‘Top-up shopping’: How changing shopper behaviour has been driving growth in discounters and the convenience channel
Over the past 4 years research shows that the 50 largest FMCG global companies have found recent growth more elusive, growing only 0.3 percent on average per year. By contrast, midsize companies have expanded sales by 3.8 percent and small companies by 10.2 percent. Once average players have upped their game and larger players are finding it much harder to differentiate themselves
However changing shopper behaviour has been driving growth in discounters and the convenience channel. British consumers are more demanding in their choices, and less inclined to buy large baskets in large stores on a weekly basis.
The Convenience sector is therefore showing continued healthy growth, but with 75% of stores being independents, the challenges of addressing this sector efficiently demand a rethink of priorities and resources:
- Creating loyalty with retailer customers who like to ‘shop around’ to get the best deals
- Presenting locally relevant sales propositions and growth plans
- Remaining front-of-mind with a target audience who tend to be digital ‘laggards’
- Maintaining healthy and productive supplier-customer relationships, even if route-to-market is indirect
Graham Ryan, leading CX Practitioner for the FMCG sector, comments “Customer journey mapping is a well-established discipline in understanding consumer journeys, but applying the technique to the B2B Convenience Retail Customer has already identified significant incremental growth opportunities. ‘Top up shopping’ in particular has seen recent growth which has had a direct impact on the convenience store sector. This is a critical area for FMCG organisations to understand the retailers’ journey from their perspective and to consequently deliver a better customer experience.”
CUSTOMER JOURNEY MAPPING: An enabling framework to identify sustainable growth
CGA’s Heartbeat® methodology has successfully identified both growth drivers as well as efficiency gains in this sector.
Identifying the gaps between customer expectation and current delivery is where we start. Based on that insight we work to define a blueprint for the future customer experience and how an organisation can allocate the most efficient use of omni-channel resource to deliver real performance improvement. CGA will also deliver real-time metrics for experience performance improvement which can be correlated with regular operational KPI’s to validate decision making.
Stage 1 – Identify the gaps between customer expectation and current delivery
Stage 2 – Use the insight to define a blueprint for the future customer experience
Stage 3 – Allocate the most efficient use of omni-channel resource to deliver real performance improvement
Stage 4 – Deliver real-time metrics to track experience performance improvement
Stage 5 – Use these metrics to correlate operational KPI’s to validate decision making
The most forward-looking FMCG organisations recognise that such data will help them better understand—and expand into—high-growth areas.
Need more information? Talk to our experienced FMCG team