Disrupting established brand behaviours by leveraging digital more often, using promotions and providing consumers with good experiences can provide a $20 billion sales opportunity in India, according to a new analysis by Nielsen, a leading global provider of information and insights into what consumers watch and buy.
“The share of the Indian wallet is highly influenced by factors in your direct control,” said Adrian Terron, executive director, Nielsen India. “In the fast-moving consumer goods (FMCG) space alone, 80 percent of shoppers will buy a different item than originally planned. Today’s shoppers are empowered by choice and refine their decisions based on marketplace disruptions. Knowing the factors that motivate shoppers to action will ensure you stand out.”
Nielsen’s analysis shows that more than half of shoppers, on average, across five industries reviewed (FMCG, movie, travel, automotive and loans), accessed the Internet as part of their pre-purchase decision-making process.
“While the percent of E-tailing as part of total retail sales is still nascent, its opportunity to influence opinions is high, and the gender gap is closing,” said Terron.
For example, Nielsen’s information shows that in FMCG, more online interactions equated to more than 50 percent less offline interactions. For online movie planning, TV and newspaper review incidence fell by more than 40 percent. Conversely, Internet pre-purchase activity incited greater personal and store-visit interactions in the travel, automotive and loan industries. For these high-ticket items, online activity elongated the decision-making process.
“Converting surfing to selling takes more than a strong brand,” said Terron. “Internet strategies need to be complemented with other forms of traditional media as part of the brand-building process since shoppers were more inclined to buy online when they knew the brand.”
According to Nielsen’s analysis, using promotions can influence $10 billion in sales. For FMCG products, promotions influenced 34 percent of shoppers to make a bigger purchase than planned, and four in 10 shopped for groceries earlier than anticipated. Across a variety of food categories, on average, more than half the shoppers purchased a different product than usual due to promotions.
“A good deal can prompt consumers to buy more, buy earlier and buy different than otherwise intended,” said Terron. “But promotions need to be used tactically and strategically to cause a disruption, such as creating the right deal at the wrong time by promoting when others are not. Tapping into consumers’ natural curiosity to experiment with new products and offering savings incentives can drive un-planned buying opportunities. Promotions also need to be offered on regular-use, low-differentiated items because consumers love to save to splurge. And promotions need to be timed to create consumption opportunities that make routine and festival purchasing patterns more exciting.”
Delight Consumes with Good Experiences
Nielsen’s analysis shows that providing consumers with a good experience can turn plans into purchases. For instance, positive staff interactions in the automotive sector prompted three-quarters (73 percent) of shoppers to change their initial purchase decision.
“Pleased patrons tell others,” said Terron. “This kind of brand advocacy prompts positive feelings extending far beyond the initial sale and often represented the life-blood of strong brands.”
According to Nielsen’s analysis, marketers should consider creating create offline social networks with satisfied shoppers. Satisfied shoppers were twice as likely to advocate for FMCG, movie and travel brands and five times more likely to support automotive brands.
“Continuing the conversation online by creating the same enjoyable experience for shoppers virally,” said Terron. “Elevate the experience from sales to servicing by being a trusted advisor, offering comparative advice during the sales process and easing the sometimes difficult product-upgrade process by helping customers understand the benefits. When it comes to quality connections, it’s about getting down to the basics—being friendly, approachable and never rushing to close the deal.”
Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence and mobile measurement. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA, and Diemen, the Netherlands. For more information, visit www.nielsen.com.