27/07/2014 13:44 AST
There’s no denying the impact that digital connectivity is having on our daily routines. It’s changed how we watch video, keep tabs on our health—even the way we connect with our favorite World Cup players. And more recently, digital is starting to transform how consumers pony up cash for their everyday purchases. And for consumers using mobile payment technology, digital is already the norm. In fact, according to Nielsen’s Q2 2014 Mobile Wallet Report, 40 percent of mobile wallet users say they use mobile methods as their primary mode of payment.
So who are mobile payment users? Men and women are almost just as likely to use these digital services: 47 percent and 53 percent, respectively. Mobile users age 18-34 account for the majority of users (55 percent) and 35 percent are age 35-54. Interestingly, mobile payment users span all income levels, with the highest usage among those making less than $50,000 (32 percent) and more than $100,000 (29 percent).
When it comes to checkout, bar codes and quick response (QR) codes, which consumers simply display on their device so cashiers can scan them, are the most popular mobile payment methods among smartphone payers (45 percent). Thirty-seven percent of smartphone payers tap their device on a payment reader using near-field communication (NFC), such as Google Wallet or Isis. Twenty-nine percent of smartphone payers scan the bar code or QR code using the device’s camera.
Shoppers are more engaged than ever online. Since 2010, online consumer packaged good (CPG) sales in the US have grown 13 percent, reaching $25 billion this year and are expected to reach $32 billion in 2015. Online penetration reached 9.2 percent in 2013, growing 2.7 percent since 2012. However, the challenge for CPG is that shopping behavior is fragmenting quickly, and it’s difficult for manufacturers and retailers to know “what to do” because the facts are seemingly contradictory. For example, 68 percent of CPG shoppers do not engage digitally and 74 percent feel the grocery store is more convenient, yet Nielsen estimates that 60 percent of total retail sales in 2017 will be digitally influenced or sold. However, those statistics can vary by product type. Consumers often report shopping for certain items online, such as pet supplies, vitamins, cleaning products or frozen foods. But they report using traditional brick-and-mortar retail outlets for other goods. Consumers also say they shop in retail outlets for staples or for convenience but shop online for the variety.
Shoppers are already using a plethora or touch points before, during and after their shopping experiences, so it’s critical for marketers to engage and interact with them along the very same channels. And while digital covers touch points like smart phone apps, social media sites, email, text messages and store websites, brands can’t forget about physical experiences as well, such as in-store kiosks, mailers and newspaper circulars. To maximize the impact of your marketing efforts, reach out in a variety of ways to connect with the most consumers. Know who your consumer is and engage them with the appropriate communication vehicle.
Shoppers are in control, shifting in increasingly seamless ways across retail and research channels. They demand seamless, always on, personalized service. They demand dynamic and transparent platforms and they demand access to any category, on any device. The future of retail is truly borderless.
Saudi Gazette
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