or queuing to check out anymore. The result? Impulse products are less visible: self-scanning users make half as many impulse purchases as people who use the traditional checkout.

They also seem to prefer Scan & Go to shop for essentials: 67% of users shop for essentials, while 52% use it to do a full shop.

Furthermore, the screen on the scanner or mobile phone tallies the products as users scan them, giving them better control over their budget: they can keep tabs on their spend as they shop and stick to their budget.

Consumers looking for targeted and personalized promotions

Modern-day consumers have different expectations compared traditional consumers, being more discerning and wanting personalization and immediacy.

Consumers are now omnichannel and expect personalized experiences, adapted to their needs and interests however they decide to shop. That’s what 63% of people surveyed in 2019 by The Harris Pool said, with personalized experiences now being seen as the norm. Faced with too many adverts, they no longer want to waste their time receiving messages or offers that don’t interest them.

Users influenced by promotions

Self-scanning users are also very keen on getting good deals: according to our study with Harris Interactive in 2020, 66% of them are actively looking for special offers (+19 pts vs. average French population).

This phenomenon influences their choice of both the products they buy and the stores which they visit to do their shopping.

These consumers also have very specific expectations regarding promotions. They are looking for special offers that are:

  • More responsable (43%)
  • More standardised (42% would like deals to be redeemable on all buying paths)
  • More personalised (40%)
  • More digital (33% are very interested)

For brands, it’s therefore increasingly important to adapt your campaigns to these new expectations and new shopping habits. How do you meet the challenges of digital shopping and take advantage of the growing business potential of digital consumers in store?

What best practices should FMCG brands implement?

Personalise the message using data

To exploit the growing potential of Scan & Go, first make sure you personalize and contextualize your messages. There’s a huge wealth of data available to brands: in addition to knowing what consumers have previously bought, brands also have access to real-time purchasing behavior. As a brand, this gives you a real opportunity to accurately define the profile and expectations of your consumers!

Use of all this data to your advantage to optimise how you communication with your different targets, tailoring your messaging to them to remain relevant.

Want to know more about the importance of data for your campaigns? Read our article about how to put data at the heart of your digital strategy.

Be interactive as well. Connect directly with consumers as they shop by displaying a relevant message on their mobile or scanner screen depending on the products they add to their shopping carts.

Think omnichannel

50% of French consumers are now omnichannel, i.e., they do their grocery shopping both online and in store. For 1 in 3 French people it’s now a monthly habit!

These consumers expect a standardised shopping experience regardless of the buying journey: in store or online. Make sure you offer your customers consistent communications across the different touch points to ensure maximum visibility.

Optimize your campaigns using KPIs

Make sure you measure your results in real time and optimize your campaigns. This is one of the big advantages of digital: by accurately tracking your key metrics, you can optimize your in-store digital campaigns to increase performance and control your ROI.